Cortez Journal

Red tape blamed in BLM's denial of CO2 permit

July 20, 2000

By Janelle Holden
Journal Staff Member

The BLM denied the first application to drill carbon dioxide on the Canyons of the Ancient National Monument this week — but BLM officials said the decision was made because of a bureaucratic mix-up, and was not related to the land’s new designation.

"It is our intention to continue to process applications and allow development out there (McElmo Dome)," said John Pecor, acting BLM mineral staff chief in the San Juan Field Office.

Pecor explained that the request to drill was filed last week by Kinder Morgan CO2, the new owner of the unit. Kinder Morgan Energy Partners acquired the unit from Shell CO2 in April, yet Pecor said that the BLM has not received all the documentation it needs to officially recognize Kinder Morgan as the unit operator.

In 1998, when Shell CO2 operated the unit, the BLM approved a permit to drill the well in question. In the fall of 1998, Shell built the site and the road, and laid the connective pipeline, but did not actually drill the well. The permit expired in July of 1999.

"It dropped through the cracks," explained Pecor. "We never picked it up that the application had expired."

Because the area has already been developed for carbon-dioxide production, Pecor said that the BLM will ask Shell to either request an extension of the 1998 permit, or fully reclaim the area.

Larry Pierce, spokesman for Kinder Morgan CO2, said the company has not been officially notified of the permit’s denial. "We plan to continue to work with BLM as we have in the past," he said. "It’s obviously important to the community’s economic viability."

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