Energy Future Improving
Although political environs are shifting, regulatory oversight remains burdensome
Bugling Elk and Mining
Simplot finds balance between mining and wildlife environment
Education’s Role in Energy
Area schools offer a variety of courses to prepare energy workforce
A Uintah Basin Standard Publication
Energy Profiles Cover Page 1
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Energy Profiles Cover Page 2
Profiles TABLE OF CONTENTS
4: PERMIT APPROVALS RISE As 2010 began, operators were looking for a stronger year in production with more drilling permits released by the state and federal governments. By Mary Bernard
8: TAVAPUTS COMPROMISE The BLM’s approval of Bill Barrett Corp.’s plans to fully develop its leases on the Tavaputs Plateau came after a deal with environmentalists. By Richard Shaw
12: RISK TAKING PAYS OFF A former Bluebell resident and his business partner are seeing success after launching their tank manufacturing business in the midst of tough economic times. By ViAnn Prestwich
16: A DAY ON A RIG Newfield Exploration crews spend long hours drilling for black wax crude oil in the company’s Monument Butte field, where safety always comes first. By Greg Knight
22: COMING TOGETHER Utah’s coal miners enjoy widespread support. When disaster strikes that support multiplies as entire communities come together to support the victims’ families. By Richard Shaw
27: READY FOR THE WORST Counties and area hospitals in the Uintah Basin are working with the energy industry and private citizens to create response plans for industrial accidents. By Lacey McMurry
36: BLOWING IN THE WIND A Salt Lake City company is moving ahead with plans to build a wind farm in Daggett County’s Lucerne Valley. By Kevin Ashby
40: UTE ENERGY Q&A Joe Jaggers was named president and CEO of Ute Energy in July. Jaggers, a West Point graduate with nearly 30 years in the energy business, answers questions about Ute Energy’s future.
ENERGY
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42 Great Lakes Airlines – www.flygreatlakes.com – page 35 Halliburton – 435-789-2550 – page 39 Hullinger Mortuary – 435-722-2426 – page 55 I Love Drilling – 435-789-2270 – page 26 Intermountain Toxicology Collections – 435-789-5249 – page 21 J&R Construction – 435-823-6590 – page 40 JBR – 801-943-4144 – page 16 Johansen and Tuttle Engineering – 435-381-2523 – page 13 John Crane Production Solutions – 435-722-2221 – page 54 Jones & DeMille Engineering – 800748-5275 Jones Paint and Glass – 435-7893241 – 435-722-3926 – page 37 Kenworth Sales Company – 877-5701430 – page 34 Kielbasa Concrete – 435-828-0090 – page 20 L&L Motor – 435-722-2233 – Page 8 Leon Ross Drilling & Construction – 435-722-4469 – page 23 M. Boren Services Construction – 435-724-2579 – page 55 MCS Inc – 435-722-9941 – page 34 Moon Lake Electric Association – 435-722-5400 – page 19 Morgantown Machine and Hydraulics – 435-472-3452 – page 53 Nabors Well Services – 435-7223451 – page 16 National Oilwell Varco – 435-7220653 – page 58 Nelco Contractors – 435-637-3495 – page 45 Newfield Exploration – 435-646-3721 – page 60 Nielson Construction – 435-687-2494 – page 38 Oilfield Class Transports – 435-8235714 – page 19 Paragon Automation – 435-781-2128 – page 39 PayZone Directional – 435-725-3745 – page 3 Perry Insurance Agency – 435-7810404 – page 41 Pierce Oil – 435-637-3211 – page 59 Price Insurance Agency – 435-6373351 – page 57 Price Mine Service – 435-637-9300 – page 32 R Chapman Construction – 435-7223800 – page 54 R-J Taylor Pipelines – 435-722-8280 – page 6 Raptor Industries, Inc – 970-256Uintah Basin Standard •
1713 – page 5 RBS Fishing and Rental Tools – 435828-7279 – page 57 Real Property Management – 435781-0880 – page 24 Rebel Field Service – 435-823-6567 – page 42 Robison Construction – 435-8236591 – page 33 Rocky Mountain Power – page 25 RTK Trucking – 435-724-0168 – page 21 Salt Lake Valley GMC – 888-6869482 – page 49 Scamp Excavation – 435-636-8101 – page 50 Select Rentals – 435-722-2881 – page 52 Showalter Ford – 435-789-3818 – page 14 Signsnlines.com - 435-722-5064 – page 15 Skips Heating and Air – 435-722-3592 – Page 4 Split Mountain Pipe and Supply – 435789-4510 – page 58 Stanco Insulation Services – 435722-5033 – page 44 Superior Mud and Wash – 435-7904555 – page 33 Surefire-Controls – 505-333-2876 – page 2 The Barnyard Construction – 970858-4123 – page 59 The Environmental Company – 800742-0553 – page 43 The Ink Spot – 435-722-4021 – page 56 The Perforators – 435-725-2344 – page 44 TJ’s Productions – 435-789-1555 – page 53 Tony Basso GM – 435-637-0110 – page 48 TPS Filters – 435-789-7001 – page 22 Tri-State Trucking – 435-828-0533 – page 41 UBATC – 435-725-7100 – 435-7226900 – page 28 UBATC – 435-725-7100 or 435-7226900 – page 11 Ute Energy – 435-722-2091 – page 50 Vernal Area Chamber of Commerce – 435-789-1352 – page 14 Webb’s Rooter and Drain Service – 435-621-7211 – page 13 Western Chemical – 435-823-0797 – page 28 Western Petroleum – 435-789-8624 – page 14 Wheeler Cat – 800-662-8650 – page 59 Winterton Suites – 435-725-1990 – page 2 Zions Bank – 435-722-3614 – p 12
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,VVXH RI 3UR¿OHV LQ (QHUJ\ 9HUQDO 87 \ ´ WDOO YHUQDO FRP By ViAnn Prestwich past the two-mile long conveyer belt. Uintah Basin Standard Daily the huge animals cross under or QJ 7KH PHDVXUHPHQWV IRU D
elk and the habitat we create for them. I love to see the elk here in the mine setting.â&#x20AC;? over the long phosphate transfer sysZKLWH LV <RX FRXOG GR HLWKHU RQH FRORU UHG RU EOXH 2QH FRORU DGGV WR WKH FRVW RI WKH DG )XOO FRORU Bugling elk and rumbling conveyor tem, â&#x20AC;&#x153;and we love them,â&#x20AC;? Spencer said. Nolan Jackson, who has worked at belts arenâ&#x20AC;&#x2122;t conventional companions, Love is not too strong a word to dethe mine for 41 years agrees. but both can be found in harmonious scribe the passion some of these miners â&#x20AC;&#x153;Everyone here enjoys them,â&#x20AC;? said syncopation 12 miles north of Vernal. have for the half-ton animals who share Jackson, who is the maintenance man#VXUHÂżUH FRQWUROV FRP â&#x20AC;&#x153;They love us,â&#x20AC;? said John Spencer, ager at the mine. this spot just off Highway 191. â&#x20AC;&#x153;A lot of us are outdoors people,â&#x20AC;? He described how years ago through environmental and senior mining enthe 70â&#x20AC;&#x2122;s the herd was hunted. gineer at Simplot Phosphates, LLC, of manager of the Vernal mine, Mark the elk herd which majestically strolls Krall said. â&#x20AC;&#x153;We are passionate about the â&#x20AC;&#x153;In 1980 we had new managers,â&#x20AC;?
Jackson explained. â&#x20AC;&#x153;(They) closed the area down to elk hunting on the west side of the highway so the elk would have refuge.â&#x20AC;? He said around 300 elk came that August and they stayed through the end of October. Jackson, Krall, and Spencer all estimate that at the peak there are CONTINUED ON PAGE 3
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BUGLING ELK CONTINUED FROM PAGE 2 between 400 and 500 hundred animals grazing in the meadows. “If you get away from the sounds of the operation you can hear them bugling,” Jackson said. Krall also mentioned the unique resonating screeching or squealing of elk calling across the rolling landscape — one of the most distinctive sounds in nature. “Employees go out there in the morning to hear the bulls,” Krall said. “And in the evenings the last three weeks they’ve been bugling pretty good.” Besides feeling safe because hunting is forbidden, the elk know that there will be sufficient food. “We make the slope so it is suitable for plants, forbs and shrubs,” Spencer said. “We work with the Division of Oil, Gas and Mining to get a seed mix that is favorable. A lot of our reclamation work is aimed toward this big game.” Besides having adequate grass for the summer, mine employees raise hay for winter feedings. “The mine is on an old homestead,” Spencer said. “Our front yard is a hay field.” The 145 employees rotate the duty of cutting the 25 acres of alfalfa. “We kind of take turns,” Jackson said. “Some of the mine operators come
down, get off their equipment and feed the elk.” Krall said the employees water it and cut it on their own time. Employees can take part of it but the other half is used for when the elk get pushed out of the High Uintas. In the winter they can feed upwards of 200 elk, he said. “It’s also good for some of our employees,” Krall said. “A lot of them are gentlemen ranchers on the weekend and this gives them a little feed for their personal livestock.” Spreading the hay over slopes not only supplies nutrition for the large animals, but helps stabilize the slopes. “The steeper slopes we mulch with the hay,” Spencer said. “The elk track over it and tromp it into the ground. The seeds are less likely to erode.” He said there are a lot of benefits including improving the habitat for small game. “We’ve had a little family of bobcats up there that stayed in the meadows,” Spencer said. “We have all kinds of varmint.” The original phosphate mine was a developed by the San Francisco Chemical Company in 1960. In 2003 J.R. Simplot purchased the operation which produces phosphate fertilizer. Phosphate ore from the mine is crushed, washed, finely ground and concentrated. The ore is then mixed with water to form a slurry and shipped 96 miles through a pressurized pipeline to the manufacturing plant five miles south of
An impressive 400 and 500 deer and elk use the meadows surrounding Simplot Phosphate during the year. Rock Springs, Wyo. The conveyor belt that divides the mine area takes ore to the pipeline. Originally metal bridges were built over the conveyor in hopes that the elk would use these to migrate past. Even though the bridges were covered with dirt, the elk ignored this convenience. “We also have areas where they can go under,” Spencer said. “A lot of elk pass through that way, but some just climb on to the conveyor. Especially the
ones with the large racks.” Even though the elk herd is large, they are often difficult to see. “They are kind of tucked up in the canyon,” Krall said. “Unless you know exactly where to look you can drive by and never see them.” Tourist might not know about the elk, but that doesn’t matter. The miners are taking good care of the majestic creatures.
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Newfield technology cleans up water By ViAnn Prestwich Uintah Basin Standard Economic concerns as well as environmental scrutiny have forced oil shale production companies to seek innovative ways of minimizing the environmental impact of these operations. Newfield claims that their new wastewater treatment facility does just that — minimizes environmental impact. As petroleum production increases, so does saline water production, creating an increased need for economic and environmentally responsible disposal plans. Utah’s No. 1 producer of crude oil — Newfield Production Co. — is using technology that gives gas producers the ability to reuse water generated in drilling and related processes. According to Keith Schmidt, company spokesman, Newfield began working with Environmentally Clean Systems several years ago to address waste water issues for produced, fracturing, flowback and other waters. The basis for the system is electro-coagulation. The EC process allows for the reduction and elimination of reagents and equipment associated with chemical systems resulting in lower reclamation costs and greater flexibility in disposal.
ECS is a joint venture of MPR Service, Inc., Dickinson, Texas and Jet Oil Solutions, Salt Lake City. They specialize in giving the oil producer the ability to reuse the waste water generated in drill and related processes. This is accomplished by removing the elements and compounds that can case scaling and water hardness. The technology claims that heavy metals, hydrocarbons, bacteria, and silicates can all be removed to potable standards for environmental safe reuse or disposal. Schmidt suggested that every field would have a different process depending on the specific contaminates the water incurs in a specific area. In the Monument Butte field, Newfield produced more than 23,000 barrels of water per day. The volume of a barrel is equivalent to 42 US Gallons.) “In our case, approximately 25 percent of the total volume of produced water required treatment prior to re-injection into the producing formation for enhanced oil recovery,” Schmidt said. “We are currently treating more than 5,000 bwpd which in the past would have gone to surface evaporation pits for disposal. Our treatment costs are consistent with disposal rates.”
Utah Governor Gary Herbert, right, stands with other dignitaries while listening to a wastewater presentation on Newfield’s reclamation process. Gov Gary Herbert’s visit to the oil field last April included a tour of the wastewater treatment facility south of the Newfield main office, and he said he approved of the venture. “The water that is utilized here becomes polluted (and) is then cleaned and recycled,” Herbert said. “What a wonderful idea.” When questioned about this new undertaking the company released the following statement: “Newfield believes environmental responsibility is an
important factor in operating a socially responsible company. The health and safety of the people and places where we operate are a priority. “We have programs in place to help enhance the safety of our people and contractors while minimizing the impact of our operations and the environment. The wastewater treatment facility is just one example where technology is helping us in regards to the environment,” the statement said.
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Emery County Progress
Less BLM leases = less money for counties By Lacey McMurry Uintah Basin Standard Oil and natural gas leasing on public lands in Utah is at a six-year low, according to data compiled by Western Energy Alliance — a non-profit trade association that represents more than 400 energy companies — and with that comes less mineral lease monies into the community. In Fiscal Year 2011, which ended on September 30, the number of Utah lease parcels offered by the BLM declined by 86.3 percent since 2008. In that same time period, acreage offered decreased by 85.9 percent and overall total sales receipts were down by 99 percent. Kathleen Sgamma, director of government and public affairs for WEA, said the hope is that leasing numbers will increase in Fiscal Year 2012 because the BLM has worked through its new leasing policies. “We hope it [the BLM] will offer sufficient acreage in Fiscal Year 2012 to more closely align with industry interest,” she said. “Without access to public lands, oil and natural gas companies will not be able to achieve the full job and economic
growth potential of the West.” Overall, the Rocky Mountain region as a whole — Colorado, New Mexico, Montana, North Dakota, Wyoming, and Utah — also saw a decrease in leasing. Acreage offered in the entire region was down by 80.5 percent since 2008 and total sales receipts were down by 43.7 percent. Utah and Colorado saw the sharpest decrease in available leasing opportunities in the region. Jon Haubert, manager of communications for WEA, said the BLM offered a “shockingly low” four parcels in Colorado in 2011 and Utah was close behind with just 17. “Those numbers really say something,” he said. “As you can imagine, even a single well can make a big difference in places like rural Utah.” Some local government officials say the recent, dramatic decline in available leases on public lands is negatively affecting county coffers. Uintah County Commissioner Mark Raymond said the county’s special service districts have been hit hard. “In 2008, when leases were pulled by Salazar [U.S. Secretary of the Interior],
almost immediately, production diminished significantly,” he said. “Our special service districts are funded with mineral lease money, and the decline in production on public lands has had a huge impact on the amount of money generated for our county.”
In Duchesne County, the financial impact of the leasing slow-down hasn’t been as dramatic. County commissioner Ron Wood said that’s due to the fact Duchesne County CONTINUED ON PAGE 7
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Emery County Progress
BLM LEASES CONTINUED FROM PAGE 5 has never had as much revenue generated from mineral leasing as Uintah County, so the effect is less noticeable. Even without mineral lease funds in the picture, energy experts say the impact of a delayed production is probably more far-reaching than most people realize, especially in the Uintah Basin where a large percentage of the population is employed in the energy industry. According to statistics obtained from the Utah Department of Workforce Services, 21 percent of the Duchesne County population was employed in the mining industry last year — that category includes jobs in the oil and gas industry and all support services except transportation. Industry employment also accounted for 35 percent of all payroll dollars generated throughout the year. Figures are similar in Uintah County — 2010 saw 20 percent of all jobs generated by the mining industry and 35 percent of all payroll dollars. “You can probably add another 10 percent on top of all those totals when you figure most transportation jobs are also associated with the industry,” said DWS labor economist John Matthews.
When drilling slows down in a resourcedriven economy like the Uintah Basin, the impact trickles down to all associated support jobs, and even other area businesses, a reaction known as induced impact. Induced impact is what happens when an industry employee spends his new income on fishing and hunting gear, stimulating local sporting goods stores. And while hundreds of studies have been commissioned evaluating how many
jobs are created by a single well, or how much revenue is generated annually by the industry, studies that examine the narrower scope of the induced impacts generated by a single well are difficult to come by. However, a recent report by the Manhattan Institute and University of Wyoming professor Timothy Considine helps quantify that number.
According to the report, a typical well on the Marcellus Shale in the eastern U.S. generates some $2.8 million in direct economic benefits from natural gas company purchases; $1.2 million in indirect benefits from companies engaged along the supply chain; another $1.5 million from workers spending their wages, or landowners spending their royalty payments; plus $2 million in federal, state and local taxes.
Federal leasing numbers down significantly
parcels offered
UTAH FY-05
329 653 390 FY-08 124 FY-09 308 FY-10 38 FY-11 17 % change (FY08-11) 86.3 FY-06 FY-07
parcels sold
acres offered
acres sold
total sales receipts
294 588 305 110 275 33 5 95.5
505,563 999,533 556,625 163,391 413,443 44,796 23,080 85.9
443,445 886,798 407,845 146,453 361,328 39,549 2,958 98.0
$33,840,164 $75,004,459 $27,439,344 $8,577,875 $10,684,990 $1,441,573 $86,370 99.0 source Western Energy Alliance
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PROFILES IN ENERGY October 2011 7
Strides in safety:
On-the-job safety improves with specialized training By Lacey McMurry Uintah Basin Standard Saying there have been some significant changes since Jake Richhart first started working in the oil and gas industry 15 years ago would be something of an understatement. As a young adult who had just graduated from junior college, Richhart decided to take some time off before finishing his formal education. The southern United States beckoned to him, and he headed toward the Louisiana coastline. “One day I was out in a boat in the Gulf of Mexico fishing and someone bet me I wouldn’t survive on an offshore drilling rig,” he said. “I took the bet and passed the physical and strength test. The company that hired me gave me a booklet to study and the next thing I knew I was working on an offshore Mallard rig.” Richhart said being told to read through the safety booklet was essentially his only official training, even though he was inexperienced and would be working in one of the most dangerous environments in the industry.
“Those Mallard rigs are the cheapest rigs to operate — which means they’re the most dangerous,” he said. “Half the guys I worked with were just out of prison because no one else wanted the job, and the mentality was get it right or be gone. “This was also back in the day where a lot of operators paid lease rigs by the footage and in that environment, people did whatever it took to keep that drill bit turning to the right,” he said. Richhart survived his offshore rig experience and is now the safety manager for the Uintah Basin Newfield office. He said the industry’s way of thinking about safety is different today. “Now, you find a culture of: ‘This is going to cost us more if we get it wrong,’” he said. “Today there are many different layers of protection in place to protect both people and the environment.” One crucial layer of protection that contributes to on-the-job safety is well control certification courses. On a typical crew, an average of three to five workers out of 10 are usually certified
Mike Mold, instructor of the Uintah Basin Applied Technology College’s well control training course, stands at a simulator that students use to learn how to shut down CONTINUED ON PAGE 9 a well in emergency situations.
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JOB SAFETY CONTINUED FROM PAGE 8 in this specialized training, which targets employees like derrickhands and drillers who need to be able to recognize the warning signs that a well is out of control. “Well control is a daily obstacle drillers deal with,” HSE supervisor for pioneer drilling Kevin Ashcraft said. “If a driller is asleep at the wheel and doesn’t have control of downhole pressure, that can cause situations that end in catastrophe.” Usually, that catastrophe is a blowout, which is easily the most dangerous and potentially destructive disaster in the industry. Blowouts can cause damage to the environment, dehabilitating shutdowns, serious injury, and death. Well control, or blowout prevention, encompasses anything from the precautionary methods used on rigs to prevent “kicks” — the unexpected flow of fluids into a well — from developing, to the use of Blowout Preventers, which are designed to shutdown a well if a blowout appears to be looming. In a nutshell, energy employees who take well control courses are taught exactly what they need to do to keep thousands of pounds of pressure at bay. In the past, local companies had to send their crews to places like Wyoming, Oklahoma or Texas for control
training. That changed when a couple of different partnerships made it possible for well control training classes to be taught at the Uintah Basin Applied Technology College. According to statistics obtained from the UBATC, approximately 200 people took well control courses last year alone — from July 1, 2010 to June 30, 2011. Industry workers can usually earn their certification in about forty hours. “That training keeps us out of harm’s way,” safety specialist with the local Frontier Drilling office James Lynch said. “Safety-wise, it’s a very necessary training. Without it, we’d have some major incidents and see lots of people getting injured.” Lynch and other local energy insiders said they feel the UBATC course has done an exceptional job of preparing their employees for emergencies. One aspect of the course that’s particularly useful is a simulator located on-site at the college, they said. People enrolled in the course have to glance at gauges on a tv screen to calculate pressure and practice shutting down the well over and over again if the pressure is out of control. The stimulator has wheels, valves, and gauges in the same place they would be on an actual rig. “The instructor plugs in the speakers and it’s loud, noisy, and chaotic just like it would be in real life,” Ashcraft said. “It’s pretty realistic.” More companies hold practice drills
UBATC well training course instructor, Mike Mold, sits next to well control equipment. Well control courses like the one offered locally are making a positive difference in the industry’s safety statistics. to ensure employees remember their training, and the statistics prove that it pays. The OSHA Recordable Incident Rate (or incident rate) is calculated by multiplying the number of recordable cases by 200,000, and then dividing that number by the number of labor hours at the company. In 2005, the industry-wide recordable incident rate was around 20. In
2010, that had decreased to approximately two. “That decrease has everything to do with safety training,” Ashcraft said. “It’s an overall industry change that you can attribute to operators who now require certain things to take place, to subcontractors who are now holding employees to a higher standard. Everyone is seeing the value of safety.”
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Uintah Basin Standard •
PROFILES IN ENERGY October 2011 9
Herbert: Collaboration key to success of energy plan end up getting, you know, a goose egg permitting process. Instead he wants to at the end — that process needs to be make it more efficient and effective. His improved,” Herbert said. study has four objectives: reducing ground Gov. Gary Herbert said that Utah To avoid a repeat of 2008, the governor emissions, working with federal land is working on a $3 million effort study is talking to stakeholders in the process management to create clear and consistent designed to streamline the permitting and has pledges from the energy industry rules, being proactive with air quality process for oil and natural gas explora- for $1 million of the $3 million for the issues, and giving citizens confidence in what the energy industry is doing. tion and production, at the 2011 Uintah study on the permitting process. According to a study done in Wyoming, “We want to make sure this is a colCounty Energy Summit in September. Herbert said he hopes the process will complying with the National Environmen- laborative effort, that we’re proactive in get the backing of not just state officials tal Policy Act and the U.S. Environmental this collaboration and working together and that it’s truly a and the energy industry, but also the Protection Agency regulatory permitwin-win for everyone federal government. here in the Basin, and “We do have a vision for the state. We ting process takes “Utah is really really for the state aren’t just flying by the seat of our pants,” an average of five years. That is too on their radar for that matter,” he Herbert told attendees of the summit. A report on the governor’s 10-year long, Herbert said, screen because said. “The fact that strategic energy plan was published in and with additional I put it there.” we have delay and March. Herbert held a copy of that report delays it’s not good we still don’t have aloft during his speech, noting that it for the economy, the - Gary Herbert leases back in place, outlines the state’s goals for the future people involved or the environment. and there’s cost to of energy production in Utah. the industry and the “Everybody here knows about the 77 “That’s why I people who bid on the oil and gas leases,” Herbert said in a sepa- have been in so rate interview with the Vernal Express, many different discussions with the Sec- industry, it’s lose-lose,” Herbert said. referring to the controversial decision retary of the Interior, Ken Salazar, his The governor said the focus needs to by Interior Secretary Ken Salazar three deputy David Hayes and also the BLM change from punishment to praise when years ago to yank 77 federal leases that Director, Robert Abbey,” Herbert said. it comes to EPA regulations. He said he’s “Utah is really on their radar screen met with EPA Director Lisa Jackson on had been auctioned off by the BLM. three different occasions in Washington, “Well, I’m not ascribing blame to because I put it there.” is quick to point out D.C., and said there needs to be a common The anybody but if that’s the way the process #3088_BOTVR_UBS_AD_CS4.pdf 1 10/3/11 3:52governor PM works — we spend all that time and we that he’s not looking to “shortcut” the By Ranae Bangerter Vernal Express
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
sense approach to the air quality issues. “The fact that we have industry willing to step up and put into place better practices to clean up the air and they get no credit for that is silly,” he said. “There’s no incentive to clean up the air now, only to clean up the air later after it gets dirty,” Herbert added. “We don’t want to wait and get it dirty, let’s clean it up along the way so it never does get dirty. And give industry credit for doing that in advance.” The governor noted that the energy industry is still making progress despite delays from the EPA, noting the approval of 4,000 wells to be drilled in the Uintah Basin. “(That) is a significant step in the right direction,” he said. Herbert also said that by 2020 he would like Utah to produce 25-percent more electricity than the state consumes so that it can export energy to other states. That’s an area that the state can expand on because Utah has the fourth lowest cost per killowatt hour in America, he said. The governor’s 10-year plan can be found online at www.utah.gov/governor/ docs/10year-stragegic-energy.pdf. —This article was originally published in the Vernal Express on Oct. 5, 2011.
Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Office Adminstration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting • Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy Equipment Operator • Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive General Service Technician • Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry • Carpentry • Welding • Media Vernal Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Office Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • 450 North 2000 West Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting 435-725-7100 Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy Equipment Operator • Petroleum Technology • Energy Services SafetyR•oosevelt Truck Driver Training • Automotive General Service Technician Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry 1100 East Lagoon Street • Carpentry • Welding • Media Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Of435-722-6900 fice Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy s s Equipe s i n Technician B u Service ment Operator • Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive General Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry • Carpentry • Welding • Media Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Office Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy Equipment Operator • Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive Generall Service Technician Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry • Carpentry W e• Welding • Media Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Office Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • • Petroleum Technology Pharmacy Technology Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting • Oil and• Gas Safety • Well •Control - Drilling and Workover/Completions Heavy Duty Diesel Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy EquipHeavy Equipment Operator ment Operator •• Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive General Service Technician e s • Commercial Drivers License e Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry D i • Carpentry • Welding • Media • Hazwoper and Hazmat Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Of• First Aid, CPR, AED, Bloodborne Pathogens fice Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • • H2S, Respiratory Protection, Fit Testing Pharmacy Technology Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting • MSHA• -Nursing Mine Safety • Welding Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy Equipy Heavy Diesel Mechanics• Energy Services Safety • Truck DriverrTraining ment Operator •• Petroleum Technology • Automotive General Service Technician t n • OSHA Courses e C a r p Basics • Cabinetry • Carpentry • Welding • Media Accounting Basics • Basic Architectural and Mechanical Drafting • Business Design • Accounting Technician • Business Administrative Support • Computer Applications • Medical Assisting • Medical Office Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting i Heavy Duty Diesel • Carpentry • Electrical Apprenticeshipr i•vFarm and Ranch Business Management • Welding • Heavy EquipTru ck D ment Operator • Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive General Service Technician Accounting Basics • Basic Architectural and Mechanical Drafting • Business Basics • Cabinetry • Carpentry • Welding • Media Design • Accounting Technician • Business e d Administrative Support • Computer Applications • Medical Assisting • Medical OfM fice Administration • Medical Office Administrative Assistant • Medical Transcription • Practical Nursing • Registered Nursing • Pharmacy Technology • Nursing Assistant • Automotive Technology • Automotive Master Technician • Computer Aided Drafting Heavy Duty Diesel • Carpentry • Electrical Apprenticeship • Farm and Ranch Business Management • Welding • Heavy Equipment Operator • Petroleum Technology • Energy Services Safety • Truck Driver Training • Automotive General Service Technician Sun Advocate • Uintah Basin Standard • PROFILES IN ENERGY October 2011 11
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Petroleum Technology Oil and Gas Safety & Transportation
www.ubatc.edu
UBATC Safe-T-School trains Halliburton hires By Therena Morrill Uintah Basin Standard Loren Karis was pouring wine in the tasting room of a Colorado winery just a few weeks ago; now he is one of dozens of new-hires Halliburton Service Company has sent to the new Safe-TSchool training at Uintah Basin Applied Technology College. Located on the east side of the UBATC Vernal campus, the Safe-TSchool outdoor training area is home to the same equipment that would be found at a productive oil rig site. At the lab, trainees become familiarized with every aspect of what their new jobs will entail, but with the advantage of being in a controlled, safe environment. “Our training site is a full replica of an oilfield location,” said UBATC instructor Val Middleton, who heads up Safe-T-School. “Trainees here learn how to safely rig up and tear down a site, sometimes in the dark, because we design the training to simulate what they are actually expected to be able to do in the oil field.” Middleton worked side by side with Halliburton Health, Safety, Environmental and Technical Professional Larry Moon to develop the one-week
training that came on line three months ago. Prior to this, Halliburton sent their new employees from the Grand Junction, Colo. or Vernal regions to Casper or Rock Springs, Wyo. for the training. UBATC’s localized training allows Moon to keep an eye on his new employees, get feedback about what they’re learning, and minimize the risks associated with traveling to Wyoming. “UBATC Safe-T-School instructors have a lot of industry knowledge to share,” Moon said. “Our employees are receiving excellent training.” According to Moon, Safe-T-School training is especially relevant for numerous new employees who are coming into the oilfield with limited blue collar experience. “We’re hiring former bankers, mortgage brokers, even lawyers who have never rigged a string of iron or chained up a tire,” Moon said. “The training they get from UBATC gives them an opportunity to get hands-on experience with what they’ll actually be faced with in the oilfield. And they can do it in a controlled, safe environment.
Halliburton Service Company employees receive safety training at UBATC’s new
CONTINUED ON PAGE 13 outdoor lab. The lab is designed to be a full replica of an actual oilfield site.
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
SAFE-T-SCHOOL CONTINUED FROM PAGE 12
Safe-T-School instructor Blaine Brokaw (left) explains a safety concept to Halliburton employees at UBATC’s new outdoor lab. Loren Karis (second from right) has a Bachelor of Science in mechanical engineering and is training to be a field engineer for Halliburton.
COMMITMENT • EXPERIENCE • TEAMWORK
“They’ll learn about all of the hazards that are typically associated with the oil and gas industry,” he said. Safe-T-School is not for the faint of heart. Middleton and assistant instructor Blaine Brokaw push students hard; 12 to 16-hour training days are typical. Students may be called at 3:30 a.m. and told to come to school. They eat three meals a day, on-site, prepared by staff members at the college. “They (students) are coming here from all walks of life and they’re coming in with no clue about oilfield life,” Middleton said. “This is real life training we give them. Getting called to come to work in the middle of the night, being told to back a trailer in the dark, that’s just how it is when you work in the oilfield.” Immediately following the week-long SafeT-School training, Halliburton new-hires continue with an additional three weeks of safety training offered at the college. They exit UBATC with an Oil and Gas certificate, Fork Lift certification and Truck Driver Training (CDL.) They also earn all of the Occupational Safety and Health Administration required certifications. Safe-T-School is currently limited to Halliburton employees, however UBATC plans to offer it to other companies in the near future. With that end in mind, the equipment at the mock-up rig site was donated by several of the Basin’s major oil and gas service companies.
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Uintah Basin Standard •
PROFILES IN ENERGY October 2011 13
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
UBATC starts Petro Tech Certificate program By Therena Morrill Uintah Basin Standard The new Petroleum Technology Certificate program that came on line last month at Uintah Basin Applied Technology College is being recognized by experienced workers in the oil and gas industry as a unique opportunity to advance their careers. Newcomers to the industry are also utilizing the UBATC program to shorten their learning curve by emerging themselves into the interactive curriculum which combines traditional classroom instruction with simulated oilfield experiences reproduced in a new outdoor training lab constructed on the college’s Vernal campus. Classroom studies include courses in the use of microcomputers in the oil and gas industry, engine and compressor operations, wellhead operations, the use of separators and dehydrators, instrumentation and controls, artificial lifts, business communications, leadership in the petroleum industry and various other vital courses. As students advance through the program they participate in simulated, on-site work experiences at the outdoor lab. UBATC course instructors are former industry experts and have years
of experience to draw on as they guide students through the simulations. The opportunity to receive personal, expert training is waning in almost every profession as baby boomers are retiring in huge numbers, taking a wealth of knowledge and experience with them. In the oil and gas industry the learning curve is steep and less-experienced workers rely heavily on seasoned, experienced employees to help them become proficient in the necessary skills. In the simulation students confront potentially dangerous events that routinely occur at rig sites. With input from instructors, students will develop and work through solutions for those events without the pressure of an authentic oilfield emergency. Completing the program helps bridge the gap between experienced and inexperienced workers; the program includes topics that have been “cherrypicked” by some of the most knowledgeable energy specialists in the area. Several companies from the oil and gas industry donated hundreds of thousands of dollars in equipment for the outdoor lab and plan to use the program to train their new-hires. Some of these companies have begun sponsoring students by paying beginning wages
Sun Advocate
as they work their way toward the certificate. “This will give people of the Basin an avenue that they’ve never had before for a working education,” UBATC Vice President of Economic Development Jean Mold said. Jeff Duncan, Anadarko Greater Natural Buttes production superintendent, serves on a UBATC employer advisory committee that developed the curriculum for the new program. He understands the significance of what the 900-hour course means to the oil and gas industry in the Basin. “You can now get experience in two semesters that would take years to gain on the work-site,” Duncan said. As an added benefit, UBATC and Utah State University have developed an articulation agreement that allows students who complete the 900-hour Pet Tech certificate to receive 30 semester hours of credit toward Utah State University’s new Associate of Applied Science General Technology degree. “This is a valuable training partnership between UBATC, USU, and the oil and gas industry to provide a high quality training specifically designed for workers in the Uintah Basin.” Mold said. For more information about the
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Uintah Basin Standard •
Petroleum Technology Certificate program, call UBATC at 725-7100. Interested participants should begin the enrollment process by scheduling assessment testing at the UBATC career center in Roosevelt (722-6946) or Vernal (725-7103). UBATC registration and application forms can be found online at www.ubatc.edu or at UBATC registrar offices. Students seeking company sponsorship should also submit a resume and an application to Jean Mold.
DWS has money for employers The Department of Workforce Services has two programs that can help employers who have employees interested in participating in the Petroleum Technology training. The Back to Work program will reimburse an employer up to $2,000 per eligible employee. To receive the reimbursement the company must hire someone who has been receiving unemployment benefits and has at least one dependent child. The On the Job program will reimburse an employer up to 50 per cent of the wages paid to the new employee while training for the job. For more information or to apply for either of these programs, call the DWS at 722-6500 in Roosevelt or 781-4100 in Vernal.
PROFILES IN ENERGY October 2011 15
September, 2011 September, 2011
NABORS
Rig Rig Count Count
23 23
January Rig Count was 25 January Rig was 25 23 December RigCount Count was December Count was21 23 October RigRig Count was October Rig Count waswas 21 23. September Rig Count September Rig Count August Rig Count waswas 23.23. August Count was July Rig Rig Count was 22.23. August Rig County July Rig Count was 25. 22. August Rig County 25.
The following information is listed in the following order: DRILLING CONTRACTOR, County, Drilling The following information is RIG listed#,inDepth, the following order: for:DRILLING Lease Operator, Lease Name CONTRACTOR, RIG #, Depth, County, Drilling for: Lease Operator, Lease Name Capstar Drilling, LP, 316, 9084, UINTAH, Ute Energy Upstream Holdings, LLC, ULT #7-36-3-1E, 2011-10-01 Capstar Drilling, 316, 9084,DUCHESNE, UINTAH, Ute Newfield Energy Upstream Holdings, Capstar Drilling, LP,LP, 329, 6901, Production Company, LLC, ULT #7-36-3-1E, 2011-10-01 GREATER MONUMENT BUTTE #3-2-9-16 H, 2011-09-26 Capstar Drilling, LP, 329, 6901, Inc., DUCHESNE, Newfield Production Company, Oil & Ensign United States Drilling, 138, 8424, UINTAH, Kerr-McGee BUTTE #3-2-9-16 H, 2011-09-26 GasGREATER Onshore,MONUMENT LP, BONANZA #1023-8K1CS, 2011-10-05 Ensign United States Drilling,Inc., Inc.,139, 138,9491, 8424,UINTAH, UINTAH, Kerr-McGee Kerr-McGee Oil Ensign United States Drilling, Oil&& Gas Gas Onshore, LP, BONANZA #1023-8K1CS, 2011-10-05 2011-10-03 Onshore, LP, NATURAL BUTTES UNIT #1022-7D1CS, Ensign UnitedStates States Drilling, 139, 9491, UINTAH, Kerr-McGee Oil & Gas Oil & Ensign United Drilling,Inc., Inc., 146, 8192, UINTAH, Kerr-McGee LP,LP, NATURAL BUTTES UNIT #1022-7D1CS, 2011-10-03 GasOnshore, Onshore, BONANZA #1023-8I4BS, 2011-10-06 Ensign UnitedLLC, States Drilling,LINCOLN, Inc., 146, 8192, UINTAH, Kerr-McGee Oil & Frontier Drilling, 2, 11000, Gary-Williams Production Company, PEARL RIDGE UNIT #33-14X,#1023-8I4BS, 2011-09-012011-10-06 Gas Onshore, LP, BONANZA Helmerich & Payne 10945, UINTAH, Production Kerr-McGee Oil & Gas Frontier Drilling, LLC,I.D.C., 2, 11000,298, LINCOLN, Gary-Williams Company, Onshore, NATURAL BUTTES UNIT #921-19D2DS, 2011-09-27 PEARLLP, RIDGE UNIT #33-14X, 2011-09-01 Helmerich && Payne 10526,UINTAH, UINTAH, Kerr-McGee & Gas Helmerich PayneI.D.C., I.D.C., 311, 298, 10945, Kerr-McGee Oil &Oil Gas Onshore, LP,LP, NATURAL UNIT#921-19D2DS, #1021-29F4BS, 2011-09-29 Onshore, NATURALBUTTES BUTTES UNIT 2011-09-27 Helmerich & Payne E& Helmerich & PayneI.D.C., I.D.C.,318, 311,11952, 10526, UINTA, UINTAH,Anadarko Kerr-McGee OilP&Company, Gas LP, Onshore, BRUFF FEDERAL #7A-18 D, UNIT 2011-09-24 LP, NATURAL BUTTES #1021-29F4BS, 2011-09-29 Helmerich & Payne I.D.C., Bill EBarrett Corporation, Helmerich & Payne I.D.C.,319, 318,8300, 11952,DUCHESNE, UINTA, Anadarko & P Company, 13H-13-46 #13H-13-46BTR, LP, BRUFF FEDERAL #7A-182011-09-22 D, 2011-09-24 Nabors Drilling USA,I.D.C., LP, M22, 8114, CARBON,BillBill Barrett Corporation, Helmerich & Payne 319, 8300, DUCHESNE, Barrett Corporation, PRICKLY PEAR UNIT FEDERAL #2A-22D-12-15, 2011-10-04 13H-13-46 #13H-13-46BTR, 2011-09-22 Nabors Well Services Co., 1460, 10400, DUCHESNE, Newfield Production Nabors Drilling USA, LP, M22, 8114, CARBON, Bill Barrett Corporation, Company, PADILLA #1-18-3-2, 2011-09-29 PRICKLY PEAR UNIT #2A-22D-12-15, 2011-10-04 Nabors Well Services Co.,FEDERAL 1608, 10803, DUCHESNE, Newfield Production Nabors Well Services Co., 1460, 10400,BUTTE DUCHESNE, NewfieldH, Production Company, GREATER MONUMENT #15-22-9-15 2011-10-03 Company, PADILLA #1-18-3-2, 2011-09-29 Newfield Drilling Company, SS1, 6507, DUCHESNE, Newfield Production Nabors Well Services Co., 1608, 10803,BUTTE DUCHESNE, Production Company, GREATER MONUMENT UNIT Newfield #N-3-9-16, 2011-10-03 Company,Drilling GREATER MONUMENT #15-22-9-15 H, 2011-10-03 Patterson-UTI Company, LLC,BUTTE 313, 7900, CARBON, Bill Barrett CorNewfield PRICKLY Drilling Company, SS1, 6507, DUCHESNE, Newfield Production poration, PEAR UNIT FEDERAL #4A-20D-12-15, 2011-10-01 Company, Drilling GREATER MONUMENT UNIT #N-3-9-16, 2011-10-03 Patterson-UTI Company, LLC,BUTTE 506, 8800, DUCHESNE, Bill Barrett Patterson-UTI14-5D-45 Drilling Company, LLC, 313, 7900, CARBON, Bill Barrett CorCorporation, #14-5D-45BTR, 2011-09-28 poration, PRICKLY UNIT FEDERAL #4A-20D-12-15, 2011-10-01 Berry Patterson-UTI Drilling PEAR Company, LLC, 779, 16000, DUCHESNE, Patterson-UTI Drilling Company, LLC, #16-24-55, 506, 8800, DUCHESNE, Petroleum Company, UTE TRIBAL 2011-10-04Bill Barrett Pioneer Drilling Company, 10711, UINTAH, Kerr-McGee Oil & Gas Onshore, Corporation, 14-5D-4554, #14-5D-45BTR, 2011-09-28 LP, NATURAL BUTTES UNIT #921-18F1BS, 2011-09-25 Patterson-UTI Drilling Company, LLC, 779, 16000, DUCHESNE, Berry Pioneer DrillingCompany, Company, 10200, DUCHESNE, Newfield Production Petroleum UTE69, TRIBAL #16-24-55, 2011-10-04 Company, CONRAD #6-17-3-1, Pioneer Drilling Company, 54, 10711,2011-09-24 UINTAH, Kerr-McGee Oil & Gas Onshore, Precision Drilling Oilfield Corp., 404, 14500, DUCHESNE, El Paso LP, NATURAL BUTTESSvcs. UNIT #921-18F1BS, 2011-09-25 Exploration & Production ROWLEY #3-16B4, 2011-09-14 Pioneer Drilling Company, Co.,LP, 69, 10200, DUCHESNE, Newfield Production Precision Drilling Oilfield#6-17-3-1, Svcs. Corp., 406, 14600, DUCHESNE, El Paso Company, CONRAD 2011-09-24 Exploration & Production Co.,LP, CONOVER #3-3B3, 2011-08-22 Precision Drilling Oilfield Svcs. Corp., 404, 14500, DUCHESNE, El Paso SST Energy Corporation, 54, 10400, UINTAH, Kerr-McGee Oil & Gas Onshore, Exploration & Production Co.,LP, ROWLEY #3-16B4, 2011-09-14 LP, FEDERAL #920-23P, 2011-09-30 Precision Drilling Oilfield Svcs. Corp., 406, 14600, DUCHESNE, El Paso True Drilling, LLC, 34, 9321, UINTAH, EOG Resources, Inc., CHAPITA WELLS Exploration & Production Co.,LP, CONOVER #3-3B3, 2011-08-22 UNIT #1498-25 D, 2011-10-06 SST Energy Corporation, 54, 10400, UINTAH, Kerr-McGee Oil & Gas Onshore, LP, FEDERAL #920-23P, 2011-09-30 TruePROFILES Drilling, LLC,IN 34,ENERGY 9321, UINTAH, EOG Resources, 16 October 2011 Inc., • CHAPITA VernalWELLS Express • UNIT #1498-25 D, 2011-10-06
WELL SERVICES INC. SERVICES: Our services include completing a well, maintaining the well during its productive life, extending the life of the well through subsequent deepening or horizontal re-entry, and closing-”plugging” - the well at the end of its productive life. We are proud of our daily participation in the continued development and production of oil and gas resources.
TECHNOLOGY: In 2005 Nabors Well Services introduced the Millennium rig, a new generation workover rig designed to improve safety and efficiency. PLC controls are being used on much of the equipment being built today.
SAFETY: Nabors Well Services safety record is second to none in the industry. The company has been awarded the Association of Energy Service Companies’ Gold Safety Award for ten years in a row.
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From setting goals to leadership roles UBATC offers leadership training course
By Therena Morrill Uintah Basin Standard
ability to identify and find solutions for everyday problems in the workplace, and the ability to relate to and commu A new course on leadership taught nicate with co-workers. “Leadership boils down to how we by the Uintah Basin Applied Technology College is focused on goal setting, get along with people, how we handle specifically for petroleum industry difficult situations, our ability to employees who want to advance to suinteract in a positive way with those pervisor or manager around us, and our positions in their ability to communicompany. cate effectively and “Ninety-five Course instrucassertively,” he said. per cent of our tor Walt Burfitt said “Natural leaders are accomplishments most petroleum born with many of and failures are industry companies these qualities, but directly related we can also learn hire their managto the attitude ers from within how to develop the ranks of their these skills if they behind our employees who are don’t come natubehavior,” already working for rally.” them. In the 15- Walt Burfitt “The purpose of hour course Burfitt teaches students to this course is to help define their professional ambitions and people identify and develop essential determine what they can do to fulfill leadership skills and qualities so they them. can accomplish their goal of career advancement,” he said. “If you want leadership positions, According to Burfitt, some of those you have to focus on that, and set goals skills and qualities are: integrity, the of how you’re going to get there,” he
said. The course also covers topics such as anger management, self-discipline, effective communication skills, re-channeling our mental energy into positive pathways, and how to overcome the tendency to procrastinate. “Ninety-five per cent of our accomplishments and failures are directly related to the attitude behind our behavior,” Burfitt said. The leadership course is part of the curriculum included in UBATC’s new 900-hour Petroleum Technology Certificate program. Burfitt will begin teaching the class in early 2012; it will meet for two and half hours, one evening a week, for six weeks. Burfitt — whose extensive experience in the petroleum industry began at the age of 24 as an oilfield worker — created his own company, Walt’s Well Service in 1975, operating it for 11 years. He most recently worked as a general construction contractor before entering employment with UBATC
in 2007 teaching petroleum, energy and transportation safety courses. “The curriculum is designed around my own experiences in dealing with life’s challenges,” Burfitt said. “I’ve been developing it basically my whole life.” He believes the course can make a big difference in the lives of his students as they learn to rivet their minds and energy toward their professional goals. “When you align yourself with what you want to do, the doors of opportunity just start to open up,” he said. “People want this course. It brings a positive effect into your life and when you have positive influences in your life, the world is a much better place to live in.”
2011: Where are the jobs? The Uinta Basin is the center of the oil and gas industry in Utah. In addition to accounting for a large portion of employment, industry also offers some of the highest paying jobs. University of Utah Bureau of Economic and Business Research, November 2007
Oil and gas provides over 75,000 direct, indirect and induced jobs in Utah, generating some $4 billion in labor income.
The industry accounted for roughly 50 percent of employment and 60 percent of total wages in the Basin during 2006. University of Utah
Price Waterhouse Coopers 2007
Natural Gas - it’s invisible and so is its long-term impact!
Property taxes paid on oil and gas wells were over $18.2 million in 2006 and accounted for 38.7 percent of all property taxes. Federal mineral royalties distributed by UDOT were over $30 million.
Oil and gas accounted for half of School Trust Lands’ revenues in 2006, directly benefitting Utah’s school children.
University of Utah
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PROFILES IN ENERGY October 2011 17
DUCHESNE COUNTY CHAMBER OF COMMERCE MEMBERSHIP ABS Acciuntung AARP - Fred Muller Aggie Station Agri-Service, Inc Town of Altamont American Cancer Assoc. Relay for Life Aycock, Miles & Associates Ballard City Basin Memorial Basin Moving & Storage Basin Veterinary Clinic BBS, Inc. Best Western Inn Bill Barrett Corp. Black Eyed Susan’s Burdick Materials Cafe Country @ The Fort Canton City buffet Cedar Bear Naturales Century 21 Country Realty Chevron Texaco Products Co. China Star City Park Pizza Clark State Farm Insurance Classic Lube Coldwell Banker/C S West Real Estate Country Flair W. Scott Danley D.D.S. Dan’s Tire Service DDI Vantage Defa’s Dude Ranch Dept. of Workforce Services Devon Energy Duchesne County Duchesne Co. Children’s Justice Center Duchesne City Duchesne County Extension Service Duchesne Co. School District Duchesne Co. Water Conservancy Dist. Ellie’s EZ Stop Family Support Center Farm Bureau Insurance Martha Clayburn Frontier Motel Gallagher Benefit Services Gateway 66 GT Enterprises High Desert Gardens Holly Refining Hullinger Mortuary The Ink Spot James N. Lemon, DDS Jiffy’s Jones Paint and glass
Jorgenson Construction Just a Wee Bit Used Kody’s Fitness Center KNEU/KIFX Radio Kohl’s Inc. KVEL/KLCY Radio KXRQ-Uintah Broadcasting L & L Motor Company Larry K Farnsworth Trucking, Inc. LC Ranch Longs Plumbing and Heating Mail Box Express Marion’s McDonald’s of Roosevelt Mama Lia’s Pizza Marion’s Variety McMullin heating and Plumbing Monsen Farm and Maze Moon Lake Electric Moon Lake Water Users Association Bart Morrell, CPA Mountainland Supply Co. Holly Refining & Marketing Hullinger Mortuary The Ink Spot Jiffy Enterprises Inc. Jones Paint & Glass Jorgensen Construction Just A Wee Bit Used Kody’s Café KNEU/KIFX Radio Kohl’s KVEL/KLCY Larry K Farnsworth Trucking, Inc. L & L Motor Co., Inc. LC Ranch James N. Lemon D.D.S. Local Pages, The Long’s Plumbing Inc. Marion’s Mobile Notary - Lourie McBride McDonald’s of Roosevelt McKenna Land Surveying, LLC McMullin Htg., Cooling & Refrig. Monsen Farm Moon Lake Electric Bart Morrill, CPA,PC Mt. America Credit Union Myton City Myrin Family Canyon Meadows Ranch Nielsen’s Furniture Northeastern Counseling Center
Northeastern Utah Office Supply Oilfield Class Transport Inc. Old Mill RV Park & Gift Shop Old West Antiques and Upholstery O’Reilly Auto Parts Our Town Directories Palmer’s Tire PDC/Ziplocal Pages Pepsi of Vernal Petroglyph Operating Co., Inc. Ponderosa Yoga Questar Gas Company Republic Mort. Home Loans, LLC R. Chapman Construction Rio Damian Bed & Breakfast RN Industries Trucking Rock Creek Store B/B Roosevelt City Roosevelt City Police Dept. Roosevelt Theatres, LLC Second Nature Sentry West Insurance Service Insurance Agency Shar’s Realty Skip’s Refrigeration Stewart’s Investment, Inc. Strata Networks THC Comnpany, LLC Town of Tabiona Tomboy Tools J. Flint Tomlinson, DDS Tri County Health Dept. Tuck-It-Away Storage UBATC Custom Fit U.B. Applied Tech. College Uintah Basin Assoc. of Gov. Uintah Basin Medical Center Uintah Basin Standard Uinta Veterinary Services United Way of Eastern Utah UT State University Bookstore USU Extension Utah State University VFW Ladies Auxiliary Post 9275 V-TV Walsh & Weathers, Inc. Wind River Wireless Wood -N- Design World of Beauty Yesterday’s Treasures Zion’s Bank, Duchesne Zion’s Bank, Roosevelt
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
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Wilson to expand warehouse to Roosevelt area Kevin Ashby Vernal Express Energy supply and service companies are expecting future growth in the area and some are starting right now with expansion projects. Wilson announced a second office and warehouse in the Uintah Basin according to manager Bob Alexander. Ground is being prepared along Highway 40 in Roosevelt near the Ioka turnoff where a 9,000 square-foot heated warehouse will be constructed with eight acres of fenced and improved yard space. “We need this space to accommodate our growing inventory of drilling rig supplies, line pipe, valves and fittings, and oil country tubular goods,” Alexander said. The second warehouse in the Basin allows them to better serve their customers in Duchesne and Carbon counties, he said. “We are definitely expecting growth in the Basin and we are gearing up to position ourselves so that we can take care of that growth,” said operations manager Trent Richens.
Richens stated that they already expectations in future plans. have a strong base of customers they Richens stated that Wilson is unique serve in the area and lately they have in the area because they supply materibeen awarded contracts from other als for both drilling and production companies that facilitate the second applications. These include pipe valves warehouse. and fittings along with mill supplies He also stated that companies are and safety products. refining their They also budgets for stock fluid end next year and expendables for “We are definitely most are planpumps that are expecting growth in ning on more used on a drilling the Basin and we are drilling activity rig. The new gearing up to position store will eventuin 2012 than ourselves so that we in 2011 which ally have a pump can take care of that impacted their shop and will growth,” expansion offer service and schedule. repair on down- Trent Richens. hole pumps. “A lot of it is the political “We will atmosphere,” also be able to Richens said. “It is definitely more com- analyze and track wear on pumps and fortable right now, not that it is great, components with the help of computers but maybe not so shaky, to be involved that will analyze test results and print in the extraction business.” out a detailed report to let the com He explained that if companies pany know repeated patterns of wear know they are not going to be impacted and tear and to make suggestions for negatively by government restrictions improvements,” Richens said. for whatever reason, they are not going Alexander agreed. to be hesitant in setting budgets and “This area continues to provide op-
portunities for long term, sustainable growth for our company,” Alexander said. “We are very confident in continued activity in this area.” He stated that with the new store they can put the material resources and services closer to their customer base on the west side of the Uintah Basin “which will benefit our customers and ourselves in cost savings for logistics, material costs and time.” The Vernal branch will continue to service all of our customer base East of the Ouray turn-off and the new Roosevelt branch will service all of our customers on the west side. The combined resources of both of these branches will allow us to provide excellent service to the entire Uintah Basin. This expansion has always been part of our original business plan for growth since we entered the Uintah Basin in 2003.
Providing Water & Drilling Fluids 823-5714 ♠ 724-2289 Roosevelt Utah Sun Advocate
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PROFILES IN ENERGY October 2011 19
Energy exploration and road impacts studied By Richard Shaw Sun Advocate Publisher It’s often hard to tell just by driving down a dirt road that has been developed for energy exploration how that road could affect the ecology of an area, but some scientists think it can. Studies in recent years have shown that improved or unimproved roads can change everything from vegetation growth to the patterns of travel that wild animals might take for their survival. The fact is that the rate of lineal disturbance on the whole face of the earth is changing a lot of things, and that disturbance is getter greater as the number of people on earth increases, and their activities to find resources expands. There are a lot of reasons for the increase in the number of “roads” on the planet. Included are tradtional and non-traditional energy development, logging, off-highway use by vehicles and urban development. In the western United States this growth in miles of roads has been significant. In the Powder River Basin in Wyoming almost 18,000 more miles of roads have been made since 2004. While no exact figures are available for Utah’s energy regions the growth of road systems due to oil, gas and other mineral extraction has certainly grown a great deal too. While most of the research studies done on the impact of roads have concentrated on direct effects on some kinds of lands, lately some researchers have turned their attention to arid and semi-arid areas and the indirect effects such passages may pose to the ecosystem. In a paper, released in March, by Michael C. Duniway and Jeffrey E. Herrick (both soil research scientists at the USDA Agricultural Research Jornada Experimental Range in Las Cruces, N.M.) the pair point out that the changes roads can bring to an ecosystem are
fairly substantial. The piece titled: “Disentangling road network impacts: The need for a holistic approach,” was published in the Journal of Soil and Water Conservation. In their paper they list a number of concerns about road construction in arid and semi-arid areas. • There are direct effects on the area in question. First an earth mover scrapes off the earths natural horizon, alters the topography and compacts the soils both on the road and even on the sides of the road. Later vehicle traffic compacts, churns and ruts the road soils surface. The changes can result in slower infiltration of water into the surface, runoff that increases in some areas and decreases in others, which leads to a lack of water for some areas that previously had more water from rain or melt off, and other areas that get a great deal more than it previously had. Roads can also lead to higher erosion. Because of these changes the road can change the vegetation immediately around the road and even some distance away where water flows are altered considerably. Animals can also be affected by the change in plant growth and the difficulty some may have in crossing roads. • Road networks can also fragment habitat and can increase or decrease animal traffic through some areas. They can also alter other processes that are natural. For instance a road cutting across a slope can capture water sheet flow during a storm, reducing down slope water flow, and depending on how the road is cut, can increase water content on the above slope. This water can also build up above and create more erosion. •Once roads are constructed, they become conduits for wildlife travel. Just as similarly they also tend to attract domestic cattle movement which brings a different impact to soils and plants along the roads than would occur if the area remained roadless. Roads also tend
This photo shows a number of problems described in the paper entitled: “Disentangling road network impacts: The need for a holistic approach.” First of all the two main roads and a smaller one have broken the landscape left of the stream into chunks of land somewhat isolated from each other. Also the road closest to the stream shows erosion into the stream. Finally the road on the left divides a higher piece of ground from a lower piece of ground and less vegetation on the lower part may be an example of a road that diverts water away from a previously vegetated area. to attract more people for recreational purposes as well. Drought can intensify the changes in plant growth even more when roads are present because of altered water flows, both with increases in water and with decreases in water in various areas. •The magnitude of impact that roads have on an area vary greatly and from plant species to plant species. The kinds of soil (clay, loam, sandy) reaction to various kinds of processes vary greatly. The same force of removal or traffic will change compact sandy soils less than it will clay, which would have less
of an impact on surrounding vegetation. Also some types of roads (depending on the condition of ecology of the area) can be very resilient. The pair suggest that while roads are necessary for energy and other kinds of development, planning is important and taking a holistic approach to building roads can be very helpful to the landscape, the vegetation and the animals that live in an area. Proper planning and prediction could be used to avoid critical areas that lead to strong impacts on the ecosystem.
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Energy development fueling the state’s economy By Mary Bernard Vernal Express
ise that regulations kill jobs. Several speakers cited a memo dated Sept. 21 from Utah Department Uintah County’s 2011 Energy Sumof Natural Resources says more than mit: Fueling Utah’s Economy could 10,000 producing oil and gas wells are have been subtitled Finding the Way now operating in Utah. Forward. That’s more wells in operation than The path to economic opportunity any time in the state’s history all of and job creation according to the speak- which have had to meet regulatory ers at the summit runs through indusrequirements to operate. trial development on federal lands. Saying regulation kills jobs is Those same speakers at the summit, “simply a replay of the industry’s tired held on Sept. 28 and 29, noted, however, lament that they can’t drill and be the path forward is laden with burdenrespectful of the environment at the some regulatory oversight. same time,” said Vernal resident and “We need to make the (non-western- advocate of responsible public lands use ers) understand what the public lands Sandy Hansen. mean to us,” said Rep. Rob Bishop (R Hansen said these allegedly burdenUT). some regulations were in effect when Bishop said westerners need to take Utah passed the milestone of 10,000 acthe lead, asserting greater control over tive oil and gas wells and 4,000 permits public lands and therefore their ecoin Uintah County that are waiting to be nomic destiny. drilled. “We need to change some of the pa Rather than argue over regulatory rameters of law, so more and more deci- hurtles, US Interior Secretary Ken sions can be made at the local level,” he Salazar, who spoke briefly at the sumsaid. mit, suggested working together would Bishop argued the top down regulaget things done quicker. “My message to you, is to look tory climate of the Administration’s oversight of the energy industry has beyond the finger pointing, and help us figure out a way of doing things better,” US Department of the Interior Secretary Ken Salazar at the 2011 Uintah County hurt rural Utah counties. Energy Summit in Vernal at Western Park in Vernal, Utah on Sept. 28. Not everyone agrees with the premCONTINUED ON PAGE 22
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ENERGY DEVELOPMENT CONTINUED FROM PAGE 21 he said. He pointed to the Kerr McGeeAnadarko, Bureau of Land Management and the Environmental Protection Agency agreement as evidence of productive collaboration. The Greater Natural Buttes agreement for air quality protection will permit “3,600 gas well to be developed and 1,000 jobs for this part of the state,” Salazar said. Anadarko, a subsidiary of KerrMcGee Oil & Gas Onshore LP will employ existing air-pollution control technologies on the project in collaboration with the BLM and EPA to drill new gas wells potentially producing more than 6 trillion cubic feet of gas over 10 years. The agreement closes five years of environmental impact and air quality studies with the goal of bringing a balance to environment protection and economic development. It has been a creative approach rarely seen among the lawsuit driven process that typifies public lands regulations. Collaboration is a step forward according to Rep. Jim Matheson (D-UT) who openly favors the
22
stakeholder’s bottom-up approach to public lands development. “The (government) is promulgating rules without looking at the economic impact,” Matheson said. He suggested that conflicting rules cost more jobs than environmental regulations. The ideal practice according to the congressman would reduce impacts while, at the same time, growing investments. Steve Bloch, Southern Utah Wilderness Alliance attorney, concurs saying federal regulation has not harmed the health of the oil and gas industry — particularly in the Uintah Basin. “Utah’s energy sector has surged back to life under the Obama administration,” Bloch said. “That surge, however, has come with serious impacts to things like air quality which has real impacts to human health and the environment.” The attorney added that EPA and other federal and state agencies should continue to look into these issues for the protection of all Utahns. —This article was originally published in the Vernal Express and Uintah Basin Standard.
Gov. Gary Herbert holds up a copy of his 10-year strategic energy plan during his speech Sept. 28 to attendees of the 2011 Energy Summit in Vernal.
PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
GO D BL AM ESS ER ICA
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PROFILES IN ENERGY October 2011 23 6/19/2009 2:52:52 PM
Nuclear plant in Utah could become reality Editor’s note: This story was developed through the efforts of Patsy Stoddard, Emery County Progress editor, John Surfustini, Sun Advocate editor and Richard Shaw, the publisher of both papers. Some don’t like the idea, while others totally embrace it. Some don’t want a potential nuclear accident set right in the middle of some of the most beautiful lands of the west, while others say that it is the future of the area, a future with good paying jobs. Some say it will take too much water, while others point out that the water that will be used was appropriated by the state engineer years ago for power production. The project is the Blue Castle Nuclear Power Plant that is planned near Green River and it is still on track to become a reality between 2015 and 2020. The fact is that each step taken by Blue Castle Holdings brings the project closer. The plant, a proposed 3000 megawatt plant will basically double the amount of power produced in the state. In comparison, the five PacifiCorp coalfired units in Emery County now generate roughly 2,500 megawatts of power. In late August Blue Castle Holdings hosted a tour of the proposed site and
invited media and local officials to the site. Since the announcement several years ago that Green River was being considered for a nuclear power plant there have been mixed reactions among the locals as well as environmental groups and the public in general. With the nuclear power disaster in Japan last winter, sentiments have wavered over the safety of nuclear power. Nuclear proponents are quick to assure people that what happened in Japan could not happen in Green River because the disaster was caused by the tidal wave after an earthquake and not by the earthquake itself. The process to get to the point where construction could begin is filled with the licensing procedures. To date prelicensing requirements are being fulfilled. Probably the most important factor as to whether the project gets the green light or the red light depends on the point of diversion change for the water that will be needed to run the plant. Blue Castle already leases the water shares, but the question lies in whether the point of diversion can be changed to accommodate the water the power plant CONTINUED ON PAGE 25
Blue Castle Holdings Inc. Chief Executive Officer Aaron Tilton speaks to those attending the Grand County Council meeting Oct. 4. (PHOTO: Moab Times-Independent)
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
NUCLEAR
population and economic parameters important to the region. The results to-date confirm the CONTINUED FROM PAGE 24 extensive work done during previous needs to operate. This question is in the years to find and select the most suithands of the Utah State water engineer. able site for the placement of a two-unit nuclear power plant in Utah, and supBlue Castle has answered the quesport the proposed application schedule tions involved concerning the water as protests were filed against their request discussed with the NRC. “We are very satisfied with the for a point of diversion change. The recent site results and the quality work engineers answer is expected to come soon. Sources say if this water change is of our licensing contractors. The data approved there is a 90 percent chance of obtained provides important measurements that support the original site the plant development proceeding. suitability for deploying a nuclear Blue Castle feels they are close now power station near Green River,” noted to filing their licensing application. They are progressing rapidly toward Tom Retson, the Chief Operating Officer for Blue Castle Holdings Inc. completing site characterization activi When operating, the Blue Castle ties needed for the filing of a licensing Project nuclear plant would provide application with the US Nuclear Reguup to 50 percent additional electrical latory Commission and for State and capacity in Utah. local permitting. Blue Castle has been “I have witnessed significant and conducting on-site and off-site investiencouraging progress as well as strong gations during the last six months to evidence of good people following a prepare an Early Site Permit applicacomprehensive process. The possible tion to the NRC. These investigations 1,000 new jobs associated with the new include: collecting meteorological data project certainly improve the economic on-site, using a 60 meter collection outlook of our community,” concluded tower, hydrological investigations emMike McCandless, Emery County Ecoploying multiple monitoring wells for nomic Development Director. groundwater characterization, and site Retson believes Blue Castle has response analysis using geotechnical done all the right things in regards to core boring activities. Complementary getting the water approved. They have off-site activities are focused on collecresponded to all the protests which tion of terrestrial and aquatic ecology were raised during the public hearing data for environmental stewardship A 3D rendering of the site configuration for a proposed Blue Castle Holdings, Inc purposes and demographic/socioeconuclear power plant near Green River, 40 miles northwest of Moab. CONTINUED ON PAGE 27 nomic data for characterization of the
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Emery County Progress
NUCLEAR CONTINUED FROM PAGE 25 and the comment period. They are in possession of the water leases and are requesting the take out location for the water be changed. Retson said they are six years along now in the process since the idea began, “But these last six months things have been moving more quickly.” Rick Ortiz and Eddie Floyd are the site bosses and have been overseeing the work on site. They are core people to the project. Road improvements are underway at the site. Drilling rigs are on site and their work will be finished soon. All licensing must be done before any construction could begin at the site. A five year process for licensing is expected and that clock began ticking in January. We took water samples early in the process. This sampling and monitoring process will last from January of 2011 to April of 2013. They will submit their application to the NRC and then there will be hearings after that. The licensing procedure is lengthy. Site suitability is still being determined. No decisions will be made until all data has been collected and submitted. The Green River location has looked good so far because of the availability of water, rail, and interstate nearby and transmission lines in the area and more transmission lines scheduled to be built in the near future. Current transmis-
sion lines aren’t adequate now, but will be expanded. A pipeline will be built to bring the water from the Green River to the site. The rail will be used to bring heavy equipment to the site as well as using the interstate. At some point a railroad spur will be constructed. Retson showed the visitors to the site maps of the area and a drawing of the site as it will appear. He said new technologies are being developed all the time so the final plant design changes as new developments in technology are made. The Green River site is two 1,000 megawatt units. The design certification goes through a different review process. Retson said the drilling is taking place now to learn the subsurface and understand the geological make-up of the area. Meteorological data is also being recorded including wind frequency, wind speed and direction, relative humidity, temperature readings and other data is being compiled. The soil samples are being stored on site and some are being sent for testing to a lab in Houston. The core is being sampled at a depth of one mile. Water for the plant will be stored in a reservoir. After the water has been used it will be placed in evaporation ponds where it will evaporate, no water will be returned to the Green River. Retson explained how the Palo Verde nuclear facility uses waste water from Phoenix. McCandless said nuclear power has
night. Retson pointed out many similooked at Green River several times larities between a nuclear power plant in the past because of its prime locaand a coal fired plant saying the only tion. Fifty items are factored into a big difference is in how the water is site selection process. He also said any item, one fatal flaw can eliminate a site heated. He likes the Emery County area because of the experienced workers in from consideration during the initial analysis. There is not a fatal flaw at the the area who he believes have the skill sets to work in nuclear power. Green River site. Retson explained the reliability of Retson, speaking in Price last spring nuclear power saying it has 92 percent explained that only about 25 percent of capacity; which means the plant operthe permanent jobs at the plant will reates at full capacquire speciality 92 percent of ized nuclear the time. This training. The Nuclear fuel is capacity is actual majority of production of workers will cheaper to produce. electricity. This be employed With a coal plant the is extremely high in the trades cost of the coal adds when compared and crafts up to 70 percent of to other sources the expenses and with necessary for such as wind running a coalnuclear fuel the cost fired plant. which typically is 10 percent of the operates at only Blue Castle cost of operation. 17-20 percent CEO Aaron efficiency. Retson Tilton also said - Mike McCandless. the number said the capacity is extremely of workers important as this already emis actual power delivered to the grid. ployed at power plants in this area was He said one problem coal fired plants one of the factors in site selection. are having is regulating the gaps left in Tilton also explained that as Blue the grid by wind power because of the Castle examined all of the options for fluctuations in power produced. This power generation, the economic and wind chasing leads to the coal fired environmental situation indicated that plants having to adapt to the up and there are slim odds for new coal plant down factors involved with wind power generation. Nuclear power appears to and this also applies to solar power as CONTINUED ON PAGE 28 well because no power is produced at
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NUCLEAR CONTINUED FROM PAGE 27 be the most economical route and for one major reason: unlike a coal plant, where trucks, trains and conveyor must deliver about a million tons of coal per year per generating unit, fuel for a nuclear plant will require one truckload every two years. The spent fuel can be recycled. At the end of the plant’s 60year life span, the low level radioactive material left over could be stored on 1.5 acres. McCandless said nuclear fuel is cheaper to produce too. With a coal plant the cost of the coal adds up to 70 percent of the expenses and with nuclear fuel the cost is 10 percent of the cost of operation. Retson believes nuclear power can co-exist nicely with the coal fired plants in the area. Utah is expanding demand for power at such a high rate that energy from all sources needs to be looked at and utilized. Retson said they want to share information about what is going on at the proposed nuclear power site and they still have a lot of work to do. “We are involved in a long process, but we are getting to the point where we can talk about it,” said Retson. He said after the test holes were completed at the site they have been abandoned according to protocol. They began sampling the end of June and finished this
past week. There are 12 borings. for sure. There have been three or four FEMA trainings here in Green River. There is another side to the nuclear We will look at housing for workers power plant project as well. That and permanent employees. We hope subject is how prepared Green River, the closest town only being four miles with the additional workers coming in there will be other support businesses away, would be to handle the number of people that would be involved in move in. We hope to revitalize our Main the construction as well as the operaStreet.” tion phase of the project. The towns Tilton told a Price group last spring mayor, Pat Brady, said Green River has that his company will be working with recently completed projects involving local officials across the region to help infrastructure with communities new water lines adjust to the and sewer lines. influx of workers He said around during construc“The processes of town he has heard tion and after. nuclear are almost both negative and Another playidentical to the positive comments. er in the game is coal fired power Reed Searle, who “I’ve heard was the general plants. The only from both sides, difference is in how manager for the but the majority Intermountain you boil the water. are in favor of the Power Project in project,” he stated. - Tom Reston Delta. He went through the pro“The economic cess of construcbenefits and the opportunities to tion and start up there and knows what’s involved when keep our kids here is really attractive. Up until now, the kids have had to look there is an influx of people into an area. He will be involved in public meetings. for economic opportunities outside of Brady will be involved in meetings to Green River for jobs and education. help plan the preliminary work which This is a great opportunity to improve will need to take place. The earliest our economy and establish a new tax base. Our planning and zoning commis- construction could begin would be sion is looking for places Green River 2016 so Brady feels Green River is well can grow. We are waiting to see if the water is approved and then we’ll know
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positioned to act when the time comes. During the building phase of the project approximately 4,000 people could be involved. The operation phase the plant would employ between 800-1,000 workers. And the impact will be felt well beyond Green River too. Price would be heavily impacted in a number of ways and some of those impacts will be because training for workers will become ever more important. At an address at USU Eastern in the spring Searle said that the college could become key to the plants development in the region and he noted that it would be a “beautiful opportunity” for the college to become involved because training will start two years before operations begin. Brady said he looks forward to new people coming to see what Green River has to offer. New school teachers would have to be hired, possibly even a new school or school expansion for have to be done for the school children who may move in. It is estimated if the project does go through the revenue to the Emery School District would likely double. These increased revenues would allow the school district to properly handle an influx of students into the district. McCandless said as well as the
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1,400 workers handle Hunter power plant overhaul By Richard Shaw Sun Advocate Publisher Like cars and lawn mowers, power plants are machines with moving parts. The difference is that when a car or mower needs a tune-up, there’s no need to bring in 1,400 skilled workers for more than a month. That’s what happened to the small towns of western Emery County in March when PacifiCorp overhauled its Hunter No. Unit and conducted a major upgrade in the plant’s emission control system. Late winter is usually a show season for Gilly’s motel, cabins and restaurant in Ferron. This year was different. “All our rooms and cabins are booked. Gasoline sales are up. We’re selling an awful lot of fuel,” said Gilly’s owner Tina Benson, adding that her restaurant operation was also selling a lot more meals. The towns around the big units at Hunter and Huntington are small, each with populations of less than 2,000. So when their lodging capacity hit the CONTINUED ON PAGE 31
Over 1400 skilled workers come into the area and stay for over a month to complete the overhaul project at Hunter Power plant. The local economy is also impacted for the good.
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HUNTER CONTINUED FROM PAGE 30 limit, the demand for rooms spread outward like ripples in a pond. The Village Inn Motel in Huntington had the neon red “No” lit beside the “Vacancy” sign out front. And moving even further north to Price, Holiday Inn general manager David Zwahlen said his business was “definitely feeling the effect” of the massive influx of workers. “There are lots of folks staying in Green River,” added Mike McCandless, Emery County economic development director. McCandless also said area campgrounds were also getting full. “It’s amazing how many of these guys camp. They move around a lot and they’re very good with logistics.” An even bigger impact than lodging was in retail sales, he continued. Fuel and tobacco sales were up by “tens of thousands of dollars a week.” Restaurants extended hours to accommodate the long shifts of the visiting workers, with some eateries opening at 4 a.m. The exact dollar amount of the increased spending is tough to calculate, but McCandless suggested that even if CONTINUED ON PAGE 33
The Hunter Power Plant has been a skyline icon of the Emery County Landscape since the 1980s and economic impacts continue to impact the area.
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
HUNTER CONTINUED FROM PAGE 31
This overhaul population was bigger than usual because the company was retrofitting some major pollution control equipment in addition to the routine tear-down and reassembly of working parts.
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the average overhaul worker spent only $30 a day, you can multiply it out to get a rough idea. Here’s the equation: 1,400 workers x $30/day x 60 days = $2,520,000, give or take a few bucks. If the average worker spent like a tourist, staying in a motel, eating all meals in restaurants and buying gas for the commute, that $30 per day figure would have been much higher. This overhaul population was bigger than usual because the company was retrofitting some major pollution control equipment in addition to the routine tear-down and reassembly of working parts. It replaced its smoke-removing electrostatic precipitators with a baghouse. Precipitators put an electric charge on smoke particles, then collect them on oppositely-charged metal plates. When the plates get full of smoke particles, mechanical hammers bang on them to shake the dust loose. It’s then collected and removed. A baghouse, on the other had, works like a building full of vacuum cleaner bags. It is more energy efficient and removes much more ash than the precipitators.
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Opposition to nuke plant raised at Moab meeting — to the projected nuclear plant’s less than 1 percent use of water to create 50 percent more power in the state. That 50 percent is equal to approximately When the Grand County Council 3,000 megawatts of electricity promet on Oct. 4 it was a contentious duced, he said. scene, with more than 50 residents in attendance to hear a presentation from Tilton also addressed the proposed plant’s affects on the Green River, Blue Castle Holdings, Inc., the comsaying that the river depth would only pany that hopes to develop a two-unit change one inch during low flow condinuclear power plant near Green River, tions. 40 miles northwest of Moab. Aaron Tilton, chief executive officer, “Water proposed for this use is Tom Retson, chief operating officer, and currently being sent downstream as an unused portion of Colorado River Reed Searle, senior vice president of Compact allocations,” Tilton said. “But business development for Blue Castle were at the meeting. During the presen- that water was previously approved and allocated … for use in coal-fire projects tation, Tilton explained some of the that never happened.” needs for nuclear power in the state and aspects of the project and facilities. Council chairman Chris Baird “The model is to develop new electri- expressed concerns about the expected 50,000-acre feet of water the plant cal capacity needed for Utah. Utah will would use annually. He said that water be short on electricity over the next has a “100 percent depletion rate,” 20 years,” Tilton said. “We believe the meaning none of it will go back into the current resource portfolio of the state [coal] is not the resource that should be river system. Removing that volume of water from the Green River could have developed.” Tilton explained water use issues on significant impacts on Grand County’s future industrial water needs, among the site, with water being the biggest other concerns, Baird said. criteria needed to cool the thermal The company’s plan to store spent process to make the electricity. He compared the current state use of water fuel on site for future use was also critifor electricity production — 2.2 percent cized by many in attendance. Used fuel By Charli Englehorn Moab Times-Independent
is first held in water-cooled pools for two to three years and then contained in rods, which are clustered and stored in dry cask cylinders above ground. The Nuclear Regulatory Commission deems it safe to store used fuel for 100 years, Tilton said. Many local residents voiced opposition to the proposed nuclear plant. Sarah Fields of Moab said high-level nuclear waste such as spent fuel, would have negative impacts on the environment. She also questioned the reuse of the fuel, claiming it was a problem that would most likely be left to future generations to deal with. Many residents called the idea of building a nuclear plant off of Interstate 70 “crazy” and said it would be a detriment to tourism. Others referred to the project as a “dinosaur solution,” saying that other trends in energy production would be more desirable. “This all needs to be looked at holistically. There is already insufficient water … other needs will suffer,” said Bob Lipman, who also spoke about “cancer clusters” in communities located near nuclear plants. “There is no compensation for a loss of community. There are no guarantees that these plants will run smoothly.”
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Emery County Progress
Moab resident Helene Rohr agreed. “Things can happen you can’t plan for,” Rohr said. “What happens when the money runs out and corners are cut?” She accused Blue Castle of using technological jargon to blindside people and pushing jobs as an incentive. “Germany has decided to completely shift gears, and the largest labor organization in Japan is pushing for different forms of energy,” Rohr said. Several people raised concerns about the burden and danger to future generations. And most questioned whether their views on the issue would have any effect on Blue Castle’s plans. “You will still have a tremendous amount of say in what we do and how we do it, but we are committed to go forward with the project,” Tilton said. “We have spent a lot of time researching this … we feel gives us justification to move forward.” The licensing process will take a minimum of five years, during which time a number of public hearings will take place. If Blue Castle is successful in getting the project licensed, construction will take a minimum of seven years, Tilton said.
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PROFILES IN ENERGY October 2011 35
Reclaiming mined lands is a duel of the dollar By C.J. McManus Sun Advocate More than $7 billion has been provided by the Surface Mining Control and Reclamation Act since 1977 for rehabilitation and beautification of land impacted by both surface and underground coal mining, but the battle for who should foot the bill and to what amount, continues to rage in the country’s highest courts. As mining operations cease, bulldozers and scrapers are used to reshape the disturbed area, according to information from the World Coal Institute. Reclamation should allow for the area to be resistant to soil erosion and, based on the soil requirements, fertilized and re-vegetated. At this point, reclaimed land is intended to be used for agriculture, forestry, wildlife habitation, and recreation. The cost of the rehabilitation of the mined land is factored into the mine’s operating costs. Other forms of disturbance typically caused by mining can include: •Top soil removal, causing negative effects on native vegetation and wildlife.
This photo shows an area of Price Canyon that has been rehabilitated after being mined by the Castle Gate Holding Com-
CONTINUED ON PAGE 37 pany.
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RECLAIMING CONTINUED FROM PAGE 36 •Mine subsistence, which refers to the destabilization of land that can occur with underground coal mining, as the ground level lowers as a result of coal having been mined beneath. •Water pollution, wherein acid mine drainage takes place due to metal-rich water formed from the chemical reaction between water and rocks containing sulfur-bearing minerals. The acid run-off created dissolves heavy metals such as copper, lead and mercury into ground and surface water. According to the WCI, there is also danger from coal sludge also known as slurry, wherein
the liquid coal waste produced by mining activities causes additional contamination. •Denigration of surface and underground aquifers. While coal has been mined in the United States since the 1740s, surface mining did not catch hold until the 1940s, exploding in the 1970s, when over 60 percent of mines in the country were open-pit operations. And while several states did pass early laws calling for land reclamation following the huge need for coal during World War II, a federal mandate governing reclamation was not adopted until President Jimmy Carter signed the SMCRA in the late CONTINUED ON PAGE 39
This land in Price Canyon has been rehabilitated after being used for mining.
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RECLAIMING CONTINUED FROM PAGE 37 1970s. Along with the passage of a federal act, Carter also created an enforcement arm within the Department of the Interior. To assist with federal implementation of the law, state agencies all throughout the country have taken the lead in monitoring and assessing reclamation projects for the mining industry. In Utah, the Division of Oil, Gas and Mining oversees the responsible reclamation and development of both state and federal lands. The division also conducts reclamation of abandoned mine sites under Title IV of SMCRA. Funds for this program come totally from appropriations of federal fees paid by the coal industry, based on a per-ton produced rate, according to DOGM. However, a 2010 Associated Press report demonstrates that while federal funds do account for abandoned projects, those federal monies often come from places other than coal mine fees. In January 2010, the AP reported that $395 million was available for abandoned-mine reclamation funds provided by the U.S. Department of the Interior. Recipients can apply to the Interior Department’s Office of Surface Mining Reclamation and Enforcement for funding for specific projects. Part of the money — $150 million — does indeed come from fees based on U.S.
coal production. The remaining $245 million comes from the U.S. Treasury, or taxpayers. Several industry sources report that fees assessed for reclamation projects often make it difficult for the coal industry to expand as profits margins are narrowed due to the massive cost of some reclamation projects. While underground mining in the west typically leads to thick coal seams with a relatively small amount of disturbance, open pit mines can have a large impact on a given area’s topography, leading to a hefty reclamation cost. In June of this year, the U.S. Supreme Court turned away a bid by several coal companies including Consol Energy, Massey Energy, Patriot Coal, Alpha Natural Resources, Arch Coal, BP, TECO Energy and Peabody Energy. The companies were asking for a refund for some of the fees placed in the government’s coal mine reclamation fund. The companies reportedly argued that the fees were being applied to coal destined for shipment abroad, violating the constitutional prohibition on export tax. According to information from the WCI, the courts rejected the company’s proposal, holding that the fees were being imposed when the coal was extracted, not when it was exported. In the case, the companies were seeking both a halt to the current fees as well as a refund on payments already made. It is important to note that while
several of the country’s largest coal companies participated in the June court case, they also comply with current reclamation standards and refer to those standards as part of their responsibility as energy producers. For example, Arch Coal broadly discusses their reclamation efforts within the company’s website. “Arch Coal’s subsidiaries include land reclamation in every phase of our mine plans, which are closely regulated by the Surface Mining Control and Reclamation Act (SMCRA),” according to archcoal.com. “We carefully include a range of environmental plans throughout the life of each mine and treat each reclamation project uniquely.
“Oftentimes, land that we’ve reclaimed is indistinguishable from surrounding terrain within just a few growing seasons,” as written in the website’s statement. “We have implemented and continued programs that help support indigenous wildlife and habitat. We received final bond releases for more than 4,800 restored or protected acres in 2009 and 2010.” As worldwide energy producers work to find the balance between their responsibility to the planet and their responsibility to their shareholders, enforcement and oversight officials also look for the right amount of taxation verses monetary incentive for the companies they oversee.
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USU Energy Dynamics Lab algae research blooms By Ranae Bangerter Vernal Express What looked like a crop circle in an acre of farmland next to Utah State University’s Vernal campus is now a “floating pond,” in a body of water east of the Bingham Entrepreneurship and Energy Research Center, and is set to grow algae for biofuel production. The “floating pond,” made of highdensity polyethylene — a material similar to garbage bags, was assembled by a research team in about seven weeks, and is hoped to be the new home of thousands of gallons of microalgae. “Algae grows exponentially,” said Curtis Carrigan, Energy Dynamic Laboratory researcher with the Algae Energy systems Demonstration Pond. “It can double per-day under the right conditions.” The goal is to grow enough algae per acre to produce one barrel of biofuel per day, the 28-year-old researcher from Logan said. All the pond needs for algae to bloom is four ingredients: the sun, nitrogen, carbon dioxide and phosphorus. “It’s low maintenance; that’s the hope,” Carrigan said. Funding for the project came from
Energy Dynamics Laboratory Researchers Matthew Bush, Curtis Carrigan and Devin Bascom, pose for a photo while working on the “floating pond” behind the Utah State University Vernal campus.
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the Utah Science Technology and Research initiative and the U.S. Department of Energy. An additional grant was awarded from the Impact Mitigation Special Service District, because the plant absorbs carbon dioxide from the air and also uses nitrogen and phosphorus from the run-off water, said Kevin Shurtleff, lead researcher for Algae Energy Systems with EDL. “We’re really (in Vernal) to demonstrate that we can capture CO2 from the air and we can clean up nitrogen
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ALGAE CONTINUED FROM PAGE 40 the algae to grow. For now, the research team will be adding fertilizers — nitrogen and phosphorus — into the water because those elements are lacking in this particular pond. Ideally, the plan is to place thousands of the one-acre ponds into waters that are naturally full of nitrogen and phosphorus, and in areas near carbon dioxide. This is the first one-acre “floating algae pond” ever constructed, and it took some careful planning and building. “We had the idea of how we wanted to assemble it,” Carrigan said, adding that it was difficult to find a parking lot — or flat surface — with an unobstructed one-acre area. The group then ended up constructing the “floating pond” in a cow field behind the Bingham Center. The project that was expected to take only two to three weeks ended up taking seven, and that pushed the project behind schedule. Four large sections of the “floating pond” had to be carefully glued and welded together and then transported to the nearby pond. “It’s been kind of a big deal,” Carrigan said. A second one-acre “floating pond” is being built, with some modifications
A circular “floating pond” rests above a one acre pond east of the Utah State University Bingham Entrepreneurship and Energy Research Center. Researchers hope to grow algae in the pond as an alternative form of biofuel. after design problems and delays in the construction of the first one. The “floating pond” will be in Vernal for the month of October as researchers see if it produces enough algae, then it will be taken to a milder climate in southern Utah for the winter and brought back to Vernal in the spring. “The goal is to grow as much as
we can, to demonstrate what we can accomplish in the month we have, and then stop for the winter,” Carrigan said. Positive results from the project all depend on the weather, Shurtleff said. “The goal was to deploy the pond earlier so that we’d have a longer growth season,” he said. The most difficult part of the process
will be harvesting the microalgae, Carrigan said. Harvesting takes careful research because of the different strains of algae and there’s no right way to harvest microalgae. Some strains float, some sink and some swim around, he said. CONTINUED ON PAGE 53
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Flash floods in the oil field
One man’s beauty is only another man’s misery By Kevin Ashby Vernal Express Wow! Thirty minutes of rain and hours and hours of cleanup. That was the scene on a day in mid July when I followed a huge black thunderhead cloud formation into the oil patch south of Ouray in Uintah County. It was wet and muddy. In fact, water was running everywhere and it didn’t take me long to see that road side ditches filled and then it was the washes along side the road that collected enough rain water to become raging torrents. Everything stood still for a time, as oilfield workers seemed to quit moving around on the roads during the storm. But when the sun broke out and shed light on the area, I started seeing move-
On this afternoon, a big black storm cloud darkened the landscape and less than an hour later washes and gullies were full
CONTINUED ON PAGE 43 to overflowing with excess rain water. The oilfield sometimes shuts down for days while the mud dries.
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Chaining up is never fun, especially when the only time you need to chain up is when it is wet and very muddy.
FLOODING CONTINUED FROM PAGE 42 ment along the roads. I’ll admit that it was slow-moving to begin with as everything was slick and muddy. And there were places that were submerged in the runoff liquid that kept traffic slow. It only took minutes
for rocks and other debris to line the sides of the roads. And not too much longer to watch roads being washed out as stream beds that meandered town a canyon crisscrossing the road soon carried enough water to wash out the roadways and leave even bigger rocks and debris along the way. No matter how far you went in the
hills south of Vernal, you were stopped by a stream of water that you were unwilling to second guess that your vehicle would make it through. Some raging rivers were just that, way too much water going very fast down what used to be a dry stream bed only hours before. But there are other streams that were very tempting as the dirty water
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FLOODING CONTINUED FROM PAGE 43 road graders that seemed to appear out of nowhere and started moving deposited piles of mud from stream and river crossings. I was also intrigued with how quickly truck drivers got out of their vehicles and chained up. They do it with enough regularity that they are practiced hands at it, but it did not take long for big trucks to stop, get the chains on and adjusted and then proceed down the road. Despite the mosquitoes, crowds seemed to appear at every raging intersection to watch the daring go through the mess or to watch the graders fix the problems. Trucks are on schedules and no where is the phrase “time is money” more appropriate than in the oil patch and it was amazing how quickly things got back to normal after the storm that will have road crews busy for days clearing the mess. Next time you see the dark thunderhead clouds flowing over the southern part of Duchesne and Uintah counties, and you see the phenomenal lightening show and think “wow! That is sure beautiful!” I invite you to remember those who are working down there and will have to stop, check their chains CONTINUED ON PAGE 45
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FLOODING CONTINUED FROM PAGE 44 and tires and then proceed with caution until they can’t go any more and have to wait for a grader. One mans beauty is only another man’s misery.
It didn’t take long before the trucks started to line up as flooding plains and streambeds brought traffic to a stop. The bigger the storm - the longer the wait.
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Cleaning up wells takes unusual tools By Ross Stevens Uintah Basin Standard Roddie Bird’s oilfield job involves many unusual tools, some of which he’s invented himself. Through his company, R&B Slickline and Field Service, he instals well heads and plunger lifts, and cleans up wells. One of the more interesting challenges met by R&B involves “fishing” where they are tasked to retrieve various items from the well. To go “fishing” they use a rare earth magnet, which when lowered into the well can latch onto most anything metallic. “I’ve pulled out nuts and bolts, pieces of springs, all kinds of tools, and various pieces of drilling equipment,” Bird said. Bird, who started the company with wife Barbara, now has two additional employees and sounds optimistic as he assesses the future. “There may not be another boom coming, but it is getting better.”
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PROFILES IN ENERGY October 2011 47
Utah energy resources key to balanced energy policy By Rep. Jim Matheson As our country strives for greater energy independence, Utah has an important role to play. Energy independence is both a critical economic and national security issue and to succeed, we have to pull all the levers available to us, starting with producing as much oil and natural gas in this country as possible. Increased domestic oil production and increased use of natural gas as a transportation fuel are key steps we can take to reduce our dependence on foreign oil. The U.S. has enough natural gas reserves to last at least 100 years as well as environmentally responsible methods to develop this resource. I support a bipartisan bill called the NAT GAS Act of 2011. The bill paves the way to change how we power our vehicles by encouraging private investment in natural gas refueling stations and by providing incentives for the production and purchase of natural gas vehicles. The on-the-shelf technology has already produced more than 12.5 million NGVs in use worldwide. Along with cost benefits to consumers and a boost for jobs and the economy, natural gas burns cleaner than gasoline, improving air quality. Oil and natural gas production are two bright spots in Utah’s economic picture, with 800 new jobs coming from these industries in the past year alone. Along with oil, natural gas and coal, Utah has the potential to provide jet and diesel fuels from oil shale. My efforts resulted in lifting the moratorium on commercial oil shale leasing in Utah, allowing pilot projects to proceed in the Uintah Basin, which has rich oil
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shale deposits. When it comes to new technologies, the federal government should not be in the business of picking winners and losers, but should instead support policies that create a level-playing field for all to compete. I have also written a bill — the FUEL Act — to encourage not only traditional energy production but also research and development of renewable and alternative energy. The FUEL Act establishes an energy development task force composed of federal agencies who oversee permitting. My bill requires them to issue a plan within a year outlining steps for streamlining oil and gas applications. It also promotes oil and gas drilling offshore and divides the royalties between the states and the federal government. America’s independent oil and natural gas producers, which develop over 80 percent of U.S. natural gas and nearly 70 percent of U.S oil, are small businesses. Historically, they have invested more than 150 percent of their cash flows back into American projects, strengthening the economy and increasing jobs. I’ve joined a bipartisan group opposing the Administration’s proposal to raise taxes on domestic energy producers. America needs an energy policy that recognizes the roles that all forms of energy can play to rebuild our economy, increase U.S. energy supplies and move towards a better energy future. —Rep. Jim Matheson, D-Utah, serves the residents of the Second Congressional District.
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Emery County Progress
Tapping into America’s energy future By Sen. Mike Lee President Obama has spent weeks telling Congress to pass his flawed second stimulus bill, which he erroneously believes will put Americans back to work with another round of wasteful government spending on bloated programs and failed investments. Noticeably absent from the president’s agenda, however, is a significant push to tap more of our vast natural resources in order to expand domestic energy production and achieve energy independence for the first time in decades. To simply ignore the potential that lies beneath American soil is to handicap the nation’s economic future. An aggressive domestic energy plan would create hundreds of thousands, if not millions, of new jobs at a time when they are desperately needed. A recent study by consulting firm Wood Mackenzie found that over 1.4 million jobs would be created in the United States — 50,000 in Utah by 2020 — by adopting a variety of pro-energy policies, including re-opening the outer continental shelf to oil and natural gas exploration and production, approving the Keystone XL pipeline that will deliver oil from Canada, and easing excessive restrictions on hydraulic fracturing or “fracking.” The study supports the notion that federal bureaucracy is strangling job growth, and that the best
job creation program Washington can adopt is getting the government out of the way. Unlike President Obama’s plan, which borrows close to $500 billion from China and increases our national debt, cutting red tape doesn’t cost a dime. In fact, making the described changes in policy could produce hundreds of billions of dollars in additional government revenue over the next 20 years. If we give businesses the freedom to move the country towards energy independence, the effects will be enormous. Wood Mackenzie estimates the equivalent of nearly 60 billion barrels of oil in combined oil and natural gas would be made available. By 2030, those additional reserves would increase total U.S. oil and gas energy production by nearly 50percent over current policy projections. The American Gas Association estimates that the amount of recoverable natural gas that exists in the United States would be enough to last for more than a century. We can power a renewed American economy for decades by merely taking advantage of what’s sitting right under our feet. Congress is already considering legislation that would move the country towards that goal. The American Energy and Western Jobs Act would streamline the oil and natural gas leasing process while encouraging
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PROFILES IN ENERGY October 2011 51
Table 4.5 Natural Gas Gross Production in Utah by County - 1993-2010 Natural Gas Gross Production in Utah by County, 1993-2010
Thousand Cubic Feet
2010 Rank
County
1993
1994
ural Gas Gross Production in Utah by County, 1993-2010 1 2 3 1993 4 5 73,518,068 6 1,067,921 7 17,640,155 8 1,210,380 9 19,508,219 10 215,551,149 8,249,625 -1,530,491 --
usand Cubic Feet
nty
ah on esne ry uan mit d ett ete eld
hington Total
nty
ah on esne ry uan mit d ett ete eld
hington Total
Uintah 73,518,068 Carbon 1,067,921 Duchesne 17,640,155 1994 1995 1,210,380 1996 Emery San Juan 19,508,219 67,275,895 57,143,899 60,051,360 Summit 12,379,993 215,551,149 4,932,277 17,124,314 Grand 17,582,965 8,249,625 16,750,850 19,332,426 Daggett 873,199 703,166 1,530,491 778,051 Sanpete 24,088,983 0 22,493,251 25,363,081 Garfield 189,373,184 0 225,435,809 149,296,517 8,523,892 6,404,169 7,077,875 Rich 0 1,854,631 1,018,292 1,415,327 Washington 0 0338,276,008 0 State0 Total
67,275,895 4,932,277 16,750,850 1997 873,199 22,493,251 60,599,426 225,435,809 22,760,216 8,523,892 20,631,221 1,854,631 926,911 23,834,8210 134,841,492 0 7,321,7990 1,637,4630 425 348,139,804
0 0 0 2003 280,438,951
0 0 0 2004 272,553,774
Uintah 111,242,334 Carbon 2004 2005 85,179,739 2006 Duchesne 11,954,655 Emery 164,069,895 17,213,152 132,682,346 203,511,421 San Juan 74,823,151 20,637,369 79,239,057 82,384,767 Summit 20,072,860 33,943,295 14,642,364 22,530,227 Grand 16,608,650 5,623,912 17,443,464 16,198,923 Daggett 13,425,654 1,340,657 17,386,451 12,452,938 23,769,095 11,211,675 Sanpete 16,526,002 0 7,225,855 6,857,367 Garfield 6,581,997 6,125 1,434,913 1,377,766 1,168,574 Rich 0 9 10 Washington 03 7,600 Total 9,125287,141,238 9,125 State
132,682,346 79,239,057 2007 14,642,364 17,443,464 218,560,736 17,386,451 93,817,532 23,769,095 25,334,571 7,225,855 16,930,093 1,434,913 12,572,548 11,189,2379 6,547,472 7,600 539,4010 10 9,125 293,831,154
0 0 0 0 0 0 0 0 0 0 2010 County 308,694,651 338,276,008 348,139,804
Rank 1
2 2003 3 4 111,242,334 5 85,179,739 6 11,954,655 7 17,213,152 8 20,637,369 33,943,295 9 5,623,912 10 1,340,657 ---0 6,125 0 Source: 0 287,141,238
0
0
0
0 0 385,500,716
0 Gas and Mining 0 Utah0Division of Oil, 293,831,154
Note:
313,495,110
356,325,020
1995
1996
1997
1999
2000
2001
2002
57,143,899 60,051,360 60,599,426 70,603,801 72,190,796 12,379,993 17,124,314 22,760,216 31,903,361 50,175,216 17,582,965 19,332,426 20,631,221 19,204,848 15,352,521 1998 1999 703,166 778,051 2000 926,911 2001 1,344,955 2002 2,317,451 24,088,983 25,363,081 23,834,821 70,603,801 72,190,796 83,100,193 93,909,207 24,995,874 104,385,70524,789,152 189,373,184 50,175,216 149,296,517 134,841,492 104,948,668 31,903,361 72,586,085 86,532,946141,757,578 90,700,883 6,404,169 15,352,521 7,077,875 19,204,848 13,934,4447,321,799 13,933,698 6,397,327 12,476,159 6,305,630 1,018,292 2,317,451 1,415,3274,042,8101,637,463 1,344,955 7,718,744 1,293,202 13,901,569 1,405,755 0 425 0 0 24,995,874 0 24,789,152 23,965,074 24,159,731 21,395,561 0 0 2,300 9,123 141,757,578 0104,948,668 76,290,493 67,952,108 43,374,899 6,397,327 0 6,305,630 5,600,641 5,538,288 05,287,347 0 0 0 1,293,202 0 1,405,755 1,159,278 1,250,965 01,955,920 0 0 0 0 0 0 100297,503,246 0 308,694,651 280,438,951 272,553,774 277,494,312
83,100,193 72,586,085 13,934,444 4,042,810 23,965,074 76,290,493 5,287,347 1,955,920 0 7,650 0 0 281,170,016
93,909,207 86,532,946 13,933,698 7,718,744 24,159,731 67,952,108 5,600,641 1,159,278 100 9,125 0 0 300,975,578
104,385,705 90,700,883 12,476,159 13,901,569 21,395,561 43,374,899 5,538,288 1,250,965 0 6,050 0 0 293,030,079
2009
2010
Percent Change 2009-2010
Cumulative Production Through 2010
164,069,895 203,511,421 218,560,736 283,378,235 Percent273,700,835 Cumulative 74,823,151 82,384,767 93,817,532 2008 2009 2010 Change 94,546,489 Production96,592,822 20,072,860 22,530,227 25,334,571 2009-2010 26,575,078 Through 201028,805,053 16,608,650283,378,235 16,198,923 16,930,093-0.1% 16,703,288 273,700,835 283,002,476 3,232,369,57416,581,995 13,425,654 96,592,822 12,452,938 12,572,548 94,546,489 83,618,904 -13.4% 13,377,282 1,160,507,66710,268,266 16,526,002 28,805,053 11,211,675 11,189,23714.7% 10,311,263 26,575,078 33,035,337 710,110,599 8,221,128 6,581,997 16,581,995 6,857,367 16,703,288 14,389,6036,547,472 -13.2% 6,243,909 225,217,560 5,069,217 1,377,766 10,268,266 1,168,5749,845,954 539,401-4.1% 1,081,225 13,377,282 1,398,911,468 588,648 10,311,263 10 8,221,128 -12.2% 3,210,714,468 37,219,035 1 19,116 66,297 6,243,909 -11.5% 381,107,552 9,125 5,069,217 9,1254,487,035 9,125 9,150 9,125 1,081,225 0 588,648 181,935,884 01,026,185 074.3% 0 0 19,116 0 66,297 463.0% 3,486,424 0 373,280 0 0 0 9,150 9,125 9,125 313,495,110 356,325,020 385,500,716 0.0%442,567,635102,748 449,580,786
283,002,476 83,618,904 33,035,337 14,389,603 9,845,954 7,219,035 4,487,035 1,026,185 373,280 9,125 0 0 437,006,934
-0.1% -13.4% 14.7% -13.2% -4.1% -12.2% -11.5% 74.3% 463.0% 0.0% ---2.8%
3,232,369,574 1,160,507,667 710,110,599 225,217,560 1,398,911,468 3,210,714,468 381,107,552 181,935,884 3,486,424 102,748 5,497,846 65,552 10,510,027,342
2,300 9,123 7,650 0 0 0 0 0 0 2005277,494,312 2006 297,503,246 281,170,016
0
0
0 Annual production data 0 442,567,635
449,580,786
1998
9,125 0 0 2007 300,975,578
0 0 437,006,934
---2.8%
6,050 0 0 2008 293,030,079
5,497,846 65,552 10,510,027,342
Data are a snapshot in time and may not match more up-to-date totals.
Division of Oil, Gas and Mining -
Annual production data
are a snapshot in time and may not match more up-to-date totals.
Figure 4.5 - Natural Gas Gross Production in Utah by County, 2010 Figure 4.5 - Natural Gas Gross Production in Utah by County, 2010 San Juan
Emery 3.3%
San Juan 2.3%
Grand Summit 1.0% 1.7% Duchesne
Emery Other3.3%
2.3%
Grand Summit 1.0% 1.7%
Other 0.3%
0.3%
7.6%
Duchesne 7.6%
Carbon 19.1%
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
Changes in oilfield work apparent after 30 years By Ross Stevens Uintah Basin Standard
As a consultant his company supervises all aspects of the well’s production process based on the guidelines set out At 17, Steve Wall thought he was by the industry. starting a job not a career. He looked at “Our role starts right after the hole is drilled and continues until the well his new job on a workover rig as a way goes dry,” Wall said about consulting. to earn some decent money right away. Now, more than 30 years later, he looks “We watch how the work is done, order back on the wealth of work experience equipment, provide daily reports, help in the oil industry that started in his train company employees and monitor teens. all well activities.” “I just needed to make some real He said a lot has changed since he good money and working on a rig was first began work in the industry, for the best way to do it,” Wall said with a one, the equipment is more high tech. “I think Nintendo must have desmile. That simple start led to similar work signed a lot of today’s controls,” Wall said. “A lot of stuff is operated by joy and took him around the world. For five years he worked in both Yemen and sticks. They must have watched the kids playing those video games and Oman working 35 days straight and then having 35 days off. decided this way would be the easiest for them to learn to operate things.” “The money was certainly good, but I was a long way from home,” Wall said. He said another big focus now is on Today, he owns D&S Wellsite Susafety, with specific guidelines to keep pervision, a company he started three everyone safe. years ago offering his services as an “I’m very proud of our safety oilfield consultant. Wall currently works record,” he said of his employees. “No on a rig near Ouray with Anadarko accidents at all in the three years at the Petroleum Corporation. current site.”
ALGAE CONTINUED FROM PAGE 41 Carrigan compared it to catching different insects. “If it’s a butterfly, you use a butterfly net, if it’s a cockroach you use a paper cup,” he said. “So it’s different.” He said ideally they’d like to have the algae sink to the bottom of the “floating pond” and then use something similar to a swimming pool vacuum which runs along the bottom of the pool to harvest it. As for biofuel production long-term goals, researchers hope the “floating
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ponds” will produce 1,300 gallons of biofuel per-acre, per-year, on the low end; and on the high-end 5,000 gallons per-acre, per-year. That compares with palm oil that produces about 600 gallons per-acre, per-year, Carrigan said. “It’s twice as good as anything so far,” he said, “but it’s almost 30 times as good as any other crop that we have a chance at growing.” Additional researchers for the EDL project include Matthew Bush, 31, of Vernal and Devin Bascom, 24, of Orem. —This article was originally published in the Vernal Express and the Uintah Basin Standard.
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Fossil fuels development and environment By Richard Shaw Sun Advocate Publisher Environmental accidents in the energy industry make headlines, but not so much attention is paid to what is by far the larger story taking place on a day-to-day basis in Utah’s energy-producing regions. That is the trend that sees energy producers taking a place at the table with regulators, environmental and recreational interests, preservationists
and local governments. It’s a trend that is taking companies beyond compliance and into collaboration when it comes to preservation and enhancement of the natural environment. A case in point is the projects around Nine Mile Canyon Road. This old dirt thoroughfare used to be a link between the Uintah Basin and Carbon County in horse-and-buggy days, and centuries before Columbus it was home to ancient Native Americans. The ancient ones left behind “the world’s longest art gallery”
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sentative from Bill Barrett, commison the cliff sides in the form of petrosioners from Carbon and Duchesne glyphs and pictographs. But now the counties, the Bureau of Land Manageroad through this gallery serves as an ment, civil engineers from Jones & access for heavy trucks hauling equipDeMille Engineering also attended, as ment for Bill Barrett Corporation’s did support staff for the agencies at the massive West Tavaputs gas field. table. The road is being resurfaced at The group the same time. That exists solely to means the earth-movdefine and solve ing equipment of con“Anyone who problems associated tractor W. W. Clyde is hasn’t driven with the Nine Mile sharing the same strip through (Nine project. with the drilling and Mile Canyon) “We’ve been production equipment doesn’t committed from the of Bill Barrett. start to keep everyunderstand the Pam Miller, repbody in the loop,” scale of the resenting the Nine Carbon County Mile Coalition, an operation,” Commissioner Mike organization dedicated to protecting the - Pam Miller Milovich said. As the large natural and archaeoproject moves along, logical treasures of they try to follow up the canyon, addressed with issues as they come Milovich said, the issue recently at the Canyon Road but it’s tough to predict or resolve probCooperative Board in Carbon County’s lems at the start, “but if you want to sit Event Center. down and talk it out, it can be done.” “Anyone who hasn’t driven through While the rules and regulations have it doesn’t understand the scale of the by and large been laid down by the operation,” said Miller, who is also an BLM during the permitting process for archaeology instructor at Utah State the gas field, the committee serves as a University in Price. Attendees at the way of smoothing out the minor probmeeting she address included a repre-
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PROFILES IN ENERGY October 2011 • Vernal Express •
Emery County Progress
lems before they become major one. DWR oil and gas biologist Nicole Such things as fugitive dust monitoring Nielson, who designed the project. By and mitigation come to the table. Dust removing the trees, the flat land is open could harm the artwork that has lasted to sunlight, while water and soil nutrifor centuries before industry entered ents are freed for the new plants. the picture. Miller noted that W. W. The work was done with a machine Clyde has responded quickly when dust called a bullhog. This is a small tracktrouble spots have been reported. hoe whose front end holds a whirling In addition to dust control, certified drum armed with steel teeth. It takes archaeological surveyors and monitors only a few minutes for a bullhog to are on hand to spot and advise of sensi- shred a pinyon or juniper into mulch. tive areas. The mulch held moisture for seeds that “The things we’ve learned are trans- were dropped earlier by plane, while the ferable,” Miller said dirt stirred up proof the committee’s vided a light cover. work. “It’s knowledge Conoco-Philthat we should be lips joined a consor“The companies able to share with tium of sportsmen’s are saying they groups and DWR other counties or just want to do states.” to fund the bullhog what’s right Big as it is, the project. Anadarko for the land,” Nine Mile project is Petroleum fully funded a similar project only small part of - Nicole Nielson on the eastern side of what’s going on in the county. the region. On the west side Another project funded by of Carbon County, gas producer Conoco-Phillips is joinConoco-Phillips is a test-seeding on ing forces with the Utah Division of Carbon County’s west side. This one Wildlife Resources to fund projects for involves sending a customized trackhabitat enhancement for elk and deer. hoe seed planter along paths between One such project involved clearing widely separated pinyon and juniper, some 290 acres of pinyon and juniper dispersing a variety of native plants and replanting with small flowering that should good browse for deer. plants suitable for browsing. “The companies are saying they just “Winter range is the limiting factor want to do what’s right for the land,” for deer and elk populations,” explained Nielson said of the firms that have
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contracted helicopters for two natural gas companies and four area coal mines. The surveyors follow GIS maps of known nesting sites and note new ones they find on sophisticated mapping programs. They must record every nest according to bird species and note whether it is active or inactive. Derris Jones, a former regional manager for the Division of Wildlife Resources who is now a consultant for EIS, said the companies often go beyond simple compliance with regulations. “They’ll hire us to survey a whole area to help out DWR even if they only plan on developing a small part for now,” he said.
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NUCLEAR CONTINUED FROM PAGE 28 school district benefiting, other tax entities in the county would also see an increase in revenues. Retson stated Blue Castle is looking ahead to the future should the plant be built, but everything must be done in the right order. Every site and community is unique. Blue Castle feels it has the right people working on this project and they bring experience to the table. Every project has its challenges, but the team members feel they are up to coping with conflicts as they move along. “We really like the base of people here in the area that are familiar with power generation,” he stated. “The processes of nuclear are almost identical to the coal fired power plants. The only difference is in how you boil the water. In other words it’s almost an identical process. With coal you burn it to heat the water and with nuclear power you split an atom; both processes create heat. If you know the valves on a coal fired plant, you will know the valves in a nuclear plant. That’s why we like Emery County. It pays to diversify, in regards to energy; our country is at risk because of what happens in foreign countries. We offer greater stability in a power source that’s less prone to outside forces. Coal reserves offer stability and very little risk also. We will be using coal far into the future to supply the energy needs of this country.” As with every project the nuclear power plant has generated some opposition as well. Matt Paqcenza, policy director from Heal Utah said their organization has a whole host of reasons why the project should never be completed. He feels the greatest issue is the water. “Utah is the second driest state in the nation and the population is expected to double in the next 40 years,” he stated. “The plant would utilize large volumes of water for the next 40-60 years as water becomes more precious and scarce. Money is another issue. Nuclear power is a costly way to produce power. There are better alternatives including natural gas, wind and solar. There is the risk and safety issue. The risk is relatively low, but if some-
thing happened there are concerns. Even something small could affect the river and what about the agriculture there? Who would buy the produce? We realize the economic impacts for the area would be great. But we feel there are other ways to generate power and create jobs.” Several environmental groups have banded together to send a letter to the state water engineer who is deciding whether the change of the point of diversion will be accepted or not. These organizations said that awarding that much water seems a poor choice for the already over subscribed Colorado River system. They were also concerned about the water and surrounding areas in the event of an accident. “We also recognize that the likelihood of an accident for the Green River reactors is small. However, we urge you to carefully consider that possibility, given the critical location of the proposed reactors upstream from not just the water supply for millions of Southwestern residents, but for a host of fragile ecosystems, flora and fauna,” said the groups signing the letter. McCandless feels the opposition to the water needs to be put in perspective. The 53,000 acre feet used in a year by the plant is less water than Joe’s Valley Reservoir holds. More than 55,000 acre feet of water were flowing past Green River every day this summer during high water. More water overflowed Joe’s Valley, Millsite, and Electric Lake this year, than the nuclear power plant would use. As for the safety of the plant former Nuclear Regulatory Commission chairman Nils Diaz, who is now Blue Castle’s chief strategic officer spoke in Price and said that state-of-the-art design today differs from that of the Fukushima complex in Japan. That was a 40 year old plant built on a 50 year old design. However, Diaz noted, the buildings and reactors still survived a catastrophic earthquake and subsequent tsunami. “Look at the pictures and you’ll see they are the only buildings left standing,” he stated. “What killed the Fukushima plant was flooding that knocked out the diesel generators that were supposed to power the pumps for cooling water in the reactor cores and
spent fuel.” Diaz, who was the NRC chairman after 9-11, said that engineers have learned lessons from that tragedy. Where once they considered natural disasters such as earthquakes, floods, hurricanes and tornadoes in design, they now have to consider what would happen to a plant if it were hit by a 767 jet or some other terrorist attack. The Green River plant will not have to worry about loss of power to cooling water pumps because the plant will probably not use circulating pumps at all. Water flow will depend on simple gravity for normal operation. Water still would be pumped into overhead tanks, which have a three-day capacity. Redundant equipment on-site and in Green
River could be used if those pumps fail. Other structures, such as containers to hold radioactive gas in case of emergency, will be far stronger than those a Fukushima. As for concerns some have about nuclear replacing the coal industry, Searle considers that idea kind of a red herring. “A nuclear power plant will probably not eliminate coal from the energy mix, Searle declared. “The reason is that utilities love diversity in their energy sources. A good mix assures that any factor interrupting one source will not affect the others.” As a result of nuclear development, those coal-fired plants now in service could become more valuable to their owners.
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PROFILES IN ENERGY October 2011 57
Devon gives money to emergency responders By ViAnn Prestwich Uintah Basin Standard Emergency rescue personnel are not thrilled when they arrive on scene to find a vehicle has careened out of control and is tittering in a hazardous and unstable position. However, the first responders at the Roosevelt Fire Department are more prepared for such a situation thanks to money from Devon Energy Corporation. For the past several years Devon has shown their commitment to community relations by giving a yearly donation to local emergency responders. The Altamont Fire Department, Duchesne County Fire Department, Neola Fire Department, Roosevelt Fire Department and Uintah Basin Medical Center have each received a $1000. “We used our money for some struts for our extraction truck,” Roosevelt Fire Chief Lee Rockwood said. “We had some training on how to use them (struts) and how important these stabilizing units are. We were trying to decide how to get money for them. The money from Devon paid for part of what we needed.” Devon’s public relations consultant Kimberly Mazza explained the company believes emergency responders
are “huge players in keeping our folks safe.” “We understand the role they play not only for Devon Energy, but also for the community. These people are trained to help us all,” Mazza said. “They make a sacrifice to keep our area safe, and we have a strong respect for them.” This “strong respect” has translated into several thousand dollars as the company has been making these donations since acquiring the oil field in 1999. “We want to make sure that they (emergency personnel) have what they need to operate safely and effectively,” Mazza said. “We appreciate them.” Locally located north of Neola, Devon Energy is a leading independent oil and natural gas exploration and production company who puts its energy into oil and gas exploration and production assets in Oklahoma, Texas, the Rocky Mountains, and western Canada. Devon Production Foreman George Gurr has spent 32 years in the oil field. He recognizes that the money from Devon allows local groups an opportunity to purchase equipment they might need but didn’t have the resources for. “Their top priority has always been the first responders,” Gurr said. “This
Devon Energy recently recognized the efforts of five Duchesne County emergency response organizations with donations totaling $5,000. Local emergency responders including Nathan Goodrich (center) of the Roosevelt Fire Department joined Devon employees for breakfast before receiving the donations. Also pictured L-R are Devon lease operators Larry Davis and Barry Thompson. is a good thing.” Neola Fire Chief Rod Olsen explained that his department also used the money for new equipment. “Any money we get helps,” Olsen said. “It is appreciated. This contribution says to us that ‘We recognize what you guys are and what you do for us. “Obviously what they donate doesn’t just help Devon, it helps the commu-
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