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

Frac ban exemption made in Broomfield

12/12/2014 A Colorado District Court judge has ruled that a hydraulic fracturing ban in Broomfield, Colo., does not apply to an operator that entered into an ...

COGA calls frac fluid study "sound science"

12/12/2014 Chemicals used in fracturing fluid appear to be no more toxic than chemicals commonly found in homes, said an analysis by University of Colorado Bo...

Study links methane contamination in water wells to poor well construction-not fracing-in Marcellus

12/12/2014 A new study found that fugitive gas contamination at eight clusters of water wells in the Marcellus and Barnett shale regions might be linked to we...

WoodMac: US unconventional enters new stage

12/12/2014 The unconventional oil and gas revolution is entering into a new stage with drilling and completion techniques pioneered in unconventional plays no...

Santos makes gas discovery in Cooper basin

12/12/2014

Santos Ltd. has made a wet natural gas discovery in its South Australian Cooper basin permit PEL 513.

Senex moves to commercialize Cooper basin gas field

12/11/2014 Senex Energy Ltd., Brisbane, has successfully tested a sidetrack of the 2007 Vanessa-1 gas discovery in South Australia’s Cooper basin as part of i...

Crown Point reports on two Argentine exploration wells

12/11/2014 Crown Point Energy Inc., Calgary, has released test results for the first of two exploration wells at its Tierra del Fuego concessions in Argentina.

Stone drills successful Utica exploration well

12/10/2014 Stone Energy Corp., Lafayette, La., reported that its Pribble 6HU well in Wetzel County, W.Va., flowed from a 3,605-ft lateral at 30 MMcfd during t...

White Papers

AVEVA NET Accesses and Manages the Digital Asset

Global demand for new process plants, power plants and infrastructure is increasing steadily with the ...
Sponsored by

AVEVA’s Approach for the Digital Asset

To meet the requirements for leaner project execution and more efficient operations while transferring...
Sponsored by

Diversification - the technology aspects

In tough times, businesses seek to diversify into adjacent markets or to apply their skills and resour...
Sponsored by

Engineering & Design for Lean Construction

Modern marketing rhetoric claims that, in order to cut out expensive costs and reduce risks during the...
Sponsored by

Object Lessons - Why control of engineering design at the object level is essential for efficient project execution

Whatever the task, there is usually only one way to do it right and many more to do it wrong. In the c...
Sponsored by

Plant Design for Lean Construction - at your fingertips

One area which can provide improvements to the adoption of Lean principles is the application of mobil...
Sponsored by

How to Keep Your Mud System Vibrator Hose from Getting Hammered to Death

To prevent the vibrating hoses on your oilfield mud circulation systems from failing, you must examine...
Sponsored by

Duty of Care

Good corporate social responsibility means implementing effective workplace health and safety measures...
Sponsored by

Available Webcasts


On Demand

Optimizing your asset management practices to mitigate the effects of a down market

Thu, Dec 11, 2014

The oil and gas market is in constant flux, and as the price of BOE (Barrel of Oil Equivalent) goes down it is increasingly important to optimize your asset management strategy to stay afloat.  Attend this webinar to learn how developing a solid asset management plan can help your company mitigate costs in any market.

register:WEBCAST


Parylene Conformal Coatings for the Oil & Gas Industry

Thu, Nov 20, 2014

In this concise 30-minute webinar, participants have an opportunity to learn more about how Parylene coatings are applied, their features, and the value they add to devices and components.

register:WEBCAST


Utilizing Predictive Analytics to Optimize Productivity in Oil & Gas Operations

Tue, Nov 18, 2014

Join IBM on Tuesday, November 18 @ 1pm CST to explore how Predictive Analytics can help your organization maximize productivity, operational performance & associated processes to drive enterprise wide productivity and profitability.

register:WEBCAST


US HYDROCARBON EXPORTS Part 3 — LNG

Fri, Nov 14, 2014

US LNG Exports, the third in a trilogy of webcasts focusing on the broad topic of US Hydrocarbon Exports.

A discussion of the problems and potential for the export of US-produced liquefied natural gas.

These and other topics will be discussed, with the latest thoughts on U.S. LNG export policy.

register:WEBCAST


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