250-plus gas wells possible near Rifle watershed
July 10, 2014
More than 250 natural gas wells might be drilled over the next five years by WPX Energy near and in the city of Rifle's Beaver Creek watershed district.
Rifle City Council unanimously approved an amendment to the company's original 2009 watershed district permit to allow the activity, subject to conditions. The 12-square-mile, 8,000-acre watershed, approximately 5 to 6 miles southwest of Rifle, is the source of 9 percent of Rifle's drinking water. The vast majority of the city's water comes from the Colorado River. Several years ago, the city established the district and considers permits for certain industrial activities to help protect the water source.
The company would also need drilling permits from the Colorado Oil and Gas Conservation Commission.
Michael Gardner, WPX environmental manager, outlined the drilling plans and noted various companies had been active in and near the Beaver Creek watershed since 1999. WPX is currently the only active company in the district. A total of 44 producing wells have been drilled from 11 pads in the district since 1999, with 27 of those wells located on a pad outside the district boundaries, Gardner said.
"What we're proposing is to drill up to 253 wells from 15 pads between now and 2018," he told the council last week.
WPX plans to drill up to 23 wells on the existing pad outside of the watershed and up to 112 wells on four new pads outside the watershed, but accessed through the watershed, Gardner noted. Up to 80 wells could be drilled on seven existing pads within the watershed and up to 65 wells on four new pads within the watershed.
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"A lot of this depends on the market price for gas, obviously," Gardner added. "So this is a maximum-case scenario."
WPX would build access roads, install gathering and water lines and other associated facilities in the area, Gardner said.
WPX spokesman Jeff Kirtland said in an interview Tuesday that the permit amendment was sought to keep the permit active, as it was due to expire soon.
"It's more to make sure we're keeping up with what we need to do with the permit," he stated. "So we would have this permit in hand if prices improved."
Kirtland also said the plan could take longer than five years to reach full development of all wells.
"This was a maximum-case scenario, but we're not bound to that," he added.
Michael Erion, a water resources engineer with Resource Engineering of Glenwood Springs and a city consultant, said the amendment was acceptable and noted the target area is actually a tributary to Beaver Creek, which itself is often dry in the summer, so most direct activity in the district will be road crossings.
The permit was amended last year to allow a water pipeline across the watershed and a temporary 1.5 million gallon water storage tank, Erion noted.
Among the nine conditions already part of the permit and included with the latest amendment is a requirement for WPX to submit detailed drawings to the city at least 30 days before construction.
New wells can be drilled on approved pads, provided WPX sends written notice to the city 15 days before that activity.
WPX is also required to submit an annual activity plan for the entire district by March 1 of each year, and the project shall be subject to biannual inspections, or more frequently if needed, by the city and/or its consultants.
WPX will also continue to participate in the city's water quality monitoring program on Beaver Creek. This includes a periodic stream monitoring program with sampling at various locations along the creek and the operation and maintenance costs associated with a 24/7 monitoring system at the city intake structure on the Colorado River.
"We understand how critical this area is to Rifle," Gardner said. "We have all kinds of plans and procedures for spills, to protect groundwater and storm water control. Many different eyes are on each pad each day."
He also noted that no reportable spills, as defined by state regulations, had occurred in the district since 2008.