Gazette
Andrew Wineke, The Gazette
An oil drilling rig on state land leased by Ultra Resouces near the intersection of Drennan and Curtis roads in southeast El Paso County. Ultra notified the state it planned to begin drilling at the site on March 2.

A PRIMER: Oil and gas exploration in El Paso County

WHAT'S HAPPENING IN EL PASO COUNTY?

Ultra Resources is now drilling at three sites in El Paso County and has permits to drill at three more, including two inside Colorado Springs' city limits on 18,000 acres the Houston, Texas-based company bought in 2011.

Hilcorp Energy, also of Houston, has received state approval to drill at two sites in El Paso County.

Both companies are targeting the Niobrara Shale formation roughly a mile beneath the surface. It's a layer of tight, chalky rock that requires a technique called hydraulic fracturing to unlock the oil trapped within.

Other energy companies have leased the mineral rights on parcels of land scattered around the county, but no others have filed for drilling permits yet.

This wave of oil and gas exploration began in June, 2011, when Ultra Resources unexpectedly announced plans to bid on a large portion of Banning Lewis Ranch in bankruptcy court. Ultra won the bidding, paying $20 million for the land that forms Colorado Springs' eastern flank.

The company soon applied for permits to drill at several sites in El Paso County and two on its Banning Lewis property.

In late September, El Paso County commissioners stopped accepting permits for exploratory drilling for four months, to give the county more time to write local land-use regulations. Then, in October, they approved changes that will enable Ultra, part of Houston-based Ultra Petroleum, to drill as early as December.

The county's planning commission approved the proposed regulations in early January, but the development services department modified the proposal Jan. 26, responding to a complaint from the Attorney General's Office that the proposd rules would conflict with the Colorado Oil and Gas Conservation Commission's authority.

On Jan. 31, county commissioners approved a set of oil and gas regulations covering issues such as transportation impacts, emergency response plans and noxious weeds, and also requiring a regime of water quality monitoring at one, three and six years after drilling begins. The commissioners also directed county staff to pursue an intergovernmental agreement with the Colorado Oil and Gas Conservation Commission to cover issues such as setbacks, wildlife impacts and visual and noise impacts.

The city of Colorado Springs on Nov. 30 enacted a six-month moratorium that suspends oil and gas exploration in the city through May 2012. Ultra officials have told city officials, behind closed doors, about their timetable for drilling on the Banning Lewis Ranch, some possible locations and what motivated the firm to buy the property. City Council President Scott Hente said after a closed-door meeting with Ultra officials in November that the firm wants to initially drill a few test wells on a small amount of land. The direction of the company’s drilling plans likely will be determined by what it finds, he said.

After announcing that it wanted to drill for oil and gas, Ultra asked a Delaware bankruptcy judge to set aside an annexation agreement that governs the Banning Lewis Ranch's development. The agreement, spelling out the ranch owner’s responsibilities when it comes to development, would interfere with the company’s plans, which don’t include residential and commercial development, Ultra has argued. It is also challenging the city's zoning on Banning Lewis, which does not currently allow for oil and gas exploration.

The city has countered that the agreement is needed to ensure the property’s orderly development.  The annexation-agreement dispute is before a Colorado bankruptcy judge.

On Dec. 12, City Council President Scott Hente commissioned an oil and gas task force to prepare a report before the end of a six-month moratorium on drilling in Colorado Springs. That committee held its first meeting in January.

After 14 weeks of presentations from experts and internal debate, the committee finished its work April 26. Committee members agreed that, generally speaking, the city's existing land use and planning regulations could be adapted to deal with the new industry. However, it left filling in the details and important questions like water quality monitoring and inspections to City Council. Council plans to take up the issue June 26.

While the regulations are getting figured out, it's still likely to be a year or more before anyone knows whether there is economically recoverable quantities of oil and gas under El Paso County. Officials at both Ultra and Hilcorp have called their El Paso County plans highly exploratory and risky.

WANT MORE BACKGROUND?

 Here are links to every story The Gazette has written on oil and gas development in the past two years:

Developer's bankruptcy just the latest chapter in Banning Lewis' tangled history

Oct. 30, 2010

http://www.gazette.com/articles/developer-107209-history-latest.html

 

BANNING LEWIS AUCTION

OIL FIRM SAYS IT WILL DRILL IF BID APPROVED

WITH BANKRUPTCY COURT OK, ULTRA RESOURCES WOULD GET MOST OF RANCH

June 30, 2011

http://www.gazette.com/articles/winning-120626-banning-lewis.html

NOREEN: Drilling, right here in river city

July 1, 2011

http://www.gazette.com/articles/city-120781-inside-colorado.html

 

BANNING LEWIS RANCH

WINNING BIDDER WANTS OUT OF OBLIGATION TIED TO LAND

COMPANY INTENDS TO DRILL FOR OIL, GAS ON PROPERTY

July 26, 2011

http://www.gazette.com/articles/ranch-122037-ultra-legal.html

 

BANNING LEWIS RANCH

CITY FIGHTS BACK AGAINST ULTRA 

ENERGY COMPANY WANTS COURTS TO DUMP CITY ANNEXATION AGREEMENT

July 27, 2011

http://www.gazette.com/articles/houston-122093-case-lewis.html

 

BRIEFLY

July 28, 2011  

Banning Lewis. hearing in Delaware delayed

A bankruptcy court hearing scheduled for today in Delaware concerning the sale of 18,000 acres of the Banning Lewis Ranch to a Houston energy company has been delayed until next week, according to Colorado Springs City Attorney Patricia Kelly.

The judge in the bankruptcy has scheduled Wednesday as the day to hear the city’s motion to move the case to Colorado from Delaware, and agreed to hear other issues at that time as well, Kelly said. Ultra Resources, a subsidiary of Ultra Petroleum, is seeking to have the judge set aside an annexation agreement and other land-use controls that regulate the development of Banning Lewis,

 

NOREEN

Firm trying to gain Ultrasweet agreement

July 29, 2011

http://www.gazette.com/articles/ultra-122245-city-hall.html

 

BANNING LEWIS RANCH

CITY TALKING TO ENERGY COMPANY

HEARING SET FOR TODAY RESCHEDULED AGAIN

August 3, 2011

http://www.gazette.com/articles/company-122510-springs-talks.html

 

OIL AND GAS DRILLING

LANDOWNERS SAY THEY’RE GETTING A SHAKEDOWN FROM ENERGY FIRMS

The Denver Post

August 15, 2011

http://www.denverpost.com/search/ci_18678240

 

NOREEN

OPINION

If angst were oil, we’d all be rich

August 17, 2011

http://www.gazette.com/articles/oil-123344-falcon-yet.html

 

NOREEN

OPINION

SDS is rare water plan that hasn’t gone dry

August 21, 2011

http://www.gazette.com/articles/friday-123537-risk-historic.html

 

BANNING LEWIS RANCH

CITY WANTS COLORADO COURT TO DECIDE ISSUE

SAYS LAND-USE RESTRICTIONS SHOULD STILL APPLY

August 24, 2011

http://www.gazette.com/articles/city-123743-colorado-wants.html

 

BANNING LEWIS RANCH

NO DECISION YET ON DRILLING

BOTH SIDES IN DISPUTE PLAN TO MEET FRIDAY

August 25, 2011

http://www.gazette.com/articles/company-123840-energy-ruling.html

 

BANNING LEWIS RANCH

BANNING LEWIS DECISION DELAYED

August 27, 2011

http://www.gazette.com/articles/delayed-123989-lewis-bankruptcy.html

 

BANNING LEWIS RANCH

COMPANY CAN BUY MOST OF LAND JUDGE RULES

BUT COLORADO COURT TO DECIDE ABOUT USE AGREEMENTS

September 17, 2011

http://www.gazette.com/articles/sale-125066-judge-lewis.html

 

BANNING LEWIS RANCH

texas company seeks to block sale of land

LOSING BIDDER CHALLENGES PRICE REDUCTION FOR WINNER OF AUCTION

September 22, 2011

http://www.gazette.com/articles/ranch-125392-lewis-banning.html

 

BANNING LEWIS 

BID TO BLOCK SALE IS REVERSED

REAL ESTATE COMPANY BACKPEDALS ON EFFORT

September 24, 2011

http://www.gazette.com/articles/ranch-125568-bankruptcy-banning.html

 

EL PASO COUNTY

HOLD ON OIL/GAS PERMITS TICKS OFF REGULATORS

October 4, 2011

http://www.gazette.com/articles/county-126103-well-permits.html

 

OIL, GAS DRILLING

CITY WEIGHS OVERSIGHT OPTIONS

BANNING LEWIS RANCH OWNER WANTS TO DRILL

October 8, 2011

http://www.gazette.com/articles/gas-126400-springs-oil.html

 

BRIEFLY

Banning Lewis Ranch now has new owner

October 16, 2011

Ultra Resources on Wednesday confirmed it has completed its $20 million purchase of most of the Banning Lewis Ranch, setting the stage for a U.S. Bankruptcy Court battle with the city of Colorado Springs over whether city landuse agreements should remain intact. Ultra plans to drill for oil and gas on the property.

The Banning Lewis deal appears to be just one part of Ultra’s plans for drilling in the area. Ultra paid $1.67 million in July and August to Denverbased Pine Ridge Oil & Gas LLC for leases on nearly 100,000 acres of land in eastern El Paso County and an exploratory well east of Fountain.

 

OIL AND GAS

COMPANY RECEIVES APPROVAL FOR EXPLORATORY DRILLING IN COUNTY

COMMISSIONERS RETHINK IDEA OF MORATORIUM

October 21, 2011

http://www.gazette.com/articles/ultra-127076-exploratory-drilling.html

 

EL PASO COUNTY

EXCEPTION WORRIES, ANGERS OIL CRITICS

DECISION ALLOWS FRACKING BY OIL DEVELOPER ULTRA 

October 25, 2011

http://www.gazette.com/articles/drilling-127253-county-approved.html

 

EL PASO COUNTY

3 POTENTIAL DRILLING SITES PINPOINTED

1 LOCATION NEAR HOMES, BUSINESSES

October 26, 2011

http://www.gazette.com/articles/county-127315-proposed-wells.html

 

COLORADO ENERGY

DRILLING GETS CLOSER TO OUR DOORSTEPS

SOME COUNTIES HURRY TO SET DOWN REGULATIONS

October 31, 2011

http://www.denverpost.com/business/ci_19221360

 

ULTRA RESOURCES

FIRM SEEKS MEETING WITH CITY

AMID LEGAL BATTLE, SPRINGS OFfiCIALS OPEN TO DISCUSSION

November 1, 2011

http://www.gazette.com/articles/ultra-127632-resources-fight.html

 

BANNING LEWIS RANCH

ULTRA RESOURCES, CITY PLAN TO TALK DRILLING ON MONDAY

COMPANY LIKELY REMAINS SERIOUS ABOUT OIL, GAS DRILLING PLANS

November 12, 2011

http://www.gazette.com/articles/officials-128356-ultra-resources.html

 

DRILLING

CITY SAYS ULTRA PLANS TEST WELLS

COMPANY MEETS WITH OFfiCIALS

November 15, 2011

http://www.gazette.com/articles/city-128516-ultra-company.html

 

ENERGY

SPRINGS WEIGHS A HALT TO DRILLING

COUNCIL WILL DISCUSS AN EMERGENCY MORATORIUM

November 30, 2011

http://www.gazette.com/articles/city-129377-application-consider.html

 

ENERGY

CITY COUNCIL SUSPENDS DRILLING FOR 6 MONTHS

EMERGENCY ORDINANCE CALLS FOR A ‘TIMEOUT’ TO STUDY IMPACT, REGULATIONS

Dec. 1, 2011

http://www.gazette.com/articles/city-129455-drilling-month.html

 

ULTRA APPLIES FOR USE PERMITS

COMPANY SEEKS OK TO BEGIN DRILLING THIS YEAR

Dec. 2, 2011

http://thecountyseat.freedomblogging.com/2011/12/01/ultra-has-submitted-drilling-permits-with-county/2419/

 

OPINION

TRUST, VERIFY, THEN ‘DRILL, BABY, DRILL’

CITY SHOULD ENSURE SAFE FRACKING — QUICKLY

http://www.gazette.com/articles/drill-129586-fuels-oil.html

 

ENERGY EXPLORATION

CITY SEEKS ATTORNEY’S HELP WITH OIL AND GAS MATTERS

EXPERT IN fiELD ATTENDED CITY COUNCIL TASK FORCE MEETING

Dec. 16, 2011
http://www.gazette.com/articles/gas-130261-oil-city.html

 

NOREEN

Drilling regulations are needed for Springs

Dec. 18, 2011

http://www.gazette.com/articles/sorely-130306-drilling-needed.html

 

ULTRA SUBMITS DRILLING PERMITS

COMPANY PLANS TWO WELLS WITHIN SPRINGS CITY LIMITS

Dec. 22, 2011

http://www.gazette.com/articles/ultra-130580-company-drill.html

 

SPRINGS, ULTRA STILL SPARRING OVER WELLS

BANNING LEWIS RANCH DISAGREEMENT CONTINUES

Dec. 24, 2011

http://www.gazette.com/articles/ultra-130688-city-ranch.html

 

ULTRA SAYS PROPOSED RULES NOT NECESSARY

VP AT fiRM THAT HOPES TO DRILL CALLS REGULATIONS ‘INEFfiCIENT,’ ‘VAGUE’

Dec. 30, 2011

http://www.gazette.com/articles/county-130936-representative-drill.html

 

COUNCIL LOOKS FOR VOLUNTEERS TO WORK ON OIL AND GAS PANEL

Jan. 5, 2012

http://citydesk.freedomblogging.com/2012/01/04/city-seeks-volunteers-for-new-oil-and-gas-committee/14749/

 

OIL AND GAS DRILLING

LAST DAY TO APPLY FOR CITY COMMITTEE

MEMBERS WILL NEED TO TAKE PART IN REGULAR MEETINGS

Jan. 12, 2012

http://www.gazette.com/articles/city-131571-thursday-committee.html

 

OIL AND GAS COMMISSION EXTENDS COMMENT PERIOD

CITIZENS GET MORE TIME TO WEIGH IN ON ULTRA DRILLING

Jan. 14, 2012

http://citydesk.freedomblogging.com/2012/01/13/state-extends-public-comment-period-on-applications-to-drill-on-banning-lewis-ranch/14806/

 

OIL AND GAS

STATE TELLS COUNTY ITS RULES ARE IN CONFLICT

Jan. 18, 2012

http://www.gazette.com/articles/attorney-131896-general-oil.html

 

7 PICKED FOR OIL AND GAS PANEL

SCIENTIST, EX-OIL EMPLOYEE AMONG RECOMMENDATIONS

Jan. 21, 2012

http://www.gazette.com/articles/oil-132101-seven-endorse.html

 

SPRINGS GETS INITIATION ON DRILLING REGULATIONS

EXPERT TALKS ABOUT POTENTIAL OIL, GAS DEVELOPMENT

Jan. 27, 2012

http://www.gazette.com/articles/city-132422-gas-oil.html

 

OIL AND GAS

COUNTY LEADERS APPROVE RULES TO GUIDE DRILLING

Feb. 1, 2012

http://www.gazette.com/articles/county-132696-water-quality.html

 

OIL AND GAS

ULTRA APPLIES FOR 5TH LOCAL DRILLING SITE

NINE-ACRE SITE COULD HOLD 5 WELLS

Feb. 2, 2012

http://www.gazette.com/articles/county-132726-ultra-fifth.html

 

OIL AND GAS

THE ROAD TO DRILLING

ULTRA RESOURCE PREPARES TO DRILL IN EL PASO COUNTY

Feb. 19, 2012

http://www.gazette.com/articles/county-133728-paso-prepares.html

 

OIL AND GAS

ATTEMPT TO ADD REGULATIONS DIES IN HOUSE

STATE REPUBLICANS VOTE DOWN BILL

Feb. 21, 2012

http://www.gazette.com/articles/regs-133850-gop-house.html

 

OPINION

WISH THEM WELL AS THEY BEGIN TO DRILL

Feb. 21, 2012

http://www.gazette.com/articles/resources-133853-crews-wish.html

 

BANNING LEWIS PARCEL UNSOLD; DEADLINE PASSES

KEYBANK SAYS IT WILL CONTINUE TO ACCEPT BIDS ON RANCH’S NORTHERLY 2,400 ACRES

Feb. 23, 2012

http://www.gazette.com/articles/buyers-133958-lewis-northern.html

 

OIL AND GAS

FIELD TRIP WITH HUGE RELEVANCE IN SPRINGS

GREELEY TRIP SHOWS PROS, CONS OF DEVELOPMENT

March 1, 2012

http://www.gazette.com/articles/gas-134361-oil-greeley.html

 

OIL AND GAS

BREAKING GROUND

DRILLING FOR OIL NEARS REALITY AGAIN IN EL PASO COUNTY

March 4, 2012

http://www.gazette.com/articles/county-134507-paso-drilling.html

 

OIL & GAS

HOUSTON COMPANY APPLIES FOR FOUR DRILLING PERMITS

HILCORP HAS RECENTLY TAKEN OUT 21 LEASES OF RIGHTS IN COUNTY

March 14, 2012

http://www.gazette.com/articles/county-135068-hilcorp-company.html

 

OIL AND GAS

OIL DRILLING MAY BRING BIG BUCKS CHALLENGES

CITY COMMITTEE AIMS TO UNDERSTAND ECONOMIC IMPACT

March 16, 2012

http://www.gazette.com/articles/big-135277-oil-county.html

 

TRAFFIC TO DRILL SITES HARD ON ROADS

COUNTY ENGINEER SAYS COSTLY REPAIRS UNDER WAY

March 21, 2012

http://www.gazette.com/articles/county-135529-oil-drilling.html

 

ULTRA MAPS DRILLING PLANS

COMPANY OWNS 18,000 ACRES OF BANNING LEWIS RANCH

March 23, 2012

http://www.gazette.com/articles/ultra-135669-oil-banning.html

 

STATE OKS ULTRA PERMITS TO DRILL AT BANNING LEWIS SITES

CITY HAS MORATORIUM ON EXPLORATION TILL MAY

March 27, 2012

http://www.gazette.com/articles/ultra-135829-city-ranch.html

 

CITY GOVERNMENT

OIL, GAS PANEL WRESTLES WITH REGULATIONS

AGREEMENT THAT CITY HAS A ROLE, BUT REACH OF RULES IS DEBATED

March 30, 2012

http://www.gazette.com/articles/gas-136018-oil-development.html

 

COMMITTEE COMPILES LIST OF POSSIBLE OIL GAS REGULATIONS

RECOMMENDATIONS WILL GO TO COUNCIL FOR A VOTE

April 6, 2012

http://www.gazette.com/articles/code-136354-oil-chapter.html

 

CITY COUNCIL

UTILITIES WILL ASK FOR LEGAL AUTHORITY TO ACCESS LAND

April 24, 2012

http://www.gazette.com/articles/utilities-137396-oil-access.html

 

ENERGY

CHAMBER PONDERS IMPACT OF DRILLING

ANADARKO TO INVEST $1B IN WELD COUNTY IN 2012

April 25, 2012

http://www.gazette.com/articles/gas-137436-impact-oil.html

 

BRIEFLY

City votes to give Utilities access

April 25, 2012

The City Council voted 5-2 Tuesday to give Colorado Springs Utilities the authority to access property owned by Houston-based oil driller Ultra Resources to continue work on the Southern Delivery System water pipeline.

The city-owned utility says Ultra claims it isn’t trying to stop work on the 62-mile pipeline between Colorado Springs and Pueblo. But the company won’t grant Utilities access to its property despite repeated requests, said Lyman Ho, SDS land acquisition manager. The property is within the 18,000 acres of Banning Lewis Ranch that Ultra bought last year.

 “At this time, I think a negotiated right of entry is within reach. However, the time schedule for the project requires that we need to move ahead,” Ho said

 

BANNING LEWIS 

OAKWOOD HOMES PLANS TO BUY NORTHERN 2,600 ACRES OF RANCH

April 25, 2012

http://www.gazette.com/articles/homebuilder-137446-homes-banning.html

 

CITY COUNCIL

BIG QUESTIONS REMAIN ON OIL, GAS DRILLING

PANEL RECOMMENDS BROAD STROKES, LETS COUNCIL fiLL IN DETAILS

April 27, 2012

http://www.gazette.com/articles/committee-137583-oil-gas.html

 

 THE KEY INGREDIENT IN OIL DRILLING? WATER

April 28, 2012

http://www.gazette.com/articles/water-137682-oil-say.html

DRILLING FOR OIL TAKES WATER AND MAKES WATER

April 29, 2012

http://www.gazette.com/articles/well-137684-water-gas.html

Q&A WITH DIANA MAY: DELVING INTO OIL AND GAS ISSUES

May 5, 2012

http://www.gazette.com/articles/-137961--.html#ixzz1vcdLdeIv

UCCS STUDENTS TAKE ON ECONOMICS, IMPACTS OF OIL AND GAS

May 11, 2012

http://www.gazette.com/articles/oil-138495-drilling-students.html#ixzz1vcdVj6iP

PUBLIC MEETING ON CITY OIL AND GAS REGS THURSDAY

May 22, 2012


 

 


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