An Oil and Gas Update from the Utah Division of Oil, Gas and Mining

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An Oil and Gas Update from theUtah Division of
Oil, Gas and Mining

• Utah Energy Forum
• September 13, 2006

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Utah Department ofNatural Resources
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Utah Division of Oil, Gasand Mining
Oil and Gas Conservation
John R. Baza Director
Board of Oil, Gas and Mining J. James Peacock,
Chair Robert J. Bayer Jake Y. Harouny Douglas E.
Johnson Kent R. Petersen Samuel C. Quigley Jean
Semborski
Coal Mining and Reclamation
Minerals Mining and Reclamation
Abandoned Mine Reclamation
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Oil and Gas Conservation

• Established in 1955
• Promotes exploration, development and
  conservation of oil and gas
• Fosters a fair economic return to the public
• Maintains sound, reasonable oversight
• Conducts permitting, inspection, compliance,
  auditing, well plugging, outreach, and
  information dissemination

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Oil and Gas Commodity Prices Have Increased in
Recent Years
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Prices Have Spurred Drilling Activity
Permits Approved
Drilling Commenced (Spuds)
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Production Slightly Increasing
Oil Production
Gas Production
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Where is the Oil and Gas Activity?

• Year 2005 drilling approvals 1,629
• 2006 YTD (thru August 31) drilling approvals
  1,423
• 67 in Uintah County (gas)
• 19 in Duchesne County (oil)
• Gas production improvements from Uintah Basin
• Bill Barrett Corp. development around Nine Mile
  Canyon/Tavaputs Plateau
• Central Utah exploration success the Wolverine
  wells near Richfield

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Oil and Gas Regulatory Services Span the Life of
A Well
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Technical Services

• Permitting
• APD, UIC, disposal facility
• Coordination of geologic and engineering reviews
  for various approvals
• Monitoring
• Field inspections
• Observing critical operations
• Operational inquiries, requests, or complaints

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Engineering

• Various approvals
• Sundry notices, PA, WO tax credits, EOR
  incremental production
• Orphan well plugging
• Seismic exploration permits
• Field designation

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Information Services

• Processing received information
• Drilling and completion, production, disposition,
  injection, operator status
• Database management
• Bonding
• Serving up information
• Reports, statistics, scanned images
• Website

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The Division of Oil, Gas and Mining APD Approval
Process
Statement of Basis Preliminary Approval by Sr.
Env. Sci. 3 to 5 days
APD Received, Initial Review by Permitting Tech.
1 to 3 days
Pre-Drill Evaluation (Onsite) by staff Env. Sci.
within 30 days
Engineering Review by Petr. Engr. 1 to 3 days
RDCC Review Approx. 3 weeks ?
Approval Letter with Conditions by Associate
Director 2 to 4 days

• This process applies for state fee wells.
• For federal wells, DOGM does not perform RDCC
  Review, Onsite, Engineering Review, or Statement
  of Basis.
• All split estate state and fee surface wells get
  onsites.
• Those not in spaced area, unit or within 1 mile
  of established field must go to RDCC.

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Future Directions for OGM

• Encourage development of necessary energy and
  mineral commodities to provide economic benefit
  to the State
• Provide public education to increase basic energy
  knowledge and awareness of energy issues
• Monitor and facilitate responsible energy and
  mineral extraction to enhance the quality of life
  of Utahs citizens
• Improve and expedite permitting processes for
  efficiency and effectiveness in government

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http//ogm.utah.gov John Baza Director, ph.
538-5334 Gil Hunt Associate Director for Oil and
Gas, ph. 538-5297 Mary Ann Wright Associate
Director for Mining, ph. 538-5306