Posted on September 29, 2009 by Kelly Becker

New Permit Requirements for Hydraulic Fracturing of the Haynesville Shale

By Stephen Weigand

The Shreveport Times reports that federal authorities have added additional permit requirements for companies who pump water from the Red River for hydraulic fracturing of the Haynesville Shale. The requirements were added after the U.S. Fish and Wildlife Service raised concerns that the pumping process could be disturbing the habitat of three federally endangered and threatened Red River species. These species include the pallid sturgeon as well as a bird known as the interior least tern and a plant known as earth fruit. According to the Times, one of the new requirements is that a pump not be placed within 600 feet of an active least tern colony. This requirement effectively forces companies to survey the area before submitting a permit application. Additionally, the Times reports that the Fish and Wildlife Service is also requesting the use of smaller pipes and a diffuser to eliminate the possibility of sucking in fish during the pumping process.
 

For the full story, see http://www.shreveporttimes.com/article/20090921/NEWS01/909200332
 

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Posted on September 22, 2009 by Kelly Becker

Caddo Parish Commissioners Approve Ordinances Affecting Oil and Gas Operations

By Matthew Simone

After seven months of discussion and postponement, Caddo Parish Commissioners approved new regulations affecting oil and gas operations. These regulations involve three directives. First, loud operations within five hundred feet of hospitals, residences, religious, commercial, or public buildings in urban areas, may only take place Monday through Saturday between 8 A.M. and 5 P.M. Second, oil and gas operations may not use public water supplies unless permitted by state or parish approval. Last, lighting within three hundred feet of public roads or adjacent property may not shine directly on those sites. These regulations are scheduled to take affect on November 1, 2009. However, they will not affect wells that were in use prior to January 2008 in an effort to protect smaller companies which have been operating in the area before that time.

The new laws also mirror current state and Bossier City ordinances affecting the use of public roads and acceptable noise levels, but Caddo officials may re-visit these areas and increase the level of regulation at a later date. Caddo Parish Attorney Charles Grubb stated that the aim of the new ordinances is to “end up in the future with a more comprehensive system of permits and advanced notification.”

For more information go to:
http://www.shreveporttimes.com/article/20090917/NEWS01/90917043
 

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Posted on September 17, 2009 by Kelly Becker

White House Wants to End Royalty-in-Kind Program

by Elisabeth Lorio Baer

Interior Secretary Ken Salazar informed Congress on September 17, 2009 that he would kill a controversial program, currently in effect, that allows energy companies to pay the government royalties for drilling on public lands in actual oil and gas in lieu of cash. The announcement was made during testimony to the House Natural Resources Committee which is holding a hearing on a proposal by Chairman Nick Rahall, D-W.V. to revamp the manner in which the nation leases and collects royalties for drilling on public land.

Salazar stated that he would begin a “phased-in termination” of the royalty-in-kind program. The program, previously promoted by the Mineral Management Service, has reportedly been so badly managed that the government has failed to collect an estimated $21 million in oil and gas royalties from about 29,000 productive leases. Salazar said that the royalty-in-kind program was outdated and difficult to administer. Jack Gerard, president of the American Petroleum Institute, defended the program, and urged Salazar to reconsider ending it.

For the full story, see http://www.chron.com/disp/story.mpl/business/energy/6621406.html
 

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Posted on September 4, 2009 by Kelly Becker

The Tiber Prospect Well: BP Makes Giant Oil Discovery Deep in the Gulf

By Kerry Murphy

On Wednesday September 2, BP drilled the world’s deepest oil well – the Tiber Prospect Well – and discovered a huge pool of crude oil. The Tiber well is located in the western Gulf of Mexico, southwest of New Orleans in U.S. waters. It is expected to rank among the largest petroleum discoveries in the United States, potentially producing as much oil as BP’s Thunder Horse well and half as much as Alaska’s famous North Slope oil field. The Tiber well is below 4,000 feet of water and more than 30,000 feet into the earth. As is common in deep-water operations, it will take years of work and millions of dollars before oil can be drawn from the well. The Tiber well promises to make a major impact on the economy of south Louisiana. Developing Thunder Horse required “countless” workers, and created increased business for shipyards, refiners, and manufacturers and retailers of industrial equipment. For more information on the Tiber well, see http://www.nola.com/business/index.ssf/2009/09/bp_makes_giant_discovery_in_gu.html.
 

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