Last updated 12:29AM ET
December 16, 2017
KSUT Regional
KSUT Regional
BP Plans $2.4B Investment Locally
(2007-01-31)
(ksut) - HOST LEAD: Officials with BP say the company will invest more than 2-billion dollars in the San Juan Basin of La Plata County over at least the next decade.
KSUT's Victor Locke Reports.

HOST LEAD: In a news release issued Tuesday, London based BP announced it plans to spend 2-point-4 billion dollars over the next 13-years, in coalbed methane production in LaPlata County.
LARSON: THIS IS A BIG, LONG TERM COMMITTMENT, THAT SAYS BP IS HERE, AGAIN, FOR THE LONG TERM IN LAPLATA COUNTY. WE BELIEVE THAT THIS COUNTY IS VERY IMPORTANT TO THE COMPANY.
Dan Larson is BP's local spokesman.
LARSON: IT'S ABOUT GROWING THE COMPANY AND ITS OPERATIONS HERE IN LAPLATA COUNTY, TO ASSURE US AND THE COMMUNITY THAT WE CAN CONTINUE TO PRODUCE THIS VALUABLE NATURAL RESOURCE FOR THE NEXT TEN YEARS AT LEAST.
BP presently operates 12-hundred wells in the San Juan Basin, plus several other related facilities.
Larson says the investment will mostly come in the form of 700 new wells and related facilities.
The announcement in effect quantifies the efforts of local BP officials over the last two years to seek local and state approval for almost 700 so called "infill" wells at 80-acre spacing.
Many of those wells will be drilled from existing well pads using new technology Larson says will be possible with a new drill rig BP recently obtained.
LARSON: THE NEW RIG DOES A LOT OF THINGS THE OLD ONE DOESN'T. THERE ARE A NUMBER OF IMPORTANT SAFETY AND TECHNOLOGICAL AND FRANKLY ENVIRONMENTAL ADVANCES IN THE NEW RIG.
Larson says a second drill rig the company takes delivery on this summer will allow them to drill at least two new wells each week.
It could take 10-to-13 years to drill all the infill wells which so far have been approved at the state and local level.
The company expects with the new wells, it will remove 1-point-9 trillion feet of gas from LaPlata County.
The stepped up activity means BP's local workforce will also grow by about 100 employees to 370.
And Larson says that means the company will construct a new office building near its present facility at the airport.
LARSON: THE NEW OFFICE BUILDING WE'RE LOOKING WILL BE LOCATED DIRECTLY SOUTH OF THE EXISTING BUILDING. WE WILL HAVE TO MOVE SOME OF OUR STORAGE YARD AREA ROUND A LITTLE BIT. WE'VE ACQUIRED SOME PROPERTY OUT THERE TO DO THAT. WE WILL BREAK GROUND ON THE BUILDING SOMETIME LATER THIS YEAR DON'T KNOW EXACTLY WHEN. THIS BUILDING COULD BE AS BIG AS 75-THOUSAND SQUARE FEET, GIVE OR TAKE. THIS WILL BE AN OFFICE BUILDING THAT OUR WORKERS AND FRANKLY THE COMMUNITY, CAN BE PROUD OF.
It's not known how much the new building will cost.
BP has also announced plans to donate several million dollars to community organizations in three targeted areas.
LARSON: WE ARE ANNOUNCING THE ALLOCATION OF UP TO SIX MILLION DOLLARS OVER THE NEXT FIVE YEARS. WE WANT TO MOVE THE NEED ON IN SOME OF THESE PROJECTS THAT WE BELIEVE ALIGN WITH OUR COMPANY'S GOALS OF EDUCATION, EMPLOYEE COMMUNITY ENGAGEMENT AND OF ECONOMIC DEVELOPMENT.
Larson says specific grant recipients will be decided later.
The investments BP is promising in Southwest Colorado, are in addition to the companies announcement earlier this month to spend 8-billion dollars in alternative energy businesses including a 300-megawatt wind power generation plant.
That facility, will use 274 wind turbines in Weld County to provide enough power for 120-thousand homes.
It could be in operation by later this year and would be Colorado's largest wind farm.
For KSUT, Four Corners Public Radio, I'm Victor Locke.
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