March 11, 2010
posted on: Mar 11, 2010
IPAMS Meetings and Announcements
Report from Washington
Nearly 60 people traveled with IPAMS to Washington DC last week to meet with Members of Congress, the Obama Administration, and media. We delivered a simple, but clear message: Our industry has real solutions to the nation’s economic, energy, and environmental challenges. IPAMS would like to thank the following companies for sponsoring this year’s Washington DC Call-Up:
Banko Petroleum
Mercator Energy, LLC
Mesa Energy Partners, LLC
Tracker Resource Development, LLC
Click here to access the full report from IPAMS Washington DC Call-Up.
Potential National Monument Designations
Two weeks ago, an Interior memorandum on potential National Monument designations was leaked. It appears the Administration is considering the use of the Antiquities Act to designate large portions of the West as monuments, similar to the designation of Grand Staircase Escalante National Monument by President Clinton without Congressional and public support. Natural gas and oil areas under consideration include the Lesser Prairie Chicken Preserve and Otero Mesa in New Mexico, Vermillion Basin in Colorado, San Rafael Swell in Utah, and Montana’s Northern Prairie.
Senators Bennett and Hatch and Congressman Rob Bishop have introduced legislation which would require Congressional action on monument designations in Utah. Wyoming already has this protection under the Historic Preservation Act of 1950. Congressmen Rehberg of Montana and Lamborn and Coffman of Colorado introduced identical legislation for their states as well.
Video: Bishop Addresses Document Showing Plot for Federal Land Grab
Also, see “Bishop: Outing memo brought needed denials” in this week’s Salt Lake Tribune.
Fundraiser for Congressman Doc Hastings
On March 30, IPAMS PAC is hosting a luncheon for Rep. Doc Hastings (R-WA), the Ranking Member of the House Natural Resources Committee. As the top Republican on the committee with jurisdiction over most legislation related to energy development in the West, Rep. Hastings has been an outspoken advocate for our industry. He has gone above and beyond to seek IPAMS input and to oppose legislation that would make development in the West even more expensive and difficult. If you would like to serve on the Host Committee, we are asking for a $1,000 individual donation or a $2,000 PAC donation. If you would just like to attend, we are asking for a $500 individual donation or a $1,000 PAC donation. Checks should be made payable to Friends of Doc Hastings and no corporate funds can be accepted. Please RSVP to Jon Bargas as soon as possible.
IPAMS Vote From Home Program
As part of our Voter Education Initiative, IPAMS partnered with West Slope COGA during the 2008 election year and executed a successful “Vote from Home” pilot program in Mesa and Garfield Counties in Western Colorado. In these two counties alone, this voter drive program was able to register and request absentee ballots for over 1,000 industry employees. Because of the success of this program, IPAMS has decided to expand the program to include the entire state of Colorado for the 2010 elections. With critically important state and federal races to be decided next year, it is more crucial than ever that industry educate and empower the tens of thousands of Colorado workers who depend on a healthy energy industry for their livelihoods. We already have financial commitments from several Colorado producers, but we need more support in order to get working on the program as soon as possible. For more information, contact Jon Bargas.
IPAMS in the News
IPAMS received an unprecedented amount of news coverage this past week regarding a statement by Director of Government Affairs Kathleen Sgamma released immediately following the announcement by the Department of Interior (DOI) concerning the sage grouse.
Click here to see a synopsis of the media coverage in both the local and national publications.
IPAMS Membership Update
IPAMS thanks our broad membership for supporting our organization 2010 dues. Your financial support ensures that we have the resources to continue to defend and promote your investment in the Intermountain West.
This week we proudly welcome New Frontier Member Golder and Associates.
To refer an organization or to discuss a new or upgraded membership, please contact Susan Fakharzadeh, Director of Membership and Events.
Other Upcoming Meetings
• Air Quality Committee Meeting– March 25th at 10:00 a.m.
• Colorado Basin Advisory Network Meeting– March 31st at 10:00 a.m. (Note date/time change)
Agendas are available for upcoming meetings at http://www.westernenergyalliance.org/advocacy/. All meetings unless otherwise indicated are Mountain time, and at IPAMS and via teleconference.
Visit westernenergyalliance.org for the latest news affecting the Intermountain West’s oil and natural gas industry. Headlines are updated daily from local, national and international news sources. You may also sign up for daily newsbrief emails under the Manage Account section of the “Members Only” page.
The West
Fraser Institute Survey
The Global Resource Centre at the Fraser Institute, Canada’s leading non-profit research institute, conducts an annual survey of how petroleum explorers and producers rate the investment climate of jurisdictions around the world. The results identify the states, provinces, and countries that pose the greatest barriers to upstream investment and rank jurisdictions in terms of their relative attractiveness for investment.
The 2010 survey is now in progress. Participation by members will help to ensure that this year’s results reflect the views of professionals with first-hand knowledge of the petroleum industry investment climate here in the USA. Broader involvement in the survey will also increase the number of jurisdictions that can be evaluated, facilitating frank and objective feedback to a larger group of policy makers.
In order to participate, involved in the upstream petroleum industry are invited to complete the survey questionnaire electronically at: http://www.fraserinstitute.org/petroleumsurvey.
Colorado
Antero says it has no plans to drill in town of Silt
published in: Grand Junction Daily Sentinel on: 03/08/2010 by: Dennis Webb
Antero Resources officials have sought to dispel speculation by residents that it plans to drill for oil and gas in the town of Silt. The company’s denial of that rumor hasn’t fully eased the concerns of some residents about the fact that its operations are moving ever closer to the town. Drilling used to primarily raise concerns about companies disturbing wildlife, Silt resident David Hare said in an interview.
DIA buys 27 Petro-Canada oil, gas wells on its property
published in: Denver Business Journal on: 03/05/2010 by: Staff
Denver International Airport said Friday it has bought 27 oil and natural gas wells on its property for $5.5 million. Officials estimated that the wells will bring DIA about $3.5 million a year in revenue.
Demand for natural gas could grow
published in: Grand Junction Daily Sentinel on: 03/05/2010 by: Charles Ashby
Gov. Bill Ritter announced a major piece of legislation Friday that would boost the use of natural gas in the state. In an agreement worked out between Xcel Energy, environmentalists and lawmakers on both sides of the political aisle, the governor’s plan would be to convert by 2017 several coal-fired power plants on the Front Range to natural gas.
RPSEA Unconventional Gas Conference 2010: Technological Keys to Unlocking Additional Reserves
April 6-7, 2010 in Golden, CO
The meeting will cover recent results from the RPSEA Unconventional Gas Research program with many topics of interest to Rocky Mountain Producers. Click here to access the agenda and how to register.
North Dakota
Potter disputes Hoeven’s jobs creation claims
published in: Grand Forks Herald on: 03/09/2010 by: Ryan Johnson
State Sen. Tracy Potter, D-Bismarck, is questioning the accuracy of Republican Gov. John Hoeven’s jobs creation claims reported on radio and Web site ads as the two prepare for North Dakota’s U.S. Senate race. In a statement sent Monday to media outlets, Potter said claims that Hoeven has brought 40,000 new jobs to the state since becoming governor in 2000 seem impossible based on statistics from the same time period.
Number of rigs drilling in N.D. oil fields jumps to 100
published in: Minot Daily News on: 03/09/2010 by: Eloise Ogden
The number of rigs actively drilling in the North Dakota oil fields reached 100 as of Monday. That information is according to the North Dakota Oil and Gas Division Web site, which regularly updates the number of rigs drilling in the state. Last year there was a considerable decline in numbers because of the economy and a harsh winter.
North Dakota Petroleum Council Social in Denver
March 16, 2010
Denver-based Petroleum Council members will host a social at the Brown Palace on March 16 from 5-7 p.m. Industry members with an interest in North Dakota are invited to attend. RSVP to Kristy Bennett.
Bakken and Beyond!
May 2 – 4, 2010 in Bismarck, North Dakota
The 18th Williston Basin Petroleum Conference & Expo will be held May 2 – 4, 2010 in Bismarck, North Dakota.Technical presentations will be the highlight of the Conference, as industry experts from across North America cover all the “Hot Plays” in the Williston Basin including the Bakken, Three Forks, and Lodgepole, along with talks on deep and shallow gas plays and CO2-EOR opportunities in the Basin. In addition, crude oil transportation issues and a panel on Bakken fracture stimulation techniques will be of great interest to attendees. Keynote speakers include North Dakota Governor John Hoeven, Clarence Cazalot of Marathon Oil Company, and Jim Volker of Whiting Oil and Gas. Click here to learn more.
Utah
Natural Gas STAR Tech Transfer Workshop
March 23-24, 2010 in Vernal, UT
EPA’s Natural Gas Star Program in conjunction with Anadarko, Newfield, IOGCC and IPAMS will be hosting a Producer Technology Transfer Workshop in Vernal on March 23rd from 9:30 – 4:15, with a field trip of Newfield’s operations on March 24th. Click here for more information about this free workshop.
Wyoming
Wyoming unemployment rate hits 7.6%
published in: Billings Gazette/Casper Star-Tribune on: 03/11/2010 by: Tom Mast
Wyoming’s seasonally adjusted unemployment rate rose to 7.6 percent in January, up from 7.5 percent in December and to its highest level since September 1987. But at least this dark cloud may have a silver lining. Despite the increase, “job losses seem to be slowing down,” said David Bullard, senior economist with the state Department of Employment’s Research and Planning Section.
Marathon Oil to drill 25 more wells in north Wyo
published in: Associated Press on: 03/10/2010 by: Staff
Marathon Oil is expanding its operations in northern Wyoming after two years of not drilling any new wells. Bob Whisonant of Marathon Oil says while most of the easily reached oil in the area has been found since it was discovered in 1912, Marathon plans to drill more wells this year.
University of Wyoming Energy Resources and Produced Waters Conference
May 25-26 2010 in Laramie, WY
Final call for Presentations and Registration is still open. The Energy Resources Produced Water Conference, convened by the University of Wyoming’s Ruckelshaus Institute and the School of Energy Resources, is intended to advance the understanding of current research and monitoring projects related to the management, treatment, protection, and use of water associated with energy development in Wyoming and the West. The conference will cover produced water issues from various types of energy development, including, oil, gas, coalbed natural gas, coal mining, uranium, and carbon sequestration.
The format for the two-day conference will consist of oral presentations in concurrent sessions as well as a display of posters.
Washington Watch
850,000 Acres & 34 Wilderness Area Designations = No Access, No Jobs, No Recreation for Coloradans
Today, the House Natural Resources Subcommittee on National Parks, Forests & Public Lands held a hearing on H.R. 4289, the Colorado Wilderness Act of 2009. The bill will lock up 850,000 acres of land in Colorado from future recreation, public access and energy job development by designating 34 separate locations as Wilderness Area.
How Fundraising Helped Shape Obama’s Green Agenda
published in: Time Magazine on: 03/15/2010 by: Michael Scherer
During a Roosevelt Room meeting with his economic-recovery advisers in November, President Obama turned to a top Democratic fundraiser sitting at his arm, a boyish billionaire in glasses who had been making regular visits to the White House to kibitz on policy. “John,” Obama said, before a group that included Treasury Secretary Tim Geithner, economic adviser Larry Summers and chief of staff Rahm Emanuel. “You’ve got the floor.”
Chu tells oil and gas industry what it wants to hear
published in: Financial Times on: 03/10/2010 by: Sheila McNulty
US Energy Secretary Steven Chu was in the lion’s den, so to speak, when he gave a keynote speech at the IHS CERA energy conference in Houston this week attended by thousands of oil, gas and power generation executives. And several noted that he finally gave them what they have been looking for – a signal that the Obama administration recognizes the importance of domestic natural gas to the US’ energy future.
Interior secretary dismisses ‘land grab’ memo as early ‘brainstorming’
published in: Great Falls Tribune on: 03/10/2010 by: Ledyard King
Interior Secretary Ken Salazar downplayed an internal memo Tuesday suggesting the federal government take over millions of acres in Montana and other Western states, saying his agency is not pursuing any such steps and would seek public input before it did. “There are no plans that we have to move forward,” Salazar told a Senate Appropriations subcommittee Tuesday, describing the memo as a result of an informal dialogue among agency employees.
GOP govs to Congress: Block EPA climate rules
published in: The Hill on: 03/11/2010 by: Ben Geman
A mostly Republican group of 20 state and territorial governors is urging Congress to block EPA’s ability to regulate greenhouse gas emissions. A letter Wednesday from the governors – 18 Republicans and two Democrats – to House and Senate leaders alleges that planned EPA rules to limit heat-trapping emissions would harm their state economies. “We feel compelled to guard against a regulatory approach that would increase the cost of electricity and gasoline prices, manufactured products, and ultimately harm the competitiveness of the U.S. economy,” states the letter to Democratic and GOP leadership.
Bennett, Salazar spar over Utah oil development
published in: Deseret News on: 03/09/2010 by: Lee Davidson
Sen. Bob Bennett says that higher taxes proposed by the Obama administration on the oil and gas industry will chase them off federal lands in Utah. But Interior Secretary Ken Salazar says increases would simply give taxpayers long overdue fair payments. The two sparred Tuesday during a Senate Appropriations subcommittee meeting, where Bennett attacked proposed royalty increases in Obama’s 2011 budget on oil and gas, plus new or higher fees for drilling permits, inspections and holding leases that are not yet producing.
Obama Tries to Give Energy Bill a Push
published in: New York Times on: 03/09/2010 by: Helene Cooper
President Obama, who is still hoping to get an energy bill through Congress this year, met Tuesday at the White House with lawmakers from both parties to try to push the process along. The closed-door meeting included several Republican and Democratic senators who are considered swing votes on the legislation, which, if the White House has its way, would include a broad cap on carbon emissions.
For Senators on the Fence on Climate, Everything’s in Play
published in: E&E News/New York Times on: 03/09/2010 by: Darren Samuelsohn
The fate of comprehensive energy and climate legislation rests in the hands of about 30 senators. The list includes coal and Rust Belt Democrats, Westerners and moderate Republicans. They bring several high-profile issues to the forefront that, if satisfied, offers several potential paths to the bill’s lead authors looking for the magic 60 votes. Senators and their aides acknowledge the talks are not easy, with each compromise requiring considerable carve outs to satisfy different parts of the country. Yet key sponsors say they are willing to bend if it means scoring an agreement.
EPA chief concerned about gas drilling fluids
published in: Reuters on: 03/08/2010 by: Staff
The Environmental Protection Agency chief Lisa Jackson said she was “very concerned” about the composition of fluids used to extract natural gas from shale deposits. Jackson said she hopes the EPA will launch a study this year into the nature of fluids used in the hydraulic fracturing process of natural gas drilling.
Media Watch
Editorial: Pushing the gas pedal
published in: Grand Junction Daily Sentinel on: 03/11/2010 by: Editorial Staff
Like Senate Minority Leader Josh Penry, we’re encouraged by the proposal announced last week by Gov. Bill Ritter that would promote the use of Colorado’s natural gas to reduce Front Range air pollution. Penry made it clear he is awaiting further details before announcing whether he will support the proposal, and that’s understandable. But what has been released to date is promising.
Editorial: An Energy Head Fake
published in: Wall Street Journal (Subscription Required) on: 03/11/2010 by: Editorial Staff
President Obama used his January State of the Union speech to promise “a new generation of safe, clean nuclear power plants” and “new offshore areas for oil and gas development.” Judging by its recent decisions, we’d say his Cabinet hasn’t received the memo. Congress’s ban on offshore drilling expired in September 2008, and a Bush Administration plan for leasing the energy-rich Outer Continental Shelf was due to begin this year. Yet within a month of taking office, Interior Secretary Ken Salazar halted leasing by extending the public comment period by six months. When that period ended last September, Interior said it would take “several weeks” to analyze the results. It has yet to release a summary.
Editorial: A sage decision
published in: Grand Junction Daily Sentinel on: 03/09/2010 by: Editorial Staff
Secretary of Interior Ken Salazar stepped into a thicket of sage grouse controversy last year. So, when he issued a decision last week, it was inevitable that he would take fire from one side or the other in the dispute. Sure enough, an Idaho-based environmental group quickly announced that it was challenging Salazar’s decision. That’s too bad, because his ruling offers the opportunity to pursue collaborative efforts to protect the sage grouse and allow development of critical natural resources.
Horner: The wind-energy cover-up
published in: Washington Times on: 03/09/2010 by: Chris Horner
Barack Obama promised many things on his way into office. Key among these was transparency and a vow to banish lobbyists from insider roles in the policy process. Using the Freedom of Information Act (FOIA), the Competitive Enterprise Institute has confirmed that both promises are being aggressively violated.
Op-ed: New Energy Economy backfired, time to move on
published in: Denver Post on: 03/07/2010 by: John Harpole
If Democratic Gov. Bill Ritter’s New Energy Economy received the same scrutiny as Toyota or Tiger Woods, Coloradans would realize that renewable energy has actually amplified the metro area’s air pollution. The promise of the New Energy Economy is a world that uses less fossil fuel; a world forever powered by renewable energy such as wind and solar. A world with cleaner air than what we breathe now. Ritter never imagined that his vision would actually produce the opposite result.
Editorial: Washington gives gas more gravitas
published in: The Oklahoman on: 03/07/2010 by: Editorial Staff
A recent Washington Post editorial touted the benefits of natural gas without mentioning the commodity’s potential to reduce America’s dependence on foreign oil. That’s like a country touting its Olympics medal count without mentioning that all medals won were cast in bronze. Still, it’s good that gas is being praised these days — good for Oklahoma’s economy, good for state revenues, good for the environment. The latter point is what the Post editorial focused on. Until recently, gas stood with coal and oil on one big platform of fossil fuels that were killing the planet: Coal got the gold medal for pollution, oil the silver and gas the bronze.
Environment and Wildlife
US appeals court rebuffs wilderness groups
published in: ABC 4 News on: 03/10/2010 by: Staff
A U.S. appeals court has ruled that wilderness groups can’t intervene to help the government fight a lawsuit filed by Utah’s Kane County seeking ownership of dirt roads crossing federal lands. The Denver-based 10th U.S. Circuit Court of Appeals ruled Monday that because the federal government was fully committed to fighting the lawsuit no help is needed from the Sierra Club, the Southern Utah Wilderness Alliance or The Wilderness Society.
EPA: U.S. saw record decline in greenhouse gas emissions in 2008
published in: Los Angeles Times on: 03/09/2010 by: Jim Tankersley
High gasoline prices, a slow economy and – ironically enough – a cool summer caused U.S. greenhouse gas emissions to fall nearly 3% in 2008 from 2007 levels, the Environmental Protection Agency reported today. It’s the largest year-over-year drop that the EPA has recorded since it began tracking greenhouse gas emissions in 1990.
Technology, Alternative & Renewables
Natural gas crystals: Energy under the sea
published in: CNN Money on: 03/09/2010 by: Steve Hargreaves
It looks like ice — but this ice could one day be used to heat your home. It’s actually not ice at all, but crystallized natural gas, and if scientists can figure out how to harvest it cheaply enough, it could become a vast new source of energy available in just about every country in the world.
From Austin to Boston in a natural gas vehicle
published in: True Blue Natural Gas (blog) on: 03/09/2010 by: Dan Gibson
We’ve done quite a few stories on natural gas vehicles here at True Blue but my favorite ones are always the ones about people showing initiative. A great example of that is Castlen Kennedy. I came across Castlen initially when I saw her name pop up in the CNGNow twitter stream. She’s planning an extended trip (Austin to Boston) in her new CNG-fueled Tahoe. Castlen has a degree in Public Affairs which might explain why she is doing such an excellent job using the web to promote her experience.
Markets
Pipeline ‘onramp’ negotiations continue Local leaders ask for a connection to Bakken formation
published in: Willison Herald on: 03/09/2010 by: Nick Smith
Local and state leaders met in Billings last week to urge TransCanada to allow North Dakota and Montana companies access to a proposed pipeline to the Gulf of Mexico, with executives saying they’ll consider it. The company had previously rejected considering allowing oil from the Bakken formation, saying that the demand wasn’t there. But on Wednesday, the company appeared to have changed its mind during a meeting with North Dakota and Montana officials and industry representatives.
Industry News and Events
Energy in Depth: CERA study “reminds us to what we owe the recognition for making this energy revolution possible,” specifically hydraulic fracturing
Shale gas exploration “ranks as the most significant energy innovation so far this century” according to a report published by IHS/Cambridge Energy Research Associates (CERA) and released this week in Houston – and hydraulic fracturing, the decades-old technology that’s being used today to unlock these unconventional resources, has “always been regulated at the state level” ably, aggressively and while ensuring proper safeguard for air, water and the surrounding environment.
Study: Quakes linked to post-gas drilling process
published in: Associated Press on: 03/10/2010 by: Angela K. Brown
A wastewater disposal process done after natural gas extraction — and not the drilling itself — is a plausible cause for the surprising series of minor earthquakes in north Texas, according to a study released Wednesday. The first quakes occurred in October 2008 in Grand Prairie and Irving, and seismic equipment detected 11 more in the area over the next couple of months that were too small to be felt, according to the study by the University of Texas and Southern Methodist University. No major injuries or damage were reported in any of the events that set off car alarms and knocked pictures off walls — the largest being a 3.3-magnitude quake near Euless last spring.
Will natural gas profit from the death of US coal?
published in: Financial Times on: 03/10/2010 by: Kate Mackenzie
The US natural gas industry, so angsty of late about its profile in Washington as a way of reducing CO2 emissions, might not have so much to worry about. Despite the uncertainty over the outlook for GHG regulations in the US, Bernstein Research believes a broad switch to gas-fired power will start to come about anyway as a result of existing plans in the Clean Air Act. Firstly, eastern states that are currently allowed to trade sulphur allowances among themselves are likely to come under a state-by-state restriction from next month. Secondly, plans to curb mercury emissions by insisting coal plants use the best technology available could mean all coal-fired plants across the country would need to install SO2 (sulphur dioxide) scrubbers.
Turning natural gas strategy on its head
published in: Calgary Herald on: 03/09/2010 by: Deborah Yedlin
Another sign of the shifting dynamics in the natural gas world emerged Monday with the $3.4 billion US joint bid by PetroChina and Royal Dutch Shell for Australia’s Arrow Energy. The prize? Billions of cubic feet of coal bed methane to be produced, converted to liquefied natural gas and shipped to Asia. It’s one thing to see a western-based company team up with a national oil company peer in the country in which the NOC operates — such as the Royal Dutch partnership with PetroChina in Sichuan province to exploit shale gas reserves — but it’s something different when the partnership happens on neutral territory. And when it involves the purchase of a publicly traded entity, well, that is rarely, if ever, seen in the energy sector.
Wildlife Habitat Council’s Western Summit
March 17, 2010
Please join the Wildlife Habitat Council for the first-annual Western Summit on March 17th in Missoula, Montana to recognize the outstanding job corporate sites in the western US have done to enhance wildlife habitat and promote conservation education in their communities. Learn about the challenges Council members have overcome to implement successful habitat and outreach projects and discuss strategies to improve your own programs. Opening remarks will be delivered by Ms Melissa Simpson, the Vice President for Policy and Regulatory Affairs at the Pac/West. Ms. Simpson is the former Deputy Under Secretary for Forestry at the U.S. Department of Agriculture (USDA) under the Bush Administration. Register by March 1 at: www.wildlifehc.org.
Click here for more information or contact Kristin Salamack, Intermountain West Region Biologist, at 303.376.7549.
Oil & Gas Stormwater Certification Course
March 25, 2010 in Littleton, CO
Location: Buys & Associates, Inc. Littleton Office
300 E Mineral Avenue, Suite 7, Littleton, Colorado 80122, (303) 781-8211
Event Description: Buys & Associates will be hosting the Oil & Gas Stormwater Certification Course covering how to minimize sediment run-off from production sites, the changing regulations to the oil & gas industry, consequences of not controlling Stormwater runoff, and ultimately will assist in minimizing operators’ violations & liability.
The cost of the course is $149/person and includes a lunch and course certification. Group rates are available for parties of four or more. To register please contact Nikki Niekerk @ (303) 781-8211 or click here.
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