Report to the President on agreements and programs relating to the Naval Petroleum and Oil Shale Reserves
The Department of Energy monitors commercial natural gas production activities along the boundaries of Naval Oil Shale Reserve No. 1 and Naval Oil Shale Reserve No. 3, which are located in Garfield County, Colorado, and were created in the early part of this century to provide a future source of shale oil for the military. In response to the private sector`s drilling of natural gas wells along the south and southwest boundaries of the Reserves, which began in the early 1980`s, the Department developed a Natural Gas Protection Program to protect the Government`s resources from drainage due to the increasing number of commercial gas wells contiguous to Naval Oil Shale Reserve No. 3. This report provides an update of the Gas Protection Program being implemented and the agreements that have been placed in effect since December 19, 1991, and also includes the one communitized well containing Naval Petroleum Reserve No. 3 lands. The Protection Program employs two methods to protect the Government`s resources: (1) sharing with the private sector in the costs and production of wells by entering into ``communitization`` agreements; and (2) drilling wholly-owned Government wells to ``offset`` commercial wells that threaten to drain natural gas from the Reserves. The methods designed to protect the Government`s resources are achieving their objective of abating gas drainage and migration. As a result of the Protection Program, the Department of Energy is able to produce natural gas and either sell its share on the open market or transfer it for use at Government facilities. The Natural Gas Protection Program is a reactive, ongoing program that is continually revised as natural gas transportation constraints, market conditions, and nearby commercial production activities change.
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|Subject:||energy planning, policy and economy | US NAVAL OIL SHALE RESERVES | PROGRAM MANAGEMENT | US NAVAL PETROLEUM RESERVES | NATURAL GAS | SALES | COLORADO | WELL DRILLING | US DOE | AGREEMENTS | COOPERATION | INDUSTRY | EXPENDITURES | FINANCIAL DATA|
|Type of publication:||Other|
Persistent link: https://www.econbiz.de/10009435913
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