Fidelity Blames BLM For Pipeline Delay

December 11, 2014
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Oil Well(Moab Utah) Fidelity exploradion officials says as much as 3 million cubic feet of natural gas a day goes up in flames on the Cane Creek oil field outside Moab. Last year, the company burned more than $2 million in natural gas. Fidelity managers want to keep burning — at least in the short term. Blaming delays associated with a Bureau of Land Management permitting process, Fidelity executives appeared before Utah oil and gas regulators Wednesday asking for another extension of their exemption from state flaring limits. Company officials Utah regulators, that BLM managers approved the field’s gathering pipe lines late on Oct. 2 and then insisted the oil and gas developer notify all 321 recreation outfitters that use the Big Flat project area over a three-week period. Fidelity says said those requirements cost the company thousands of dollars and set back construction of a pipeline that is supposed to eliminate the need for flaring. The state, extended Fidelity’s license to flare through March 31, when the company hopes to have a $70 million two-phase pipeline project operational.

Utah environmentalists have argued Fidelity should be ordered to choke back oil production rather than be allowed to torch the natural gas that comes up with the oil.

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