DURANGO, Colo.-
Just like in the pioneer days, the value of mineral production is starting to decline.
Only this time it is methane.
An analysis by the Durango Herald found that La Plata County methane production declined 4.25 percent last year, the third straight drop since peaking in 2003. That same year a study warned officials a decline was coming.
Billions of dollars remain to be made, but county commissioners are taking the decline into consideration now.
“It’s inevitable. It’s coming. How do we plan for that when we’re still kind of in the fat of it right now?” said Commissioner Joelle Riddle.
There are about 2,700 wells put out about $2.6 billion last year.
Industry insiders said more wells could be drilled to increase production, but no one is talking of doing it, the Herald reported. New rules allowing 80-acre permits may help as will better technology.
Riddle said commissioners need to know what to expect from the methane field to intelligently plan for the future. Part of that will be weaning the public off the methane richesse.
The county assessor said that last year gas companies paid two-thirds of the taxes. Property tax rates are among the state’s lowest.
The money also is being used to pay for capital projects like a new jail.
“We’ve got 10 to 15 years more of gas availability here. It depends on what the technology is,” said Commissioner Wally White.
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Information from: Durango Herald,
