The Fruitland coal bed methane (CBM)
development was pioneering in several ways. When ARCO began
evaluating the potential for CBM in the San Juan in the mid-1980's,
the only clearly commercial CBM production was in the Black Warrior
Basin in Alabama. In light of the lack of information about how
Fruitland wells might perform, there was considerable skepticism
about the ability of San Juan coals to deliver worthwhile volumes
of gas. As odd as it may seem today, in light of the tremendous
success of Fruitland coal wells, Bill and his colleagues had to
prove CBM commerciality using pilots, extensive experimentation
with drilling, completion and production techniques and ultimately
a few early successes.
ARCO Fruitland Coal Bed
Methane Project
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Bill played a central role in these
commercialization efforts by:
-
estimating the economic and reserve potential
(large) of Fruitland coal gas development
-
designing the first well plans for the pilots,
including drilling procedures, stimulation ("fracs"), and
completion/artificial lift systems
-
engaging extensively with tribal, county, state,
and federal regulators to address the host of issues inevitable
when applying new concepts. He testified several times in front of
the Colorado Oil and Gas Commission about spacing, Fruitland
commercial potential, and the need for additional gas export
capacity.
-
interacting closely with ARCO research personnel
to develop simulation models that accurately captured the unique
reservoir properties of coals
-
guiding the internal discussions of the coal bed
tax credits, especially the operational implications of accelerated
development in the face of considerable well performance
uncertainty
-
assisting gas contract negotiations
-
developing the capital and operating cost
estimates, production profiles, and economics for use in the
Authorization of Expenditure (AFE)
-
preparing the Authorization for Expenditures
(AFE's) for the first several hundred wells
-
coordinating the approval process through ARCO
Oil and Gas and ARCO corporate
-
serving as project coordinator by aligning the
efforts of personnel from major projects, operations, geoscience,
etc. as the project moved into active development
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