Antero Resources Battlement Mesa Natural Gas Development Plan

B. Pierini
2009-08-05
Antero Resources

Battlement Mesa Natural Gas Development Plan

Review of Surface Use Agreement

August 5, 2009

Battlement Mesa Surface Use Agreement Discussion

  • Historical perspective of Battlement Mesa PUD
  • Agreements affecting natural gas development in the PUD
    • Exxon 1989 agreement
    • Barrett 1990 agreement
    • Antero 2009 agreement
  • Detailed discussion of Antero – Battlement Mesa Partners SUA

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Battlement Mesa Land Use Master Plan

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Surface Use Agreements in Battlement Mesa

  • Exxon agreement dated December 12, 1989
    • Executed as a condition of Battlement Mesa PUD purchase
    • Will always be effective (superseded by active SUAs)
  • Barrett Resources agreement dated August 6, 1990
    • Entered into as a result of well density application to COGCC
    • Only binds Williams Production (successor to Barrett)
  • Antero/Battlement Mesa Partners 2009 agreement
    • Comprehensive amendment to Exxon agreement
    • Exxon (now ExxonMobil) is a party to agreement
    • Binds Antero and Battlement Mesa Partners; ExxonMobil in part

ExxonMobil SUA – Dated December 12, 1989

  • Executed as a condition of Battlement Mesa PUD purchase
  • Required execution of formal SUA prior to mineral development actions
  • Identified 16 well pads
    • 15 well pads inside PUD
    • 1 well pad outside PUD
  • Locations were “general”; Battlement Mesa Partners had to accommodate changes
  • Required alternate drill sites if conflicts with surface development
  • Exxon was not obligated to pay for well pads

Drill Site Plan under Exxon 1989 SUA – 16 well pads

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Barrett Resources SUA – August 6, 1990

–        Result of a protest by Battlement Mesa Partners to well density application to the COGCC

  • Made subject to Exxon SUA dated December 12, 1989
  • Provides for additional operation restrictions to Exxon SUA
    • Minimum well setback of 200’ to existing structures
    • Contemplated open pits
    • BMP to be provided a copy of special use permit with county
    • Contains numerous other restrictive provisions
  • Binds ONLY Williams Production

Antero – Battlement Mesa Partners 2008 Agreement

  • Dated effective January 15, 2009
  • Fully executed on April 14, 2009
  • Objective was to minimize disruption to community related to natural gas development
  • Addresses key concerns (safety, noise, odor, visual, light, dust)
  • Defines access routes and pipeline easements
  • Pad-specific considerations

Antero – Battlement Mesa Partners SUA

Wellsite Locations

  • 11 locations (10 drill locations, 1 water handling facility location)
  • All locations are pre-surveyed (slide 11)
  • Pad-specific mitigation measures
  • New pad access roads
  • The covered water handling facility located at far southeast edge of the PUD

Access Roads

  • 20’ wide; gated
  • Clean up and dust suppression

Pipelines

  • Easements: 25’ permanent; 50’ construction
  • At least 48” deep (greater in areas due to infrastructure)
  • Complete pipeline segment to each pad upon construction

Antero – Battlement Mesa Partners SUA

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Antero – Battlement Mesa Partners SUA

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Example of Survey Work – conducted for all locations

Antero/BMC 2008 Agreement

SAFETY

  • Long-term development provides for buried water lines to minimize truck traffic
  • Emergency Response Plan
  • Spill prevention and counter measure control plan
  • No bulk storage of hazardous materials
  • How to communicate
    • Residents should never approach a hazardous situation
    • If feasible and safe - call number posted on wellsite signage
    • Call 911

Antero – Battlement Mesa Partners SUA

NOISE MITIGATION

  • No centralized compression in PUD
  • Any wellhead compression housed, with high level of noise suppression equipment
  • Hospital-grade mufflers on high noise output machinery
  • Consideration of electric line power for drilling operations

Antero – Battlement Mesa Partners SUA

ODOR MITIGATION

  • “F” Pad as a centralized water handling facility (SE corner of PUD)
  • Lined and covered
  • VOC combustors for production tanks

Antero – Battlement Mesa Partners SUA

VISUAL MITIGATION

  • DESIGNWORKSHOP landscaping design on 4 critical pads
  • Berms and trees to shield pads and pad facilities from view
  • Pursue implementation prior to drilling where feasible
  • Antero responsible for maintaining landscaping
  • Noxious weed management plan
  • Rig shrouded on 3 sides

Antero – Battlement Mesa Partners SUA

LIGHT MITIGATION

  • Pad-specific considerations
  • Rig oriented to direct light away from nearby residents
  • Low density sodium lighting
  • Lights directed downward
  • Rig shrouded on 3 sides
  • Safety will govern in all cases

Antero – Battlement Mesa Partners SUA

DUST MITIGATION

  • Soiltac and and/or liquid dust suppressants
  • Access roads and pads graveled
  • Long-term development provides for buried water lines to minimize truck traffic

Antero – Battlement Mesa Partners SUA

OTHER

  • Annual meetings with HOA to review upcoming year’s activities
  • Insurance requirements for Antero
  • Hours of operation
    • Limited for routine operations
    • No restrictions for drilling and completion
  • Emergency communications
  • Long-term plans provide for buried water lines and a water handling facility
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