MAY 2008: AROUND THE STATE
Ohio group wins oil and gas rights
JEFFERSON COUNTY
Under the watchful eye of a regional conservation group, an
out-of-state energy company hopes to be drilling for natural
gas southeast of Madras by year’s end. Like other
potential natural gas facilities in the state, the Central
Oregon proposal may pit California energy needs against Oregon
land-use issues.
On March 13, Ohio-based Bass Energy and its partners won a
Bureau of Land Management lease auction for oil and gas rights
to roughly 9,000 acres in Jefferson County. It’s not
certain that fossil fuels even exist in the area.
“It’s pure exploration,” says William Hlavin,
president and CEO of the private company. “We could drill
a dry hole and walk away with our tails between our
legs.”
California’s demand for natural gas, and energy in
general, says Hlavin, is what makes the risk financially
worthwhile. Despite the uncertainty, the company’s own
geological studies over the past five years suggest the
possibility of natural gas deposits, says Hlavin. He declined
to say how much money he estimates there is to be made.
The site lies within the Crooked River National Grasslands and
is a critical habitat for mule deer and elk. That has the
Bend-based Oregon Natural Desert Association concerned over how
a drilling operation would impact the local wildlife and
environment.
“Our response will have to do with where they propose a
site,” says executive director Brent Fenty. “We
will certainly be watching.”
JASON SHUFFLER
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