Nation asks BIA to fund seismic study

By Kathy Helms
Diné Bureau

WINDOW ROCK — The Navajo Nation plans to seek $209,934 in funding from the Bureau of Indian Affairs to fund two seismic survey projects on trust lands in San Juan County, Utah.

George Arthur, chairman of the Navajo Nation Resources Committee and prime sponsor of the legislation, said the studies are being sought for two areas that have routinely been producing oil and gas.

"We're looking to see if there's adequate data that could reflect whether or not there's sufficient resources to expand on any of the oil and gas activities," he said.

The request is being submitted to BIA by the Navajo Nation Minerals Department and Navajo Nation Oil and Gas Co. Inc. for a 3D seismic survey in the Aneth Unit area and the Greater Aneth Field, north of the San Juan River near Montezuma Creek.

NNOGC has a working interest in the unit and will participate at a 25 percent level of interest with Resolute Resources, operator of the unit. Environmental and archaeological surveys of the study area, required prior to seismic survey, already are in progress.

"The idea is to find out if there's adequate supply that could be further explored," Arthur said. "The way I understand it is that when you have a well, most general practices are that they get to a certain point and people walk away from it.

"In this case, we want to know on this particular well where normally people would walk away, knowing the technology that exists now, whether we can go to it and expand on the extraction of the resources," he said.

According to the legislation, there has been no exploration drilling activity in the area since 1993. "This survey will be the first step in the realization of the additional undiscovered oil and gas potential of the Navajo Nation," the funding request states.

"The most recent oil and gas exploration on the Reservation in southeastern Utah added to the reserves and the life of the Nation's production, and indicated the potential for additional discoveries."

The Minerals Department/NNOGC request states that the proposed project is essential for the Nation to enhance its oil and gas reserves which have declined at a rate greater than 10 percent over the last three years. The decline has been somewhat reduced by the use of secondary and tertiary crude oil recovery methods.

Oil and gas have been produced in the Paradox Basin in southeastern Utah on the Navajo Reservation since 1956 when the Greater Aneth Field was discovered. As of 2001, the giant oil field had produced 420 million barrels of oil and 370 billion cubic feet of gas.

The Navajo Nation is requesting the grant of $209,934 to fund NNOGC's 25 percent acquisition costs of the 3D seismic program. Data acquired from the survey will be used as the basis for interpreting and mapping prospective underground hydrocarbon bearing zones.

According to the proposal, the 3D program will cover about 42 square miles. Dawson Geophysical has been selected as the acquisitions contractor using helicopter support, shot hole drilling, and a quality control supervisor. Processing of the seismic data will be contracted to a professional outside seismic entity.

Arthur said Aneth Delegate Mark Maryboy was concerned "that there was going to be a renewal of oil and gas activities, including flaring and all this stuff. But that's not what it's going to do. I think they can do it basically by satellite.

"There's oil and gas activity there right now. As far as I know these would be existing oil wells that are already producing," he said.

The 3D data will be mapped and evaluated by technical staff at NNOGC at no cost to the BIA. NNOGC also will be responsible for 100 percent of the drilling costs.

"The overall goal of the project is to bring the leads up to a drillable prospect standard and to reduce the risk of dry holes either in the exploration or developmental stages. This is of direct interest to the Navajo Nation," the proposal states.

If the exploration effort is successful, the Nation would benefit from increased royalty revenue and the dividends paid to the Navajo Nation as 100 percent stockholder in NNOGC.

A second benefit would be "the renewed industry interest in exploration on Navajo Nation lands," according to the proposal. The third benefit would be the creation of employment opportunities within the Navajo Nation.

The proposal states that the results could indicate the need for additional seismic study at a later time to define the potential of remaining acreage in the Echo House Mesa project area.

All data, conclusions and interpretations resulting from the project will be kept confidential. The Navajo Minerals Department proposes that the BIA office in Lakewood, Colo., store the seismic data when processing is complete, and that all information be considered proprietary.