--> Abstract: No Title Available, by C. R. Noll and C. Bondurant; #90987 (1993).
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Previous HitNOLLNext Hit, C. R., and Previous HitCHARLESTop BONDURANT, Texas Energy and Environmental, Inc.,

ABSTRACT: NO TITLE AVAILABLE

As an Independent Geologist I developed a shallow prospect on HBP acreage located in a coastal Texas county that falls within the area covered by the Oil Spill Prevention and Response Act of 1991.

The property was to be made available at auction. To determine its value, I considered not only remaining reserves from currently producing zones, additional behind-pipe reserves, and the upside potential from my shallow play, but I also considered the environmental liabilities and what future costs may arise from them. This required an Environmental Site Assessment, made by a professional, and an estimated dollar amount factored into the economics to cover the cost of future site remediation. The impact of this on the deal is an important issue.

I was successful in acquiring the producing property, and now had a shallow prospect to drill and environmental considerations to take into account. I had to apply to the GLO for a Discharge and Response certificate for my "facility" operations, which could not continue otherwise after January 1, 1993. Also required was an NDPES permit (Clean Water Act) for the facility.

A discovery well was drilled on the shallow prospect as well as a

development program plus successful workovers of the older deeper wells. Good reserves were developed and a positive cash flow resulted from the project, while conducting operations in an environmentally sound manner. Now I am planning to divert some the the cash flow to remediate some of the environmental problems that were acquired when we purchased the older producing property, and if the original production projections were risked adequately, the generator, investor, and environmental agencies will have been satisfied.

AAPG Search and Discovery Article #90987©1993 AAPG Annual Convention, New Orleans, Louisiana, April 25-28, 1993.