SALIDA — The state has developed policies for some groundwater after a state Supreme Court decision and new law last year.
The changes have the potential to affect up to 40,000 oil and gas wells in Colorado, said Kevin Rein, assistant state engineer.
“We’re not in favor of imposing large requirements on water users when they’re not necessary,” he said at the recent State Engineer’s Office forum.
Before last year, the state did not administer water produced by coal-bed methane wells. The water in question is groundwater commonly found along the seams of coal from which methane gas is extracted. In the Arkansas River basin, there are hundreds of wells located in Las Animas and Huerfano counties.
There are also large coal-bed methane fields in the San Juan and Picance basins in Western Colorado, as well as at smaller sites around the state.
In 2007, two ranch owners in the Durango area prevailed in a lawsuit claiming the state had injured their water rights by not administering the produced water from nearby coal-bed methane operations. Last year, the Supreme court upheld the Durango Water Court judge in the Vance v. Wolfe case.
The state Legislature subsequently passed a law, 09-HB1303, that affirmed the Supreme Court decision that removal of water for coal-bed methane is a beneficial use. The law also directed State Engineer Dick Wolfe to develop rules for oil and gas wells.
“So, what does it mean? It means the state could issue permits, and it could mean a big curtailment,” Rein said.
Nontributary groundwater is not affected by the decision or the law, however. The state does not administer nontributary groundwater — that which is pumped from wells that would not have a 1 percent depletion on surface flows over 100 years.
Earlier state laws, 73-SB213 and 85-SB5, give certain rights to landowners or oil and gas drillers to nontributary water. Because gas wells often are thousands of feet deep, as opposed to hundreds of feet for most domestic or irrigation wells, many could be nontributary, Rein explained.
The new state policy put the burden of showing a gas well is nontributary on the drillers because the state did not have the resources to map every field.
In coal-bed methane production, the removal of water itself is considered a beneficial use, so all require a permit if the groundwater is deemed tributary. In other oil and gas production, the state still regards only water used for purposes such as dust suppression or fracturing geologic formations as beneficial.
So far, about 5,000 coal-bed methane wells have obtained permits, and some companies have begun filing for water rights in Water Court or substitute water supply plans from the Division of Water Resources.
“Thousands of wells are able to operate legally without permits or administration,” Rein said.
By CHRIS WOODKA
Posted: October 06, 2010
PARKERSBURG - A state senator says harvesting the oil and gas reserves trapped within West Virginia's Marcellus shale are vital to the economic future of the state and its people.
Sen. Jeff Kessler of the 2nd Senatorial District told the Parkersburg Rotary Club on Monday the Marcellus shale represents a "crucial aspect" of financial growth for the state.
"Everyone needs energy. We still have it," he said. "I think it is West Virginia's decade."
The Marcellus shale is a geological formation nearly a mile below the earth. The shale runs from New York through most of the Appalachia region.
Miners extract natural gas and oil from the shale through a process called hydraulic fracturing or "fracking." Crews drill horizontal shafts, then force large quantities of water, sand and chemicals into the shale, fracturing the structure and causing the gas and oil to rise where it can be collected.
But the project is not without its pitfalls. Concerns ranging from the state of country roads to the impact on local water tables abound, Kessler said.
The process requires huge amounts of water and sand, and some critics fear the process can taint underground water supplies. Kessler also said the weight of the supplies requires dozens of large vehicles to make multiple trips to drilling sites using local roads, many of which are not designed for large vehicles. The trucks can slow and snarl local traffic, damage roads and cause noise and mess for local residents.
There also are concerns about the process tainting local water sources. In addition to the chemicals used in the fracking process, the shale itself can contain a host of toxic substances, from radon to chemicals found in antifreeze. Those chemicals could easily join with wastewater from the process, bubbling up to the surface, fouling the water table or draining into local waterways.
Kessler said he and other legislators are already looking at creating state guidelines for drilling, which would include safety measures for drilling vehicles, requiring drill owners to help pay for road repairs, and even economic plans to set aside money from the drill sites to create a "future fund" for West Virginia residents.
But Kessler also said the process of drilling the shale is "in its infancy," and officials are still working out many of the details on how people will be compensated for the use of their property and how to properly address all safety concerns.
Kessler said he believes the Marcellus shale represents a financial windfall for the state and could propel West Virginia into the top ranks economically.
"We will have the opportunity to be a real leader in the nation in this," he said. "This is going to be what creates opportunity for this state."
By MICHAEL ERB
Posted: October 06, 2010