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

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

Tullow Oil provides production update on Jubilee, other fields

07/01/2015 Tullow Oil PLC reported that gross production for the Jubilee field offshore Ghana averaged 105,000 b/d in this year’s first half, up from 102,000 ...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

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
Available Webcasts

On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


The Alternative Fuel Movement: Four Need-to-Know Excise Tax Complexities

Thu, Jun 4, 2015

Discussion on how to approach, and ultimately embrace, the alternative fuel market by pulling back the veil on excise tax complexities. Taxes may be an aggravating part of daily operations, but their accuracy is crucial in your path towards business success.

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