Dunn ignores sinkhole risk in Carlsbad

Land Commissioner Aubrey Dunn, who has commented on the legislative effort to direct the use of money in the oil and gas reclamation fund in support of fixing the Carlsbad brine well, is uninformed about the comprehensive mandate for the use of the reclamation fund. Two proposed bills seek to use funds from the oil and gas reclamation fund to help fix the brine well cavity in Carlsbad, which is located beneath the town’s busiest intersection and is in danger of collapsing.

The following are excerpts from legislation that make the purposes of the reclamation fund uses clear:

“Performing the plugging of abandoned wells that have not been plugged or improperly plugged and for the restoration or remediation of abandoned well sites and associated production facilities that have not been restored or remediated. …”

“‘Associated Production Facilities’ means those facilities used for, intended to be used for or that have been used for the production, treatment, transportation, storage or disposal of oil, gas, brine, product or waste generated during oil and gas operations or used in the production of oil and gas. …”

The State Land Office, run by Dunn, receives billions from the oil and gas industry annually that accrues to the State General Fund, predominantly for education. In the very prolific oil and gas Delaware Basin, saturated brine must be used in the drilling process to drill through the 2,000-foot layer of salt in our area.

Dunn’s assertion that permits to drill should be discontinued until all wells on state land are capped ignores the reality that education, the mission of the Land Office, desperately needs the money from oil and gas.

Why hasn’t Commissioner Dunn required sufficient financial assurance for every well, associated facility or operation so that, frankly, no reclamation is even required? The money for reclamation is already in the bank. The state presently requires financial assurance for reclamation for virtually any activity related to mining, surface disturbance or hazardous material use.

The Reclamation Fund, which is specifically designated for the above purposes, has been hijacked for the purpose of paying salaries and operations in the energy department, rather than for the purposes it was intended. And, even more egregious, when oil prices were over $70 a barrel, the fund generated an additional $11 million, which is being frittered off for other budgetary purposes.

The I&W Brine Well was permitted by the state and was inspected on a routine basis by the Oil Conservation Division of the energy department. The criteria for depth and width of a brine well cavity clearly should have been part of any state inspection to guarantee the health and safety of workers and the public.

I&W’s assets, insurance and property were confiscated by the bankruptcy court, distributed to creditors to absolve debts and pay for some preliminary geology studies. Dunn, I assume, knows quite well a corporate veil cannot be pierced, so it is not as simple as saying I&W should have paid for the problem. Perhaps, the State Land Office would like to purchase the property and assume responsibilities for remediating the brine cavity?

The land commissioner fails to see the big picture as it relates to all businesses and communities interacting with each other and the state. We all recognize he has a constitutional job to do, but it is hard to support a state land commissioner who ignores such enormous catastrophic problems like our brine cavity in Carlsbad, an issue with devastating statewide ramifications.

John Heaton is chairman designee of the Carlsbad Brine Well Authority.