The Crestone Eagle, September 2007:

Fish & Wildlife initiates Environmental Analysis for Baca Wildlife Refuge
by Lisa Cyriacks

On August 17, the US Fish and Wildlife Service (USFWS) began the scoping process for surface impacts related to oil and gas exploration on the Baca National Wildlife Refuge. Last fall, USFWS had made the determination that Lexam’s exploration program did not fall under the authority of the National Environmental Policy Act (NEPA). That decision is currently being challenged in the courts by the San Luis Valley Ecosystem Council and by attorneys from the Energy Mineral Law Center.

Due to current litigation, Mike Blenden, Project Manager for the SLV Refuges, declined to comment on why the Environmental Assessment is being conducted at this time, rather than earlier in the process prior to seismic exploration, or prior to the issuing of the permits by the Colorado Oil and Gas Conservation Commission. According to Ian Ball, Lexam Vice-President, there are no current plans for drilling until the EA is completed.

Mike Blenden and Ron Garcia, Manager of the Baca National Wildlife Refuge, outlined the process that will be covered in the next few months. The public scoping process is the initial phase that will define the extent and “scope” of what will be addressed in the Environmental Analysis. Currently, the period for collecting comments from the public on issues and concerns is 30 days, beginning August 17.

ENSR, a private consulting firm, has been retained to write the environmental analysis based on input from the USFWS and the public. It is anticipated that the draft will be available for review by November, with another 30-day period for public comments at that time. Once the EA is finalized, a determination will be made as to whether there is no significant impact, or whether further study and an Environmental Impact Statement will need to be prepared.

Comments for the EA scoping can be submitted to Michael Blenden, US Fish & Wildlife Service, 9383 El Rancho Lane, Alamosa, CO 81101, Phone: 719-589-4021, Email: Mike_Blenden@fws.gov. For further questions, Ron Garcia, Baca Refuge Manager, can be reached at 256-5527, Email: Ron_J_Garcia@fws.gov.

Background
Lexam Explorations Inc. (Lexam) owns the mineral interest, including the right to explore for and develop oil and gas from beneath land now included in the Baca National Wildlife Refuge and the Baca Grande subdivision, including most of the Manitou Foundation lands granted to spiritual centers. Lexam leased the mineral interest underlying the Baca Ranch before it acquired its ownership interest. The mineral estate was conveyed to Lexam before acquisition of the surface by the United States government (Department of Interior for US Fish and Wildlife Service and National Park Service, and the Department of Agriculture for the US Forest Service).

Lexam obtained ownership through a Special Warranty Deed, dated October 14, 1997 from the Newhall Land and Farming Company to Lexam Explorations Inc; and through a Quitclaim Deed, dated November 2, 1998 from Jim Donaldson to Lexam Explorations Inc. Lexam’s mineral interest is subject to a Surface Use Agreement, dated April 1, 1992, and signed by American Water Development Inc., that is binding on successive owners of the property.

Lexam proposes to drill two exploratory wells on the Baca National Wildlife Refuge. The well sites are 1 to 1.5 miles from the western edge of the Grants boundary of the Baca Grande subdivision.

Permits have been issued by the Colorado Oil and Gas Conservation Commission (COGCC) for two wells—Well #5 and Well #6. Based on the 3D seismic study results, Lexam is proposing a third location—Well #7. This well has not yet been permitted by the COGCC.

On its website (www.lexamexplorations.com), Lexam publicly represents its proposed activity on the Baca National Wildlife Refuge as an example of “very high risk projects” that Lexam is willing to accept. Lexam’s website indicates that few other companies are willing to accept such a high risk, high cost project. Ian Ball, Vice-President, indicated that there is a 5-15% chance of discovery based on the recent 3D seismic results.

Lexam owns 75% of the project, with the remaining 25% being owned by one of the world’s largest oil and gas producers, ConocoPhillips. According to Ian Ball, 50% of the company is owned by the management team, and there are currently 2,000+ shareholders that own stock for the remainder of the company. Lexam is publicly traded on the Toronto stock exchange, and information about the company is available at: www.sedar.com/homepage_en.htm, under company profiles.

The construction of each well is likely to take many months and will include such activities as road construction and well pad construction, followed by months of drilling activities leading up to final well completion. The current proposal requires that Lexam upgrade approximately 10 miles of existing Baca National Wildlife Refuge roads to accommodate industrial use levels, and would require the construction of approximately 2 miles of roads through the unique and unscarred landscape of the Baca National Wildlife Refuge.

If you have questions about the NEPA process or concerns about this proposed activity, and would like to be involved in strategizing community response, please contact Water Watch Alliance at 256-4140 or the SLV Ecosystem Council at 256-4758 or 589-1518.

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