Official - North Wind Group

Ex-State
BUSI]ìIESS TUESDAY
Official
Backs Oil
Company
, Consultant says
wells in Rio Chøma
can be safely drilled
Bv tr(¡rp McGnnw
For the Journal
A former state official acting as a consultant for'the oil
eompany seeking to drill in
the Rio Chama watershed told
a regulatory hearing Monday that the proposed wells
can be safely drilled, despite
JEFF GEISSLER/FOR THE JOURNAL
rd bullder
o{the Emerald Home, talks to a crowd gathered at the slte where the zero-ener-
der demonstrates
footprint' house
anAl Gore-typepresentation b]¡ Ed.Mazri4, a
pioneer in Santa Fe's pas-
sive solar construction. It
showed seas rising from
gìobal warming, swallowing America's coastlines.
"I decided I was only
going to build zero-energy
homeq frqm thattime on;"
said Dancer, who serves
on Santa Fe's G4ben Build-
Hearing examiner David
Brooks on Monday evening
took under advisement the
opposing applications before
the New Mexico Oil Conservation' Division of Approach
Resources Inc. and Rio Arriba County, who are battling
over Approach's right to drill
for shale oil in northern New
Mexico.
A key witness for the oil
company, Approach Resourc-
es, ïvas consültant hydrologist Peter Maggiore. Aformer
Emerald
Home
the site to make the bricks
for the walls.
The inspiration, he said,
came in 2006 when he saw
the opposition of Rio Arriba
County officials and several
people who spôke in a publiccomment period at the end of
the daylonghéaring,
dælgnof
.
and bullder
Faren
Dancal,
dÈht, and
hls partner
Maxlne
Swlsa
pfepalo
to break
glound for
the zeroonofgy
home lust
north
of
.
secretary of the state Environment Department, Maggiore is operations manager
for the southern division of
North Wind Inc., an environ'
mental consulting firm in Los
Alamos.
Maggiore said the wells can
be drilled without damage
to hydrologic resources with
the use oftanks instead ofpits
and their casing and tubing
operations. The well facilities
can comply with the statè OiI
and Gas Act's rules, and the
JTpr?
Ex-Official: Wells Can Be Drilled Safely
fumPAGÊ1
workwill be facilitated by the
use ofairdrilling, he said. He
said the main.water course
through the surface area is El
Rito de Tierra Amarilla, and
the subsequent water bodies
are acequias registered with
the State Engineer. Maggiore
said he does not see a health
Craft said the firm plans to
drill with air, rather than
drilling fluids,
as much as
possible, and stainless steel
tanks rather than in:earth
pits. The stimulatión of thé
shale "fingers" will be done
with a carbon-dioxide foam,
rather tlian water or acid fluids, to minimize any spills or
environmental damage, said
or environment threat from Glen Reed, Approach's execudust associated with air drill- tive vice president ofengineering. He did acknoùledge under ing and operations.
cross-examination that two of
Reed sa.id damage to other
the well sites might require hydrocarbon or water-bearing
sÉecial mitigation measures zones can be avoided, based
under the Water Quality Act.
on these plans. The CO2 foam
Approach was granted four wiII mostly remain in place,
permits to drill earlier this but there will be flow-back
year and ís seekingfive more, tanks in case there is anyflow,
while a sixth application has he said. Approachhas nothad
beèn withdrawn. The county any spills of more than t00
wants the four granted per- barrels, he said, a claim that
mitô tq be rescinded and the was challenged by county
five additional applications contract attorney Adan Trudenied so'the county can jillo, citing2006 and2007 spill
impose a drilling moratorium
reports frsm the Texas Railfor further study ofthe envi- road Commission, that state's
ronmental implications.
oiland gas regulatory agency.
Brooks ótressed that, as a Reed acknowledged that there
regulatory agency, the OCD had been some spills from tank
does not handle complaints
batteries, an unconnected line
of surface on¡ners and that and a hole. Accordingtothose
general public comment does reports, contamination in
not have an impact on agency
decisions. The division's decision will be based on the merits ofthe factual and technical
arguments, he said.
"This is an adjudicatory
proceeding and not a policymaking proceeding," he said.
Brooks said the surface
ownens'ircoinplaints had to be
judæd Under the state's new
Surfáce Owners Protection
Act, which n¡ould'be cases
heard in.court, not the Oil and
Gas Act, under which the rlivi:
sion regulates the industry.
Much of Monday's hearing
was spent on lengthy techni-
cal testimony about the engineering practices planned by
Approach.
Approach president Ross
some areas spread or sprayed
between 30 and 50 feet.
The well pads a're being con-
in Fort \{orth. The firm, which
is based in Fort \{orth, Texas,
and which has been publicly
traded since November 2007,
has a single lease of mineral
rightS to about 90,000 acres
near Tierra Amarilla, Craft
said.
The drilling, which is pro-
posedin the Rio Chama Basin,
is opposed by several landoïvners, some of whom testified in the hearing's first tlay
on Friday. John Sena, Beth
Sultemeier and Leo Victor
Valdez all appeared as sïvorn
witnesses, stating that they
did not feel Approach had been
entirely forthcoming about its
well locations and that they
\rvere concerned about environmental damage adversely
affecting property values and
outfitting-hunting business.
AII county witnesses, includ-
ing Albuquerque hydrogeolo-
gist Steven Taylor Finch Jr.
and EI Rito-based biologist/
ecologist Terence P. Boyle,
expressed concern about pos-
sible damage to the Tierra
Amarilla Creek and themany
tributaries and springs in the
area, including at least one
wetland.
Not all the commentators
' were hostile. Attorney Karin
structed and maintained by
federal Bureau of Land Màn- Foster appeared fór the Independent Petroleum Associaagement standards, Reed said.
statingthat the IPA supAlthough this is not federal tion,
ports Approach's permits and
land, Approach believes those
believes the OCD is not the
are the best standards, he said.
proper jurisdiction for. the
Water will be diverted around
county's protests.
the pads to prevent any run-on
and run-off, he said. Approach
Brooks did atlow a public
will.follow BLM guidelines comment period at the end of
for rpads and will construct the case.
silt traps, he said. The conJanice Varela of the New
struction and drilling will Mexico Acequia Association
be monitored, and any dam- read a statement from execuage contained and reclaimed tive dirèctor Paula Garcia.
in the interim, with interim Garcia said acequias are a cenrnonitoriùg to be done on suc- turies-old legacy for agriculcessful wells, he said.
tural activities in New Mexico.
Approach is headquartered
She said the association was
!
ç.
l:ftrrE I
tax increase to pay for operations and maintenance of the
Rail Runner has been explored
by the state, and some city and
dismayed that the division county officials are afraid
granted permits without atten- Iocal residents could end up
tion to the acequias and local being taxed twice.
landowners. The association
The transit district's inefsupports the county.
ficiency in some areas and
Bryan Gleadle ftom the state high administrative costs
vfc-1nsânïã
wasechoedb¡
of the City C.o
"I like to tl
I do think,
to really lool
going to deli¡
...
the Rail Rur
Councilor Pal
In additior
RailRunner
s
public trans¡
in the area al
sit service il
around Sant¿
Department of Game and Fish were worrisome, Councilor
said the department was not Chris Calvert said. He added
consulted on the well loca- that a lack oflocal control over
tions and is concerned about transportation projects also -College.
impacts on critical habitatç
for deer, elk and cold-water
fisheries. The department
believes drilling in such proximity these streams, even with
troubledhim.
"We'lI get certain funding,
but we don't have the control
to serve the needs we want to
meet," he said,
best practices, cannot protect
The NCRTD has not been
wildlife and water quälity, and rail-oriented, Raymond said,
Gleadle offered Game and Fish and, consequently, the alliance
Department support to the has had to play "catch-up" in
division tp evaluate the Sites. planning for RaiI Runner ser-
But
Cour
Chavez, who
r
senting vote,
drawal wasn'
regional coopr
"no sense to n
"!Ve ãre cb
that foundatir
overthelastfc
he said.
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