The Southern Ute Indian Tribe is expanding an Environmental Impact Statement from 2002 to cover potential drilling for natural gas in its shale reserves.
The earliest the EIS could be amended is 2018, then exploration could take another six to seven years, so full development wouldn't start until 2023 to 2025, explained Brendan Cusick, the project manager for the Growth Fund, which oversees the tribe's oil and gas leases and operations.
With gas prices down now, there is no rush to try to develop the natural gas locked in shale reserves, Cusick explained. But in a way, that's better than trying to quickly drill more wells.
"It's a good time to be analyzing it," he explained, before a drilling or leasing company "comes knocking on your door." If the EIS is amended and approved, the tribe could drill one to five wells to see if they can reach the shale formations and how much gas they would produce.
The shale could be developed across the entire reservation, and formations are 2,500 to 9,000 feet below the ground. If the gas can be drilled, the tribe is looking at up to 1,500 more wells on 352 well pads.
Cusick and his team presented information about the shale gas and EIS to the public on Tuesday night at Sky Ute Casino, and to tribal members on March 15. The tribal meeting was well-attended, he said, with members asking about issues such as fracking chemicals and water use in drilling.
About 30 people attended Tuesday's public meeting.
The tribe is responsible for the supplemental EIS, according to information provided at the public meetings. The U.S. Bureau of Indian Affairs and Bureau of Land Management also work on the scope and content of the analyses and preparing the decision findings.
One of the tribe's main concerns is that someone leasing or developing private mineral rights within tribal boundaries could drain the tribe's gas, Cusick explained. That in part led to the decision to look at shale gas.
"We need the protect the economics for the tribe," he said.
The supplemental EIS would be in effect for 20 years, from 2018 to 2038. At peak development, up to 100 wells per year could be drilled. The tribe estimates 83 miles of new road and 600 miles of pipeline could be constructed.
Comments on the EIS can be mailed to the BLM at 29211 Highway 184 in Dolores, CO 81323. They also may be submitted at blm_co_suit_seis@blm.gov
Information presented at the Tuesday meeting is available online at www.sugf.com.
