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WASHINGTON, D.C. — A major natural gas development in the Uintah Basin that could create more than 4,000 jobs over the life of the project moved closer to reality Thursday following the announcement of a plan to mitigate air quality impacts of developing more than 3,675 natural gas wells.
The wells could produce more than 6 trillion cubic feet of natural gas over 10 years.
Secretary of the Interior Ken Salazar announced Thursday that the Bureau of Land Management and the Environmental Protection Agency worked closely with Kerr-McGee Oil & Gas Onshore LP to develop a mitigation plan to significantly reduce the project’s potential impact on air quality in the surrounding area.
This project has the potential to create hundreds of jobs for Utah, infuse millions of dollars into local communities, and help power our economy with natural gas as part of our nation's comprehensive energy portfolio.
–Ken Salazar
“This project has the potential to create hundreds of jobs for Utah, infuse millions of dollars into local communities, and help power our economy with natural gas as part of our nation’s comprehensive energy portfolio,” Salazar said in a statement.
The Greater Natural Buttes Area Gas Development Project has been delayed over concerns about its impacts on air quality in the Vernal area, which has some of the unhealthiest ozone levels in the nation. In the first two months of 2011, the Uintah Basin experienced 23 days where its ozone exceeded the acceptable levels of pollution. Five of these days were considered “very unhealthy” for people, Salazar said in a teleconference.
The agreement includes new innovations such as requiring the energy development firm to conduct a pilot project that uses low emissions natural gas to power drilling rigs. The air quality Supplement to the Draft Environmental Impact Statement for the Greater Natural Buttes Project will be published in the Federal Register shortly. A public comment period will follow.
Salazar said the BLM and EPA had been pulling in different directions on the project regarding their respective regulatory roles. The agencies, working with the energy development firm ultimately found a "collaborative path," which ultimately resolved the issues.
"We are going to work to institutionalize this type of collaboration between the BLM and EPA to ensure that future proposals receive prompt and thorough reviews and are not delayed by unnecessary bureaucracy,” he said.
The delays in resolving the air quality were costly to the company and delayed the extraction of needed energy, Salazar said. Energy development firms need "certainty and clarity" as much as Americans need energy, he said.
The Memorandum of Understanding between the BLM and EPA that resulted from tussling over this project shows the nation does not have to choose between clean air and safe, responsible energy development, Salazar said.
BLM Director Bob Abbey said the milestone was significant in terms how federal agencies manage the approval and oversight of energy development projects and for the "significant natural gas this project could bring on line."
Sen. Orrin Hatch, R-Utah, said the agreement not only creates needed jobs, it will provide needed energy.
“This agreement has the potential to help wean our nation off its dependence on foreign oil while creating thousands of high-paying jobs for Utahns and bringing millions of dollars in revenue and royalties into our state coffers,” said Hatch, who encouraged the BLM and EPA to reach agreement on the project proposed for 163,000 acres in the Greater Natural Buttes field south of Vernal.
Total new surface disturbance under the project would be approximately 12,658 acres, or 8 percent of the total Greater Natural Buttes project area, according to the Department of Interior.
While Salazar made the announcement under the Kerr-McGee corporate name — the company operates in Utah as Anadarko Petroleum Corp. Anadarko purchased Kerr-McGee Oil & Gas Onshore LP in 2006. The proposal to the BLM was made by Kerr-McGee prior to the merger.
A worldwide natural gas production company, Anadarko currently has more than $600 million invested in the Uintah Basin and is expected to spend another $11.7 billion over the life of the new project.
According to Andarko's "2011 Utah fact sheet," it is the largest natural gas producer in the state, operating primarily in the Uintah Basin. It employs 200 people and has paid $630 million in taxes, royalties and salaries since 2007.
BLM officials in Utah said at peak development, the project would provide some 4,300 jobs. Long term, the number would plateau at 540 jobs, said BLM Utah spokesman Mitch Snow.
Email:mcortez@ksl.com
