County Supports Fossil Fuel Progressions

Powder River Basin Pump Jack

Pump jack extracts oil from the ground in the Powder River Basin. 

 

The Campbell County Board of Commissioners voted unanimously Tuesday to sign a resolution that formally supports the Department of Energy’s (DOE) decision to allow transfer and export of liquified natural gas (LNG) through the Jordan Cove LNG Terminal located in Coos Bay, Oregon.

The DOE issued an order on July 6 allowing Canadian Corporation Pembina Pipeline to liquify and export domestically produced natural gas using their Jordan Cove Project.

The supply of natural gas used by the Jordan Cove Project will be sourced from around the U.S. and Canada, and now, according to Tuesday’s resolution, the Campbell County Commissioners are formal supporters of the export terminal.

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Chairman DG Reardon explained that since Jordan Cove is now the closest LNG export terminal to Campbell County, “This will give our natural gas producers another avenue for marketing their product.”

In a workshop meeting Tuesday afternoon, the commissioners were asked to take similar action in support of EOG Resources Inc.’s proposed land exchange with the Wyoming Office of State Lands and Investments (OSLI).

EOG Director of Government Relations Spencer Kimball joined the workshop via phone to present EOG’s proposal to exchange the company’s 5,300 acres of land, located in Laramie County, for eight separate locations, which are currently owned by OSLI and cover a total surface area of 5,120 acres throughout Converse and Campbell counties.

EOG has proposed to allow OSLI to keep the mineral rights under the Campbell and Converse lands that EOG would obtain as part of the exchange, and to also transfer its mineral rights in the Laramie County lands to OSLI as well. EOG also proposed to make $300,000 annual payments for 10 years, under the condition EOG can drill 10 or more wells on the to be obtained lands. Under the agreement, EOG would be exempt from paying the annual fee upon drilling their tenth well, since they estimate that OSLI will receive over $300,000 in profit from each well, once they’re functioning.

After discussing the proposal, Kimball explained that “EOG doesn’t really need anything from the board [of commissioners] other than support.”

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He went on to say EOG has struggled in the past to build connections and to close sales with landowners, ranchers and recreational visitors around Wyoming.

“Some people in that area just won’t speak to us,” Kimball said.

“Before the exchange is finalized, OSLI will take public comments and EOG will be reaching out to residents; we think it could help with our process if your board could voice some kind of support for the exchange,” she added.

Since EOG is still in the early stages of the proposed land exchange, the commissioners did not set definitive plans to publicly support EOG but agreed to keep the lines of communication open for when the time came to revisit the issue.

Before the workshop ended, Reardon and Commissioner Rusty Bell indicated they were in favor of supporting the land exchange.

Map of land EOG proposed to exchange with OSLI.
Map of land EOG proposed to exchange with OSLI.