Drilling crews should return to work next week, company says

Caution, not regs, caused CBM layoffs

Font Size:
Default font size
Larger font size

GILLETTE - Some 150 workers protested this week at the Bureau of Land Management's Buffalo Field Office, but it was actually coal-bed methane companies themselves responsible for recent layoffs affecting more than 1,000 workers in the industry.

Williams Production RMT Co. decided to err on the side of caution when it "temporarily" deactivated 12 of 14 contractor rigs, according to a company spokesman. Production managers needed time to make sure that drilling plans were in compliance with several overlapping surface occupancy restrictions related to raptors and sage grouse.

Other companies did the same, leading to massive temporary layoffs that rippled throughout the industry, possibly affecting more than 1,000 workers.

"Out of an abundance of caution, we wanted to play this very safe," said Williams spokesman Kelly Swan. "We did, so to speak, take a time out, and we think it was a fruitful process."

Swan added that the company plans to begin putting drilling crews back to work next week.

All of the concern centered on surface occupancy restrictions to protect raptors and sage grouse that reactivated in February and March. Those stipulations, or "stips," blot the map with large orange and purple circles around nests and strutting grounds where drilling and other activities are temporarily restricted.

There's agreement between the BLM and some in the industry that the seasonal restrictions are having more of an impact as time goes on because the gas play is moving into areas where there's more bird habitat. However, there is some disagreement about how federal regulators enforce those seasonal restrictions.

In the past, coal-bed methane companies could keep drillers busy by moving them to "non-stip" areas during the raptor roosting and sage grouse-strutting season in the spring. Rigs and other equipment are typically allowed to cross "stipped" areas to get to non-stip areas. However, several workers who were laid off in recent weeks said they were told the BLM had reversed its policy on that type of access.

BLM Buffalo Field Office manager Chris Hanson said that simply is not the case.

"There was that perception," Hanson said. "Philosophically, Williams didn't want to get in trouble, so they said, 'Time out, we don't want to get in trouble."'

BLM and Williams officials met on Wednesday to make sure drilling plans comply with all the bird and wildlife stipulations currently in place. Hanson ensured that rigs and other equipment are still allowed to cross a "stip" area as long as there's an existing road.

"Our bottom line is all about compliance, so that's why I think it was a very fruitful week in terms of working with the BLM," Swan told the Star-Tribune on Friday. "Yes, we're going to be putting crews back to work next week."

Energy reporter Dustin Bleizeffer can be reached at (307) 682-3388 or dustin.bleizeffer@casperstartribune.net.

Print Email

/news/state-and-regional
 
Sponsored by:

Connect with Us

TribTown