Drilling firm decries denial

VERNAL — Utah may lose $10 million to $12 million in investments because the BLM denied its request to extend drilling operations in the Nine Mile Canyon area, a Denver-based company says.

The Price office of the Bureau of Land Management earlier this month denied a request by Bill Barrett Corp. to extend its lease.

BLM officials in Price say that BBC knew its lease in the West Tavaputs area had a closure date of Nov. 1.

"Their lease stipulation and Environmental Assessment gives beginning and ending dates, and the ending date was Nov. 1, and it is not technically considered a shutdown," said Ruth McCoard, a planning specialist for the BLM in Price.

However, Barrett Corp. officials said that recent talks with BLM officials led them to believe they would be allowed to continue work until December and possibly through the winter.

"We were not making these operational decisions in a vacuum," said Bill Felton, investor relations manager for Bill Barrett Corp.

The company was so certain that it would be allowed to continue that it went to the expense of bringing in drilling rigs and put its contractors on notice that they would need supplies and staffing to carry operations at least until December.

The shorter season means that drilling rigs are pulling up stakes, and wells nearly ready to produce must be capped. Work cannot resume until May.

Felton said the company had expected some leniency because of the lag in start-up of operations due to the lengthy regulatory process. But now that the decision has been made the corporation is complying while questioning the wisdom of a decision that essentially prevents it from providing the public with natural gas.

"Unlike several other uses of public lands our use is essential to every single American every day," Felton said. "The BLM charter mandates going the highest use — what brings the most good to the most people. I think a lot of people in your community are wondering if these types of decisions truly do constituents good public policy."

In his rejection of an extended closing date, Fred Farrell, acting field manager for the Price office, noted that BBC failed to apply for its extension in a timely manner, and listed a number of reasons for the denial:

• Early onset of wet winter weather.

• Negative impacts to big game predicted by Division of Wildlife Resources.