"The rocks are viable for production"

So saith Rich Masterson, the consulting geologist to Torchlight Energy Resosurces, and perhaps the father of the coming decimation of the Otero Mesa/Diablo Plateau ecosystem just next door to El Paso, Texas.

Masterson is quoted in a July 5, 2016 newsroom report from Market Wired: Torchlight Announces Scientific Information on University Founders B-19 Well #1 in Orogrande and Plans for Completion. Founders B-19 Well #1 is one of Torchlight's test wells in Hudspeth County just across the county line from El Paso, Texas. Here's a longer quote from Masterson cited by Market Wire:

"We are encouraged with the initial results from the scientific component of the Founders B-19 #1 well," stated Rich Masterson, Torchlight's consulting geologist. "The scientific information gathered to date gives every indication that the University Founders B-19 #1 well is as good or better than the Rich A-11 #1 well. To this point in the geological evaluation, rock brittleness looks very good with low frac gradients, good oil cuts in samples and cores and excellent porosity and matrix permeability for oil shales. We are also seeing good calcite and dolomite cementation and low clay content. The University Founders B 19 #1 well is comparing closely to analogies in the Midland Basin Wolfcamp A and B and Lower Spraberry. Production will be validated once the frac is delivered in the coming weeks and providing a successful frac is delivered, the rocks are viable for production."

". . . the rocks are viable for production." Read it and weep. Now here is more to make you really bawl and tremble: the investment community is catching on. 

In his energy report for Streetwise Report, Shining a Light on Torchlight Energy, Bob Moriarty had this to say yesterday about Torchlight: "At $70-$80 oil Torchlight would probably be a billion dollar company." (In case you haven't noticed, the price of oil is leaping upwards.)

The current price (right now as I type this) for TRCH on the NASDQ is $1.30. If you are into fracking, here is a bargain. If you aren't and shouldn't be, then you may want to do some trips soon from the Huecos to the Guadalupes to enjoy the beauty of the mesa. Before too long that beauty will be gone.

So where's the water coming from?

In my last post I linked to stories in the Hudspeth County Herald which claimed that Torchlight Energy Resources (our local frackers) were getting between 80,000 to 84,000 gallons of water per day from the City of El Paso for one of their fracking wells. Yet El Paso Water Utilities has not sold any water to Torchlight. That leaves local water haulers. However Mr. John Balliew, CEO of the EPWU, points out that the two independent haulers who buy water from the utility could not possibly be supplying that much water to Torchlight if at all.

According to Balliew, although haulers don't specify what they do with the water that they buy from the utility, most of the water hauled is for construction purposes - dust control and compaction.

There are two haulers who serve the Colonias - Lujan Trucking and Mountain View Water Haulers. Balliew said that they each average about 12,500 gallons per day. That is "about the consumption of one apartment complex with a 3" meter or perhaps 75 single family homes," Balliew told me. 

"If they are hauling to the frackers they cannot be hauling much water to the Colonias and vice versa," Balliew said. 

Since the amount of water bought by haulers isn't out of the ordinary, it does not warrant taking any action by EPWU to limit the amount of water which it sells to the haulers. 

So, where does the water come from? John Turner, the Rancher, or perhaps Horizon Regional M.U.D.?

Checking.

21,840,000 gallons of water from El Paso to frackers per well per year

Water hauling is a legitimate and necessary business. More than just the colonias which need water, the construction, quarrying and other businesses need water to keep dust down. But how much water should go to Torchlight Energy Resources which is fracking just ten miles from El Paso on the Diablo Plateau, the same geographical area as the Otero Mesa depending on whether you are in New Mexico or Texas.

According to the Hudspeth County Journal, Torchlight's first test well required 80,000 gallons of water per day purchased from the City of El Paso. It turns out that the City (El Paso Water Utilities) did not sell water to Torchlight nor has a metered pipe running to the well. The Journal has yet to edit their online story to reflect this fact. Yet, where did the water come from? Water haulers purchase the water from EPWU and re-sell it to their customers. (This does not include water purchased by CEMEX or TxDOT or such.) There are three TCEQ licensed water haulers in El Paso County.

Hudspeth County Journal did do a follow-up story. The drill site superintendent, Jesus Garcia, was quoted as saying that 84,000 gallons of water a day was needed. Rancher John Turner had been supplying some of the water but his well couldn't pump enough water fast enough for the operation and he had to cap sales in order to meet the needs of nearby Deer Mountain Estates. Jobe Materials also could not supply water as needed.

If 84,000 gallons of water is correct, then, in the course of a year, each well being fracked just outside of El Paso will need almost 22 million gallons of water per year and that's just one well. (52 weeks X 5 business days per week X 84,000) Remember that Torchlight could eventually have 2500 wells. That's 55 billion gallons of water each year! And that is the amount of water necessary just for test drilling not for the actual extraction of gas and oil by fracking.

There would be no record of EPWU selling to Torchlight because Torchlight is getting its water from intermediaries - the water haulers. For a city that needs to protect its scarce resource of water, 22 million gallons of water per year per one fracking well is just too much not to mention 55 billion gallons per year if all 2500 test wells are drilled. 

Do not expect Torchlight Energy Resources to go away. According to a recent Market Wired report, Torchlight has maximized its liquidity and limited its exposure to debt. This capital structure has insulated them from the recent price fluctuations in oil and gas. In addition, they have a farm-in agreement with Founders Oil and Gas regarding their fracking in Hudspeth known as the Orogrande Project. "Torchlight will receive payment of $500,000 per well for each of the next 8 wells and through the Farm In agreement the Orogrande project is fully capitalized for development over the next two years."

Expect Torchlight to drill 8 more test wells in 2016.

Shouldn't the PSB consider capping how much water the water hauling intermediaries can purchase over a period of time?

Torchlight Energy Resources Isn't Going Away

USGS map shows Monday's quake centered 40 miles north of Oklahoma City. Click image to enlarge.

Two pieces of bad news for environmentalists on the fracking front just a few miles from the El Paso County line: Torchlight Officials “Elated” By Test Well Results – Company Seeks Partner to Develop “Major New Oil Field”. That's the headline and story from the Hudspeth County Herald less than two weeks ago. Now this from a stock risk assessment news site: Torchlight Energy - A NewCo Turnaround Story That's Been Derisked. 

In short: Torchlight has solved its financial problems and they have struck paydirt at their first test well just over the hill from Hueco Tanks. That's the first test well. They anticipate 2,499 more to go and they are seeking help from bigger frackers.

Keep this information in mind as you read about Monday's 4.0+ earthquakes in Oklahoma.


Please support elpasonaturally©. Go HERE to donate and help turn El Paso "green".

Guess Where the Water Will Come From

Here's an interesting story: Water Use for Fracking Has Skyrocketed, Stressing Drought-Ridden States. Now that fracking has begun just over the hill from El Paso on the Diablo Plateau/Otero Mesa and there will be at least a second well before December, guess where the water will come from.

There's still an online anti-fracking petition. Sign if you haven't. Tell your friends and family members.

Environment Texas Targets Fracking Practices on University of Texas Land

If the University of Texas won't stop fracking on its land, Environment Texas at least wants them to adopt best practices according to Director Luke Metzger. Environment Texas' efforts include the Diablo Plateau next to El Paso where Torchlight Energy Resources is currently drilling its first test well just 10 miles east of El Paso County. 

Metzger earlier this year spoke with UT Chancellor Bill McRaven who signaled agreement. Best practices include capturning the methane gas and recycling the water. 

Metzger is meeting with the UT Student Body President today. 

On June 19th the Hudspeth County Herald reported that Torchlight Energy Resources dodged a possible bankruptcy and is excited about the findings from their first test drill. A second test well must be drilled by December 31, 2015 according to the terms of their lease from University of Texas System lands. At this time though they may begin producing from their first drill before doing any more drilling. 

Earlier this year the El Paso County Commissioners Court passed an anti-fracking resolution.

WHEREAS, it is the desire of the El Paso County Commissioners’ Court to protect the environment and the natural resources of our region; and

WHEREAS, hydraulic fracturing of underground geologic formations is often accomplished by injecting a complex mix of fluids and chemicals, including large volumes of water, on average 4.5 million gallons per well, under very high pressure to create fractures in gas bearing geologic formations; and

WHEREAS, many of the chemical constituents injected during hydraulic fracturing have documented adverse health and environmental impacts to also include threatening the long term economic well being in communities as businesses and consumers depend on clean drinking water; and

WHEREAS, hydraulic fracturing exposes land and surface waters, like rivers often used as a supply for drinking water, to the risk of contamination through open pit storage, truck transport on roadways, and activities during well development; and

WHEREAS, the Fracturing Responsibility and Awareness of Chemicals Act (“FRAC Act”), currently pending in Congress, would require disclosure of chemicals used in fracking which is currently exempt; and

WHEREAS, the Bringing Reductions to Energy's Airborne Toxic Health Effects Act (“BREATHE Act”), currently pending in Congress, would hold oil and gas operators accountable for the toxic substances they release which is currently exempt; and 

WHEREAS, El Paso must protect its precious water supply against contamination of above ground water sources and underground aquifers and destruction of ecosystems with toxic compounds by opposing harmful activity like hydraulic fracturing.

NOW, THEREFORE, BE IT RESOLVED that on the 27th day of April 2015, the El Paso County Commissioners Court supports the FRAC Act and BREATHE Act. 


SIGNED, this 27th day of April 2015


You can still sign our anti-fracking petition and ask others to do so as well.

Another Carlsbad NM Next to El Paso?

This is a Google Earth image of the once pristine land near Carlsbad. Do we want Otero Mesa/Diablo Plateau to look like this? Click image to enlarge. 

If Torchlight Energy Resources successfully drills all of the 172,000 acres on the Otero Mesa/Diablo Plateau, Hudspeth County will look like land around Carlsbad, New Mexico which once was pristine. Watch Torchlight's own slideshow of maps HERE to see just how big that 172,000 acres is and how close to El Paso.

They're Here!

Torchlight Energy Resources has begun their destruction of the Texas side of the ecologically valuable Otero Mesa with its rich biodiversity. (Sadly ironic Otero Mesa is called the Diablo Plateau on the Texas side.) You can read more about the project HERE. The waitress at the cafe in Cornudas reported that all the rooms in Dell City are full with people working on this and other drilling projects. The following pictures are courtesy of John and Camilla Walton.

The turn-off

Alamo Mountain on left, Wind Mountain in the middle. Facing East, New Mexico border is the fence, Texas to the right. Newly widened road. The road is probably the largest impact. Large amount of slow growing natural vegetation removed.

After 6.3 miles of the road from the junction at Loma Linda Road at Texas/New Mexico Border, the pad.

Spudding then Fracking?

Sad but true. Read it and weep. Here's the story:

Torchlight Energy Begins Drilling First Well in Its Orogrande Project

Coincidence? Frack No!

You have probably heard about the spate of earthquakes in recent days around Irving, Texas and again in Oklahoma. What's going on? Take a look at a few maps:

Irving Texas is right on the borderline of a major fracking area - the Barnett Shale Basin.

Oklahoma earthquakes are in the midst of fracking sites.

Fracking and earthquakes - a coincidence? Frack No! Watch this video:




Fracking is the smoking gun. Research in Ohio confirms the relationship between fracking and earthquakes. Even conservative Forbes has picked up on the story.

We need to think twice before welcoming Torchlight Energy Resources to Hudspeth County. Of course, they may not be in business long. Their stock prices sank to sixty-seven cents a share today. 

TWDB May Do Much Good but Does It Always Tell the Truth?

The Perry appointed Texas Water Development Board may do much good with the dispersal of SWIFT (State Water Implementation Fund for Texas) funds, but does it always tell the truth?

Daniel Borunda reported in a story in today's El Paso Times that TWDB Chariman, Carlos Rubenstein, said at a meeting at El Paso's TecH20 center yesterday that "state funding will pump millions into water projects in the region the chairman of the Texas Water Development Board said Wednesday during a meeting in El Paso."

Borunda also wrote that "John Balliew, the president and chief executive officer for El Paso Water Utilities, said EPWU will seek SWIFT support for an expansion of the Jonathan W. Rogers Water Treatment Plant, an advance purification system to turn waste water into high-quality drinking water and systems to capture "tail water" or unused water."

All of the above is good. Read the Times story. Judy Ackerman emailed me these notes about the high points of yesterday's meeting:

"About 50 attendees including Jesus “Chuy” Reyes, Edward Drusina (IBWC Commissioner), Pat Gordon (Rio Grande Compact Commissioner).

"Senator Rodriguez introduced the only speaker:  Carlos Rubinstein, Chairman of the TX Water Development Board.  

"The main point was how to apply for SWIFT $s, who can and when.

"In his opening remarks, Rubinstein mentioned the Rockefeller Resilience award given to El Paso - kudos.   He said “No issue is more important to TX than water.”  The State Water Implementation Fund for Texas (SWIFT) will “ensure water for 50 years.”

"By legislation, they must use At Least 20% of the funds on Conservation and Reuse (which includes lining of irrigation canals and municipal water line losses).  At Least 10% of funds must go to Rural communities and agriculture.

They are working on the issue of assigning capital costs to conservation.  (what is the dollar value of water lost to seepage in open irrigation ditches, etc.)

"Sierra Club is in the conversation with TWDB on conservation issues.

"Sen Rodriguez’s question:  what about Fracking and water use? 

Answer:  Statewide, fracking uses only 1% of TX water.  Expect frackers to use more brackish water.  Frackers may receive “incentives” to reuse their water.

"TWDB hosts meeting for innovative ideas on water and they are always packed."

The emphasis on fracking is mine. If Rubenstein and the rest of the TWDB believe that fracking only uses 1% of Texas water, he and they are either not telling the truth or they are misinformed, deceived or having pipe dreams. Because of the incestuous relationship that Texas Republican government has with big oil, I unfortunately believe that they are not telling the truth and are attempting to deceive us.

Read my two posts about the math of fracking water consumption HERE and HERE. 

Coincidentally to yesterday's TWDB meeting, Governor Cuomo of New York announced that his state was banning fracking because of health and environmental concerns. Also yesterday, Politico ran this report about the Texas energy revolt especially in Denton, Texas which banned fracking in a vote last November. 

I'm sure that Senator Rodriguez's question to Rubenstein was inspired by elpasonaturally's exposure of plans by Torchlight Energy Resources to frack on the Diablo Plateau (part of the same ecosystem as the Otero Mesa) mere miles beyond Hueco Tanks and the city limits of El Paso.

Keep in mind that El Paso Water Utilities may sooner than later be importing water from that plateau in Hudspeth County. We have to ask how Torchlight or any other fracker will pollute that groundwater. The TPWD should be asking the same question and, rather than enabling the fracking industries destruction of the scarce commodity of water, it should be fighting it. Unfortunately, big oil elects governors of Texas along with Railroad Commissioners, Land Commissioners and governors appoint the TWDB members.

Be sure to read a November press release by TWDB announcing the adoption of the final rules for the State Water Implementation Fund for Texas (SWIFT). Be sure to click on the links on the bottom of the release and read the information.

BTW a group of El Pasoans involved in the Texas Water Captains initiative met on Wednesday at the Columban Mission Center.

Fracking Guzzles Water and Hurts People and Other Living Things

It was good to see that the El Paso Times finally caught on to the story about fracking next to El Paso. It is also good to see that they are reading this blog and published its URL.  The article did bang the booming business drum as elpasonaturally previously predicted it would. The Times previously printed this editorial cartoon:

Opposing big oil makes us conservationists and environmentalists "nutjobs" and "extremists". I suggest that the real nutjobs are those who think petrol jobs outweigh the damage to the public health, safety and welfare and the damage to the environment (which further erodes the public health, safety and welfare.) Create jobs, yes. But create jobs that don't wreak havoc with our lives, water and environment.

So, on the same day that I read the Times piece, I was emailed (thanks, Marshall) this story from Reader Supported News:


Fracking Wells Guzzle Water in Drought-Stricken Regions
By Anastasia Pantsios, EcoWatch
26 November 14


The fracking industry likes to minimize the sector’s bottomless thirst for often-scarce water resources, saying it takes about 2-4 million gallons of water to frack the average well, an amount the American Petroleum Institute describes as “the equivalent of three to six Olympic swimming pools.” That’s close to the figure cited by the U.S. Environmental Protection Agency (EPA) as well.

But a new report released by Environmental Working Group (EWG) located 261 “monster” wells that consumed between 10 and 25 million gallons of water to drill each well. Among the conclusions EWG teased out of data reported by the industry itself and posted at fracfocus.org is that between April 2010 and December 2013, these 261 wells consumed 3.3 billions of water between them, a average of 12.7 million gallons each. And 14 of the wells topped 20 million gallons each.

“It’s far more relevant to compare those figures to basic human needs for water, rather than to swimming pools or golf courses,” said EWG’s report. “The 3.3 billion gallons consumed by the monster wells was almost twice as much water as is needed each year by the people of Atascosa County, Texas, in the heart of the Eagle Ford shale formation, one of the most intensively drilled gas and oil fields in the country.”

And proving that everything really is bigger in Texas, that’s where most of these monster wells were located, hosting 149 of them. Between them they consumed 1.8 billion gallons of water. The largest was located in Harrison County on the east Texas border, where in March 2013, Sabine Oil & Gas LLC drilled a well using more than 24.8 million gallons of water. Irion County in west central Texas had the most monster wells with 19 averaging water use of 12.9 each. And Texas also had what EWG described as the “dubious distinction” of using more fresh water in fracking, consuming 21 million gallons in 2011 alone.

Pennsylvania had the second largest number of these monster wells with 39 located in that fracking-boom state atop the Marcellus shale formation. It was followed by Colorado (30, including 8 of the 15 biggest water consumers), Oklahoma (24), North Dakota (11), Louisiana and Mississippi (3 each) and Michigan (2).

EWG also found that 2/3rds of the monster wells were in areas suffering from extreme drought, including 137 of the ones in Texas.

“Like almost all of the Lone Star State, Atascosa County, south of San Antonio, is in a severe and prolonged drought,” said EWG. “Last year, the state water agency cited oil and gas exploration and production as a factor in the dramatic drop of groundwater levels in the aquifer underlying the Eagle Ford formation.”

That’s a huge problem for a state with a growing population and a big agriculture industry, including a large, water-intensive cattle-raising sector, resulting in conflicts over water use likely to intensify in the future.

The EWG report cautions that their estimates of fracking water use may be low.


“There is no way of knowing just how much water is being used for fracking, however, because while the controversial well stimulation technique is known to be used in 36 states, only 15 require reporting to FracFocus, and none of the numbers that do get reported are vetted by any kind of regulatory agency or independent authority,” it said. “Even the data that does get reported is incomplete. EWG says that for 38 of the 261 monster wells, FracFocus did not even identify such basic information as whether the wells were drilled for oil or natural gas, or what kind of water they used.”


By the way, read Doing the Math by elpasonaturally if you want to get a good picture of just how much water Torchlight Energy Resources will consume for fracking up the Diablo Plateau.

Who are the nutjobs?

Sign and Share the Petition against Fracking next to El Paso

Map taken from El Paso Inc., Searching for Shale Oil in Hudspeth County, Edgar Gonzalez, graphic artist. Note that the "prospect" is just over the hill literally from Hueco Tanks. Click on the image to enlarge.

Of the 172,000 acres Torchlight Energy Resources has leased for fracking in Hudspeth County next to El Paso, most of the land is owned by the University of Texas System. Click on the image to enlarge. 

Stop Fracking next to El Paso, Texas

Sign and Share the Petition

Fracking endangers the health, safety and welfare of people, pollutes the air and ground, results in rising crime and social and medical costs, utterly destroys ecosystems and permanently contaminates underground aquifers with toxic compounds and consumes billions of gallons of water. Yet, just a few minutes away from the city limits of El Paso, Texas a major metropolitan area of 675,000 people, and a few miles from the farming community of Dell City, Texas, the University of Texas System has leased over a hundred thousand acres to Torchlight Energy Resources, Inc. for the sole purpose of fracking. Torchlight Energy says that it may drill up to as many as 2500 wells on this area immediately east of El Paso called the Diablo Plateau which, with the Otero Mesa in New Mexico, forms a rich ecosystem of plants and animals. Torchlight Energy Resources must not drill there. The University of Texas Lands System must not allow them.

Please sign and share this petition.