A Texas company hopes to drill two exploratory natural-gas wells in the Pike National Forest near Monument, marking the first echoes of the Rocky Mountain energy boom at the foot of the Front Range.
Officials with Texas-based Dyad Petroleum, who could not be reached for comment, have said they expect to find gas some 8,000 feet below Mount Herman, a popular recreation area near the town of about 3,500 in the foothills northwest of Colorado Springs.
These would be the first wells drilled along the Front Range foothills since the 1960s, several experts said.
“There are no other active drill sites on this part of the Pike,” said lands and minerals forester Tim Grantham of the U.S. Forest Service. “This is a little unusual, actually.”
Federal officials are conducting an environmental assessment to determine the best locations for the wells near Monument. Since Dyad already has mineral leases from the Bureau of Land Management, drilling is a foregone conclusion.
A decision by the Forest Service is expected in the fall, though drilling might not begin until spring.
The arrival of the 90-foot-tall drill rigs, which will be visible to nearby residents and sharp- eyed motorists on Interstate 25, will come as an unpleasant surprise to many town residents, said James Moore, treasurer of the Friends of the Monument Preserve.
“The community knows very little about it,” Moore said. “When they find out, I think there’s going to be a flurry of activity, but not much stopping it.”
The Colorado Oil and Gas Commission issued a record 2,900 drilling permits last year and estimates that more than 3,300 will be issued this year. What is unusual about Dyad’s plans for El Paso County is that, with the notable exceptions of Weld and Las Animas counties, most of the state’s gas production is on the Western Slope.
Dyad agreed to relocate its two wells near Monument to minimize environmental damage, Pike forester Grantham said.
The company will use directional drilling to hit targets a half-mile to a mile away from the drill pads, which are on the front side of Mount Herman, a low rise on Monument’s western flank.
Experts said the lack of production from the Colorado Springs region suggests the drilling is unlikely to herald development of a major new energy play in the area.
“It’s got possibilities, but it’s high-risk,” said Bob Weimer, an emeritus professor at the Colorado School of Mines.
While Dyad has leased about 20,000 acres of mineral rights in the Pike National Forest, the Midland, Texas, company is not a big player in Colorado, said Morris Bell, deputy director of the Colorado Oil and Gas Conservation Commission.
Advances in seismic analysis may have provided the company with a new picture of what’s underground, Weimer said.
“But the only way to know for sure is to do what they propose to do,” Weimer said. “That’s drill a well.”
Staff writer Theo Stein can be reached at 303-820-1657 or tstein@denverpost.com.
