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Oil Drillers Fight To Tap Otero Mesa (NM)
The Albuquerque Journal (subscription required) ^ | Sunday, January 11, 2004 | Tania Soussan

Posted on 01/11/2004 11:55:56 PM PST by CedarDave

Sunday, January 11, 2004

Oil Drillers Fight To Tap Otero Mesa

By Tania Soussan

Journal Staff Writer


    Otero Mesa at first glance is a dusty and desolate chunk of land just this side of the Texas border.
    But it has inspired a broad coalition of conservationists and others to rally for its protection while oil and gas drillers fight tenaciously— with powerful political clout on their side— for the right to sink wells into what might be a lucrative new natural gas field.
    Why all the fuss?
    National and New Mexico environmental groups argue Otero Mesa is a place of stark beauty where wildlife thrives, rare Chihuahuan Desert grasslands remain intact and people still can find solitude. It's a place that should be protected before it ends up looking like the oil fields around Carlsbad or Farmington, they say.
    The oil and gas industry says the nation needs new domestic oil and gas production to reduce its reliance on foreign sources and to keep prices low for consumers. They believe Otero Mesa holds a potentially huge new reserve of natural gas.
    The area— about 1.2 million acres between Carlsbad and El Paso— also is a symbol of the national debate over oil and gas drilling versus environmental protection on public lands.
    "It seems to have become like the ANWR of the Southwest," said Bureau of Land Management state director Linda Rundell.
    While Otero Mesa has not been as much in the news as the Arctic National Wildlife Refuge, it has attracted attention from The New York Times, been featured in a BBC News broadcast, and referred to as "New Mexico's fabled Otero Mesa" in Mother Jones magazine.
    "It's one of the places that tells the story about the impact of the Bush energy policy," said Pam Eaton, of the Wilderness Society, in a telephone interview.
    Otero Mesa has been on the radar of White House policy advisers. It was one of 15 exploration and production areas that the oil and gas industry asked the Bush administration's Task Force on Energy Project Streamlining to help open to new drilling.
    The Bush administration advocates opening more federal land to oil and gas development. Sen. Pete Domenici, R-N.M., chairman of the Senate Energy and Natural Resources Committee, and Rep. Steve Pearce, R-N.M., support drilling on Otero Mesa. Gov. Bill Richardson, however, has opposed new oil and gas development there until a significant wilderness area is set aside.
    Last week, the U.S. Bureau of Land Management released a plan to guide oil and gas development on Otero Mesa. The industry says the plan is still too restrictive, while conservationists say it falls far short of protecting the area. Protests and legal challenges, potentially based on an alleged lack of public involvement, are expected.
    Breaking ground


    George Yates, president of Roswell-based HEYCO, in 1997 drilled the first exploratory well in the Otero Mesa grassland that piqued the interest of the oil and gas industry.
    When he and others asked the BLM to put more land up for lease in 1998, Rundell— a wildlife biologist and then manager of the BLM's Las Cruces office— put on the brakes.
    There were no environmental restrictions on the books at the time, so she started a new planning process and called a halt to new leases.
    Rundell, who left the Las Cruces office and spent some time as the BLM's associate state director in Alaska, returned to New Mexico in 2002 to find the debate over Otero Mesa raging.
    "I was amazed at the level of controversy," she said. "It's very hyped up. It's almost like mass hysteria on both sides."
    One reason Rundell doesn't understand the ferocity of the debate is that the BLM believes Otero Mesa has "pretty low potential" for oil and gas.
    She said the industry's actions back up what the BLM geologist says.
    Yates' company has not yet developed its existing leases, two new wells drilled last summer were permanently plugged when they came up dry and the 69,000 acres or so of leased state land in the area is not being developed, Rundell said.
    Yates has said there could be as much as 9 trillion cubic feet of gas just on the New Mexico side of the basin, compared with remaining known reserves of about 16.5 trillion cubic feet in the rest of the state. Bob Gallagher, president of the New Mexico Oil and Gas Association, has called Otero Mesa "potentially one of the largest new gas finds in the western United States."
    But the industry acknowledges there are a lot of unknowns about what lies below Otero Mesa in the Orogrande basin. The basin lies between the Guadalupe Mountains and El Paso, extending across parts of New Mexico's Sierra and Otero counties and Hudspeth County in Texas.
    Much more exploration is needed, but companies are not willing to take the financial risk unless they know they will have the access they need to make it economically viable, Yates said.
    "The one thing we do know is it has all the (geologic) ingredients needed to be a good oil- and gas-producing basin," he said.
    Yates said he sunk lots of money into early exploration. Now, he's fighting for a chance to get a return on his investment.
    "We bought the car," he said, "but somebody took the steering wheel. We can't drive it."
    He and Gallagher agreed there is a chance no companies will ever sink another well on Otero Mesa.
    But "that's truly not the issue," Gallagher said. "The issue is those lands ought to be managed as multiple-use lands."
    The industry says new technology makes it easier to tap oil and gas reserves without hurting the environment, and they say it will be possible to reclaim the grasslands of Otero Mesa once drilling is complete. Environmentalists, however, say reclamation won't succeed because the grasslands are fragile and the soils shallow.
    Steve Capra, associate director of the New Mexico Wilderness Alliance and a key organizer for the 21-member Coalition for Otero Mesa, said he doesn't think there's much oil or gas in the area.
    "Be that as it may, they'll destroy the place trying to find it," he said.
    Limited drilling

    The BLM's new oil and gas management plan— which covers both Otero and Sierra counties— limits the industry to drilling 140 exploratory wells, of which a maximum of 84 could be producing wells, over the next 20 years.
    By comparison, the BLM's plan for the San Juan Basin near Farmington envisions almost 10,000 new wells over the next 20 years.
    Capra said that doesn't belittle the potential damage that a relatively small number of wells could cause on Otero Mesa.
    "Farmington is practically a national sacrifice area. ... The landscape has been demolished," Capra said. "Down on Otero Mesa, it's a wild landscape. It's never been touched basically."
    Eaton said Otero Mesa is a special place. "It has incredible wildlife. It has wilderness characteristics. It has grasslands and sort of an ecological integrity that is being eroded elsewhere in southern New Mexico."
    The New Mexico Conference of Churches, which represents 460 churches and more than 600,000 New Mexicans, also wants to protect Otero Mesa's "natural beauty," said the Rev. Barbara E. Dua, the organization's executive director.
    "We have a commitment to the environment and to preserving the land," she said. "Otero Mesa is one of the few wilderness places left and it should be preserved."
    Otero Mesa has very little development— a network of dirt roads, some ranching and a few inactive oil and gas wells. Pronghorn sometimes seem more common than people. There are old petroglyphs, remains of a 19th century Butterfield stagecoach stop and more than 200 bird species.
    It looks stark now, but area ranchers say a good summer rain could bring back knee-high grass.
    "We're seeing Otero Mesa in difficult times because we've had such a drought," Capra said. "But in good times, it shines."
    Environmentalists have conducted detailed inventories and believe much of the Otero Mesa area should be protected as wilderness, but the federal government so far has disagreed.
    "It's very rural," Rundell said. "A lot of people, myself included, like that kind of desolation, but it doesn't meet our criteria for wilderness."
    Environmentalists say the BLM caved in to industry complaints that the draft plan, released three years ago, was too restrictive.
    The draft, for example, limited new oil and gas wells in large blocks of grassland to within 150 yards of existing roads.
    The industry said the restrictions would force the use of costly directional drilling.
    In its final plan, the BLM opted instead to protect the grasslands by requiring that drilling projects be coordinated to minimize new roads and only 5 percent of each development unit could be occupied by roads, well pads and other facilities at the same time.
    Environmentalists say the 5 percent plan is inadequate, partly because the land disturbance would be spread out over a broad area and also because reclamation would be virtually impossible.
    The battle over Otero Mesa is far from over.
    The public has until Feb. 9 to file protests, and Bill Richardson has 60 days to review the plan and make sure it is consistent with state policies, such as land use or environmental rules.
    Rundell said she's confident the governor will not find any conflicts with state rules, but environmentalists believe Richardson, a former energy secretary, has some power to throw a wrench in the works.
    Meanwhile, the Wilderness Alliance has rented the KiMo Theatre in Albuquerque and chartered buses to bring people from southern New Mexico for a free afternoon of speakers, live music and public comment on Jan. 31.
    The point is to let President Bush and the state's congressional delegation know how New Mexicans feel about Otero Mesa, Capra said. "It's really about reclaiming our state."

Copyright 2004 Albuquerque Journal



TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; US: New Mexico; US: Texas
KEYWORDS: blm; drilling; energy; environment; envirowhackos; naturalgas; oil; oilandgas; oteromesa; richardson
Otero Mesa at first glance is a dusty and desolate chunk of land just this side of the Texas border.

Dusty and desolate at second, third and subsequent glances as well. Drilling can only improve it.

1 posted on 01/11/2004 11:55:58 PM PST by CedarDave
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To: BOBTHENAILER; farmfriend; Grampa Dave
Late night PING
2 posted on 01/11/2004 11:57:05 PM PST by CedarDave (A Pres. Dean would visit the UN community regarding Iraq. It will be called the US "apology" tour.)
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To: All
Linda Carter is completely unrelated to Free Republic. But if I am going to have to post donation begs until the Freepathon is over, I'm going to occasionally post something I want! And there is only one way you can stop me!

3 posted on 01/11/2004 11:57:41 PM PST by Support Free Republic (Your support keeps Free Republic going strong!)
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To: CedarDave; AAABEST; Ace2U; Alamo-Girl; Alas; alfons; alphadog; amom; AndreaZingg; Anonymous2; ...
Rights, farms, environment ping.

Let me know if you wish to be added or removed from this list.
I don't get offended if you want to be removed.

4 posted on 01/12/2004 12:24:05 AM PST by farmfriend ( Isaiah 55:10,11)
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To: farmfriend
I say Drill. More America oil the better!
5 posted on 01/12/2004 12:33:54 AM PST by Pro-Bush (Homeland Security + Tom Ridge = Open Borders --> Demand Change!)
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To: CedarDave
I'm by no means a tree-hugger; in fact, I'm all for opening ANWR for oil exploration, but, this article makes no mention of finding any oil there. The US has natural gas reserves for 200 years and we're blowing it off as a byproduct in most cases. WE NEED OIL! New Texas wells couldn't supply enough oil to fuel the cars coming over the border.
6 posted on 01/12/2004 12:57:42 AM PST by CruisinAround
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To: CruisinAround
In 2003 there were over 30 permits filed to construct LNG offload terminals in the US. In a few years, imported LNG will be a "cornerstone" of the US gas supply.
7 posted on 01/12/2004 2:26:34 AM PST by Ben Ficklin
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To: farmfriend
BTTT!!!!!!
8 posted on 01/12/2004 3:03:54 AM PST by E.G.C.
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To: CruisinAround
It’s the Oil, Stupid! (Hubbert’s Curve and World War III)
http://www.foundationwebsite.org/ItsTheOil.htm
9 posted on 01/12/2004 4:44:36 AM PST by mekkino
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Comment #10 Removed by Moderator

To: CedarDave
It's all about limiting supply capacity to push the market to higher prices. Consider the makeup of the Natural Resources Defense Council.

.

Natural Resources Defense Council Board of Trustees

Chairman

Frederick A. O. Schwartz, Jr.

Partner, Cravath Swaine & Moore; (a British Law Firm) Former New York City Corporation Counsel (under Mayor Ed Koch)

Executive Director

Frances Beinecke

Co-founder, The New York League of Conservation Voters (with RFK Jr.)

Trustee

Laurance Rockefeller

Private philanthropist; Former Chairman, Rockefeller Brothers Fund; Former chairman, Citizens Advisory Committee on Environmental Quality; Trustee, the Laurance Rockefeller Charitable Trust

Trustee

Thomas A. Troyer

Partner, Caplin & Drysdale; Former Chairman, the Foundation Lawyers’ Group; Former member of the IRS Commissioner’s Advisory Group on Tax-exempt Organizations; (no conflict of interest there?) Board member, the Carnegie Corporation of New York

Pres & Co-founder

John H. Adams

Former Assistant US Attorney (New York)

Vice Chair

Adam Albright

Board member, Redefining Progress; Board Chair, Population Communications International; Program Chair, Conservation International

Vice Chair

Alan Horn

Chairman & Chief Operating Officer, Warner Brothers

Vice Chair

Burks Lapham

Chairman, Concern Inc.; Director, Chesapeake Bay Foundation (a relatively benign group)

Vice Chair

George Woodwell

Founding Director, Woods Hole Research Center; Co-founder, Environmental Defense Fund (Ruckleshaus went there after he banned DDT.)

Co-founder & Treas

Richard E. Ayres

Partner, Howrey & Simon; Former Chairman, National Clean Air Coalition

Trustee

Patricia Bauman

Member, Pew Environmental Health Commission; Former Manager, National Institute for Environmental Health Sciences; Co-Director, The Bauman Foundation

Trustee

William Richardson

Former US Secretary of Energy; Former US Ambassador to the United Nations; Former US Congressman (D-NM)

Trustee

Michael Finnegan

Managing Partner, J.P Morgan Securities

 

Is this "Natural Resources" defense, or natural resource SUPPLIERS defense?

Now, let’s look at who gives the NRDC money, shall we?

Top Funders of NRDC

Funder

Total Donated

Comments

Descriptions in bold are major energy investors

Pew Charitable Trusts

$11,568,000.00

Sunoco money

Blue Moon Fund

$7,818,735.00

This is W. Alton Jones Money (Citgo)

Energy Foundation

$6,965,000.00

Launched by The John D. and Catherine T. MacArthur Foundation, The Pew Charitable Trusts, and The Rockefeller Foundation. The Joyce Mertz-Gilmore Foundation joined as a funding partner in 1996, and The McKnight Foundation joined in 1998. In 1999, The David and Lucile Packard Foundation joined to support two programs: the U.S. Clean Energy Program (now the Climate Program) and the China Sustainable Energy Program. In 2002, the William and Flora Hewlett Foundation joined to support advanced technology transportation and clean energy for the West.

John D. & Catherine T. MacArthur Foundation

$5,636,500.00

Bankers Life and Casualty money (investment portfolio unknown)

U.S. Environmental Protection Agency

$4,681,097.00

Your tax dollars at work subsidizing the interests of whom?

Turner Foundation

$3,795,167.00

CNN, and a lot more

Public Welfare Foundation

$3,500,000.00

Too confounded to determine

Joyce Foundation

$3,309,445.00

Timber Wealth

Charles Stewart Mott Foundation

$3,022,340.00

General Motors

Ford Foundation

$2,733,300.00

Ford

Beinecke Foundation

$2,150,000.00

Major player at Yale.

J. M. Kaplan Fund

$2,057,500.00

William Bingham Foundation

$1,995,000.00

Homeland Foundation

$1,733,000.00

San Francisco Foundation

$1,654,739.00

Rockefeller Brothers Fund

$1,377,510.00

Them again

McKnight Foundation

$1,365,500.00

Robert Sterling Clark Foundation

$1,310,000.00

Geraldine R. Dodge Foundation

$1,310,000.00

Bauman Family Foundation

$1,226,000.00

Nathan Cummings Foundation

$1,220,000.00

Educational Foundation of America

$1,210,000.00

Richard & Rhoda Goldman Fund

$1,205,000.00

Mertz Gilmore Foundation

$1,201,000.00

Carnegie Corporation of New York

$1,200,000.00

Park Foundation

$1,198,010.00

New York Community Trust

$1,186,821.00

Overbrook Foundation

$1,182,585.00

Surdna Foundation

$1,147,000.00

Bullitt Foundation

$1,122,675.00

William & Flora Hewlett Foundation

$1,075,000.00

Note also the participation with the Energy Foundation

These people are energy investors who use federal money and their own tax-exempt "charitable" donations to fund lawsuits that manipulate access to resources, control processing of energy feedstocks, and set attainment targets in a manner preferential to their own investments. ALL of the resulting capital gains in their trusts are tax-exempt. You may be surprised to find the Hewlett and Packard fortunes listed as energy investors, but they just gave over 130 million to Stanford to research extraction of methane hydrates and are directly tied in with Exxon/Mobil in that effort. Keeping it in the family they've put Lynn Orr, who is married to Susan Packard, in charge of the global energy project. The idea is that they can use the energy revenues and the carbon credits for removing a principal source of atmospheric methane, a powerful greenhouse gas. They need Kyoto or this will be a big loser of an investment. Curiously, if they disturb those nodules foolishly, they may end up releasing a great deal of methane to the surface which would release the gases into the atmosphere. You don’t think that they might need protection from the NRDC in case they screw up, do you?

Did anybody sue the NRDC for the cleanup costs of MTBE?

They can’t be sued. Clinton EO 12986 indemnified them from such lawsuits as members in good standing at the IUCN, the United Nations' equivalent of the EPA.

Using a charitable foundation, to use the law to force people to use your product, to use regulatory power to keep competitors out of the market or force them into selling or go bankrupt, and to protect you from liability for your product in order to reap a guaranteed profit is tax-exempt racketeering, and on a grand scale.


11 posted on 01/12/2004 6:43:40 AM PST by Carry_Okie (And the Lord God took the man and put him in the Garden of Eden to dress it and to keep it.)
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To: Carry_Okie
Using a charitable foundation, to use the law to force people to use your product, to use regulatory power to keep competitors out of the market or force them into selling or go bankrupt, and to protect you from liability for your product in order to reap a guaranteed profit is tax-exempt racketeering, and on a grand scale.

Nice work!

12 posted on 01/12/2004 9:47:38 AM PST by Major_Risktaker (dididit dadadah dididit)
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To: Carry_Okie; CedarDave
"Farmington is practically a national sacrifice area. ... The landscape has been demolished," Capra said. "Down on Otero Mesa, it's a wild landscape. It's never been touched basically."

I grew up in Farmington and it is still beautiful, despite the thousands of wells drilled in the San Juan Basin.

Nice work C. Okie and thanks for the flag CD, enjoyed meeting you and having a few drinks in that devastated, heavily drilled area where we met.

13 posted on 01/12/2004 10:22:20 AM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: BOBTHENAILER; Carry_Okie; farmfriend
Somehow I thought of you first when I was pinged to this thread by farmfriend. I came looking and shore nuff... There you wuz!!!

Carry, thanks for posting that fantastic expose' once again!!! That is SO enlightening for everyone!!! BOOKMARKED, this time.

I was further gratified to see that the two of you have met and exchanged gray matter.(NOT Gray Davis matter!!!)

Keep up the good work, you three. You're doing "the Lord's work," so to speak.(grin)

14 posted on 01/12/2004 11:14:02 AM PST by SierraWasp (GovernMental EnvironMentalism has become totally counterproductive and everybody knows it !!!)
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To: mekkino; CruisinAround; BOBTHENAILER; Dog Gone; Grampa Dave
So What!!!

You got any better ideas?

Got any "constructive" criticism?

Scarce resources are a pure pant-load!!!

What other countries or block of them would you want providing the freedom to "move about the country" you currently enjoy? Reply with a list!!!

15 posted on 01/12/2004 11:24:02 AM PST by SierraWasp (GovernMental EnvironMentalism has become totally counterproductive and everybody knows it !!!)
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To: SierraWasp
Let's face it. The environmentalists don't want any more drilling anywhere. Otero Mesa is a worthless area. If you could run two head of cattle per square mile, you'd be doing good.

I can't think of a better place to put a natural gas field than this desolate area.

16 posted on 01/12/2004 11:36:17 AM PST by Dog Gone
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To: mekkino; SierraWasp; Dog Gone; Carry_Okie
Dr. Marion King Hubbert was a geologist who, in 1949, presented a curve predicting the rise and fall of oil production in the conterminous United States.

Price will dictate the finding of new reserves, as much as geology does.

Add ANWR, offshore Florida & California, and many other currently "off limits" areas to "Hubbert's Laughable Curve", and you'll blow up his model.

The notion stated in your link that Bush & Blair went for the Iraqi oil, is so old left.

17 posted on 01/12/2004 11:47:35 AM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: CedarDave
I've lived in Western Texas and New Mexico for years. You're right, drilling can only improve it.

For those of you who thought the Mars photos looked barren, I suggest a bit of travel along the Texas-New Mexico border.
18 posted on 01/12/2004 11:53:14 AM PST by Doctor Stochastic (Vegetabilisch = chaotisch is der Charakter der Modernen. - Friedrich Schlegel)
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To: Doctor Stochastic
For those of you who thought the Mars photos looked barren, I suggest a bit of travel along the Texas-New Mexico border.

Ain't that the truth.

19 posted on 01/12/2004 12:20:08 PM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: Doctor Stochastic; Dog Gone; BOBTHENAILER
"I suggest a bit of travel along the Texas-New Mexico border."

Beenair, dunnat!!! Yer RITE!!! (I speek a furin langwige, jus like yer tagline!)(toothless rednek grin)

20 posted on 01/12/2004 12:29:33 PM PST by SierraWasp (GovernMental EnvironMentalism has become totally counterproductive and everybody knows it !!!)
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To: BOBTHENAILER
It has a strange kind of beauty, in a very desolate way. I can remember driving north from Van Horn with pronghorn antelope running alongside the car and a lone thunderstorm in the distance.

But for anyone to argue that drilling will ruin the land is absurd. This is hardly a small area, and drilling activity will have about as much impact as a ranchers stock tank and windmill. Plus, oil companies are pretty good at environmental remediation. We can reseed any disturbed areas with native grasses or whatever makes the BLM or the ranchers happy. It's a routine matter.

21 posted on 01/12/2004 12:49:51 PM PST by Dog Gone
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To: Dog Gone; CedarDave; TexasCowboy
Where the hell is this place, north of Orla?

I just watched the biggest Pronghorn buck chase off a coyote from his herd today, west of Eunice and 8 miles north of 176. First signs of life, I have seen out there in two weeks, not even any cattle.
22 posted on 01/12/2004 1:36:40 PM PST by razorback-bert
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To: Dog Gone
It does indeed have a strange and desolate beauty. Chaves County is much the same, and you have to look hard to see the wells along the main highways, and there are hundreds of them.

We can reseed any disturbed areas with native grasses or whatever makes the BLM or the ranchers happy. It's a routine matter.

The no-brainer remediation that all the enviro-wackos never have seen, much less contemplated.

23 posted on 01/12/2004 1:53:02 PM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: razorback-bert
No, it's going to be west of beautiful downtown Orla. It's essentially that flat area north and west of Sierra Blanca. Its historical claim to fame is that it was site of the Salt Wars of the 1860s and 1870s.
24 posted on 01/12/2004 2:00:57 PM PST by Dog Gone
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To: razorback-bert; Dog Gone; BOBTHENAILER
"Where the hell is this place, north of Orla?"

Well, if you take the drive from Eunice to Jal and imagine that area without rain for a hundred years, you've got the picture.

Everytime I see Bill Richardson name as an authority about oil and gas, I cringe.
My daughter knows more than he does!

There is evidently some seismic data which says there is gas there or no one would be interested.
That's something the environazis don't understand.
Oil and gas companies aren't in business to destroy the environment. They're there to make money.
If it doesn't prove out after several exploratory wells, they won't have to worry about the devastation.
No one will be back.

To limit an oil company to drill directional wells as exploratory is asinine.
That's hard rock country, and with the cost of drilling today it would have to be a prodigous producer to pay out.
No company drills the exploratory wells directionally. They're pretty sure where the sands are located before they invest in a directional well.

The wells I've drilled in that general area were around 16,000', if I remember correctly.
That's about five to eight months directional drilling time depending on the departure from vertical.

25 posted on 01/12/2004 2:33:05 PM PST by TexasCowboy (COB1)
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To: Dog Gone; CedarDave; TexasCowboy
Okay, it's over by Ortogrande and White Sands.


Hmmmm, I see I would be forced to stay in Cloudcroft and eat in the great Mexican restaurant outside Los Cruces.

N32.20.432
W105.50.6

26 posted on 01/12/2004 2:45:29 PM PST by razorback-bert
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To: razorback-bert
LOL!
You might want to wait a few months before you get a room at Cloudcroft.
This is snow season.

I drilled a well in those foothills just south of Los Cruces about a hundred years ago.

27 posted on 01/12/2004 2:50:59 PM PST by TexasCowboy (COB1)
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To: TexasCowboy
I used to have a place up in Queen NM and have driven the road through Crow Flats to El Paso and I am sure I just missed falling off the end of the earth by inches a couple of times.
28 posted on 01/12/2004 2:52:24 PM PST by razorback-bert
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To: TexasCowboy; razorback-bert; Dog Gone
Everytime I see Bill Richardson name as an authority about oil and gas, I cringe. My daughter knows more than he does!

Truer words were never spoken.

Oil and gas companies aren't in business to destroy the environment. They're there to make money. If it doesn't prove out after several exploratory wells, they won't have to worry about the devastation. No one will be back.

Again true. This is from PI/Dwights Plus Drilling Wire
Details have been released on a remote New Mexico wildcat completed by Roswell independent Harvey E. Yates Co. in non-producing Otero County.

The 1 Bennet Ranch Unit "25" was tested in late 2001 flowing 3,000,000 cu. ft. of gas per day through perforations in the Canyon at 2255-68 ft.. Flowing tubing pressure was 250 psi on a 45/64-inch choke. The 5671 ft well was drilled in the SWNE Sec. 25, T26S, R12E, with 9 5/8 casing set to 3087 ft. Plug back depth is 2750 ft., with the top of the Canyon logged at 1900 ft.

The new producer is about 2 1/4 miles from the operator's 1Y Bennet Ranch Unit, a Mississippian discovery in late 1997. That well flowed 1,294,000 cu ft of gas per day, with a trace of condensate through perforations in the Mississippian at 4506-18 ft. Flowing tubing pressure was 930 psi on a 14/64 choke. The wildcat was drilled to a total depth of 7075 ft.

It looks as if the stacked pay phenomenom, typical of that area, exists in Otero County. The only question I heard when I was there, was "are the reserves big enough to jusify the pipeline?"

29 posted on 01/12/2004 3:04:59 PM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: CruisinAround
"The US has natural gas reserves for 200 years and we're blowing it off as a byproduct in most cases. WE NEED OIL!"

With gas prices at over $7.00 per thousand cubic feet, did you ever wonder why we're flaring gas from oil wells?
Most of the time it's because of a lack of a carrier line in the vicinity, but sometimes it's because of a lack of bottom hole (hence, wellhead) pressure that would allow the producer to get it into the pipeline without expensive booster compressors.

I've been drilling holes in the ground for over 31 years, and I've not drilled a strictly oil well in over fifteen years.
Our future energy needs must be met with natural gas.
We don't have the oil reserves to sustain us, but we have enough gas reserves in the Continental Unites States to be completely energy independent.

The problem is the reluctance of big oil to mount the advertising blitz necessary to convince the American public that their cars will run better and cleaner on natural gas and to build convenient supply points to obtain it.

As I've said many times on this forum, big oil is not your friend.
There is no such thing as a major American oil company anymore. They are major WORLD oil companies.
They have no desire to cut their own throats by reducing the demand for their overseas product and by idling their refineries.

30 posted on 01/12/2004 3:26:05 PM PST by TexasCowboy (COB1)
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To: BOBTHENAILER
HEY!
Now that's interesting!

They've been able to produce the shallow sands!
That opens up a whole new ballgame!

Investors will flock to that like ducks to water!
Anyone with a hundred thousand to invest can become a millionaire in a few months.

Now the question becomes: Where is the nearest carrier line and how much flak are the environazis going to put up when they oil companies try to build one across that "pristine" landscape?

31 posted on 01/12/2004 3:34:56 PM PST by TexasCowboy (COB1)
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To: CruisinAround; TexasCowboy
The US has natural gas reserves for 200 years and we're blowing it off as a byproduct in most cases.

Not true as to the "blowing it off" part. It is very difficult to get a "flare permit" nowadays.

Usually it is allowed only in cases where the operator can't re-inject for mechanical reasons, or that an oil well is so huge that it must be produced when a pipeline is too far away or it is not economical to get one there.

Texas Cowboy nailed it, at $7.00 per mcf, everybody wants to produce natural gas if they can find a way.

You are right in the quote that we have 200 years of reserves, we just have to get the enviro-whackos, like the ones described in this article, off our backs, out of the decision process as to where we can drill and PROVE that they are largely responsible for the record high prices we are seeing.

32 posted on 01/12/2004 3:58:49 PM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: TexasCowboy
Now the question becomes: Where is the nearest carrier line and how much flak are the environazis going to put up when they oil companies try to build one across that "pristine" landscape?

Good questions. The nearest transportation line is far enough away to need a few more wells to justify the expense of building it.

As to the environazis, they'll fight any pipeline harder than they'll fight the drilling, cause they know that a pipeline means total exploitation of the reserves. They outta be shot.

33 posted on 01/12/2004 4:37:21 PM PST by BOBTHENAILER (One by one, in small groups or in whole armies, we don't care how we do, but we're gonna getcha)
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To: TexasCowboy
LOL! You might want to wait a few months before you get a room at Cloudcroft. This is snow season.

Not this year.

34 posted on 01/12/2004 5:13:53 PM PST by CedarDave (A Pres. Dean would visit the UN community regarding Iraq. It will be called the US "apology" tour.)
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To: Doctor Stochastic; SierraWasp
Same barren wasteland as ANWR....drilling can only improve it, and provide something of interest to the local wildlife.
35 posted on 01/13/2004 9:44:00 PM PST by Issaquahking (U.N., greenies, etc. battling against the U.S. and Constitution one freedom at a time. Fight Back !)
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