BLM OKs Questar drilling

Questar Corp. has received approval from the Bureau of Land Management to increase its winter-drilling operations at the Pinedale Anticline in western Wyoming.

The Salt Lake-based energy company's current winter-drilling program, approved by the BLM in November 2004, allows Questar to drill with six rigs on three pads. Under the new proposal, the company will add another rig to one of the previously approved winter pads this winter only, for a total of seven active rigs during the winter of 2005-2006.

In addition, the company will complete and turn to production three wells that otherwise could not be completed until May 2006.

According to Mel Owen, vice president of administration for Questar Market Resources, a subsidiary of Questar Corp., the approved proposal in 2006 alone will add roughly 8 billion cubic feet of gas supply to the tight natural-gas market, enough to heat roughly 96,000 typical U.S. homes for one year.

Matt Anderson of the BLM's Pinedale Field Office said in a prepared statement that providing domestic energy resources has become a national priority and one of the BLM's key missions.

"Pinedale provides one of the few areas in the nation where boosting short-term energy production is possible," Anderson said, "due to existing infrastructure and the abundant natural-gas resources found in the area."

In addition, Anderson said, Anschutz, Shell and Ultra will have winter-drilling operations this year under a separate BLM decision.

Of the 8 billion cubic feet of gas produced, roughly 2.4 billion will benefit Questar Gas customers at so-called "cost-of-service" production, according to Curt Burnett, a Questar spokesman.

"Right now that gas is about one-third of the market price," Burnett said. "The government has asked independent producers to do what they can to increase gas deliveries this winter, and this was a great way to do it."

Utah regulators recently approved a 20.3 percent increase in what Questar Gas Co. charges its customers for natural gas. The increase went into effect Nov. 1. Combined with two other rate hikes, Questar customers will pay nearly 38 percent more in heating costs this winter compared to last year.

Linda Baker, community organizer of the Upper Green River Valley Coalition, a grassroots conservation group based in Pinedale, criticized the winter-drilling program, saying details of the proposal were hidden from the public until approval was granted.