Oil and Gas Development in Dushense County Utah
Bill Barrett Corp is heavily invested in fracking and has placed fracking wells near the Starvation Reservoir in Utah. Three (3) wells drilled in the spring of 2013 look like they are only .25 miles from the shore, pictured here:
All of these wells pictured above are situated on the Ute Tribal Lands. The Ute tribe formed a corporation to handle oil exploration on its land in conjuction with Bill Barret corp and others. In November, 2012 it appears that the Ute Energy Corp was sold to a Canadian Company, Crescent Point.
The details are below. I think there is more than one story that can be written about the information below. I will leave that up to others.
I hope this information is helpful and that Starvation Reservoir can be protected from contamination today and forever.
If you want to see the fracking wells drilled in your area since 2011, use this FracFocus interactive map.
Link to FrackFocus interactive map:
I used this map, searched for Utah, zoomed in on Starvation Reservoir, and produced the screen shot above.
This screen shot includes text stating that the Southern portion of Starvation Reservoir is on Ute Tribal land.
ORGANIZATION and DISCLAIMER:
I am neither a journalist or scientist. I am a concerned citizen that was surprised to find new fracking wells so close to Starvation Reservoir, an extremely important water resource for Utah. I have tried to properly cite the following information; however, it is recommended that a thorough review to confirm the information is undertaken to confirm the validity.
Much of what is presented below are direct quotes from companies, media reports, etc followed by an http link below each quote. The direct quotations are in italics.
STARVATION RESERVOIR'S NEW FRACKING WELLS
Since 2011, many areas are being fracked near, even on the shores of, drinking water supples even in desert communities. Starvation Reservoir in Duschene County Utah is a drinking water reservoir that supplies both Duschesne County as well as more populated areas of Utah with drinking water.
Since 2011, Bill Barrett Corp has drilled 22 wells on the southern end of Starvation Reservoir which is owned by the Ute Tribe.
In 2010, COO and President of Bill Barrett Corp left to become the president and CEO of Ute Energy LLC, a recently recapitalized oil and gas company.
2005 - ABOUT UTE ENERGY, a company created by the Ute Indian Tribe to manage it's mineral rights ie oil and gas
"Ute Energy is jointly owned by the Ute Indian Tribe and affiliates of Quantum Energy Partners. Formed in 2005, the company is focused on oil and gas exploration and development, midstream and other facilities in Utahs Uinta Basin.
"As a key to the company's success, the Northern Utes aligned themselves with business partners who have expertise and capital required to successfully develop the tribe's land assets. Included are companies such as Questar Gas Co., Fidelity Investors Management LLC, Bill Barrett Corporation, and Berry Petroleum Company."
SALE OF UTE ENERGY - It appears that Ute Energy Corporation was sold to a Canadian company in November, 2012 after Ute Energy Upstream Holdings LLC changed/merged to become Ute Energy Corporation in June, 2012.
"Ute Energy Upstream Holdings LLC to be converted as described herein to a corporation to be renamed Ute Energy Corporation"
So in June, 2012 it appears that Ute Energy Upstream Holdings LLC morphed into Ute Energy Corporation.
However, in November, it is announced that Ute Energy Upstream Holdings LLC (which in June became Ute Energy Corp) is sold to a Canadian company for approximately $867.6 million, comprised of cash consideration of approximately $783.9 million and assumed debt of approximately $83.7 million.
A Canadian Company, Crescent Point Energy announces closing of Ute Energy acquisition
"CALGARY, Nov. 29, 2012 Crescent Point Energy Corp. is pleased to report that the previously announced acquisition (the "Ute Acquisition") of Ute Energy Upstream Holdings LLC ("Ute") closed today. With closing of the Ute Acquisition, Crescent Point acquires production of approximately 7,800 boe/d and establishes a new core area in the Uinta Basin light oil resource play in northeast Utah."
This is a big deal. The items purchased by Crescent Point Energy Corp (according to the article cited) include:
"Other key attributes of the Ute assets acquired include:
-- 55.1 million boe of proved plus probable and 37.6 million boe
of proved reserves, as assigned by independent engineers
utilizing NI 51-101 reserve definitions and effective November
-- Approximately 270 net sections of land in the centre of the
Uinta Basin resource play, of which 245 net sections are
undeveloped and more than 150 net sections are governed by
Exploration and Development Agreements;
-- More than 1,000 net internally identified low-risk drilling
locations, of which 253 net proved plus probable locations have
been booked to reserves pursuant to an independent engineering
report prepared in compliance with NI 51-101;
-- More than 400 net of the internally identified drilling
locations are in the Randlett area, which is 100 percent
operated, and are low-risk vertical infill wells; and
-- 25 operated wells drilled but not yet completed that should
provide for the addition of approximately 1,000 boe/d of
annualized production in 2013.
"The Ute Acquisition adds another significant resource play to our portfolio,"
said Scott Saxberg, president and CEO of Crescent Point. "These assets have
all of the characteristics that we look for in a light oil resource play.""
Crescent Point Energy seems to emerge out of nowhere in 2001 and has since purchased millions of acres of land, through acquisitions, and touts in 2012 timeline report:
"2012 - Crescent Point achieves record production, averaging 98,751 boe/d over the year and 108,007 boe/d in the fourth quarter. The Company also completes more than $3 billion in acquisitions, consolidating key resource plays and establishing the Uinta Basin as a new core area."
You can read Crescent Points animated timeline here:
THE UTE ACQUISITION as mentioned in an Crescent annual report:
On November 29, 2012, the Corporation closed the acquisition of Ute for total consideration of approximately $867.6 million, comprised of cash consideration of approximately $783.9 million and assumed debt of approximately $83.7 million. The acquisition established a new core area for potential long-term growth in the Uinta Basin light oil resource play in northeast Utah."
2013 - Crescent Point Energy (TSX:CPG) Confirms April 2013 Dividend
CPG SHARES HAVE LOST VALUE SINCE 2012
Crescent Point Energy Corp.T.CPG:TSX
37.54 -0.15 -0.40%
I'll leave it to journalists to sort out how the Ute Tribe will benefit.
Will the citizens of Duschesne have concerns with the increase of drilling near their drinking water source?
Do present and/or future horizontal wells go directly under Starvation Reservoir? What feeds Starvation Reservoir?
If there is an earthquake, could the underground drilling sites be damaged and leak forever into the shale, potentially entering aquifers?
Are there any injection wells being installed, which have been known to cause earthquakes?
Is the Bill Barrett Company using water from the Starvation Reservoir to drill its fracking wells? If you click on a report for a well, found on FracFocus' map, you will see how much water Barrett is reporting will be used to drill the well. It's a lot of water per well.
Where does the waste water go? Who would be able to provide this information? The Ute Tribe? The County? The Water Management team? The State? The federal agencies?
Who has spedific oversight and whoever does have a shared oversight, do they also assume any of the liability if there is a contamination incident?
Who and when did a dialoge emerge between the Ute Energy Corp and/or it's subsidiaries et al, and Crescent Point? Who were the people involved in the process?
Are Bruce C Barrett and William J "Bill" Barrett related?
Here are some other informational links to help journalists and activists report on the fracking activity in and around Starvation Reservoir, Duschesne County, Utah.
About Starvation State Park
2005 Press Release: Northern Ute Indian Tribe Announces Landmark, Multi-Million Dollar Energy Company
Central Utah Water Conservancy District-Duchesne Valley Water Treatment Plant is supplied by surface water from the Starvation Reservoir.
For information concerning the Central Utah Water Conservancy District-Duchesne Valley Water Treatment Plant Source-Water Assessment, request it from Gerard Yates, Water Quality/Treatment Department Manager, at (801) 226-7100.
How to Read a FracFocusFracturing Record
2010 - Bill Barrett Corporation deploys lobbyists to protect sweet drilling deal in the Rockies
"a Colorado-based natural gas company that is planning to drill up to 3,000 wells in an area of the Colorado Rockies called the Roan Plateau."
2010 - Is Bill Barrett Corp's Massive Lobbying Spree Aimed at Interior Secretary Ken Salazar?
July, 2010 - ACTION ALERT!!! BLM Releases Final EIS and ROD to public
BLM Releases West Tavaputs Plateau Project Final Environmental Impact Statement and Record of Decision
"The Bureau of Land Management (BLM) today released the Final Environmental Impact Statement (Final EIS) and Record of Decision (ROD) for the West Tavaputs Natural Gas Full Field Development Plan. The ROD reflects a historic agreement between the project proponent, Bill Barrett Corporation (BBC), and the Southern Utah Wilderness Alliance (SUWA) that will substantially reduce the project's environmental impacts while continuing to allow for vigorous new oil and gas production."
2010 - Bill Barrett Corp and the Halliburton Loophole Threaten Rockies
Utah 2010 > Contributions to HERBERT, GARY R - Filtered by:Oil & Gas
Bill Barrett Corp - $15,000 8/26/2010
Utah 2010 > All Contributions From BILL BARRETT CORP
Total number of records: 17
Total amount: $42,500
All Contributions from BILL BARRETT CORP in 2012
Total number of records: 12
Total amount: $39,500
TABLE 4: Contributions to Candidates in 2012
HERBERT, GARY RUTGOVERNOR / LIEUTENANT GOVERNOR - $33,500
2012 - Barrett Clean Air Power Point Presentation
2012 - Bill Barrett Corporation
Uinta Oil Program
Estimated Proved Reserves (YE 2011) Net Production (2011)
28.8 MMBoe 1.04 MMBoe
Gross Drilling Locations (YE 2011) Net Undeveloped Acreage (mid-year 2012)
1,688 (vertical and horizontal) 122,485
January, 2013 - Bill Barrett Corp. loses another top exec; analyst sees refocus
Kurt M. Reinecke, Bill Barretts executive vice president of exploration, resigned Monday, according to the filing.
2013 - Bill Barrett Provides Uinta, DJ Basin Progress Update
Like so many oil/gas operations, Barrett has its list of environmental problems.
May 27th, 2010 - ONE YEAR LONG OIL LEAK
"Two months ago, a truck driver noticed a slight sheen on Nine Mile
Creek. The Bill Barrett Corporation quickly reported it to agencies,
including Utah's Division of Water Quality.
The company believes the hole leaked a few gallons a day for at least
a year. They fixed it, but a large area of groundwater remains
contaminated -- 4 acres, right next to the creek.
August, 2012 - Bill Barrett Corporation employees install an oil pipeline on federal land with the approval of the Bureau of Land Management near Vernal, Utah.
Investigator: Damaged pipe to blame for gas explosion near Price
BILL BARRETT CORPORATION Settlement Agreement, Docket No.#I12-03
UTAH WATER QUALITY BOARD
IN THE MATTER OF BILL BARRETT CORPORATION 1099 18th STREET, SUITE 2300 DENVER, COLORADO 80202,
Pinder Property Release,
DOCKET NUMBER I12-03 SETTLEMENT AGREEMENT
2013 - Firefighters extinguish blaze at drilling rig near Starvation State Park
Bill Barrett Corp. owns the well. Spokesman Jim Felton said the Denver-based company is cooperating with the state and local investigation into the fire. '
WATER MANAGEMENT, UINTAH BASIN
There are a list of studies at this link:
THIS IS INTERESTING:
STARVATION RESERVOIR Resource Management Plan, November, 1999
US DEPARTMENT OF THE INTERIOR, BUREAU of Reclamation
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