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June 28, 2005

Oil & gas agency seeks 'twin wells'

Petition filed to lift restriction in two counties

By
Record-Eagle staff writer

      GAYLORD - An oil and gas agency wants the state to lift a restriction in two counties that limits natural gas wells to one per 80 acres in the Antrim Shale.
      The Michigan Oil and Gas Association filed a petition to allow a second well within the required spacing in both Otsego and Montmorency counties. The state Department of Environmental Quality is holding a public meeting next month to detail the proposal and explain how citizens can comment.
      A formal public hearing will be held later this summer.
      The petition asks that a "twin well" be allowed near existing well pads in the two counties, between 25 and 200 feet away.
      Most of the 7,800 gas wells in northern Michigan were drilled 10 or more years ago to collect minerals in the bottom layers of the Antrim formation. They stretch across the state from Antrim and Kalkaska to Alpena and Alcona counties, producing 20 percent of the natural gas used in Michigan.
      If allowed by the state, second wells installed at existing sites could only collect gas from the top layers of the formation, while the old wells would continue to collect from the bottom layers.
      Ray Barnhart, an association board member, said it would allow the increase in size of well sites, rather than the construction of new locations and access roads.
      "We feel it's a great opportunity to increase production with little, if any, impact on the environment," Barnhart said.
      The oil and gas agency contends in its petition that adding twin wells will create a shorter production period and reduce both the time of environmental exposure and surface use of facilities.
      Rick Henderson, DEQ supervisor for the region, said each well site would be considered individually. He called the proposal a good idea that reduces the need for new infrastructure, although some new roads may be built in the effort to increase gas reserves.
      The greatest concern is over safety, with two wells in such close proximity.
      The informational meeting will be July 13 from 7 to 9 p.m. at the University Center in Gaylord. Officials from the DEQ, Michigan Department of Natural Resources and the oil and gas industry will attend to answer questions. For further details, call (517) 241-1515.
     

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