CODY - A proposal to drill the first new natural gas well in the Shoshone National Forest in more than a decade has drawn opposition from some nearby residents and an environmental group.

Windsor Energy has applied for a drilling permit for a new well near its existing Crosby well in Clark, where an August 2006 blowout resulted in contaminated groundwater and elevated levels of benzene in a private drinking water well.

The new well would be about a quarter-mile inside the forest boundary, one mile from the Crosby well site, said William Liedtke, vice president and corporate counsel for Windsor.

Hilary Eisen, public lands advocate in Cody for the Greater Yellowstone Coalition, said there was currently no energy exploration in the Shoshone National Forest, and it should be considered off-limits to such development in the future.

She said her group was "not against energy development or drilling, but some places shouldn't be developed because they are too special, and this is one of those places."

"Maybe this one well isn't a big concern, but what about the next well and the next well? We've already seen seven wells in the Clark area, and there's no full-field development plan," Eisen said.

She said forest managers should conduct a more thorough environmental review than the categorical exclusion being sought by Windsor.

"What are the effects of this? What is the future going to look like if you allow energy development on the national forest?" she said.

Eisen criticized Windsor's environmental record, and said the company should be focused on cleanup of the Crosby well blowout, rather than pursuing new wells.

An Aug. 18 letter from the U.S. Forest Service provided by Liedtke stated that Windsor's application had been deferred, pending a public scoping process that would help determine the appropriate level of required environmental review.

"Scoping is required for all Forest Service proposed actions, including those that appear like they might qualify for a categorical exclusion," said Marty Sharp, National Environmental Policy Act coordinator for the Shoshone Forest.

Sharp said a 30-day public comment period on Windsor's application would probably begin sometime in September. He said that while no energy exploration has taken place for years in the Shoshone Forest, it is not uncommon in other national forests.

Liedtke said it made no sense to seek a forestwide ban on drilling, but that each project should instead be assessed on its individual merits.

He said cleanup efforts in the Line Creek area are progressing, with air samples now being collected during test operation of an air sparge, a pump that bubbles air through contaminated groundwater to move contaminants into the air.

That system could be operating full-time within a month, once expected air quality permits are issued, said Michael Bullock, a manager with Terracon, an environmental consulting firm contracted to manage cleanup efforts.

Work also includes the use of a vapor extraction unit, which employs a vacuum pump to draw air through contaminated soil, Bullock said.

Some residents have criticized what they say is an unreasonably slow pace for cleanup work being done as part of a voluntary remediation program managed by the state Department of Environmental Quality.

Liedtke said all investigatory work on the cleanup project is complete, and a meeting will be scheduled sometime in the next two months to determine the best course for a final remediation plan.

He said the company plans to drill two more wells this year from the Crosby site, but the company has no comprehensive long-term plan in place for further drilling in the area, including in the Shoshone Forest.

Windsor has conducted extensive seismic surveys of the area and holds numerous leases.

A well Windsor drilled on private land near Heart Mountain last year under split-estate rights yielded a dry hole.

Landowner Jim Dager said he was happy with the remediation work done on his property and with the efforts of local contractors, including Rick Johnson and staffers from Iron Creek Energy.

But he said he has yet to be compensated by Windsor for surface damages and expenses in bringing electric power to the property which he said the company agreed to split.

Dager said company executives were "virtually impossible to deal with," and his calls to the company's Oklahoma offices have gone unreturned.

Liedtke said there had been recent turnover among staff members who handle such land claims, but that he would follow up on the issue.

Deb Thomas, a Line Creek resident and organizer for the Powder River Resource Council, said electric power was at maximum capacity in the area, and additional power would likely not be available soon for any future development.

Liedtke said that drilling crews would use diesel generators and that wells would not require electric power from the grid once they were completed and producing gas.