Anadarko, SITLA defer southern Book Cliffs activity until 2016

Oil and gas activity in the Bogart Canyon area of Utah’s Book Cliffs will be delayed until 2016, Anadarko Petroleum Corp. and the state’s School and Institutional Lands Trust Administration jointly announced on Sept. 16.

Anadarko and SITLA reached the agreement a day earlier in meetings with Utah’s Gov. Gary R. Herbert and US Rep. Rob Bishop, who represents the state’s first congressional district. The two Republicans, who normally support oil and gas development, had expressed concern because Anadarko’s 96,000-acre option included Bogart Canyon, a 17,000-acre roadless area hunters and wildlife groups prize.

“We are pleased a mutually beneficial agreement could be reached,” Herbert said on Sept. 16. “By being willing to listen and respond to stakeholder concerns, Anadarko is once again demonstrating it is a responsible corporate citizen and one of the more socially conscious energy producers in the nation.”

Bishop added, “We also appreciate the cooperative approach taken by SITLA. Providing time to work out a broader lands initiative through a more inclusive and balanced approach is a win-win for all Utahns, especially Utah’s school children.”

SITLA Board Chairman Steve Ostler also expressed satisfaction with the agreement, saying it benefits the state and its public school while honoring the school lands trust’s commitment to Anadarko.

Under the agreement, the initial contract remains largely intact, allowing for oil and gas exploration on three large school trust parcels in the Book Cliffs area of Uintah and Grand counties. Activity will be delayed only on the Bogart Canyon parcel, which essentially is in line with Anadarko’s plan to begin initial exploration in northern parts of its Book Cliffs option area and work southward over time.

SITLA’s plans

SITLA’s board of trustees intends to consider the proposed modification at its Sept. 26 meeting in St. George, Utah, where public comments will be welcome. The board also intends to create an advisory committee to provide input on appropriate wildlife management and mitigation considerations associated with the exploratory lease activities.

SITLA and Anadarko jointly said the 27-month delay would let them consider potential alternatives for the land in connection with Bishop’s broader public lands initiative to potentially consolidate trust lands in energy rich areas in exchange for protecting some of Utah’s iconic and sensitive landscapes.

The southern Book Cliffs have only become a popular hunting area in the last 20 years, SITLA Deputy Director Kim Christy said in a phone interview. Five oil and gas wells were drilled and abandoned there in the late 1970s and early 1980s, he told OGJ. SITLA gets 65% of its revenue from oil and gas activity on land it manages, Christy said.

Utah formed the school lands trust in 1994 to manage 3.4 million acres of land Congress granted Utah to support K-12 public schools and other public institutions when it became a state in 1896. Revenue from school trust lands is deposited in the Permanent School Fund, a $1.64 billion perpetual endowment that distributes interest and dividend income annually to each K-12 school in the state. The 2013 distribution was $37.8 million.

Contact Nick Snow at nicks@pennwell.com.

Related Articles

Petrobras confirms extent of Farfan area discovery, finds reservoir

02/02/2015 The drilling of a third extension well in the Farfan area in the ultradeepwater Sergipe basin confirmed the extent of the 2013 light oil and gas di...

Antero trimming, delaying Marcellus drilling

02/02/2015 Antero Resources Corp., Denver, has announced a $1.8 billion budget for 2015, which is down 41% from 2014. The independent said it plans to defer c...

Fluid typing extends production in Chinese gas reservoir

02/02/2015 Comprehensive evaluation and classified recognition (CECR) of fluid typing and zonation (FTZ) is a prerequisite for developing multilayer sandstone...

Santos acquires interest in block offshore Malaysia

02/02/2015 Santos Ltd. has acquired 20% interest in a deepwater permit offshore Sabah, Malaysia. The company will take 10% from each of Japan’s Inpex and oper...

Mud volcanoes show gas hydrates potential in India's Andaman Islands

02/02/2015 Minutes after the M9.0 Sumatra-Andaman earthquake in 2004, mud volcanoes erupted on Diglipur Island in North Andaman. The eruptions resulted in an ...

OGJ Newsletter

02/02/2015

International news for oil and gas professionals

The ANWR blitz

02/02/2015 Deception begins with a 58-sec video on the White House web site in which President Barack Obama says he'll ask Congress to make the whole Arctic N...

BHP to drill first deepwater well off Trinidad in 2016, energy minister says

01/30/2015 BHP Billiton and its partner BP PLC will drill their first well in Trinidad and Tobago’s deep water in 2016 according to the Caribbean twin-island ...

Pennsylvania governor reinstates state forest drilling moratorium

01/29/2015 Pennsylvania Gov. Tom Wolf (D) signed an executive order fully reinstating a 2010 moratorium on new oil and gas leases in state forests and parks. ...

White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

Available Webcasts



Global LNG: Adjusting to New Realties

When Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

When Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST



On Demand

The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected