Drilling blocked in Colorado's San Luis area

Sept. 8, 2009
A federal district court in Denver has blocked drilling at least temporarily in Colorado’s San Luis Valley 30 miles north of Alamosa.

Alan Petzet
OGJ Chief Editor-Exploration

HOUSTON, Sept. 8 -- A federal district court in Denver has blocked drilling at least temporarily in Colorado’s San Luis Valley 30 miles north of Alamosa.

The court granted a motion by San Luis Valley Ecosystem Council for a preliminary injunction against the US Fish & Wildlife Service. FWS, surface owner of the Baca National Wildlife Refuge in Saguache County, had issued a finding of no significant impact for the proposed Baca gas drilling project (OGJ, Nov. 10, 2008, p. 44).

Lexam Explorations Inc., Toronto, said the decision prohibits drilling until a final ruling is reached in the litigation.

The FWS finding, which followed a 15-month review process, was the final approval needed for exploratory drilling in the nonproducing San Luis subbasin.

Lexam drilled two exploration wells in the San Luis subbasin in the 1990s when the surface was privately owned and plans to drill two more with 75% interest. ConocoPhillips has 25% (OGJ, Sept. 1, 1997, p. 78). The F&WS acquired surface ownership in 2000 and operates the refuge.

Contact Alan Petzet at [email protected].