Community Meeting Minutes – Parker Colorado

There was a large turnout at the community meeting at the Parker, CO library on Mar 15th at 8pm about oil drilling in Douglas County. I would say the turnout was between 100 to 120 people. The meeting lasted only about 1 hour, which was much too short for the amount of information to be covered.

The meeting organizer, a local land and mineral owner, arranged for two speakers. A woman who had organized her neighbors to bargin collectively with the oil companies speak, and a representative from Chesapeake Energy which is committed to exploration in the Niobrara from Southern Wyoming to the Southern parts of the Denver basin in Colorado.

The first speaker was a representative from Chesapeake Energy who provided hand outs about the Niobrara Play to provide educational information. He said the company was very interested in Douglas and Elbert counties because up north in Wyoming the geological constraints of the formation favored North to South horizontal wells and in the southern part of the basin in Douglas and Elbert counties the formation favored both N to S and E to W well orientation. The bi-directional nature of the southern part of the basin indicated that there could be some phenomenal production rates from wells in this area.

The next speaker was a woman who had organized her neighbors to form a collective bargaining unit to negotiate better terms for their leases with the interested companies. These folks apparantly dealt with multiple third parties during the course of their leas negotiations. This woman stressed that mineral owners needed to do their research and be prepared in order to get favorable terms. She also suggested that in her experience that tactics were used to fracture the bargaining unit to make them weaker and get less favorable deals for both surface and royalty agreements. She did not say if the negotiations were with 3rd party land companies, or the oil company itself.

A short question and answer session was held afterward. Many questions were asked and I will highlight just a few important ones which might be good discussion topics here. Anyone else who attended is welcome to add a comment to anything that I missed.

The Chesapeake representative was asked if mineral owners should use 3rd party companies or consultants to form units. It was also stated that mineral owners were approached by multiple companies and that it was very confusing. The representative replied that Chesapeake would rather deal directly with the mineral owner to negotiate leases and that using 3rd parties would result in less income because of the fees (or cut) paid to the third party. He stressed that a mineral owner should not have to pay anyone to get a lease.

The Cheasapeake representative was also asked about forced pooling in Colorado. While he said he did not know the specifics, he stated that it was a decision that is made by the Colorado Oil and Gas Conservation Commission and that it could apply to mineral owners if the COGCC agreed that it was in the best interest of the state and country. He elaborated that it could possibly happen if less than 50% of the mineral owners in a unit were leased and the rest refused to sign. (a Niobrara Unit in Colorado is 640 acres or 1 sq mile) He also mentioned that forced pooling was a bad thing because a forced pool owner while entitled to the standard 1/8 royalty, they would be an interest owner in the well and would have to bear the well costs with the oil company before getting their share of the profits.

When asked about “Fracking” fluids used to complete the wells, the Chesapeake representative said that their company did not even tell them what was used, but that 99.5 percent of the fluids were water and sand.

Another question was asked about where Chesapeake would get the water used to drill and frac a well. I believe the representative said that it took a total of about 3 acre feet for one well that was typically 7000 feet deep with a horizontal leg from 4 to 5 thousand feet in length. Concern was expressed that the aquifer could be depleted. The gentleman stated that they purchased water from commercial well owners and that mineral owner water would not be used. The gentleman also stated that there was no geologic connection between the multiple aquifers in the Denver Basin and that water usage in one would not deplete water in another.

The meeting ended promptly at 9pm.

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6 Responses to Community Meeting Minutes – Parker Colorado

  1. DouCoAntifrack says:

    The information being supplied to Ponderosa Hills and other suburbs in Douglas County does not include the truth about fracking. From the beginning, the discussion has been, “Who do you sign you lease with” and “How do you protect yourself in a lease”. Please watch the Academy nominated documentary called “Gaslands” to find out the real truth. In densely populated areas such as Ponderosa Hills and in Douglas County there is no place for fracking and no such thing as responsible fracking or safe fracking. Oil and Gas companies have ample opportunity and support for drilling in the abundance of large land parcels in Eastern, Western and Southwestern Colorado. It is unpardonable that those who call themselves “neighbors” have invited oil and gas drilling companies into our own backyards. DO NOT BELIEVE THAT THIS IS A DONE DEAL AND YOUR ONLY CHOICE IS TO SIGN COLLECTIVELY OR INDIVIDUALLY. Neighbors and groups who call themselves “The Communication team” but threaten our water, our finite resources and our health and the health of wildlife (Please see North Dakota videos on Youtube on impacts on wildlife) are not neighbors or communication teams. Please join DouCOantifracking Coalition and look for the upcoming neighborhood meeting called The Real Truth About Fracking

    • RockPick says:

      DouCOantifrack

      You state that there are other ways to stop fracking, and thus drilling. To my knowledge the only way to deny drilling is to sign a negotiated lease that denies “surface” access. If you have found a way to get around the “Force Pooling” statutes governed by the Oil and Gas Conservation Commission , by all means share. There are a lot of people who would like to know how stop drilling.

      With regards to the highly acclaimed Gasland documentary, COGCC Director, Dave Neslin, offered to speak with Gasland’s producer, Josh Fox, on camera during the filming of the movie, but his offer to speak was declined. One can only conclude that it is much better to elicit hype with inaccuracies than it is to portray the real science. For those who wish to read the COGCC response to Gasland’s inaccuracies, the link is: http://cogcc.state.co.us/library/GASLAND%20DOC.pdf

  2. RyanRedSky says:

    My name is Ryan Van Esler, I am a Lease Agent for RedSky Land, representing Chesapeake. If you want facts and figures about the oil production that is going to commence in Douglas and Elbert Counties, and not a skewed story about how some other oil company treated people poorly, please give me a call. We do all the work for you, we do the research to see who owns your minerals, for free and we dont take a commission of the bonus money you get or the royalty. We get paid the same no matter what, dont pay someone to do this! We couldn’t be the number one drilling company in the country if we destroyed peoples water and land. I incourage you to join together with as many people as you can, I feel it’s essential to educate everyone and form a partnership with the community so that both of our interests are fulfilled. Chesapeake is looking to develop this local economy with production of oil, we want to prosper local communities and provide jobs, roads and watch this area excel economically. Property values will rise when there is production of oil. There are so many regulations are governed by the state and at the national level, we could not possibly infringe upon, that provide safety for your protection, including your drinking water and integrity of your land. I understand a certain level of trust has to be given to us, but know that we are bound by law to uphold the highest of standards when conducting our business in your communities. Please give me a call I have worked all over the country and I know I can answer any of your questions.

    Thank You,
    Ryan Van Esler
    720-670-7729
    Petroleum Landman
    Consulting on Behalf of:
    RedSky Land – Chesapeake Energy

  3. wytown88 says:

    does anyone have any information on groups of landowners consolidating together to negotiate a lease? I am in Douglas County close to Delbert Road. I have two familes in this area with a total of about 15 acres.

    Thanks post a website or information on any meetings you may be planning.

    • krisp says:

      I am on Stagecoach. Have no info on this so far and am trying to get caught up. Would like to get in touch with people in the neighborhood and talk about the coop lease.

      • RockPick says:

        Greetings Krisp,

        I did a search on your road and you seem to be in Sec 4 T6S R65W in Doug Co. to the best of my knowledge. I have heard rumors that there was a COOP organizing near you, but I am not sure of the exact section, however I believe that there has been some COOP activity in your area, if not exactly in your section. I think Debbie Trujillo of Faith Resources conducted a successful organization and lease negations in your area. For a start I would Contact Debbie Trujillo at Faith Resources, Inc. 303-841-8340, TDebbie77@yahoo.com, perhaps she can tell you what is going on in your area as she is very knowledgeable about the local leasing picture. I would also try talking to some neighbors to find out what they know. If you there is not a COOP active in your section, you may want to start one.

        Regards,

        RockPick

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