American Oil and Gas Reporter - June 2017 - 38

SpecialReport: Pad Operations
The Weld County seat is Greeley,
which the U.S. Census Bureau defines
as the fourth fastest-growing metropolitan
statistical area in the nation, gaining 3.5
percent population between 2015 and
2016. The region's population growth,
driven in no small part by flourishing
drilling activity, has brought houses and
businesses into areas where pumpjacks
once stood alone.
As operators have mapped the prolific
Niobrara and Codell formations, they
have recognized that many of the best
reserve opportunities are underneath
Greeley and other towns along the Front
Range. To access those reserves before
the surface areas overlying them are lost
to urban growth forever, companies must
drill, complete and produce wells even
as residential and business districts are
being constructed around pad sites, and
demonstrate to local citizens exactly
how oil and gas companies can be good
neighbors.
Operating in urban areas requires a
delicate touch, due diligence, advanced
technologies, a commitment to working
with local community leaders-and more
often than not-a willingness to take extraordinary measures to reduce operational
footprints and minimize inconveniences
on local residents. However, it also presents win-win opportunities for all parties;
the metrics operators use to measure success, such as well counts and production
growth, translate directly into the type of
economic statistics city governments use
to measure progress, such as new housing
counts and job growth.
The official Weld County website says
it all: "Horizontal drilling has brought
new life to the energy industry in Weld
County. The positive economic impact
oil and gas has had on the county has
been tremendous. Schools, fire districts,
libraries as well as county and municipal
governments all benefit from this recent
oil boom . . . Other benefits of the boom:
Weld County has no long-term or shortterm debt, no county sales tax, a low mill
levy compared to neighboring counties,
and is able to pay for long-term projects
with cash."
In Weld County and other areas along
the Front Range, independent oil and gas
38 THE AMERICAN OIL & GAS REPORTER

companies, local governments, business
leaders and private citizens are proving
every day that the buzz and hum of oil
and gas development can harmonize
seamlessly with the hustle and bustle of
urban expansion.
Community Responsibility

At the heart of Denver-based SRC
Energy Inc.'s operations across its 60,000net acre leasehold in the greater Wattenberg area is an overarching commitment
to "community responsibility" to explore,
develop and produce oil and natural gas
in the safest and most environmentally
responsible manner possible, according
to Lynn A. Peterson, chairman and chief
executive officer.
SRC plans to drill 116 gross horizontal
wells in the Wattenberg this year, including
74 "mid-length" laterals with an average
effective length of 7,500 feet and 36
"long-length" laterals with an average
effective length of 10,000 feet on spacing
that potentially allows as many as 24
wells a section. The targeted reservoirs
are the Niobrara A, B and C benches, as
well as the Codell formation, but Peterson
says SRC Energy sees future potential in
the Greenhorn, J Sand and other intervals.
"We take great pride in going over
and above mandated regulations for the
safety and benefit of our employees, our
community and our environment," Peterson says. "We believe our sensitivity
to the needs of the communities in which
we work forms the foundation for very
positive relationships within those cities
and towns."
The effort to address those needs includes air and water quality monitoring,
noise and light suppression at drilling
and completion sites, operational practices
to contain silica dust from proppant and
road dust created by well site traffic, and
on-site automation technology to remotely
monitor the safety of each location 24
hours a day, seven days a week.
"Obviously, we care very deeply about
our employees' health and safety in what
potentially can be hazardous environments.
With that in mind, we view regulations
as minimum requirements to keep our
employees, the community and the envi-

ronment safe," Peterson relates. "If your
goal is to do the minimum to get by, you
leave no margin for error, and there is
far too much at stake to have such unexceptional goals. We foster the culture of
safety at every level within SRC and require the same from our service providers."
The company launched horizontal
drilling operations in 2013 with five horizontal wells on the Renfroe pad. From
the start, the focus was on applying advanced technologies and techniques to
not only improve efficiencies, reduce
cost and maximize production, but also
to minimize the impact of drilling, completion and production operations on the
landscape and nearby communities-including noise, lights and traffic, which
Peterson says are the most frequent complaints from local residents.
SRC Energy's operations this year focus on its acreage to the northwest of
Greeley, a predominantly agricultural
area in which the majority of well sites
will be 1,000 feet or more from any
surface structures. "We strive to maintain
the maximum setback distance that we
can-at least 500 feet-which often results
in drilling from surface locations that
lead to more complicated well plans,"
Peterson offers.
Minimizing Impacts

The first step in limiting operational
noise and visual disturbances is erecting
temporary, 32-foot sound walls around
well locations. "This dramatically reduces
noise and light output from our operations.
We also work closely with our service
providers to integrate noise reduction
modifications on drilling rigs as well as
pressure pumping equipment," Peterson
explains.
He adds that SRC continually monitors
the lights emanating from drilling and
completion sites, and modifies lighting
to reduce the impact outside the immediate
work area while maintaining a safe, welllit working environment at all times.
To protect local freshwater aquifers,
Peterson says surface casing is set to a
depth of 1,700 feet and cemented in place
to provide an initial barrier. "Furthermore,
before any completion operations begin,
we cement production casing from the
American Oil and Gas Reporter - June 2017

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