GRAND VALLEY ECHO • Mid-September/Mid-October 2012, Page 9
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GRAND VALLEY ENERGY A monthly column by M.E. Denomy, CPA
Where have all the drill rigs gone?
If you have looked around lately, you may have noticed a calm after the storm. There are only a few rigs drilling on the mountainside. Within the last six months things have steadily slowed down in our neighborhood. It makes you wonder why. Actually, the bottom line is that most companies are now looking at trying to drill for oil and most of what we produce in our backyard is natural gas. In early September, the national price of oil is $96 per barrel and $2.68 per thousand cubic feet of gas. In most circles, the formula of six thousand cubic feet of gas is equivalent to one barrel of oil. So, six thousand cubic feet of gas is worth $16.08. Compare this to what a company can make in oil of $96 and you can see why most accountant types would tell the drillers to start looking for more oil. One oil well will produce far more money than one gas well right now, so it is the prudent thing to do. So, where have all those rigs gone? Anybody hear how low the unemployment rate is in North Dakota? Guess what? That is where all the drilling action is currently. The state of North Dakota is touting over 210 rigs drilling right now. The geologists are estimating upwards of 27 billion barrels of oil is able to be produced in North Dakota. One never knows if there will be even more finds as they continue to drill and expand the discoveries. I know of several folks in my neighborhood that have been sent to North Dakota to work. While all may be quiet on the western front right now, don’t worry. When the price of gas makes its comeback, so will the rigs
Mary Ellen Denomy, CPA, is a Battlement Mesa resident and an accredited petroleum accountant She has been nationally recognized as an expert in oil and gas issues. Mary Ellen is the immediate past president of the Rocky Mountain Chapter of the National Association of Royalty Owners. If you have questions, contact her at the naro-us.org website or through the Echo.
Grand Valley Fire Protection District Building A Better Community One Child At A Time
Firefighters visiting schools for Fire Safety Month in October By Grand Valley Deputy Fire Chief Rob Ferguson
Treating Adults & Children Specialist in orthodontics and dentofacial orthopedics
NOW SERVING PARACHUTE & BATTLEMENT MESA Brian J. Burton DMD,MS Affordable monthly plans available Most Insurance and credit cards accepted
• Complimentary initial exam • Clear or metal traditional braces • Surgical cases • Invisalign • Temporary Orthodontic Implants • Damon Orthodontist system 970-243-6455 225 Callahan Avenue • Parachute, Colorado
For the month of August 2012 the fire district responded to 43 calls for service (August 2011 was 59 calls): 9 fire incidents, 3 fire alarms, 3 brush fires/fire outside/trash/rubbish, 2 smoke or odor scares, 22 emergency medical calls, 3 vehicle crashes, 1 hazmat leak/spill, 3 public assists, 5 dispatched and cancelled enroute. From Jan 1, 20011 to August 31, 2011 call volume was at 383 calls for service. From Jan 1, 2012 to August 31, 2012 call volume has increased to 434 calls for service this is an approximately a 13 percent increase in calls for the fire district from last year. Training hours per crew: 193.5 Green Crew • 140.5 Black crew • 165.5 Red Crew District fire officers went to Fire Rescue International to work on Company Officer Leadership training. We now have three officers and one firefighter who have completed the three-year training program. The other officers will be completed by the end of this year. Remember that firefighters will be visiting schools in October for Fire Safety. The children will learn new fire safety topics and will bring them home to show parents what they have learned. Garfield County Fire Ban restrictions have been lifted. If you plan to have any kind of open burn please call the fire district to receive a burn permit. They are free; however we need some information from you in order to issue the permit. Grand Valley Fire Protection District covers a wide area of residential, commercial and some very remote areas with fire suppression, emergency medical services, fire prevention, public education and training in cardiac pulmonary resuscitation (CPR). The district covers roughly 321 square miles. This is I-70 from If you should mile marker 66.4 to mile marker 82.5, then all the way north to Rio have an Blanco County and south to Mesa County, including three-quarters emergency, of a square mile of Mesa County. If you should have any questions, comments or concerns please please call feel free to contact Deputy Fire Chief Rob Ferguson at 285-9119 or 911 as soon by e-mail at gvfpdops@sopris.net. as possible!