Wednesday, September 30, 2009

Santa Fe Opera and College of Santa Fe Mineral Rights Value


(criculated poster emailed to DSF)

According to SFReeper.com, "...SFR has learned that, in 1999, the total mineral rights left to CSF (College of Santa Fe) and SFO (Santa Fe Opera) were worth just short of $30,000.

The CSF’s share was 75 percent: 50 percent for the CSF tennis program (in 1999, $15,000), 25 percent for CSF pianist scholarships (in 1999, $7,500), and 25 percent for the Opera’s apprentice program (another $7,500). The will only mentions specifically these investments; the mineral rights seemed to be tacked on later as an afterthought."

Yet, according to the SFO statement this past Friday, "We had no recourse other than to sell or lease these rights in order to maximize their benefit to the Opera and to meet the organization's fiduciary obligations;" however, the SFO lease has the standard, minimum royalty percentage.

According to the Albuquerque Journal North, "MacKay said the donor of the mineral rights stipulated that the bequest be used to support the opera's apprentice programs." So, the SFO apprentice program evidently has $1.5 million budget and the SFO Mora and San Miguel minerals rights referenced are worth $7,500? Does the SFO expect Mora and San Miguel Counties to become a highly producing hydrocarbon zone?

In a KSFR interview, "(t)he Santa Fe Opera's general director says they "had no choice" in the question of whether to lease out or sell the mineral rights that were donated to the Opera." Really?

Circulated Santa Fe Opera Poster


A Santa Fe Opera poster emailed to Trapanare (Drilling) Santa Fe beginning to circulate:

See post:

Trapanare (Drilling) Santa Fe: Traitorous Libretto



Trapanare (Drilling) Santa Fe: Traitorous Libretto


"Coal-bed methane extraction sure does make a beautiful backdrop for an opera."

Santa Fe Reporter

Zane's World

By: Zane Fischer 09/30/2009

"Think you own your property? Think again. The tricky “split estate” law has been screwing New Mexico and the rest of the West since its inception. The purchase of land that includes water and mineral rights is rare indeed in these parts—usually those rights have been sold off long before the present-day owners bought their so-called property.

Most people don’t realize they only own the surface of their land; what lurks beneath is the property of others to do with as they please.

A split estate is the legal—oh how should we put it?—or bullshit term for delineating land divided between a surface estate and a mineral estate. And, yeah, that’s most land in New Mexico.

The kicker? Mineral estates generally take legal precedence over surface estates. In other words, let’s say you own a couple of acres: You worked your ass off to buy the plot and, luckily, you’re still able to work your ass off to keep up with the mortgage. It’s a bitch, but at least you’re building equity and you know the ground you sleep on is home to you and yours, and no one can take that away from you as long as you hold up your end of the bargain.

Unless, of course, the owner of the mineral rights decides to roll up and start extracting helium or coal-bed methane or any number of other bits of nasty, polluting, water-table-depleting sorts of stuff in the ground that might be traded for cold, hard cash. The actual ground can’t be taken from you, but the earth below can be pillaged, and the equipment required for the rape can be erected outside your front door.

To put a finer point on this, take the case of the Santa Fe Opera (as first reported Sept. 24 by SFR on SFReeper.com, with several updates since)." More>>>>

See posts:

Santa Fe Opera Leases Land For Oil & Gas Exploration


Santa Fe Opera leasing minerals for oil and gas exploration?




Tuesday, September 29, 2009

Letters to the Santa Fe Opera from Mora and Santa Fe County Residents Regarding the Opera Oil and Gas Lease

Some great citizens letters sent to the Santa Fe Opera (link>>>>)

See posts below:

Opera Shares Mineral Rights

Albuquerque Journal North

Tuesday, September 29, 2009

By Polly Summar
Journal Staff Writer

"The Santa Fe Opera, which signed a lease allowing oil and gas drilling on land in Mora and San Miguel Counties last April, shares the mineral rights to the land with the College of Santa Fe, opera general director Charles MacKay said Monday.

Under the terms of the lease, the opera will get a quarter of royalties on production, while the College of Santa Fe would get three quarters, MacKay said.

Philanthropist Rosemarie Shellaberger — a familiar name in Santa Fe because she funded the Shellaberger Tennis Center at CSF — left the mineral rights to the opera, CSF and the Vandegrift family and trust, MacKay said.

A mineral interest deed filed in San Miguel County in 2002 indicates mineral rights donated by the Shellaberger estate were divided 75-25 between CSF and the opera

A mineral rights lease allowing drilling on 27,000 acres north of Las Vegas, N.M., that became public last week was signed by the opera's McKay.

MacKay, who joined the opera in October 2008, said the opera was approached by Scott Hall, an attorney representing J Bar Cane, a petroleum land management firm based in Stanley.

J Bar Cane is owned by John M. Richardson, who said last week he bought the leases for a client whose name he can't reveal.

David Chase, who in the past headed the board of directors for the private CSF before it closed this summer and was sold to the city of Santa Fe, said he was aware the college had the mineral rights, but he wasn't aware of the mineral rights being leased." More (subscription required)>>>>

See related post:

Shellaberger deeded mineral interests to Santa Fe Opera and College of Santa Fe

Monday, September 28, 2009

Shellaberger deeded mineral interests to Santa Fe Opera and College of Santa Fe

"In 2002, the rights were deeded to the Opera and CSF as part of the last will and testament of Rosemarie Shellaberger. SFR has not yet seen a copy of CSF’s portion of the lease." SFReeper.com

Who is Rosemarie Shellaberger? One clue would be that the College of Santa Fe has the Rosemarie Shellaberger Tennis Center.

"The Rosemarie Shellaberger Tennis Center is located on the grounds of the College of Santa Fe in beautiful Santa Fe, New Mexico. The center opened in November of 2002 and was awarded the U.S.T.A Outstanding Tennis Facility Award in 2003. With six indoor Rebound Ace™ courts, a stadium court (also Rebound Ace), and seven outdoor courts, the Rosemarie Shellaberger Tennis Center is Santa Fe's premier tennis facility." Tennis Santa Fe

Then, about a month later on December 6, 2002, according to San Miguel County records, Patricia A Baca, Personal Representative of Estate of Rosemarie Shellaberger, through a Mineral Interest Deed of Personal Representative, deeded undivided mineral interests to The Santa Fe Opera Foundation (25%) and to the College of Santa Fe (75%). The deeded mineral interests described in the Exhibit "A" include all of the mineral interests described in the Santa Fe Opera Lease Exhibit "A" signed April 15, 2009 (Link 88MG). However, not all of the Shellaberger mineral interests were leased to the Santa Fe Opera, according to the lease and the deed. The deed was filed in Mora County on December 12, 2002 and in San Miguel County on December 27, 2002. According to the deed, the "mineral interests were reserved by Walter B. Shellaberger and Harry G. Zimmerman, as Trustees."

The College of Santa Fe had become a financially troubled institution. As a consequence, on March 24, 2009, Governor Bill Richardson signed an Executive Order to create a College of Santa Fe Task Force. The order begins, "Governor Bill Richardson today signed an executive order creating the College of Santa Fe Task Force during a visit to the campus. The Task Force will explore all options to save the financially troubled private college and report back to Governor Richardson by April 30, 2009."

The current status of the College of Santa Fe, according to KOB.com, is that "(t)he private college appeared destined for closure at the end of the spring semester, but the city of Santa Fe and Baltimore-based Laureate Education Inc. reached an agreement that ensured the school's doors would remain open.

The City Council agreed to incur up to $30 million in debt to buy the campus. The city is leasing the property to Laureate Education, which will pay about $2.35 million a year to lease 61 acres and facilities."

See related post:

College of Santa Fe (CSF) Also Involved in Opera Drilling Deal




Texas Partnership leases 31,199 in San Miguel County filed on the same day as the Santa Fe Opera

On the same day (August 18, 2009) the Santa Fe Opera mineral lease with J Bar Cane, Inc. was filed in Mora and San Miguel Counties, another mineral owner's lease with J Bar Cane consisting of 31,199 acres was filed in San Miguel County. The lessor is a Texas General Partnership, Holt Brothers, whose address is in Gruver, TX.

See related posts.

College of Santa Fe (CSF) Also Involved in Opera Drilling Deal

SFReeper.com

28 Sep, 2009

Posted by: Maassive In: News

"The College of Santa Fe is set to profit three times as much as the Santa Fe Opera in a recent mineral rights deal in Mora and San Miguel Counties, SFR has learned.

Last week, a document emerged showing that the Santa Fe Opera had signed on to an agreement leasing nearly 27,000 acres worth of mineral rights to the energy exploration company, J Bar Cane. According to the Opera’s General Director Charles MacKay, the Opera holds only 25 percent of the rights, while the College of Santa Fe holds 75 percent.

This is confirmed by a deed filed with the San Miguel County Clerk’s office. In 2002, the rights were deeded to the Opera and CSF as part of the last will and testament of Rosemarie Shellaberger. SFR has not yet seen a copy of CSF’s portion of the lease." More>>>>

Sources have indicated to Drilling Santa Fe that the natural gas "play" or the targeted area extends from the Tucumcari Basin to the Las Vegas Basin, which includes the counties of Quay, Guadalupe, San Migeul, and Mora (see An Overview of the Tucumcari Basin), which could generate hundreds of millions of dollars in gross revenues. However, the wells drilled in previous years in the counties of Mora and San Miguel have only produced "dry holes."


Opera: "No choice but to lease mineral rights" (Podcast)

(2009-09-28)
(KSFR) - -- The Santa Fe Opera's general director says they "had no choice" in the question of whether to lease out or sell the mineral rights that were donated to the Opera.

Charles McKay says the Opera had a responsibility to "do something" to get value from the donation of some of the mineral rights beneath more than 26,000 acres of land in Mora and San Miguel Counties. McKay also says the Opera owned only 1/5th of the mineral leases under any particular acre. Another nonprofit owned the other 4/5ths. McKay was not asked whether the other nonprofit compelled the Opera to sell its smaller share.

The donor made the contribution to support the Opera's apprenticeship program for young opera singers.

Leasing the mineral rights has raised questions among Santa Feans who have been against oil and gas drilling in their backyards.

McKay told KSFR that the Opera could have had different options if it owned the land itself. But since only a portion of the leases were in the Opera's portfolio, the options narrowed.

© Copyright 2009, KSFR"

Link>>>>

Sunday, September 27, 2009

Las Vegas Peace & Justice Center: Santa Fe Opera Oil & Gas Community Letter

Below is a letter from the Las Vegas Peace & Justice Center to the community-at-large regarding the Santa Fe Opera leasing minerals in San Miguel and Mora Counties for oil and gas exploration and development:

Las Vegas Peace & Justice Center
719 Sixth Street, Las Vegas, NEW MEXICO 87701
(505) 425-3840 lvpeacecenter@desertgate.com
http://lvpeacecenter.org/

26 September 2009

Friends,

You may have heard that the Santa Fe Opera Company, Grantor Charles MacKay, recently signed an oil and gas lease with J Bar Kane, Inc. for mineral rights (to drill for oil, gas, helium, etc.) in this part of the Las Vegas Basin. This is all too true. See "Exhibit A" (88MG) on the back of this letter. The lease encompasses nearly 27,000 acres, covering the Sapello / Hwy. 518 area, directly north of Las Vegas, in San Miguel County, and extends into Mora County as well. This area is part of the groundwater recharge area of the Las Vegas Basin.

We have been told that the land targeted for drilling (for this particular lease, and unfortunately there are others) is between Highway 518 at Sapello and Interstate 25 at Watrous. It is in the vicinity of ("little") Los Alamos and Emplazado. It is near Lake Isabelle. It is in both San Miguel and Mora Counties. The lease was signed on April 20th, 2009 and officially entered into the county record on August 18th, 2009.

The Santa Fe Opera does not own the land itself, but rather the mineral rights under that land. This is the concept of "split estate," whereby you can own your land, but if you don't also own your mineral rights, oil and gas drilling can be done on your property. (For more information about this, go to http://www.SplitEstate.com/)

The Las Vegas Basin encompasses all of Mora County, much of San Miguel County, and part of Colfax County. The portion of the Las Vegas Basin that runs along Highway 518 just north of Las Vegas and into Mora is part of our groundwater recharge zone for the whole Las Vegas Basin. And that recharge zone continues north, along the eastern slopes of the Sangre de Cristo Mountains. This part of the mountains provides the source waters for the Gallinas River, Mora River, Ocate Creek, Coyote Creek, Sapelló River, Gallinas River, and more. This whole area is at risk of environmental devastation by the oil and gas drilling industry, which is exempt from the Clean Air Act, the Clean Water Act, the Safe Drinking Water Act, The Community Right to Know Act, and others (http://www.earthworksaction.org/ and http://www.ogap.org/).

Many of the waterways that could be affected by oil and gas drilling hold the sacred acequia system in place, a long-held tradition and life-blood of the communities of this area. We need to protect the Las Vegas Basin. Santa Fe's recent ordinance for protecting their county from the environmental devastation of the oil and gas industry can be found at: http://drillingsantafe.blogspot.com/ and at www.drillingmoracounty.blogspot.com/. To listen to Community Peace Radio shows on this topic, go to: http://lvpeacecenter.org/ and click on "radiocasts."

Do what you can. Call (505-986-5955) or email (director@santafeopera.org) the Santa Fe Opera. Call our County Commissioners (505-425-9333) and ask for their help in passing a protective ordinance similar to Santa Fe County's (http://drillingsantafe.blogspot.com/).

Thank you! -- Pat Leahan, Co-Director, Las Vegas Peace & Justice Center

Link to letter>>>>

Related posts:

Opera: Finances Led to Drilling


Recourse for mineral rights owners?


SF Reeper: SF Opera Statement On Leasing Rights to Driller: No other recourse, director says.


Shell reportedly eviscerates Mora County Land Use Plan


Santa Fe KSFR: What does Santa Fe Opera get out of oil/gas leasing deal? (Podcast)


Who has more say in Mora County? Citizens or Shell?


Santa Fe Opera Leases Land For Oil & Gas Exploration


Santa Fe Opera leasing minerals for oil and gas exploration?


Saturday, September 26, 2009

Opera: Finances Led to Drilling

Albuquerque Journal North

Saturday, September 26, 2009

By Polly Summar
Journal Staff Writer

"The Santa Fe Opera's general director says financial obligations led the opera to lease mineral rights it owns on land north of Las Vegas, N.M., for oil and gas drilling.

Opera general director Charles MacKay signed a lease between the opera and J Bar Cane, Inc., in April, giving the company permission to drill on more than 26,000 acres in Mora and San Miguel counties. It was filed in Mora County last month.

"We had no recourse other than to sell or lease these rights in order to maximize their benefit to the Opera and to meet the organization's fiduciary obligations," MacKay said in a statement issued Friday.

MacKay said the opera received a bequest from a long-time donor in December 2002 that included a share in the mineral rights for the land. "We do not own the property itself, just a portion of the mineral rights," MacKay said in the statement.

John M. Richardson, who owns J Bar Cane, a petroleum land management firm based in Stanley, said Friday his company assembles drilling prospects for other companies. "We bought those leases for a client," said Richardson, adding that he can't reveal the client's name.

"As far as I know, they (the client) don't have any plans to do anything soon or we would have been involved to lay the groundwork for drilling locations," Richardson said.

Drilling plans in Santa Fe, Rio Arriba and Mora counties have provoked intense opposition in recent years over environmental concerns. The news that the opera had leased rights for drilling — first posted on the Internet on Thursday by the anti-drilling groups Drilling Santa Fe and Drilling Mora County — provoked quick reaction. "

Johnny Micou with Drilling Santa Fe said Friday he'd received dozens of e-mails from people who are "appalled."

"Here we were with this huge public outcry (against drilling in the Galisteo Basin south of Santa Fe over the past two years) and then the Santa Fe Opera turns around and goes to a poor county and leases nearly 27,000 acres for mineral exploration and development," Micou said.

Micou said many who've e-mailed Drilling Santa Fe and who support or attend the opera "are saying they're going to boycott the opera."

He said there were no clauses in the lease agreement signed between the opera and J Bar Cane providing any environmental protections or restrictions on drilling methods.

Kathleen Dudley with Drilling Mora County, asked: "Why would an arts company, a revered company, knowingly sign leases that would degrade an agricultural county?"

Dudley said if MacKay had agreed to similar terms in Santa Fe County, "he would have been tarred and feathered." More(subscription required)>>>>

Related Albuquerue Journal North article:

Opera Leases to Drillers

Journal Staff Report

"The Santa Fe Opera has leased more than 26,000 acres of land it owns in Mora and San Miguel counties for oil and gas drilling.

The lease between the opera and J Bar Cane, a New Mexico company listing a Stanley address, was signed in April but wasn't filed with the Mora County Clerk until Aug. 31.

The lease calls for the company, J Bar Cane, to make royalty payments to the opera equal to an eighth of the proceeds from oil and gas production on the land.

A Santa Fe Opera spokesperson said Thursday that no one was available who could comment on the lease. The anti-drilling groups Drilling Santa Fe has posted a copy of the lease documents on its Web site.

New oil and gas leases and applications for drilling permits have been controversial in several northern New Mexico counties in recent years. Santa Fe County imposed a moratorium on drilling in the Galisteo Basin before adopting a tough new drilling ordinance last year." More (subscription required)>>>>

See related post:

Recourse for mineral rights owners?

Friday, September 25, 2009

Recourse for mineral rights owners?

From a previous post about the Santa Fe Opera statement leasing of minerals in Mora and San Miguel Counties: "Statement Summary: An unnamed donor gave the mineral rights to the Opera. The money goes to funding the apprentice program for young singers. The Opera needed the money and it believes it is legally obligated to make as much money as it can off with the mineral rights. The Opera stops short of calling itself “green,” but does point to its environmental record."

And further, "...we had no recourse other than to sell or lease these rights, in order to maximize their benefit to the Opera and to meet the organization’s fiduciary obligations." More>>>>

Please note the Santa Fe New Mexican article by Staci Matlock, "State can force mineral rights owners to allow drilling," 2/16/2008, with selected quotes below:

..."the company pays a royalty on any oil and gas extracted, usually one-eighth of the revenues from what is produced, Fesmire said. Mineral rights owners can negotiate for higher royalties. " Yet, according to the Santa Fe Opera lease (88MB), "the royalty shall be one-eighth."

...."If a company hits a dry hole, it loses all the money invested in the drilling. If it finds hydrocarbons, it begins paying the royalty to mineral rights owners who signed leases up front. But people who were forced into the lease do not begin receiving royalties until the company has recouped drilling costs, plus up to 200 percent more, Fesmire said." -- Plus up to 200 percent more.

Furthermore, "The OCD has to approve a company's request for forced pooling and forced unitization. Mineral rights owners can protest to the state. " So, there is recourse.

Related post back in September of 2008:

0il and gas leases sold in Mora County

SF Reeper: SF Opera Statement On Leasing Rights to Driller: No other recourse, director says.

SFReeper.com

25 Sep, 2009
Posted by: Maassive In: News

"Statement Summary: An unnamed donor gave the mineral rights to the Opera. The money goes to funding the apprentice program for young singers. The Opera needed the money and it believes it is legally obligated to make as much money as it can off with the mineral rights. The Opera stops short of calling itself “green,” but does point to its environmental record." More>>>>

Drilling Santa Fe -- drillingsantafe@earthlink.net -- has received many emails about the Santa Fe Opera leasing of minerals. Some have already sent emails to the opera general director -- director@santafeopera.org. After the public outcry in Santa Fe County over the possibility of oil and gas drilling in the Galisteo Basin and Santa Fe County, how can the Santa Fe Opera lease mineral rights for oil and gas drilling in neighboring counties? What about the adverse impacts it does to these other areas?

Related posts:

Santa Fe Opera Leases Land For Oil & Gas Exploration


Santa Fe KSFR: What does Santa Fe Opera get out of oil/gas leasing deal? (Podcast)


Shell reportedly eviscerates Mora County Land Use Plan

Royal Dutch Shell, a multinational headquartered in The Netherlands, reportedly eviscerates the Mora County Comprehensive Land Use Plan (CLUP) draft. Link>>>> (2MB)

See related post:

Who has more say in Mora County? Citizens or Shell?

Santa Fe KSFR: What does Santa Fe Opera get out of oil/gas leasing deal? (Podcast)

(KSFR) -
-- Friends and fans of the Santa Fe Opera have already begun to react to the news that the Opera has leased out the mineral rights beneath more than 26,000 acres of land it owns in Mora and San Miguel Counties.

The lease arrangement, revealed in court documents obtained by two watchdog groups -- Drilling Mora County and Drilling Santa Fe -- shows the Opera would receive a one-eighth cut of any revenue from production, if it occurs.

We talk with Johnny Micou of Drilling Santa Fe to ask, is that is a lot? Officials of the Opera were not available to comment on the transaction.

Audio at
http://www.publicbroadcasting.net/ksfr/news.newsmain?action=article&ARTICLE_ID=1558948


© Copyright 2009, KSFR

PUBLIC OUTREACH SET FOR SUSTAINABLE LAND DEVELOPMENT PLAN


PUBLIC OUTREACH SET FOR SUSTAINABLE LAND DEVELOPMENT PLAN

Santa Fe – September 25, 2009 – The public outreach and study session schedule for the Santa Fe County Sustainable Land Development Plan (SLDP) draft is now available (see below). The first draft of the SLDP will be discussed on October 1st at 6:00 p.m. during a County Development Review Committee (CDRC) Public Hearing.

Santa Fe County Sustainable Land Development Plan: Public Input Study Sessions

§ October 1 – County Development Review Committee (CDRC) Public Hearing - 6:00 PM – County Commission Chambers – Roll-out and Presentation of SLDP Draft

§ October 13Public Input Study Session - 6:00 PM - Pablo Roybal Multi-Purpose Facility - 1574 State Road 502, Pojoaque

§ October 14 - Public Input Study Session - 6:00 PM - Santa Fe Community College Board Room - 6401 Richards Avenue

§ October 19 - Public Input Study Session - 6:00 PM - Edgewood Senior Center - 114 Quail Trail

§ October 20 - Public Input Study Session - 6:00 PM - Galisteo Community Center - 35 Avenida Vieja, Galisteo

§ November 12 - CDRC Public Hearing - 6:00 PM – County Commission Chambers

§ December 3 - CDRC Public Hearing - 6:00 PM – County Commission Chambers

For more detailed information please see the attached flyer. For more information on the Sustainable Development Plan and process, please call 986-6215 or go the County website at www.santafecounty.org and click on the “Sustainable Land Development Plan” button.

The County desires sustainable future development that meets the needs of existing residents without compromising the future. The County is committed to providing the appropriate governmental resources to implement a unified, Countywide, growth management strategy.

# # #

Who has more say in Mora County? Citizens or Shell?

Some time back, Mora County contracted with sites southwest to work on the Mora County Comprehensive Land Use Plan (CLUP). According to the Drilling Mora County blog, Royal Dutch Shell, a multinational headquartered in The Netherlands, presented (to the Mora County Board of County Commissionoers) an 80 page revision to the CLUP for inclusion as "public comments." Yet, for the citizens of Mora County, "the tape recorder malfunctioned and no recording of the testimony is available either for public record or inclusion in the revised document (CLUP)." This begs the question, will the citizens of Mora County be heard?

Shell also sent a cover letter to Mora County including the following caution, "We would suggest that the better role for the County would be to develop strong relationships with existing state and federal agencies instead of imposing additional unnecessary burdens on the County which, if not implemented, could expose the County to potential liability. The Plan should allow Mora County representatives the flexibility to exercise the appropriate level of involvement in the numerous technical and legal concerns and issues and prioritize their efforts." Letter>>>>

Maybe instead, Mora County should adopt an oil and gas ordinance similar to the Santa Fe County Ordinance? Santa Fe County oil and gas webpage>>>>

Thursday, September 24, 2009

Santa Fe Opera Leases Land For Oil & Gas Exploration

SFReepercom

Posted by: Maassive In: News

"Great scoop from the environmentalists at Drilling Santa Fe: The Santa Fe Opera has leased 26,746 acres worth of mineral rights in Mora and San Miguel counties to J Bar Cane, an oil and gas exploration company. Under the terms of the arrangement, the Opera’s cut is an eighth of the proceeds.

The agreement includes oil and gases such as helium, carbon dioxide, gaseous sulfur compounds and coalbed methane. There are no clauses in the contract regarding environmental protections or restrictions on drilling methods.

The lease was completed in April, but filed with San Miguel County in August. Opera General Director Charles MacKay signed the lease. He was unable to be reached; his voicemail says he’s out of town until Sept. 28."

Lease pdf here. (88MG)


Santa Fe Opera leasing minerals for oil and gas exploration?

Drilling Mora County

From DMC, "Santa Fe Opera Company Grantor Charles MacKay signed for the Santa Fe Opera Company (for oil gas (+) leases with J Bar Cane, Inc.). The land is between state road 518 at Sapello and interstate 25 at Watrous. It is in the vicinicty of Los Alamos and Emplazado. Near Lake Isabelle. It is on San Miguel and Mora County lines. The land is owned by 4 groups...individuals. It is 26,746 acres. Lease was signed April (15, 2009) and recorded August 18th 2009 in both counties (Mora and San Miguel)."

Link to leases>>>> (88MB)

Wednesday, September 23, 2009

Pa. DEP issues violation notice to Cabot Oil & Gas

To: STATE EDITORS

Contact: Daniel T. Spadoni of Pennsylvania Department of Environmental Protection, +1-570-327-3659

Company Must Properly Clean Up Susquehanna County Gel Spill

WILLIAMSPORT, Pa., Sept. 22 /PRNewswire-USNewswire/ -- The Department of Environmental Protection has issued a notice of violation to Cabot Oil and Gas for two liquid gel spills last week at the company's Heitsman natural gas well pad in Dimock Township, Susquehanna County, which polluted a wetland and caused a fish kill in Stevens Creek.

"DEP is very concerned about spills at Cabot sites and will require Cabot to take all necessary actions to prevent them from recurring," DEP Northcentral Regional Director Robert Yowell said.

The notice of violation cites Cabot for an unpermitted discharge of polluting substances, an unpermitted discharge of residual waste, two unpermitted encroachments on Stevens Creek, not containing polluting substances at the well site, and an unpermitted discharge of industrial waste.

These were violations of the Pennsylvania Clean Streams Law, Pennsylvania Solid Waste Management Act, the Dam Safety and Encroachments Act, and the Oil and Gas Act.

Cabot must provide a written response within 10 days explaining any additional steps that will be taken to correct the violations, and what steps are being taken to prevent their recurrence.

DEP may assess a civil penalty for the violations once the cleanup is finished.

The two spills last week totaled about 8,000 gallons and involved a liquid gel called LGC-35, which is mixed with water and serves as a lubricant in the well fracking process. About 4.9 gallons of LGC-35 are mixed with each 1,000 gallons of water. Cabot informed DEP that failed pipe connections caused both spills.

The wetland was flushed with water late last week to remove the gel, and the mixture was then pumped to on-site storage tanks. No remediation was required in Stevens Creek. Some soil excavation may be required, depending upon sample results.

Cabot reported a third spill to DEP at the same site on Sept. 22 when a closed valve caused an increase in pressure and a hose ruptured. About 420 gallons of the same gel/water mixture spilled, with all but 10 gallons recovered from a catch basin. The remaining fluid is being cleaned up by Cabot contractors.

DEP's investigation is continuing and additional actions are being evaluated.

    CONTACT:
Daniel T. Spadoni

(570) 327-3659

SOURCE Pennsylvania Department of Environmental Protection


Rulings Strength NEPA Oversight of Gas Drilling Absent SDWA Rule

September 18, 2009

Kate Winston, Inside EPA
Read the entire article

Excerpts:

Key federal courts are backing activists in suits under the National Environmental; Policy Act (NEPA) to review the impacts of natural gas drilling fluids on underground aquifers, rulings that environmentalists hope will bolster pending bills to restore EPA’s Safe Drinking Water Act (SDWA) authority to oversee hydraulic fracturing—a controversial gas drilling procedure that requires injection of chemicals into wells.

... The U.S. Court of Appeals for the 10th Circuit -- which includes key gas drilling states of Oklahoma, Wyoming, Kansas, Colorado, Utah and New Mexico -- in April ruled in State of New Mexico ex rel. v. Bureau of Land Management that the bureau must conduct further analysis under NEPA of the drilling activities covered by its resource management plan for the Otera Mesa region, including providing more evidence that drilling would not,harm the aquifer.

Meanwhile a federal district court in Colorado September 3 granted environmentalists’ request for a preliminary injunction to block exploratory oil and gas drilling in Baca National Wildlife Refuge until the resolution of the case…

File Attachments:
inside-EPA-Nepa.pdf

Saturday, September 19, 2009

The threat to Canada

A very interesting macro article:

THE CANADIAN OILSANDS: a target of Chinese investment.

THE CANADIAN OILSANDS: a target of Chinese investment.

Photograph by: Mark Hoffman, KRT, Financial Post

"The "China Syndrome" describes a nuclear meltdown in which molten material from an American nuclear reactor blasts a hole through the Earth's crust and reaches China. It could just as well describe the consequences of the U.S. financial and economic meltdown, which has left China with trillions of U.S. dollars that it is now using to go on a global shopping spree to meet its insatiable demand for oil, copper, iron ore, aluminum and other minerals while reducing its exposure to a fall in the value of the increasingly vulnerable U.S. dollar.

Should we be worried that China is eying Canada's oilsands and mineral deposits? The short answer is yes. China is in the lead of those countries whose actions represent a return to state sponsored capitalism.

In the 17th century, British and Dutch imperial power was exercised through two corporations, the British East India Company and the Dutch East India Company. These were joint stock corporations that operated under royal charter and enjoyed huge monopolies over trade in cotton, silk, tea, opium and other commodities. They were backed by the independent fire power of the British and Dutch army and navy. These companies had the power to establish colonies, wage war, negotiated treaties and make peace. If you got in their way, you did so at your peril. They were the engines of the British and Dutch empires and their success was founded on the mercantilist belief that a country's wealth depends on a secure supply of raw materials, the accumulation of capital, a trade balance that favours exports over imports, and tightly controlled markets.

Students of Canadian history will recall that the Hudson's Bay Company (very much modelled on the British East India Company) was the extension of British imperial power in Canada. Incorporated under a royal charter in 1670, it exercised exclusive control over a vast territory in Canada, and guaranteed a steady supply of fur (for trade in Europe) and timber to build the ships of the Royal Navy.

China's 21st-century brand of mercantilism has somewhat different origins though the goals are the same. China has artificially manipulated its exchange rate to guarantee favourable terms of trade and consequently has run up huge trade and capital count surpluses with the U.S. and to a lesser extent Europe and other nations." More>>>>

Related Common Ground United post:

Greenpeace shuts down oil sands mine in Canada



Thursday, September 17, 2009

Letter in support of the FRAC Act to regulate hydraulic fracturing under the Safe Drinking Water Act , signed by 160 nat., reg., state, and local orgs

A September, 2009 letter signed by 160 national, regional, state and local organizations, including conservation, faith, sportsmen and community organizations, urging members of Congress to co-sponsor S. 1215/ H.R. 2766, the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act. This important legislation would repeal an exemption in the Safe Drinking Water Act (SDWA) for an oil and gas technique called hydraulic fracturing. It would also require public disclosure of the chemicals used in hydraulic fracturing fluids.

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Edit to post letter (September 18, 2009):


Dear Representative/Senator:

Please read the following letter and see the 160 organizations that signed in support of the FRAC ACT. We need a co-sponsor from New Mexico.

American Rivers - Center for Food Safety – Earthjustice
Earthworks/Oil and Gas Accountability Project - Environment America
Environmental Working Group - Food & Water Watch
International Center for Technology Assessment - National Alliance for Drilling Reform
National Audubon Society - National Wildlife Federation
Natural Resources Defense Council - Public Citizen's Energy Program
Rural Community Assistance Partnership, Inc. - The Wilderness Society
Trout Unlimited - Waterkeeper Alliance - Western Organization of Resource Councils

September 10, 2009

Dear Senator/Representative:

Our 160 national, regional, state and local organizations, including conservation, faith, sportsmen and community organizations, urge you to co-sponsor S. 1215/ H.R. 2766, the Fracturing Responsibility and Awareness of Chemicals (FRAC) Act. This important legislation would repeal an exemption in the Safe Drinking Water Act (SDWA) for an oil and gas technique called hydraulic fracturing. It would also require public disclosure of the chemicals used in hydraulic fracturing fluids.

Oil and gas production is present in over 30 states, and a consistent national standard is needed for this practice. Hydraulic fracturing involves the injection of fluids into oil or gas wells at very high pressure in order to crack open the underground formation and allow oil or gas to flow out more easily. These fluids often contain toxic chemicals, some of which remain underground. The pressure places stress on the oil or gas well and can lead to unpredictable consequences. Our organizations represent communities across the country that are concerned about drinking water contamination linked to hydraulic fracturing operations. Reports of drinking water contamination come from Colorado, Texas, Arkansas, Ohio, Pennsylvania, Alabama and Wyoming.

While states regulate oil and gas production, state rules vary widely and a federal floor is needed. As stated in a study by the Hastings College of the Law, “many of the state regulatory schemes date from earlier waves of resource extraction, and have not kept pace with changed technologies, nor with a deepening concern for public health and the environment.” For example, a recent report issued by the Ground Water Protection Council found that some states do not require a well’s surface casing to be set through the deepest ground water zone. Protection of drinking water is a national concern that should not be left to a patchwork of state regulations
In 2005, Congress exempted hydraulic fracturing from the SDWA to the benefit of Halliburton and other oil and gas companies. It is time to close the Halliburton Loophole and hold the oil and gas production industry to the same standards as any other industry.

Most states have primacy for regulating underground injection; under this legislation EPA could allow states considerable flexibility to tailor their rules to local conditions. All Americans deserve to have their drinking water source protected from endangerment under federal law.

The right balance needs to be established between oil and gas development and protection of our precious and finite natural resources. Instead of that balance, however, provisions of some of our most critical federal environmental laws have exemptions for oil and gas production. In addition to the Safe Drinking Water Act, there are loopholes in the Clean Air Act, Clean Water Act, and Resource Conservation and Recovery Act. These loopholes should be closed, starting with the Halliburton Loophole.

We hope you will co-sponsor this sensible and important legislation to close the Halliburton Loophole in the Safe Drinking Water Act.

Signed,

National Organizations
American Rivers, Center for Food Safety, Earthjustice, Earthworks/Oil and Gas Accountability Project, Environment America, Environmental Working Group, Food & Water Watch, International Center for Technology Assessment, National Alliance for Drilling Reform, National Audubon Society, National Wildlife Federation, Natural Resources Defense Council, Public Citizen's Energy Program, Rural Community Assistance Partnership, Inc., The Wilderness Society, Trout Unlimited, Waterkeeper Alliance

Regional Organizations
Appalachian Mountain Club, Chesapeake Bay Foundation, Delaware River Greenway Partnership, Delaware Riverkeeper Network, Greater Yellowstone Coalition, Highlands Coalition, Housatonic Valley Association, Midwest Organic and Sustainable Education Service, San Juan Citizens Alliance, Western Environmental Law Center, Western Organization of Resource Councils, WildEarth Guardians

State Organizations
Alabama
Black Warrior Riverkeeper
Arizona
Environment Arizona
Arkansas
Arkansas Conservation Alliance, Citizens Against Resource Exploitation (CARE), Omni Center for Peace, Justice & Ecology
California
Ballona Network, Californians for Western Wilderness, Environment California, Grassroots Coalition
Colorado
Colorado Environmental Coalition, EcoFlight, Environment Colorado, Grand Valley Citizens Alliance, Majors Ranch Property Owners Association Environmental Impact Committee, Navajo Ranch Clean Water Preservation Committee, North Fork Ranch Landowner's Association, San Luis Valley Ecosystem Council, San Luis Valley Water Protection Coalition, The Citizen's Alliance for Responsible Urban Gas Drilling, Western Colorado Congress, Wilderness Workshop
Connecticut
Environment Connecticut
Florida
Environment Florida
Georgia
Citizens Organized for Pipeline Safety (COPS), Environment Georgia
Illinois
Environment Illinois
Iowa
Environment Iowa
Louisiana
Lower Mississippi Riverkeeper
Maine
Environment Maine
Maryland
Environment Maryland
Massachusetts
Environment Massachusetts
Michigan
Citizens Against Environmental Destruction, Environment Michigan
Minnesota
Environment Minnesota
Montana
Environment Montana, Northern Plains Resource Council
Nevada
Environment Nevada
New Hampshire
Environment New Hampshire
New Jersey
Environment New Jersey
New Mexico
Blancett Ranches, Common Ground United, Drilling Santa Fe, Environment New Mexico, Gila Resources Information Project, New Mexico Environmental Law Center, New Mexico Wildlife Federation, Velasquez Ranch
New York
Atlantic States Legal Foundation, Inc., Binghamton Regional Sustainability Coalition, Catskill Citizens for Safe Energy, Catskill Mountainkeeper, Citizens Campaign for the Environment, Environment New York, Environmental Advocates of New York, Hudson Highlands Land Trust, Hudson Riverkeeper, New Yorkers for Sustainable Energy Statewide, Northeast Organic Farming, Association of New York, Inc., NYH2O, Orange County Land Trust, Orange Environment, Inc., PlanPutnam.Org, Putnam County Coalition to Preserve Open Space, Scenic Hudson, Shaleshock, The Ramapo River Watershed Intermunicipal Council, Theodore Gordon Flyfishers, Inc.
North Carolina
Environment North Carolina
North Dakota
Dakota Resource Council
Ohio
East Shore Unitarian Universalist Church, Environmental Action Group, Environment Ohio, Mentor Lagoons Preservation Committee, Northeast Ohio Gas Accountability Project
Oregon
Environment Oregon
Pennsylvania
Allegheny Defense Project, Berks County Conservancy, Cooks Creek Watershed Association, Damascus Citizens for Sustainability, Foundation for Pennsylvania Watersheds, Gaia Defense League, Green Valleys Association, Juniata Valley Audubon, Mountain Watershed Association, PennEnvironment, Pennsylvania Forest Coalition, Pennsylvania Organization for Watersheds and Rivers, Sagamore Estates Property Owners Association, Schmid & Company, Inc., Consulting Ecologists, Twin & Walker Creeks Watershed Conservancy, Twin and Walker Lakes Communities Coalition, Twin and Walker Lakes Watershed Conservancy, Twin Lake Preserve, Twin Lake Woods Property Owners Association, Twin Lakes Conservancy Inc., Twin Lakes Property Owners Association, Walker Lake Landowner's Association, Youghiogheny Riverkeeper
Rhode Island
Environment Rhode Island
Texas
Blue Wind Partners, Citizens for Environmental Clean-Up, Environment Texas, Family Area Ministry & Education, Flower Mound Citizens Against Urban Drilling, Fort Worth Citizens Against Neighborhood Drilling Operations (FWCanDo), Galveston Baykeeper, PARCHED, Texas Oil and Gas Accountability Project, Unity Church of Fort Worth, WE CAN (Working Effectively for Clean Air Now)
Utah Colorado Riverkeeper
Southern Utah Wilderness Alliance
Virginia
Blackwater Nottoway Riverkeeper Program, Environment Virginia
Washington
Environment Washington
West Virginia
Greenbrier River Watershed Association, West Virginia Citizen Action Group, West Virginia Headwaters Waterkeeper, West Virginia Rivers Coalition, West Virginia Surface Owners' Rights Organization, Wetzel County Action Group
Wisconsin
Wisconsin Environment
Wyoming
Biodiversity Conservation Alliance, Clark Resource Council, Equality State Policy Center, Friends of a Legacy, Pavillion Area Concerned Citizens, Powder River Basin Resource Council, Upper Green River Valley Coalition, Wyoming Conservation Voters, Wyoming Outdoor Council

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What can you do? Click here to find out!

Wednesday, September 16, 2009

Santa Fe County spends $1.8 million, so far, on oil rig prevention( Podcast)

(2009-09-16)
(KSFR ) -
-- "Documents obtained by KSFR News show that consultants to Santa Fe County on oil and gas ordinance questions have already sent invoices totaling more than $1.8 and could have additional expenses before this fiscal year is over.

California-based lawyer Robert Freilich got the most money -- a total of $1.25 million between today and the time he began work in March 2008. A Kansas consulting firm named Planning Works has already billed $556,000.

The County budget for this year indicates that both Freilich and Planning Works could be allowed to submit expenses totaling another $700,000 before next July."

KSFR's Marion Cox reports.

© Copyright 2009, KSFR

Tuesday, September 15, 2009

Planet Green: "Split Estate" and "H2OIL"

Planet Green

Discovery Channel

Environmental Documentary Series , Saturdays From 8 to 10PM

Split Estate

"Imagine discovering that an oil company has the right to mine the mineral resources beneath your home and moreover, that they plan to drill for gas just 200 feet from your front door. This is the shocking reality for many Rock Mountain residents who have found they have no recourse to protect their land and homes from such development. Debra Anderson tells the tragic story of oil and gas development in this region and offers a poignant call for real alternatives."

"The World Television Premier of Split Estate will be on October 17 as part of the Reel Impact series on Planet Green, a network of Discovery Communications. Reel Impact is the new Saturday night documentary block, which premieres on Planet Green on September 12th. It will air at 8PM EDT, 7PM CDT, 6PM MDT and 5PM PDT, (which will repeat the following Thursday, at 11PM EDT,10PM CDT,9PM MDT, 8PM PDT.)"

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H2OIL

"The majority of the oil used in America doesn't come from Saudi Arabia or Iraq. Instead, the majority of the oil imported into the US comes from the Alberta Oil Sands in Canada. Extracting oil from this region is a difficult, resource-intensive, process. One barrel of oil requires four barrels of fresh water and, increasingly, this fresh water is becoming a valuable commodity itself. H2OIL tells the story of the people fighting to protect Alberta's water resources."

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See Common Ground United related post:

Oil Sands Pipeline Approval from Canada into the U.S.>>>>

Sunday, September 13, 2009

Energy executives defend tax breaks

Houston Chronicle

By JENNIFER A. DLOUHY WASHINGTON BUREAU

Sept. 11, 2009, 11:43AM

"...But Calvin Johnson, a law professor at the University of Texas, said the industry's vitality — and jobs tied to it — aren't wedded to tax breaks. Tax subsidies aren't needed to encourage domestic production, he said.

“The price in oil and gas is high enough to provide additional incentive — and if more incentive is needed, the price would rise,” Johnson said. “The government should get out of the business of subsidizing oil and gas.”' Entire article>>>>


Friday, September 11, 2009

Community Peace Radio show Saturday, September 12, 2009 will be the Oil and Gas Industry

Las Vegas Peace & Justice Center

"The topic for our Community Peace Radio show this Saturday, September 12, 2009 will be the Oil and Gas Industry.

Our guests will be Debra Anderson (filmmaker: "Split Estate" documentary http://splitestate.com/), Johnny Micou (Common Ground United), and Linda Spier (Photographer, Galisteo Basin Photography Project Producer, Community Activist). Also participating will be Michaela Rodriguez and Dennis Lopez (NMHU Social Work students interning at the Las Vegas Peace & Justice Center).

We air on KFUN-AM1230 and KLVF-FM100.7 http://www.kfunonline.com/home.php). Our show usually airs from 10:00 - 11:00 AM, but because this is a special show, we have been given an extra 30 minutes. We will air from 10:00 - 11:30 AM, followed by our "after show" at the Las Vegas Tapetes de Lana Traveler's Cafe.

The radio station call-in number while we're on-the-air is 505-425-6766.

Our shows are archived for future listening at http://lvpeacecenter.org/ (click on "radiocasts").

Thank you to the citizens of Mora County for waking us up on this issue."

Thursday, September 10, 2009

Sweeping Rahall Bill Would Overhaul Federal Oil and Gas Leasing, Royalties

The New York Times

Published: September 9, 2009

"House Energy and Natural Resources Chairman Nick Rahall (D-W.Va.) introduced a bill yesterday to forge a new Interior agency to govern oil and gas leasing on federal lands and to overhaul the federal royalty system.

The far-reaching bill also includes measures to improve planning for offshore energy development, address wind and solar programs, and boost funding for ocean conservation and land acquisition. It comes largely as a response to a series of scandals and scathing government watchdog reports on the federal agencies that handle oil and gas drilling on public lands.

Trying to build immediate momentum for the measure, Rahall announced today that his committee will hold a two-part legislative hearing next Wednesday and Thursday on H.R. 3534 (pdf). The measure as introduced contains some changes from a draft bill released by the House Natural Resources Committee's Democratic staff in May.

The legislation would create a new agency called the "Office of Federal Energy and Minerals Leasing" to handle onshore and offshore lease sales, inspection, enforcement and revenue collection. It would consolidate the oil and gas, wind, wave and solar programs now carried out by the Bureau of Land Management and the Minerals Management Service. The Interior inspector general would take over the current functions of the MMS audit and compliance management section.

The office's director would require Senate confirmation, unlike the head of MMS, which currently is the only major Interior bureau whose top official does not require confirmation. All employees of the new office who conduct audits or compliance reviews would have to meet professional auditor qualifications.

The bill would also eliminate the royalty-in-kind program, which allows industry to provide petroleum directly to Interior in lieu of royalty payments. A report by the Interior inspector general last year found that 19 employees, nearly one-third of the entire staff of the royalty-in-kind program, socialized with and received a wide array of gifts and gratuities from oil and gas companies with which the agency was conducting official business.

Other provisions include new "regional planning councils" for the outer continental shelf that would be made up of federal and state officials, industry, tribes and other stakeholders to undertake new strategic planning. The bill would also replace the current administrative process for onshore public-lands wind and solar projects with a commercial leasing program."


Royalty, conservation measures More>>>


Wednesday, September 9, 2009

Officials Balk at 24 Proposed Wells

Albuquerque Journal North

Wednesday, September 09, 2009

By Jessica Dyer

Journal Staff Writer

"A Texas oil company wants to expedite the drilling approval process for 24 wells it has proposed in northern New Mexico's Rio Chama watershed, but Rio Arriba County officials are balking at that idea.

In a motion filed Aug. 31 by Santa Fe attorney J. Scott Hall, Fort Worth-based Approach Operating requested that the New Mexico Oil Conservation Commission order conditional approval of its pending applications for permits to drill in an area near Tierra Amarilla.

The commission was tentatively scheduled to hear the motion — that latest salvo in a long fight over drilling plans by Approach in Rio Arriba — at its regular meeting today, but the matter has been postponed until the commission meets again on Oct. 7.

Adan Trujillo, the lawyer representing Rio Arriba County, objected to Approach's motion in a Sept. 2 response filed with the commission.

Approach has leased the mineral rights to approximately 90,000 acres of land in the northeastern part of the county where little to no oil has previously been found." More>>>>