Power Play
Oil extraction equipment is silhouetted on a ridgeline that runs alongside U.S. Highway 40 just outside of Milner in western Routt County. Routt County planner Chris Brookshire said three companies — Quicksilver Resources, based in Fort Worth, Texas; SWEPI, a subsidiary of Shell Oil; and True Oil, based in Casper, Wyo. — have inquired about the process in the past two months.

Photo by John F. Russell

Oil extraction equipment is silhouetted on a ridgeline that runs alongside U.S. Highway 40 just outside of Milner in western Routt County. Routt County planner Chris Brookshire said three companies — Quicksilver Resources, based in Fort Worth, Texas; SWEPI, a subsidiary of Shell Oil; and True Oil, based in Casper, Wyo. — have inquired about the process in the past two months.

Interest in Routt County oil leases increases

Planner reports increased interest from oil companies in lease process

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Routt County officials are expecting local oil speculation to increase in coming months.

“I have a lot of inquiries,” Routt County planner Chris Brookshire said Monday.

Brookshire is Routt County’s local government designee for oil and gas permitting requests and questions. She said inquiries from three oil exploration companies — Quicksilver Resources, based in Fort Worth, Texas; SWEPI, a subsidiary of Shell Oil; and True Oil, based in Casper, Wyo. — have increased in the past two months. The companies have been calling and meeting with Brookshire about Routt County’s permitting process and regulations.

Brookshire said none of the companies have applied for new drilling permits.

“But I think it’s just a matter of time before all three of them start coming in with applications,” she said.

In February, Colorado’s State Land Board auctioned multiyear leases of surface or subsurface mineral rights on 19 Routt County tracts totaling more than 5,200 acres. Most of the tracts are in the Hayden area. Others are close to the Moffat County line.

Routt County leases sold in the Feb. 17 auction generated nearly $4.2 million in revenues for the Land Board, which channels revenues to Colorado public schools.

Quicksilver leased mineral rights on nine tracts totaling more than 3,500 acres, for a total price of more than $3.2 million.

Results from the Land Board’s most recent auction May 19 were not available Monday.

Leases on private lands also could be changing hands.

“They’re not buying the leases just to pay out a bunch of money,” Routt County Commissioner Doug Monger said about oil companies. “I think all of us are anticipating a drive toward more activity in energy exploration in our county.”

Brookshire and Commissioner Diane Mitsch Bush said county staff is placing more focus on the county’s permitting regulations to see if increases in air or water quality standards, or other changes, are needed.

Brookshire theorized in November that much of the speculative interest could be traced to a high-producing well in Weld County, east of the Front Range. That well and the rolling terrain around Hayden each have subsurface layers of Niobrara shale.

The Niobrara is the same oil-bearing rock that is underlying productive wells in Jackson County, just over the Park Range from Hayden and Steamboat Springs.

The Jake Well in Weld County was struck in February 2010 and produced 50,000 barrels in the first 90 days.

Brookshire stressed that the interest in Routt County, for the moment, continues to be speculative.

“They’re wildcat operations right now,” Brookshire said. “They’re hoping they’ll find a site that works for them.”

Brookshire said details of potential drilling locations and the magnitude of coming permit requests are not yet known.

“I won’t know until they actually walk in the door and submit that application,” she said.

— To reach Mike Lawrence, call 970-871-4233 or email mlawrence@SteamboatToday.com

Comments

kathy foos 3 years, 7 months ago

The speculators in oil are waiting to see if they will get subsidized by our tax money (like they don't make enough money on oil already!)They want the power plants to convert from coal to gas so that they can go crazy gas fracking if the state allows them.It doesn't seems like an easy idea to transfer everything out by tanker truck on these frozen roads all year long.I think they want their oil welfare checks to continue,so they are going to scream for it now.Its funny that they are able to deduct the cost of site management from their taxes ,but don't fence off the property to keep the public safe,just lazy and don't care about life or water.Peak oil is over ,I hope they find a cheaper place to destroy that is closer to the front range.Thanks for the oil industry article Steamboat Pilot.Its nice to keep an eye on them.

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canyonwind 3 years, 7 months ago

 If someone wants to lease their land to the oil companies thats between the land owner and oil companies but Routt county should try to tax them so we can fix these damm roads around here. Been on 131 latley? If the county could tax the oil at let say 2% at $100 a barrel( 55 gal ) that could be alot of money. 
  The thing I hate is all the oil must come from the middle of the Country ( N Dakota, Montana, Wyoming, Colorado, Utah, Idaho)  so those stupid fools in the Northeastern states don't have to look at oil drill rigs off their coast. There are over 100 Million people back there and they should step up to the plate like California, Texas and Louisiana have and find there own damm oil. 
  When that fool  in the White House put that drilling moratorium on new sites in the Gulf last Summer it drove oil prices up and drilling  elsewhere (the Rocky Mountains)  he also put on hold ANY future drilling off the Northeast coast. With the true unemployment numbers being over 20% these oil Companies should hire some locals and pay for any training the local may need. And when it comes to the environment shortcuts will not happen like they did in the Gulf with BP and their 714 safty violations. thank God their name did not appear in that artical.
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