RE: ..4 Jun 2018 15:13
The system, known as Third Creek, serves dozens of smaller gas producers in Adams, Arapahoe, Denver and Elbert counties, Kallanish Energy understands.
�We recognize this may create hardships for some producers that utilize the system; however, our commitment to safety and the environment must take precedence,� Anadarko spokeswoman Jennifer Brice told the Post.
The closure will probably cause producers to shut down wells and could, ultimately, cost people their jobs, Ed Ingve, owner of independent producer Renegade Oil and Gas, told the Post. Roughly 75% of Renegade�s wells are connected to Third Creek, he said, and he expects the closure will imperil the jobs of as many as 20 employees and contractors.
Extrapolating outward to all the companies served by the system, Ingve estimated close to 100 jobs could be impacted.
�They are more concerned about the liability boogeyman than they are about saving the wells,� he told the Post.
Last year, Renegade and 11 other producers filed a complaint with Colorado�s Public Utilities Commission over Anadarko�s decision to close Third Creek. The PUC dismissed the complaint, and Renegade is now engaged in a lawsuit with Anadarko over the closure.
In the suit, Renegade argues Anadarko�s decision will lead to Renegade shutting down wells and losing drilling leases. The suit alleges Anadarko could then buy those leases, something Anadarko describes in court papers as �a preposterous and delusional claim.�
But Anadarko also provides a slightly different explanation in the lawsuit and PUC documents for deciding to shut down Third Creek, the Post reported.
�The gathering system is reaching the end of its usable life, and (the company) does not wish to make the significant upgrades necessary for it to remain in service,� Anadarko wrote in a court filing.
Brice said Third Creek currently handles roughly 6 million cubic feet per day (MMcf/d) of natural gas, about half of 1% of Anadarko�s total gas gathering capacity in the area, she told the Post. About 30 natural gas producers use the system, she said.
But she insisted that safety concerns were paramount in the closure decision, although she did not elaborate on what, specifically, those concerns were.
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