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| Rio Arriba lawyer reacts to withdrawn lawsuit
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Wednesday, July 30, 2008
The Albuquerque Journal North :
Journal Staff Writer
Phaedra Haywood | The New Mexican
7/29/2008 - 7/30/08
Oil developer drops lawsuit against Rio Arriba County
Approach to drop the suit against Rio Arriba County without prejudice.
The Durango Herald:
Commissioners propose drillers make known chemicals used
Revised gas and oil regulations recently released by La Plata County include a proposed provision that would require companies to disclose the chemicals they use to emergency-room workers treating a case of exposure.
To view La Plata County’s proposed gas and oil regulations, visit http://co.laplata.co.us and click the link “Chapter 90 Oil and Gas Code Revisions” or call 382-6260.
The rules go before the county’s Planning Commission at 6 p.m. Aug. 7 in the Anasazi Room at La Plata County Courthouse.
Public comments about the rules are being accepted through Friday by e-mail, wilsonkm@co.laplata.co.us , or mail, La Plata County Community Development Department, Attn: Oil & Gas Code Amendment, 1060 East Second Ave., Durango, CO 81301.
Questions have been raised recently about a hydraulic fracturing chemical used to bring gas to the surface after a nurse at Mercy Regional Medical Center required intensive care after being exposed to it while treating a patient.
Doctors treating nurse Cathy Behr were unable to obtain specific information about the chemical because the company using it said it was proprietary.
The provision is one of several alternatives related to chemicals being considered by the county. Another alternative would give the companies three days to disclose the information.
The revised regulations, which will go before the county's Planning Commission Aug. 7, have been in the works for two years and represent the first major overhaul the county has done on its gas and oil rules since they were enacted 20 years ago.
The changes include a new definition for a major facility, which requires a higher level of review, and contemplate giving neighboring landowners the right to appeal new wells. Now only surface owners can.
The revisions come just as the state is revamping its rules, which also could require companies to disclose the chemicals they use.
The state is expected to take final action on its rules later this month, as could the county. The similar timelines have raised concerns among industry officials who fear the two sets of rules may overlap or conflict.
County Manager Shawn Nau said the county's proposed rules address this by either mirroring the state's proposed regulations or by having the county's rules apply only where the state's don't.
"We've basically tried to use some creative drafting to solve the problem," he said.
La Plata County Planning Commission is expected to choose from among the various alternative provisions in making its recommendations to county commissioners, who will have the final say on the rules.
Public comments are being accepted until Friday.
ALBUQUERQUE -- "There's been a lot of talk recently about increasing U.S. domestic oil production, and one might think New Mexico — the sixth-highest oil-producing state in the nation — would be a candidate for helping fill the order. But for reasons ranging from a dearth of drill rigs to a lack of promising land, don't expect a flood of black gold out of the Land of Enchantment.Saturday, July 26, 2008
Albuquerque Journal North
| Posted at: 07/25/2008 12:48:05 PM |
| By: Eyewitness News 4 |
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| New aquifer discovered on West Mesa |
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The deep-water aquifer was discovered on land owned by Atrisco Oil and Gas just north of Interstate 40 between two volcanoes. An Atrisco spokesman says the water is trapped in a triangular fault block and could be as deep as 7,000 feet below the surface. Atrisco officials say the company will need to do more testing on the water before they’ll know if it is safe for human consumption. “We believe through our samples that we have the capability through a treatment process to commercialize this water and make it available to the Albuquerque community,” said Peter Sanchez of Atrisco Oil and Gas. The testing is expected to take at least two years and cost more than a million dollars to complete. This is the first deep-water project in the Albuquerque area. There are two more in the state: one near Ruidoso, the other in Sandoval County |
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The battle over where oil and gas companies can drill is heading to the courts.
The New Mexico Oil and Gas Association is preparing litigation to challenge Santa Fe County's authority to impose a moratorium on oil operations as part of an industry effort to clearly define the boundaries between state government authority and county jurisdiction, said association President Bob Gallagher.
Separately, Texas-based Approach Resources Inc. is already challenging, through the U.S. District Court in Santa Fe, a moratorium imposed by the Rio Arriba County Commission to block Approach's drilling plans near Tierra Amarilla.
"The litigation we're preparing regarding Santa Fe County will focus specifically on that county, but with the proper judgment, it will impact other counties like Rio Arriba by setting a legal precedent," Gallagher said. "We believe strongly that state law gives the authority to regulate the oil and gas industry solely to the state Oil Conservation Division and the Oil Conservation Commission. Moratoriums by counties should be pre-empted, because if every county were allowed to adopt their own separate rules and regulations, it would be mass confusion."
A favorable ruling by the courts in the association's litigation in Santa Fe or Approach's legal challenge in Rio Arriba will not automatically allow drilling activities in either place to go forward because of executive intervention in both counties.
Gov. Bill Richardson imposed a six-month moratorium last January on drilling in the Galisteo Basin southeast of Santa Fe. On July 18, he extended that moratorium to Jan. 24, 2009, to allow more time for state agencies to examine the potential local impact of oil operations.
In Rio Arriba, Richardson has not imposed a moratorium, but on July 21 he ordered the Oil Conservation Division to propose new rules for oil and gas activities in the county's eastern zones to protect water resources, human health and the environment where Approach is active, said division spokeswoman Jodi Porter.
"The governor has directed us to draft new rules in the regions around the Chama Watershed because it's more or less a wildcat area without a history of oil operations," Porter said.
Also, on July 18, the division canceled one of four drilling permits previously granted to Approach because further review showed the proposed well would be located in a wetland about 40 feet from surface water sources. The division suspended the other three permits as well and forwarded them on to the Oil Conservation Commission for review.
Curtis Henderson, executive vice president and general counsel for Approach, declined to comment on whether the state's actions will affect the company's litigation against Rio Arriba County, which in April imposed its own four-month moratorium on drilling to draw up a new local ordinance on oil and gas activities.
But Gallagher said the issue of county authority must be resolved despite executive action, especially in Santa Fe, where the county unilaterally declared a year-long moratorium on drilling in the Galisteo Basin independently from state government.
"The thought that a locally elected body can just take your livelihood away is scary, especially when there are tens of millions of dollars in expenses involved in projects," Gallagher said. "The law is very specific that cities and counties can take action to protect their water and waterways, but state statutes don't give them authority to impose moratoriums or regulate oil and gas activities."
Gallagher said a final draft of the Santa Fe litigation is now being prepared, although it's not clear which court the association will approach.
Apart from contesting the county's right to adopt a moratorium, the case will be joined by a local property owner with significant mineral rights to stop the county from "taking" his property rights away. Gallagher declined to name the owner, but said his inclusion greatly strengthens the case.
"I'm not sure any judge would ever rule that someone can take a property right away from someone," Gallagher said.
But county officials insist they have the right to impose rules and regulations to protect local communities from things like noise and air pollution.
"Local governments have authority over many issues that state statutes don't deal with, such as traffic, water contamination or industrial activities in residential areas," said Steve Kopelman, general counsel for the New Mexico Association of Counties. "Local government does have a role to play, and it's a very important one."
The Association of Counties filed an amicus brief in the Approach litigation to show that Rio Arriba and other counties do have authority over many local issues that affect oil and gas operations. The brief said the issue is of "critical importance" to every city and county in the state.
Santa Fe County spokesman Stephen Ulibarri said the amicus brief reflects his county's position in any litigation that might challenge Santa Fe's local authority. He said the county declared its moratorium in the Galisteo Basin to draw up a gross-management plan for the Basin that reflects broad input from local communities and industry experts on the best development plan for that area.
"We're looking at the big picture, not just an ordinance for the oil and gas industry," Ulibarri said.
Oil Conservation Division Director Mark Fesmire said a court ruling on the issue will help clarify state and local authority.
"I think there are some areas where the county can legitimately police oil activities, but where those boundaries lay will be settled when the case comes to court," Fesmire said. "Clearly, I have a different take than the Oil and Gas Association, but the right take is what the court comes up with."
krobinson-avila@bizjournals.com | 348-8302
All contents of this site © American City Business Journals Inc. All rights reserved.
| New Mexico Business Weekly - July 28, 2008 http://albuquerque.bizjournals.com/albuquerque/stories/2008/07/28/story2.html |
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Unity in New Mexico's oil and gas industry has fractured somewhat over new state rules on oil and gas pits.
The Independent Petroleum Association is appealing the rules in Santa Fe District Court. That action is supported by an industry committee of 16 large producers -- including ConocoPhillips and Occidental Petroleum Corp. -- which filed a separate but complementary appeal.
Nevertheless, the New Mexico Oil and Gas Association -- which in May praised the new regulations as an acceptable compromise between industry and government -- firmly opposes the litigation, said President Bob Gallagher.
"I was surprised and disappointed by the appeal," Gallagher said. "Maybe we can't term our compromise with the government 'good,' but I believe it was reasonable and something we could work with."
The state Oil Conservation Commission approved the pit rules in June, following more than a year of stakeholder discussion and public hearings organized by the Oil Conservation Division.
The rules obligate operators to use heavy-duty liners in all pits to protect against seepage of contaminated materials. It also prohibits pits that are too close to water wells, and it requires operators to haul much of the contaminated water, soil and other materials to permanent disposal sites.
Still, industry negotiated a number of key compromises, such as significantly raising toxicity standards to allow more waste to be buried on-site in deep trenches rather than being hauled away, Gallagher said.
"My recommendation to our members was to allow the rule to shake out in the field for a few months and then collectively address any concerns with the Oil Conservation Division," Gallagher said. "I believe the litigation serves to alienate the regulatory authorities and may damage the good work accomplished over a 10-month period."
Karin Foster, director of government affairs for the Independent Petroleum Association, said her group disagrees.
"Bob believes we can still resolve this problem through negotiations, but we believe it's time to appeal it in the courts," Foster said. "We represent a lot of the same companies in our membership, but our organizations have a difference of opinion on this issue."
Independent Petroleum Association President John Byrom said that the cost of complying with the rules is just too much for small independent operators.
"It will cost an additional $50,000 to $250,000 to comply for each new well drilled, and that doesn't include costs to retrofit existing wells," Byrom said. "We're not looking for a battle, but our view on this is different from the Oil and Gas Association. Small independent operators will have a very tough time complying."
In its appeal, the association argues that no economic impact study was done as required by the state Small Business Regulators Relief Act and no transitional provisions were included to ease the conversion from old to new standards.
But state officials dispute the association's cost estimates. During pit rule hearings, independent operators testified that the costs for compliance would range from $35,000 in shallow wells to $150,000 in deep wells, said Oil Conservation Division spokeswoman Jodi Porter.
"Their numbers are off," Porter said. "Our estimates come right from the transcripts of testimony by operators at the hearings."
Porter said it would be far more costly for operators to clean up contaminated sites.
Division Director Mark Fesmire said he believes the appeal will fail.
krobinson-avila@bizjournals.com | 348-8302
All contents of this site © American City Business Journals Inc. All rights reserved.
Some great pit pictures at Bluedaze, click here.
A unique region gets special treatment
"GALISTEO BASIN, NM — The Galisteo Basin has some things in common with the Upper Delaware Valley. It is a pristine area that attracts a lot of tourists. Being home to the Pueblo Indians, it has abundant historical significance. It has spectacular mountain views. As a sub-basin of the Rio Grande River, it is an important source of water for just about all of the 160,000 people living in Santa Fe County, the home of the state capital.
When a company called Tecton Energy purchased mineral rights of 65,000 acres in the basin last year and applied for gas drilling permits, the community took steps to protect their community.
An organization, called Drilling Santa Fe , was formed in June 2007 with the purpose of slowing or halting the drilling. One of the people who founded Drilling Santa Fe is Johnny Micou. He wrote in an email, “A critical factor that we, first, got the county commission and, then, the governor to recognize, is the need for comprehensive baseline studies of hydrology/hydrogeology, archaeology, air, etc. The reasons for the studies are generally two fold. Firstly, if drilling were to occur, then there would be baselines to demonstrate degradation and subsequent accountability. Secondly, the studies may reflect that any degradation would be too damaging, thus there would be red line areas (such as critical management areas) to not permit drilling.”
Through letter writing campaigns and petitions, the group persuaded county leaders and, eventually, the governor of New Mexico, Bill Richardson, to impose moratoriums on drilling in the basin.
On July 15, Richardson extended the six-month moratorium by another six months, and ordered many departments of the government to do studies to determine the impact of drilling and fracking on the area.
Rio Arriba drilling rules to be like Otero Mesa's (Podcast)
By: Bill Dupuy
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Santa Fe County has set up a webpage for the oil and natural gas drilling ordinance (click here). Also, there is a link in the right margin of the DSF website.
Albuquerque Journal North Staff Writer
7/21/2008 - 7/22/08
| I want to read and/or post comments on this story |  |  |
Governor Richardson News Release:
July 21 At Noon midday report (Podcast)
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"State regulators on Friday revoked a controversial oil drilling permit near the headwaters of Tierra Amarilla Creek along the scenic byway connecting T.A. and Tres Piedras.
Critics of the project responded by saying the Oil Conservation Division's reversal highlights the agency's inadequate process for evaluating drilling applications.
On its application, Fort Worth-based Approach Resources had stated that the proposed well site was 100 feet from groundwater and more than 1,000 feet from the nearest surface water. But during a Journal visit to the site — in an alpine meadow along U.S. 64 near the 10,507-foot summit overlooking the famed Brazos Cliffs — the ground was soggy and numerous springs and streams trickled nearby.
Experts for Rio Arriba County testified at an OCD hearing last month that Approach's drilling plans could endanger a vital source of New Mexico's surface waters.
"Everything is downhill all the way to Albuquerque," Rio Arriba County planning and zoning director Gabe Boyle said Friday.
Approach has said it plans to use a closed use system and truck waste off site.
OCD said in a news release Friday that the approval of the application "was based in part on representations from the operator" about the location of the well. However, OCD said the hearing "revealed that the proposed location is within a wetland and approximately 40 feet from surface water sources; therefore, the Oil Conservation Division cancelled the permit."
"I think it's a partial victory to be sure," said Rio Arriba County contract attorney Adan Trujillo, adding that OCD is largely forced to work on the honor system when it considers applications.
Trujillo represented the county in its request to OCD to revoke the permit for the "Woolley Family" site, as well as three others. On Friday, OCD suspended the three previously approved applications and referred them to the Oil Conservation Commission.
Six other applications had been pending. One of them — squeezed between T.A. Creek and an irrigation ditch — has been withdrawn by Approach. The other five applications were also referred to the commission Friday. The commission meets once a month and the Approach permits will be scheduled for the next available docket, OCD said.
Approach is proposing to drill within 90,000 acres near T.A. The county has responded to the proposal with a moratorium on new drilling as a way to buy time to update its drilling regulations.
Rio Arriba officials note that while thousands of wells currently operate on federal and tribal land in the western part of the county, drilling is virtually unheard of in the lush mountains in the eastern part. The mountains receive as much as 38 inches of precipitation annually and generate much of the stream flow that courses through the state.
Approach Resources has sued the county, challenging its authority to enact a moratorium and regulate the industry. Company officials could not be reached for comment Friday afternoon. Similar moratoriums have been enacted by Gov. Bill Richardson and Santa Fe County for drilling on the Galisteo Basin southeast of City Different. Richardson has not weighed in on the Rio Arriba debate.
OCD spokeswoman Jodi McGinnis Porter did not return calls for comment late Friday afternoon."
7/18/2008 - 7/19/08
New Mexico Energy Natural Resources Department News Release:
"SANTA FE, NM – The Oil Conservation Division today issued an Order of the Division in two related cases concerning drilling permits in Rio Arriba County. In one case, the Board of County Commissioners of Rio Arriba County challenged four permits issued to Approach Operating, LLC. In the second case, Approach Operating, LLC sought approval of six additional permits.
In the first case, the Order of the Division cancels one previously approved application for permit to drill issued to Approach Operating, LLC, and suspends three previously approved applications to drill, referring them to a hearing before the Oil Conservation Commission.
Approach Operating, LLC was issued a permit to drill a well named the Woolley Family LP #001, API No. 30-39-30397, on October 18, 2007, based in part on representations from the operator that the proposed location was more than 100 feet from ground water and more than 1,000 feet from the nearest surface water. Evidence at the recent hearing revealed that the proposed location is within a wetland and approximately 40 feet from surface water sources; therefore, the Oil Conservation Division cancelled the permit. The three other previously approved applications are suspended and referred to the Oil Conservation Commission.
In the second case, Approach Operating, LLC voluntarily withdrew an outstanding application to drill, a well named Benjamin Trujillo #001 and the division has dismissed it. The five remaining unprocessed applications, which have not yet been evaluated or approved, will also be referred to the Oil Conservation Commission for hearing.
The Oil Conservation Commission meets once a month and these hearings will be scheduled for the next available docket."
The Santa Fe New Mexican :
Tecton Energy president Bill Dirks said Wednesday that despite what New Mexico Oil and Gas Association president Bob Gallagher told The New Mexican earlier this week, his company never agreed to partner with the association on a lawsuit challenging state and county moratoriums on oil and gas drilling in the Galisteo Basin.
"We have always stated that we intended to explore our options," Dirks said in a statement Wednesday. "We have spent countless hours consulting with state and county officials, individuals in the Santa Fe area, industry groups including NMOGA, and attorneys in an honest attempt to determine how best to proceed. Tecton ultimately determined that the best course of action does not involve litigation at this time."
Asked about his statement that Tecton had originally agreed to participate in a legal challenge but later backed out, Gallagher said he may have used the wrong wording. "Proper wording should have been: We had worked with them for several months and had assumed that they would be part of it. But we respect (an) individual company's rights to make decisions that are right for that company."
DSF received many emails and comments about the Santa Fe County planning sessions this past week. For those who have not participated in similar type planning sessions, it was confusing and yet did not delve into some of the deeper issues. In addition, the planning sessions overall addressed the General Plan, the Galisteo Basin Area Plan, the Capital Improvement District, and the Oil and Gas Amendments to the Land Use Code, which added to the confusion for some. I had the benefit of attending the third workshop following Dr. Freilich’s talk that gave context to the third planning session. The previous planning sessions did not have the benefit of such context. On the other hand, there were those who were pleased with the planning sessions.
Our group identified the entire Galisteo Basin as a Critical Management Area (CMA) due to the hydrogeology, archaeology, air quality, wildlife corridor, view scapes, and so forth. The CMA would be an area that would not permit hardrock or oil & gas extractive activities. We took the development types key code and prohibited the last four, such as I = Industrial developments. It would be inconsistent and incompatible to conduct industrial developments in a CMA and in the fragile ecosystem of the Galisteo Basin. We identified other areas of the basin for certain types of developments, such as Agricultural/Ranching, Village Centers, etc.
Maybe future sessions would have better context? It would be helpful to have earlier notifications of the future sessions and a more detailed agenda so that the community would better understand what to expect.
Community participation is critical to the legitimacy of the process. About 90 attended the three sessions. Although there was overlap at Dr. Freilich’s talk, there were about 65 attendees. There needs to be more citizen participation. Ask yourself, do you have a 50 year vision for Santa Fe County? Do you want the government or Industry to choose the vision of Santa Fe County for you?
If you have suggestions about how to organize the County planning process or other input, please feel free to send an email to drillingsantafe@earthlink.net . Also, Planning Works has set up a website, http://www.ourplanningworks.com/santafe/ that has a Comment Center. Remember, democracy is not a spectator sport.
Albuquerque Journal North
Wednesday, July 16, 2008
Journal Staff Writer
7/15/2008 - 7/16/08
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A new potential source of water for the Albuquerque metro has been discovered under the West Mesa. 
