Potash, oil and gas industries moving forward together

By Matlin Smith

Current-Argus Staff Writer

CARLSBAD ? With decades of disagreement under their belts, area oil and gas producers and the local potash industry are making preparations to move forward together after a nudge in the right direction from United States Secretary of the Interior Ken Salazar, who stopped through Carlsbad on Thursday.

Salazar, Bureau of Land Management Director Bob Abbey and Sen. Jeff Bingaman, D-NM, joined potash industry officials for a tour of Mosaic Potash's Number 5 shaft, where they watched as 280-million-year-old rock was exposed by a large driller.

Mosaic and Intrepid potash mine potassium chloride from the area and are the only companies in the world to mine a mineral referred to as K-Mag. Officials said 1.4 million pounds of product are mined each year, yielding half a million dollars.

Following the tour of the underground tunnels and operations, the Washington dignitaries sat down with local and state BLM staff, representatives from Mosaic, Intrepid, the Sandia National Lab and area oil produces, including Concho Gas, Yates Petroleum, Devon Energy Oxy and BOPCO.

"We are going to try to bring an end to the conflict that has plagued the area for three decades," Salazar said at the Potash, Oil and Gas Steering Committee meeting.

The longstanding conflicts between the two dominate southeastern New Mexico industries have resulted in lawsuits in the past, BLM Carlsbad Field Office Manager Jim Stovall said Wednesday.

The formation of the committee a year ago, co-chaired by John Smitherman with BOPCO and John Mansanti of Intrepid, has shed new light on technical solutions to begin resolving the conflicts.

"The steering committee marshals that in the right direction," Mansanti added.

Funding is one of the issues standing in the way of further cooperation between the two entities, said Mansanti, adding that there would be a lot of beneficiaries from the action.

"The country benefits from the resources harvested," he said. "Through the timing and technology aspects, we have to find positions that are favorable to both resource industries. Both industries have to give up a little, but both will gain a lot."

Smitherman said Sandia National Labs has recently been conducting studies on the area, including gas migration studies, to better understand how the oil and gas industry is related to the potash industry, and to create a design that will eliminate the risks involved with integrating the two major industries.

"Sandia can provide us with third party credibility," Mansanti said.

The local branch of the lab has also conducted enclave mapping and risk assessment surrounding the issue. Further geological information will be a key factor in developing the partnership, committee members said.

With the cooperation of the two industries, and the scientific assistance from the lab, Salazar concluded the meeting by suggesting a plan of action to get the ball rolling and create a timely resolution to the 30 year conflict.

His first suggestion was to include Jesse Juen, new NM BLM director, as another co-chair on the committee, and to expand the committee to include oil produces like Cimarex Energy, Conoco Phillips and Chevron.

The Secretary of the Interior also asked that the committee come up with changes to the secretarial order to incorporate the process and program discussed Thursday - and to have it accomplished by April 1.

After polling each oil and gas and potash industry representative, all were pleased with the secretary's course of action and moving forward together.

Salazar then continued his two-day trip through Colorado, Texas and New Mexico, to discuss jobs, economic benefits relating to tourism, energy, water and conservation in rural communities in the Southwest.

Source: http://www.currentargus.com/ci_19684190?source=rss_viewed

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