Oilfield Experiences

[cakadu]

Can any of you tell me if you have had any dealings with Intrepid Energy and if so, what was your experience like?

We have gotten a notification letter from an agent acting on their behalf and I have to say that this so called information letter is a dismal joke to say the least. If you or I as landowners and/or private citizens tried to get away with this type of notification we would be laughed at hysterically. As my old lawyer boss would call it "It is an abomination."

Cowman and others, could you please quickly reiterate some of your more pertinent points when it comes to dealing with these guys? I remember most of them, but want to make sure I have all my collective ducks in a row when I am forced to start dealing with them. Maybe nothing will come of it, maybe it will, but all I know is I am going to be prepared.

Thanks so much for your help.

[cowman]

Not too sure what your notification letter was about? Flaring, intent to drill on adjacent lands, or intent to build pipeline?
The rules pertaining to testing water wells are pretty weak but the fact is most companies will be happy to test if you ask?
If the "notifiction" is an intent to drill or cross your land then you do have some limited options? Number one rule: Never talk money until you have all your other concerns addressed! For example: weed control, reclamation, fencing livestock out, cattleguards etc., caveats and abandonment....and don't just let them say yes we will do all that? Get a written time frame for these things to happen and an agreement you can bring in a private company to deal with problems if they fail in either time frame or performance...at their cost of course! Don't rely on their goodwill or promises...get it in writing!
If you feel overwhelmed and unable to negotiate ask for a private lawyer at the companies expense. There are several lawyers that specialize in this field in your area: Lehane/Miller in Innisfail. Gary Boris in Red Deer.
You might also contact the Pine Lake Surface rights Action group! They can give you valuable information and one of their top guys is Don Bestor who dealt with the Shell sour gas project at Sundre. He really knows his way around! The Pine Lake group doesn't just represent that area but has members through out central Alberta.
The farmers advocate can also be helpful.
Intrepid energy has some fairly extensive coalbed interests in the Drumheller area.

[cowman]

Keith Wilson, Wilson Law Office in St. Albert is specializing in acting for farmers on coalbed methane issues.

[WRAPper]

What area are you in cakadu?, I agree with what was said above , I was on the CBM water working group with Don and he's passionate thats for sure, but be sure and use more than one persons experiences/opinions in your research. Pine lake group is currently in hearings over a encana cbm application near torrington you may want to take time to attend that., Wheatland surface rights group is strong in the Strathmore area. Alberta surface rights group is also a resource, you can get these numbers likely all from the famers advocates office. Biggest thing I can tell you is, Do not get in or be pushed to get in a hurry, take your time and talk to lots of people and don't sign anything until you are ready to sign. The land agent is not there on your behalf no matter what he says(your not paying his fee) Good luck and be strong.

[cakadu]

We are in what they call the Markerville field. The application has something to do with relaxing the regulation regarding the number of gas wells that can be drilled in a section. Right now it is one and they are applying to take it up to 4.

What I find completely mind-boggling is that the oil companies and/or whomever is working for them, have absolutely no rules regarding how they communicate with people. If you could see this form letter we received - I'm sure many of you have seen similar - it is a joke. We couldn't get away with anything like that so I don't see why oil companies and their representatives should be allowed to.

It still frustrates me to no end that this is not governed by rules of transparency and openness. If everything the oil company is doing is above board, then why can't they be honest about what they are doing? As a landowner I have to abide by all kinds of rules and regulations, I am getting limitations put on me by the municipality I live in regarding how and what I can do with the land I have, and I can have my own views about what I want to do with the land to preserve it for future generations and yet all of this can be shoved aside for oil and gas exploitation.

[cowman]

Linda: Not totally sure about the Markerville field but I think it is basically shallow unconventional gas...not necessarily CBM?
The coalbed boys get quite a few concessions on drilling sites, number of wells/per quarter etc. and in reality are drilling shallow wells in the same general zones as unconventional shallow gas, so I can see how any gas company would think it only fair they get the same deal?
I believe in my area the permitted number of CBM wells is 4/quarter right now per zone. This eventually will rise to...who knows what?
I think you can safely figure the gas company will be granted the 4 wells/quarter? The province and the municipality will always push further production...it is in their economic interest to do so...despite the rhetoric about saving the farmland...and the peasants that live on it! Consider your own municipality where farmland pays 11% of the revenue and even residential only pays 20%? The fact is if County council wants to live high on the hog they need revenue from the oil and gas industry and the spin off of service developement?
Of course this is unfair! It grants concessions and priveledges to an industry while denying them to the average landowner! Instead you are designated "primary agriculture" and are unable to realize a true value for your property? Sort of like the infamous land bank in the Okanagan?
However fear not! Be assured that that will not impede the province and municipality from getting their share of the pie...and and makes a mockery of this drivel of "Save the Farmland"!

[cowman]

One other little thing Linda: The county has designated my land "primary agriculture" and I assume yours too?
What this means is we are pretty well hooped for developement?
However in the next few years we won't have to worry about it as we will be wall to wall leases and pipelines! It will be virtually impossible to develop anything, anyway! Now I used to get po'ed over this but if they do go ahead with this massive coalbed developement(which they will) it won't really matter? we'll all be rolling in clover on the lease rental and to hell with raising livestock or crops for peanuts! No work...just a check in the mail!

[farmers_son]

Your concern probably should focus more on the impact 4 wells per section would have on your land and on the area involved than on the quality of the notification you received, even though it may have been an abomination.

The letter you received probably has a date that you need to reply by as well as phone numbers of the company and the EUB. However if they did not include the EUB number it is 403-297-8311 and you can use the RITE line. Intrepid Energy may be the operator who is applying for altered spacing units but in the area involved any company will be able to drill 4 wells per quarter if the spacing change gets approval from the EUB.

I presume you would be granted intervener status before the EUB if you objected to the spacing change. I would advise giving the matter some thought, how would 4 wells per section impact you good or bad, the extra activity and so on. Is this something you would not want to see or would you welcome more wells on your property.

If you have unanswered concerns I would file an objection with the company and the EUB. You must file your objection before the date indicated on your notification, if there is no date file your objection immediately. Your objection should be in writing. You can always withdraw your objection at a later date. Filing an objection would provide you an opportunity to have your concerns heard and may provide an opportunity for better communication than you seem to have been provided by the notification letter. From your description the abominable notification letter you received would be justification in and of itself for filing an objection.

The company’s address is

Intrepid Energy Corporation 1950, 717 – 7 Avenue SW Calgary, Alberta T2P 0Z3

[farmers_son]

I would add in my letter that until the regulations are in place for coalbed methane extraction the EUB should not approve any changes in spacing.

Getting intervenor status and participating in an EUB hearing isn't a slam dunk. A group of landowners joining forces may be the best route to take.

[cowman]

Not sure what the problem is? In my area they already have approval for 4 wells per quarter per zone...not section! The quarter north of my home quarter has 3?
A company rep of MGV told me within 4 years there will be another 55,000 cbm wells in the productive zones...Irricana to Wetaskawin. Now that is a pile of wells! It will put approx. $110,000,000 into yearly rental income! Get your piece of the pie!

[cowman]

no coalbed activity in my area cowman, although there are plenty of applications for sour wells.

[cakadu]

Farmers_son thanks for the advice and believe you me, my letter to Intrepid and the EUB set out all that you talk about and more. While I may think the letter is an abomination, it went much further than that. If I were depending on the letter that we received to get in touch with anyone by a certain date, I would still be waiting. There is a quasi-date given in the letter, but then it goes on to say that the company could proceed within the time period if no objections were received. Well, if they've given a date either they are going to stick to it or they aren't. It was dated with one date and posted 4 days later. Again, no clarity in dates which makes it very hard to know when you're supposed to reply.

I phoned the EUB right away and talked with them and they gave me Intrepid's contact information. Our biggest concern is what the drilling will do to our water. Our wells are shallow and we are sitting on the best water around here. They wreck our wells and we are finished as the energy company could never truck in enough water to compensate for what we would lose.

We moved out here, because like emrald, we wanted to be away from everything and be able to have quiet enjoyment of the land. So much for that idea.

Cowman, you're talking to the wrong person about getting a piece of the pie. I'm sure you've figured out by now that I am not interested in making big money. I value other things a whole lot more than I will ever value money. I don't begrudge others what they value as it all deals with personal beliefs and choice. Sadly, in the end, the energy company will get what it wants and all we will have is the money.

[cowman]

Yea I know Linda. You are an idealist and I am a greedy little money grubber! But hey it takes all kinds to make the world go around?
I suspect you are going to be disappointed. The EUB has one mandate...GET THAT WELL DRILLED! When you realize that fact, then they can be helpful! They want to create the least possible fuss...while filling their mandate!
The water well thing has never stopped a well from being drilled to my knowledge? You might get them to back off aways and they will test your well within a certain distance, but they will drill the well.

[cakadu]

Those are your words, cowman, not mine. We are all motivated by different things, mine just doesn't include money. For others it does and that is okay with me because that is what makes everyone special.

I am not going to be disappointed because I fully realize and understand that the well will be drilled, consequences be damned. Emrald's point about there being legislation in place before we just go off on a tangent is a valid one and that is what I would like to see. I do have great concerns about our groundwater supplies and what the implications of our current actions will be on future generations.

We are moving so quickly these days, with no benchmarks that we simply cannot know or understand the long-term impacts of these frenzied actions. A little planning and forethought can go a long way.

[cowman]

Well I think you might find there are several rules and regulations in place in regards to water wells?
I believe the EUB and the oil and gas companies are trying their best to get that message out, but they need to do a better job...no two ways about it?
There was an article in one of the local papers about some of the frustration experienced by the industry? It basically quoted an EUB sokesman who said you bring in the experts, they all say its not a problem and best science says etc. etc.....and then someone who doesn't have a clue says "It ruined my well!" "I have methane in my well"...things like that! Sort of don't confuse me with the facts!
We've always had methane in our wells...some as shallow as 50 feet! My neighbor called me this winter and said his darned well is dry...those $#@% coalbed companies! I helped him pull up the pipe...rotten foot valve!
Any oil or gas company must case the well through any aquifier...that is the law? Can a frac get into an aquifier? Don't know but they did change the rules on that in about February...where they can't frac within a certain distance from the aquifier...I believe either 200 feet or 200 meters...I'll find out. They now know the coal frac is virtually all horizontal with very little vertical movement...like maximum 20 feet.
Personally I doubt you need to worry about your water? They've been punching holes around here since the early fifties and a lot of them were not very eco friendly! No problems so far.
Is the risk zero? Well no...there is no such thing as zero risk...but I would suggest it is fairly small? Instead of listening to one side only, like the eco lady from Rosemary, you should listen to the other side, too? As I said it is unfortunate the CBM companies have not done a better job presenting their case. Doreen Rempel of MGV is a good communicator...we need more people like her.
Bottom line is we need to access this resource, and we need to do it in the best way possible.