EOG Resources has withdrawn a significant oil and gas proposal on land in Uintah County that was estimated to be worth over a billion dollars in state royalties. The company is now “reevaluating” the future of those resources. The project, located about 25 miles south of Vernal, was nearing the end of its environmental process when EOG asked the BLM to withdraw their proposal. Lowering natural gas prices were among the factors at play. If the project had come to fruition it had an estimated cumulative value on future production of $1.9 billion dollars from existing wells, $2.2 billion dollars from alternative wells, and $20.2 billion dollars for other alternative actions. EOG’s withdrawal announcement elicited a response from the Ute Tribe. The Tribe’s news release, issued on June 28th, states that “a week after the Ute Indian Tribe raised serious and significant concerns with EOG Resources’ Greater Chapita Wells Natural Gas Infill Project, EOG withdrew the Project from further consideration by the Bureau of Land Management.” The news release focuses on critiquing the BLM’s environmental process with the proposal and concludes that they are pleased that it has been withdrawn from consideration. Spokesman from EOG, Creighton Welch, provided a statement on behalf of the company. “EOG is withdrawing its current proposed action and has requested that BLM stop all work related to the Greater Chapita Wells Natural Gas Infill Project EIS. The scope and pace of development analyzed in the EIS does not reflect future development plans and EOG is reevaluating the location, scope, and nature of future development in and around the Project area. This is not related to the Ute Tribal lawsuit.”
