By nmaljtk © 2009 The Associated Press
Feb. 11, 2009, 12:48PM
"SANTA FE, N.M. — A Houston-based oil and gas company is no longer planning to drill in the Galisteo Basin, citing the national economy and toughened state and county drilling regulations.
Tecton Energy chief executive Bill Dirks said Tuesday the company is selling its mineral leases "if we get a buyer."
The decision was welcomed by drilling opponents. Johnny Micou of Drilling Santa Fe said Tecton never should have entered the basin because the limited resources didn't justify the company's plans.
Tecton was met by a groundswell of opposition when it announced plans in 2007 to explore within the Galisteo Basin, where little oil and gas had been found before. The area is southeast of Santa Fe.
The Santa Fe County Commission responded by passing one of the nation's toughest drilling laws, while the state Oil Conservation Division is also working on special rules meant to protect the basin.
"It's virtually impossible to permit a well in there right now," Dirks said.
He said if drilling rules were firmed up in the near future, he'd still like to explore but that seems unlikely. With investors seeking to recover money in Tecton projects across the country, the company wants to cut its losses.
Earlier attempts to turn a profit in the Galisteo Basin were hampered by a sour economy during the 1980s. The basin produced a modest amount of oil but interest went away when prices collapsed." Article>>>>
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