In western Wyoming’s Sublette County, Shell and several other operators are investing time and energy to produce the second largest gas deposit in the United States while also acting as environmental stewards for one of the country’s most prized natural regions. A recent open house hosted by Shell gave a detailed impression of how conscientious an operating company can be.

The Pinedale Anticline Project Area (PAPA) is located in western Wyoming. The area covers a diagonal swath of land stretching to the northwest from Pinedale to about 70 miles (112 km) north of the town of Rock Springs.

Although production was established in the region as early as 1955, technology has just recently made the reserves commercially viable. The Bureau of Land Management released its record of decision on drilling in the PAPA and, as of January 2008, about 28 drilling rigs were working in the area.

Natural gas is produced from deep tight sand reservoirs located at depths ranging from 7,400 ft to 14,500 ft (2,257 m to 4,422.5 m). Reserves for the Pinedale Anticline are estimated to be around 30 to 40 Tcf of gas in place.

Currently, three major companies are operating in the region: Shell, Questar, and Ultra Petroleum. Shell acquired McMurry’s Pinedale assets in November 2001 and has drilled more than 180 wells since 2002. Shell alone has invested more than US $1.5 billion in the region to date.

There are around 600 wells currently producing gas on the Pinedale Anticline and, according to Shell, it will take an additional 4,400 wells to fully develop this reservoir.
This increase in development has placed special focus on the environmental sensitivities of this wild and scenic region.

In addition to prolific gas reserves, the Pinedale region, which is just south of Yellowstone National Park, is known as one of the country’s premiere natural landscapes. The PAPA is home to many species of wildlife, including mule deer, pronghorn antelope, and the sage grouse. There are also non-species-related environmental concerns such as air quality, water purity, and the local communities that depend on tourism for major sources of income.

Oil and gas operations have been somewhat restricted within the region to accommodate species-specific migration patterns. Drilling activity is suspended for certain areas where big game animals move in for winter feeding. At other times of the year, areas are open for activity as long as certain wildlife species are not present such as sage grouse or bald eagles. The process of remobilizing for uncoordinated moves is sometimes arduous and costly. However, the operators involved are working together with state and government officials and local communities to develop the region’s natural resources with as little disturbance as possible to the natural environment.

An example of this is seen in the voluntary long-term management plan, which was submitted by operators in the region in 2005. The plan calls for year-round access in specific areas of the Pinedale Anticline, which will give the operators relief from seasonal wildlife stipulations to have predictable, steady development. The plan is designed to balance resources equally between energy companies, environmental organizations, and local communities.

The concept of “core” and concentrated development areas would be carried out by using a limited surface location to drill numerous wells. Traditionally, an average pad for a well encompasses approximately 4 acres of land upon completion of the project. The adjusted plan would use only 2 acres with an associated 32 wells per pad with 10-acre spacing at bottomhole.

The surface disturbance would be drastically reduced. New technology allows for reduced drilling time and rapid frac operations. Even though the operation times would extend throughout a one-year period, once completed, site reclamation could be carried out faster and on a more permanent basis. In addition, liquid gathering systems would be used to limit the amount of truck and human traffic to the site throughout its operation. The proposal also places a strong emphasis on onsite mitigation.

Various environmental concerns for this region have been addressed with the Pinedale proposal. If it is carried out, habitat disturbance will be minimized. Traffic and human activity will be reduced. Local communities can also benefit from operators who are willing to help them protect air quality and mitigate, monitor, and fund other environmental concerns.

David Todd, Shell US Onshore Asset Manager, stated, “We are all stakeholders in this environment.” It’s true. And planning operations around environmental concerns is not a pipe dream. Many operators are making it happen.

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