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Walden hears rumble of energy boom

North Park braces for clash over sage grouse, drilling territory

By Todd Hartman, Rocky Mountain News

Published November 8, 2008 at 12:05 a.m.

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Early morning finds people on the move along Walden's Main Street. The tiny town in north-central Colorado is abuzz with engineers and surveyors exploring for oil.

Photo by Ken Papaleo / The Rocky

Early morning finds people on the move along Walden's Main Street. The tiny town in north-central Colorado is abuzz with engineers and surveyors exploring for oil.

Walden is known as Moose Country. The town's Main Street includes the Moose Cafe, which lately has been packed at lunch hour. Many locals are ecstatic, but hunters and conservationists are more cautious.

Photo by Ken Papaleo / The Rocky

Walden is known as Moose Country. The town's Main Street includes the Moose Cafe, which lately has been packed at lunch hour. Many locals are ecstatic, but hunters and conservationists are more cautious.

A big rig rolls down Main Street in Walden, "a resource-based community," said Mike Blanton, a Jackson County commissioner. "And this is getting us back to where we need to be."

Photo by Ken Papaleo / The Rocky

A big rig rolls down Main Street in Walden, "a resource-based community," said Mike Blanton, a Jackson County commissioner. "And this is getting us back to where we need to be."

Fossil fuel extraction is nothing new in the North Park region, where a handful of pump jacks extract oil from the McCallum Field, which first produced in the 1920s.

Photo by Ken Papaleo / The Rocky

Fossil fuel extraction is nothing new in the North Park region, where a handful of pump jacks extract oil from the McCallum Field, which first produced in the 1920s.

The town of Walden, founded in 1890, was a central point of distributing supplies into North Park. The area is likely to change with the discovery of millions of barrels of oil.

Photo by Ken Papaleo / The Rocky

The town of Walden, founded in 1890, was a central point of distributing supplies into North Park. The area is likely to change with the discovery of millions of barrels of oil.

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* CORRECTION: This story incorrectly reported that Enron Oil & Gas changed its name to EOG after Enron's collapse. The company broke away from its parent company, Enron Corp., in 1999 and changed its name before Enron failed.

The bulky industry pickup trucks bounce across the sage-splashed surface like the local antelope - in quick bursts, a few at a time.

They're prowling the wide-open grounds surrounding the tiny north-central Colorado town of Walden, trying to firm up what a Houston-based energy company believes to be a major oil discovery here. It's one that could bring a wave of drilling to a region eager for an economic jump-start.

Many of the 1,500 locals are ecstatic. Walden's little hotels are filled with engineers and surveyors. The Moose Cafe is crammed at lunch hour. The Conoco store rings up fast food and fill-ups. Big rigs of all designs lurch down the streets toward the vast lands of North Park, spilling in all directions outside this isolated clump of human bustle.

"We're a resource-based community," said Mike Blanton, a Jackson County commissioner and convenience store owner, reflecting on the region's history of lumber mills and coal mines. "And this is getting us back to where we need to be."

But groups representing hunters and conservationists are more cautious. They cherish North Park - a million-acre expanse surrounded by spectacular mountains and wilderness - for its wildlife and scenery. They acknowledge the fruits, but warn of the fallout, of yet another pocket of Colorado facing the Rockies' ongoing energy boom.

One company in particular, EOG Resources, formerly known as Enron Oil & Gas, is exploring 100,000 acres of public and private land, hoping to develop what it believes is a find of 10 million to 80 million barrels of oil thousands of feet underground.

The U.S. produces 5 million barrels of oil per day, according to the U.S. Energy Information Administration, but in an era when every drop is precious and valuable, the possibilities of North Park are immense.

Just what impact that might have on North Park's game herds, as well as one of Colorado's largest populations of a threatened high prairie bird known as the sage grouse, isn't clear. Locals are downplaying any coming energy rush as minor compared to elsewhere on the Western Slope, such as the drilling explosion reshaping Garfield County to the south.

But conservationists aren't resting on that assumption. They're eager to engage with EOG, the federal Bureau of Land Management - which oversees federal lands in North Park - and the state Division of Wildlife, to ensure the treasured sporting grounds of the region aren't overrun by new roads, drill rigs, trucks, waste pits and pipelines.

A western coalition of hunters, anglers and some businesses called Sportsmen for Responsible Energy Development has made North Park a priority for protection. They see the region as an opportunity to conduct farsighted environmental planning to map out how drilling might best be done - before a tidal wave of development rolls through.

"The big thing is to get on top of it before it gets trashed, like Pinedale," said Bill Dvorak, of the National Wildlife Federation, during a recent tour of the region.

Pinedale, in southwest Wyoming, has become symbolic for environmental groups combating the torrid pace of natural gas drilling the Rockies. The once-placid town has become one of the heaviest development sites in the West, with more than 2,000 gas wells crowding nearby energy fields.

So dramatic has been development in Pinedale that some studies suggest it has reduced wildlife populations and changed migration patterns. The once-barren corner of Wyoming has even seen drilling-linked air pollution spikes that forced EPA warnings more common in big cities like Denver and Los Angeles.

So far, there's little sign North Park could ever see activity at that scale. And some locals are annoyed at the suggestion: "I think a lot of people are jumping to conclusions as to how much of an impact this is going to be," said Jackson County's administrator, Kent Crowder, clearly irritated with activists sounding alarms.

Back to the future

North Park is no stranger to fossil fuel extraction. The region was home to coal mines and has been drilled steadily for oil and carbon dioxide over the decades of the '50s, '60s and '70s. Even today, a handful of pump jacks extract oil from the McCallum Field, an area that first produced in the 1920s.

So far, any new boom is potential only, as companies do the up-front work to determine whether - and how much - to invest. Executives weigh commodity prices, geology, technological advances and regulatory restrictions in making decisions.

But early rumblings are there. Colorado oil and gas regulators have issued dozens of permits to drill in recent years in North Park. In 2008, the state has issued 23 drilling permits, with nine more pending. Of those, 13 involve EOG. The company was also granted two permits in late 2007.

The company keeps its findings close to the vest but did share some with the The Jackson County Star this spring. It has been acquiring energy leases for six years and continues so-called seismic testing to get a better handle on how much black gold hides below.

"EOG considers the North Park play . . . to be in the early stages of an exploratory project," said company spokeswoman Elizabeth Ivers, in an e-mail exchange with the Rocky Mountain News. "EOG cannot yet determine the success or potential development time frame for the area."

But in a letter to stockholders in February, company CEO Mark Papa called the North Park Basin "another promising . . . crude oil play."

EOG is not alone in its interest. Four other companies were awarded drilling permits this year, and another has permits pending with state regulators.

Even so, with so many variables, it's hard to predict the intensity of development. Oil fields are drilled and developed differently than natural gas fields. And improved technology would make for a lighter footprint, company officials and local leaders say.

"We're not looking at a Garfield County scenario," Blanton said of one of Colorado's fastest-growing regions for gas drilling and the source of numerous concerns from locals weary of truck traffic, pollution, housing shortages and transient workers. "It's a totally different scenario from my understanding."

Thom Kerr, a manager with the Colorado Oil and Gas Conservation Commission, cautioned that the fast-dropping price of oil - it has fallen about 50 percent since a summer peak - and the economic slump that's behind it could blunt any big plans in North Park.

Though the region has potential, he said, "I don't anticipate any great rush, especially in light of prices."

Human need vs. habitat

Hunters and other outdoor advocates aren't taking any chances. When $4 a gallon gasoline returns, and other options for drilling increasingly run dry, North Park won't be immune, they say.

Technology is a doubled-edged sword, too, they note. It was improvements in coaxing natural gas from tight-sand formations in northwest Colorado - and increasing demand for the fuel - that led the industry to pour into once-sleepy Garfield County and the Roan Plateau region around Rifle in the last several years.

"Industry's hungry right now," said Randy Hampton, a spokesman for the Colorado Division of Wildlife.

Perhaps of greatest concern in North Park is the fate of the sage grouse, a sagebrush-dependent bird that studies in Wyoming and Montana have shown can see population losses near drilling sites. In northwest Colorado, such studies aren't complete, but "we're starting to see stuff that raises a flag," Hampton said.

The birds, known for their elaborate mating dance, depend on mating sites called leks. Drilling too close to leks leads the birds to avoid the sites, researchers say.

With North Park home to 20 percent of Colorado's sage grouse population, conservationists are paying close attention to protecting the creature.

"For a species on the decline, this seems to be an important piece of habitat, really a stronghold," said Corey Fisher, a Montana-based activist with the sportsmen group Trout Unlimited.

The grouse's tenuous standing isn't lost on landowners, oil companies including EOG, and government agencies. All are under pressure to keep sage grouse numbers high enough to avoid federal Endangered Species Act protections now under consideration by the U.S. Fish & Wildlife Service. If those rules were to kick in, tougher limits on development in sage grouse habitat could take effect.

In North Park, state wildlife officials have already persuaded BLM to delay leasing key sage grouse habitat to drillers while research continues and regulators consider how best to protect the birds.

Some work also is on hold while BLM updates land management plans to consider new wildlife data.

EOG's Ivers said the company is engaged in aiding the grouse and plans to help pay for state-run study of sage grouse in North Park.

"It's on everyone's radar," said Joe Stout, a Kremmling-based BLM planner. "All the agencies involved are trying to get a handle on what's needed to protect the species."

Locals in Walden say they care just as much about wildlife as conservationists outside the area. They hunt and fish, and want protections, too. But, some say, they don't need outsiders getting in their way of energy drilling.

"You get the environmental groups that want to stick their noses into our business and make up scenarios," Blanton complained. "I own a business in town. You struggle to make it eight months out of the year, and hope you make it off the other four. This (energy development) is going to help business.

"I'm an outdoorsman, that's why I live here. The Front Range thinks we're their playground, but there are people who live here year-round, and they need to make a living, too."

About the town

The small town of Walden sits in the middle of Jackson County, one of Colorado's least-populated, with 1,476 people, according to mid-2007 figures from state demographers.

Once a hub of natural resource production, including timber and coal, Walden is sustained largely by hunting and outdoor recreation, with people attracted to the remote Mount Zirkel Wilderness and Routt National Forest. Some ranching also remains in the region.

It's well known as a place to spot otherwise elusive moose. The town sits amid North Park, a high glacial plain at the headwaters of the North Platte River in north-central Colorado. Historically a Ute hunting ground, the area is just 20 miles from the Wyoming border.

Comments

  • November 8, 2008

    8:55 a.m.

    Suggest removal

    cedykeman1 writes:

    I've been to Walden, it' a little town with nothing but older folks sitting outside the post office, half asleep and saying hi to each time a neighbor walks by.
    It sits nearby some of the best camping and fishing in the nation. Being nearby my camping spot has always been a boon, I've headed there for groceries, beer and you name it several times.

    I'm sure the residents are loving all this new excitment, but I feel that a little piece of america is no longer slowly fading away. Big city money will ruin it, ruin the beauty of the area. The beetles are in the trees and here comes everything else destructive.

  • November 8, 2008

    9:30 a.m.

    Suggest removal

    MamaM writes:

    I totally agree. I go to Walden quite a bit because my family lives there. That is the place I go to get away from the cramped city. Please don't ruin such a peaceful little community!!

  • November 8, 2008

    10:15 a.m.

    Suggest removal

    Darwin writes:

    MamaM, what does your family who live in Walden think about the current boom. I would guess for many of the residents, pro or con depends on whether or not you have a business benefiting from the increase in business.

  • November 8, 2008

    10:47 a.m.

    Suggest removal

    robhamster writes:

    First comment: EOG is not Enron Oil & Gas. They were once owned by Enron, but bought their independance in August 1999 well before Enron was a household name. They are a great company who is responsible and sensitive to the environment and landowners in all things they do. They are the most successful company in the North Dakota Bakken play and have been the model for how things should be done up there.

    Secondly, this oil field development will not be anything like the examples the reporter referred to. Pinedale and the Garfield County gas fields require tightly spaced vertical wells to extract the gas, so the surface footprint is significant. This field will be developed with horizontal drilling that will have very little surface impact.

  • November 8, 2008

    11:58 a.m.

    Suggest removal

    sndmn8119 writes:

    First of all, Walden is not just 'old folks'. One third of the population are still in school, and only 3 or 4 elderly gentlemen sit on the benchs as people pass them by and they say hello. Isn't it nice that they can still do that? The rumble has subsided for now, but the sound of the rigs still goes on. As well, the new Pellet Mill is up and running and snow is flying. The Moose Creek Cafe, still remains the place where you can find out about anything you want to know around town or out too. People in Walden are friendly and proud that we have survived and are growing again. We too hope to remain a quiet community where people who want to get away from the noise and the hustle of the city can come to relax.

  • November 10, 2008

    4:48 p.m.

    Suggest removal

    Snowball writes:

    I live in Walden, and unfortunately, people dwell on the negative too much, when they give feedback. The town isn't all old people, and what is wrong with someone telling everyone hi? They aren't and won't ruin our town with this oil boom. It actually brings money to all of our businesses. This is big for our town. We have many things to do here in North Park, so we aren't just a small town, with old people half asleep sitting outside of the post office. We have fishing, hiking, biking, the sand dunes that are 25 miles of fun, wildlife viewing, hunting, ice fishing, bird watching, 4 -wheeling, cross county skiing, snow shoeing, snowmobiling, guided fishing trips, guided hunting trips, and may more activities. Our small town has many events each year including a balloon festival with art in the park, sage grouse tours, 2 ice fishing contest, one on Lake John and one on Delaney Buttes, 2 snow cross races, a winter golf tournament, a rodeo, a 4-H fair, and the list grows bigger each year. We have a new Medical clinic that is quite impressive and a new pellet factory that makes wood pellets for pellet stoves. Our airport has also made many new improvements. My family welcomes the oil boom. It is just what our town needs.

  • November 11, 2008

    10:26 a.m.

    Suggest removal

    FlyfishDude52 writes:

    I've fished & hunted Jackson County for years. One of the things I enjoyed most was the lack of urbanization. Oil exploration & production probably won't change that. They deserve an economic boost. Jackson County is not one of the most prosperous areas of Colorado & some like it that way. I'm on a first name basis with the lady who owns the liquor store, the guys in the local flyshop, a resort owner AND that's just from a few visits a year! Nice friendly folks.

  • November 25, 2008

    11:25 a.m.

    Suggest removal

    Bihl writes:

    My grandparents lived in Walden for over 50 years and I can remember going there as a kid (and still as an adult) and marveling at the beauty of the Park area. If done correctly, oil and gas production could hold any damage to a minimum. I only hope if this does come to fruition, all the companies involved are held to accountabilty for preserving the beauty of NP.