Activity Area (22590 bytes) San Juan basin producers are focusing more attention on conventional tight sands gas prospects as the region's coalbed methane production continues to climb. Spurred by the federal Section 29 income tax credit for gas produced from nonconventional wells, San Juan operators through 1992 spudded as many wells as budgets would allow in the basin's Cretaceous Fruitland coal seams of Northwest New Mexico and Southwest Colorado. When the tax incentive to spud wells expired at yearend 1992, companies that had positioned themselves to take advantage of the credit began concentrating on building production from qualified well...

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