MESSAGE FROM DIRECTOR JOHN BAZA

Hollie Brown
John Baza, Director, Division of Oil Gas and Mining

Recent events have created an extremely challenging set of conditions in Utah and throughout the world. The global pandemic is changing the way of life for many and it is difficult to predict how long the effects will continue. 

The extractive industries have not been immune and are facing unprecedented times. Oil prices are at historic lows due to the reduction in travel and political disagreement among petroleum producing countries. Utah petroleum operators are struggling to keep production flowing even as consumers see some of the lowest gasoline prices in years.

Oil and gas production plays a vital role to Utah’s economy by providing energy-related jobs, boosting local businesses and generating oil and gas tax revenues. The Division’s budget relies heavily on monies generated from a conservation tax, which is 0.002 or 20 cents for every $100 of produced value of crude oil or natural gas. We will need assistance from policymakers to help maintain our role of ensuring responsible development of resources, while protecting citizens from the adverse impacts of development.

Even though production will temporarily decrease, there are over 16,000 wells statewide and 30 disposal facilities that need to be inspected. As the economics of the extractive industries decline, operators may limit resources to maintain facilities or go out of business entirely. Oil and Gas Program inspectors will continue inspecting sites to prevent any harm to people or the environment.

The Division supports the environmentally responsible development of essential petroleum resources with a commitment to public safety, needs and education. Staff is committed to protecting the environment through the regulatory processes that monitor responsible energy development.

OIL AND GAS FIELD INSPECTION PRIORITIZATION PROGRAM

Hollie Brown

The Division’s Oil and Gas Program field inspectors perform many types of inspections on approximately 16,000 oil and gas wells statewide. Inspections are critical to protecting the citizens and environment, while promoting responsible development.

Over the last several years, staff has worked with the Groundwater Protection Council (GWPC) to develop and implement a Field Inspection Prioritization Program designed to display in a spatial and report form which oil and gas sites should be inspected according to various inputs.

All oil and gas wells were given a priority rating from one (highest priority) to four (low priority). Prioritization is based on operational factors such as compliance issues and history, age of the well and how long since the last inspection. Geographic factors include well proximity to surface water, groundwater, human population density and wildlife habitat. 

The program has been operational since January 2020 and has already helped our inspectors increase their inspection efficiency. The field application allows real time data collection that is automatically uploaded to the database saving inspectors time and reducing input errors. The program empowers inspectors to consistently make decisions leading to reduced risk and more effective regulation through timely inspections.

This is an effective tool that will give management and staff the ability to make data driven decisions ensuring protection of Utah’s resources, while promoting responsible development. 

2020 LEGISLATION

Hollie Brown

During the 2020 legislative session, there were three bills passed affecting the Division of Oil, Gas and Mining.

Senate Bill 148 requires review of rules made related to bonding requirements; modifies the process for imposing and collecting administrative penalties; creates the Oil and Gas Administrative Penalties Account; and makes technical and conforming changes.

In response to the Oil and Gas Program audit, the Board of Oil, Gas and Mining Chairman Ruland Gill helped to educate lawmakers about this bill which allows the Division to collect administrative penalties from non-compliant operators as if the penalty were a judgment issued by a court of law. Before this bill, any fines issued by the Board were required to be collected through district court, which was expensive and time consuming. SB 148 allows the Board to collect fines directly and deposit them into an account used to offset risks the bonds do not cover.

This bill also gives the Board authority to review bonding requirements to ensure there is adequate fiscal security to the state.

Two separate bills, Senate Bill 131 and House Bill 294 affect the Minerals Program. SB 131 changes the size of small mining operations from 10 to 20 acres in unincorporated areas and 5 to 10 acres in incorporated areas. This bill affects approximately 20 permits currently in our system. The requirements for small mines are less stringent than those for large mines so this may encourage smaller operators to open new pits under the new size definitions.  This will allow for smaller operators to have more opportunity to enter the market.

HB 294 exempts basalt operations under 50 acres from the Division’s regulations. Approximately five currently permitted operations will no longer be under our jurisdiction, and the bill also allows for more operations to start up without requiring a permit. This legislation is intended to be very narrow and only apply to a certain type of geology found in Southern Utah, where it is beneficial to remove basalt in order to access sand and gravel.  

The Division will create and amend rules where necessary to address the new legislation.

EMPLOYEE HIGHLIGHT: RICHARD POWELL

Hollie Brown

Richard Powell is an environmental scientist/field inspector in the Oil and Gas Program. He’s been in the program for 15 years and is based in the Vernal field office. As a Uinta Basin oil and gas field inspector he monitors, inspects and advises operators in all aspects of oil and gas activity from initial pre-site inspections and drilling to final well plugging and reclamation.

Richard brings expertise and experience that gives him the skills necessary to ensure oil and gas development is done properly. Regulatory oversite is needed to make sure oilfield operations, such as produced salt water disposal, spill cleanup and drilling, are completed while protecting the resources of the state.

The best thing Richard likes about his job is working in very remote areas of the state. Because his truck is his office, he often deals with extreme temperatures, weather, potential flash flooding and lots of dust. 

Richard received his Bachelor of Science degree in Environmental Science from Utah State University.  Before joining the Division, he worked as a service supervisor for BJ Services, a worldwide oilfield pressure pumping service provider and as a licensed environmental health scientist for the TriCounty Health Department.

He is married with four children. He is active in church and community activities including youth sports coaching and most recently assistant coach for the Uintah High School mountain bike team the Rollin’ Utes. Richard has numerous hobbies including leather work, raising registered Black Hereford cattle and registered 100% New Zealand Kiko goats, archery, Dutch oven cooking, gardening and mountain biking.

MESSAGE FROM DIRECTOR JOHN BAZA

Hollie Brown
John Baza, Director, Division of Oil Gas and Mining

Few people in the modern United States have had to live with a lack of energy supplies.  Even as a student in the mid-1970s and facing the inconvenience of lines at the gasoline station, I still had access to fuel and energy. Today much of the world’s population still does not have access to electricity. The International Energy Agency reports that in 2018, 860 million people in the world did not have access to electricity, and over 2.6 billion people did not have access to clean cooking fuels. Energy poverty is very real to nearly 1 billion people on our planet.

Today much of the world’s population still does not have access to electricity. The International Energy Agency reports that in 2018, 860 million people in the world did not have access to electricity, and over 2.6 billion people did not have access to clean cooking fuels. Energy poverty is very real to nearly 1 billion people on our planet.

When people do not have adequate energy fuels, they may spend hours each day gathering resources simply to cook. Often times, this job is left to women and children which curtails their basic survival needs or opportunities for education. There are also negative impacts on human health and safety, whether it’s the need for one street light for safety in a small African village or electricity for a regional clinic to help the sick.

Imagine what our lives would be without access to electricity or safe, clean cooking/heating fuels- cold showers in the winter, sweating in the summer heat, inability to find or cook food, walking or biking everywhere, not to mention no cell phones and computers. We are very fortunate to have such comforts and would be wise not to take these conveniences for granted.

I am thankful that I can be engaged in the important public service of facilitating responsible development of energy and minerals for the benefit of people in Utah and beyond our state’s borders. It may make only slight difference for those human beings who are trapped in situations of energy poverty, but it can increase the quality of life for those who benefit from such resources.  And maybe in a small way, those benefits can trickle down to solve human problems throughout the world.

HORIZON RECLAMATION PROJECT

Hollie Brown

In the fall of 2018, Coal Program staff oversaw the reclamation of the Horizon coal mine, a bond forfeiture site in Carbon County. It took roughly three months to remove the coal mine’s five-acre footprint and re-contour the site to match the surrounding landscape. Topsoil recovered from stockpiles was placed on the final grade of the hillslopes above the riprap-hardened channels. Straw mulch was spread and incorporated into the soil by creating large divots called pocks that aid in soil stability and water retention. Two seed mixes, riparian and shrub/grassland, were spread before the winter season started.

In 2018, staff contracted with the Utah Correctional Industries (UCI) horticulture program to grow native plants to be used at the site. UCI runs an impressive greenhouse used to train inmates in all aspects of growing ornamental species. This was an opportunity for them to add native species to their teaching curriculum. UCI propagated some species from “mother” plants and others from seed. Plants were ordered for delivery in 8-inch long tubeling size for ease of carrying, planting and watering-in. However the plants were so vigorous that many had been transplanted into one and two gallon pots.

In early October staff returned to the site to plant approximately 1,000 plants to aid in the revegetation efforts. A planting schematic was created by Coal Program Biologist Todd Miller detailing where each species should be planted. Four employees from Millcreek Gardens were sub-contracted by UCI to complete the work over four days. Coal Program staff from Price and Salt Lake City were on site daily to deliver water from a 1,000 gallon water tank and 400 feet of hose. Staff also hauled water using backpack sprayers to hundreds of plants out of reach of the hose. Staff also spent a full day spraying and removing noxious weeds.

Coal Program staff would like to thank the crew from Millcreek Gardens who encountered the less than ideal conditions of hard soil and rocks; UCI Officer Todd Barszcz and the inmate staff who nurtured the plants over the year; and the Division of Wildlife Resources for their time and water truck.
  
The following upland and riparian species were grown:                                                                   

Upland SpeciesRiparian Species
Oak brush
Quercus gambelli		Nebraska sedge
Carex nevrascensis
Aspen
Populus tremuloides		Beaked sedge
Carex rostrata
White Fir
Abies concolor		Horsetail equisetum
Equisetum arvense
Big-toothed Maple
Acer grandidentum		Snowberry
Symphoricarpos oreophilus
Serviceberry
Amelanchier alnifolia		Wood Rose
Rosa woodsii
Birchleaf mountain mahogany
Cercocarpus montanus		Willow (peachleaf and coyote)
Salix sp.
Bitterbrush
Purshia tridentata		Water Birch
Betula occidentalis
Blue elderberry
Sambucus cerulea		 

EMPLOYEE HIGHLIGHT: KENT PHILLIPS

Hollie Brown
Kent Phillips, Project Manager, Utah Abandoned Mine Reclamation Program.

Kent Phillips is a project manager for the Division’s Abandoned Mine Reclamation Program. He has been with the program for approximately two years.  He works to reclaim and restore lands that were mined before the Surface Mining Control Reclamation Act of 1977 was passed. Since starting with the Division, he has overseen reclamation of several large projects including the $2 million dollar Kenilworth project and $230,000 Chief One Subsidence project in Eureka. 

His position protects public safety by sealing off hazardous mines and addressing issues affecting the environment and resources. “Development is a necessary component of our society, albeit with inherent potential for significant impacts to the environment and public safety if carried out irresponsibly,” commented Kent. “I believe that abandoned mine lands have left us with prime examples of what exactly these potential impacts are if resource development is left unregulated.” 

He says the best part of his job is working with a diverse array of stakeholders – from the public to government agencies across all levels, his knowledgeable co-workers, and private contractors and consultants. 

Kent has a Bachelor of Science in Geology from Appalachian State University and a Master of Science in Mining Engineering from Virginia Tech University. Before joining the AMRP, he was a consultant at URS/AECOM consulting firm where he worked with program staff on reclamation projects. 

In his free time, Kent enjoys rock climbing, snowboarding, and trail running with his dog Tommy.

ENVIRONMENTAL EXCELLENCE AWARD NOMINATIONS

Hollie Brown

The Board of Oil, Gas and Mining is accepting nominations for 2020 Environmental Excellence Awards now through Friday, February 21.

Environmental Excellence Awards recognize reclamation projects, technological innovations, and best practices going above and beyond what is normally expected under industry practices and regulatory requirements. It is an opportunity for companies to demonstrate technical expertise and pride in their industry, and concern not only for the economics of their industry, but also for our environment. 

Nomination forms are available online at ogm.utah.gov.

Message from Director John Baza – Fall 2019

Hollie Brown
Director, John Baza

The Utah Division of Oil, Gas and Mining’s (OGM) Oil and Gas Program recently underwent a legislative audit completed by the Office of the Legislative Auditor General. Audit results, as well as the division’s response are available at OGM.Utah.Gov/Audit.

In an effort to sustain a culture of compliance, the division has created an action plan to improve regulatory responsibilities, prioritization, oversight of inspections and financial management. The actions will allow for better enforcement, refine program and employee performance metrics and update existing administrative bonding rules as recommended by the audit.

We are taking this audit very seriously. It has been a painful process to see where we have fallen short, but we are dedicated to improving our leadership, culture and expectations. Utahns need to know that we are protecting public safety and the environment while performing our jobs as oil and gas regulators. This audit gives us guidance on how to better fulfill that mission.

The Division is grateful for the time and effort the Legislative Auditor’s Office put into identifying opportunities for improvement within our Oil and Gas Program.

Message from Director John Baza – Summer 2019

Hollie Brown

Recently I spent time with my mother who is in her 80s and she expressed frustration about trying to use an electronic ordering system at a nearby fast food restaurant. The teenager behind the counter told her that she needed to give it a try and that it was easy. I chuckled at her experience, but it made me realize how we have evolved generationally as a society in adapting to technology changes. My mother is adamant that she does not want a computer or e-mail or even try to program her digital phone (she only keeps it in her purse “for emergencies”). But my grandchildren (pre-school and 2nd grade) now run circles around my wife and myself when it comes to using an electronic tablet.

The world continually seems to move faster and get more complicated even as we try to use technology to solve our problems or to simplify our lives. Societal expectations of government also seem to increase with time, but parties who are affected by government regulation wish to keep the requirements relatively unchanged and constant. It does not seem to me that we can have it both ways: we cannot as a society expect government to accomplish more for us without shifting a burden to either the regulated community or the taxpayer.

Urbanization is also expanding throughout the state. Areas that were primarily rural are seeing oilfield or mining activity on previously undisturbed land. At the same time, human population growth is moving residential development into areas very near historic mining activity. Conflicts are on the rise along with tempers, and the Division of Oil, Gas and Mining often becomes the interface between opposing parties while trying to ensure that neither mineral estate nor surface landowner rights are adversely affected.

The Division is trying to efficiently accomplish its purpose with intelligent innovation. Through the use of Geographic Information Systems (GIS), Unmanned Aerial Systems (drones) and electronic technology, we are attempting to better collect data, perform improved analysis, and conduct timelier decision-making. We want to extend our reach without adding additional costs. As we see evolving public expectations for the extractive industries, we hope to keep pace with both the rapidness of industrial development as well as the increasing desire by citizens for better transparency and accountability from government.