02-08-04

A government study released reports significant potential for natural gas production from shallow coal bed methane reserves in the Valle Vidal. The report, called a Reasonable Foreseeable Development Scenario, is the first step toward an eventual Forest Service decision, spurred by an industry proposal, on whether to allow drilling in the area -- a possibility adamantly opposed by a broad coalition of groups.

"We have to determine whether that use (coal bed methane production), along with all the other uses, is suitable for the Valle Vidal," said Kendall Clark, deputy forest supervisor for the Carson National Forest, which oversees the Valle Vidal. She said the report is one source of data, including public input, the Forest Service will use to make its decision, expected sometime in 2006.

The report estimates that 191 wells can be drilled at 160-acre intervals across the 40,000 acres under consideration in the eastern portion of the Valle Vidal. It predicts surface disturbances from well pads, roads, water disposal and gas compression facilities will total between 396 acres and 777 acres.

Prepared by the New Mexico Bureau of Geology and Mineral Resources, the report does not give an estimate of the potentially retrievable gas reserves beneath the Valle Vidal but does make comparisons to wells already producing gas on the adjacent Vermejo Park Ranch. Conservative production estimates for wells closest to the Valle Vidal that tap similar formations of coal and sandstone suggest each well could produce in the range of 150 mm to 300 mm cf of natural gas over its lifetime, according to the report.

New Mexico is ranked first in reserves and production of coal bed methane, which many energy analysts see playing an important role in meeting the nation's growing demand for natural gas. Overall, state revenue from oil and gas topped $ 1.3 bn last year and is expected to be even higher in 2004.

Despite the economic appeal, Gov. Bill Richardson recently voiced his strong opposition to the drilling proposal, put forward by the Houston-based El Paso.

A diverse alliance of conservation groups, outfitters and ranchers from across the state's north, calling themselves the Coalition for the Valle Vidal, is pledging a vigorous campaign to protect the region from gas development.

"We have one mission in mind, and that is to make sure there is no drilling in the Valle Vidal," said Brian Shields, director of coalition member Amigos Bravos, a Taos-based environmental organization.

Source: Albuquerque Journal