Sent: Wednesday, February 24, 2016 9:55 AM
Subject: Re: Sandoval County P&Z Exploratory Well Zoning Permit
Fortunately, our leases have long terms and are renewable. We will evaluate the situation, regroup, listen to input, and respond accordingly. As positive thinkers, we will see if the Phoenix can be raised from the ashes.
I hope that you will be willing to express positive views on the future potential of the project for all of New Mexico.
On 2/22/2016 8:51 PM, Jim Manatt wrote:
Dear Fellow Earth Science Professional:
As you may have seen in the news recently, Sandridge Energy is planning to drill an exploratory test some 6-8 miles northwest of Rio Rancho, testing primarily for Mancos Shale and underlying objectives. The well has been approved and permitted by our State's regulatory authority the New Mexico Oil Conservation Division (OCD). A special use zoning permit has been requested of the Sandoval P&Z Commission, required on fee minerals.
My company developed the prospect. The scientific team who worked on this project included several 35-year geologists and geophysicists, including a published, peer-reviewed PhD geological/geophysical expert on the basin. I speak only for myself and my team. The exploratory test is an important scientific investigation to confirm the strong probability of commercial hydrocarbons in the ABQ Basin using modern drilling and completion methods. The well has been permitted as a vertical test, to include state-of-the-art to coring, downhole imaging, petrophyscial, geochemical and log analysis of the intervals of interest, essentially an "assay" of the petroleum system for future development. If successful, the prospect of bringing a third basin into production in New Mexico is profoundly valuable to the school children, grandchildren and people of New Mexico with a major positive impact on our State's Permanent Funds, educational and infrastructure improvement funding. We are a resource state.
All reasonable parties expect that a responsible future development program would be carefully discussed, planned, permitted, regulated and supervised by scientific and engineering experts within the regulatory authority at OCD, and approved by all stakeholders including the county in a reasonable and responsible manner based upon the knowledge gained by the Sandridge test. At this moment, a vocal opposition group is apparently unwilling to consider even a responsible exploratory test, much less a future development program, in spite of the fact that Sandoval County is a producing county with some 1,600 oil & gas wells in existence, about 700 in current production. These include approximately some 70 new lateral wells drilled in the Mancos in the northwestern part of Sandoval county by Encana and WPX Energy, with excellent results. The currently proposed vertical exploratory test will confirm the extension and existence of an economic petroleum system into this area.
A recent Op Ed I wrote for the Rio Rancho Observer is attached if you would like further information, particularly economic impact and contributions. If you care to be heard at the Sandoval County P&Z Commission considering this project, the next meeting is at , at the Sandoval County Administrative Building, 1500 Idalia Rd, Building D, Bernalillo, NM 87004. I hope that if you are in agreement that a single test is a worthy scientific investigation, you will attend and speak.