N.M. sees pipeline proposal

A Colorado company proceeds on its push to transport oil.

albuquerque » As the national debate over increased oil and gas development wears on, an area in the Four Corners region long known for its natural gas deposits stands to be the next flashpoint as a Colorado companymoves forward with plans to build a 140mile pipeline across northwestern New Mexico that would be capable ofmoving 50,000 barrels of crude oil a day.

The Bureau of Land Management is considering whether to permit the project by Saddle Butte Pipeline LLC. A public meeting was set for Thursday evening in Lybrook, N.M., but it could be early next year before the agency makes a final decision.

The San Juan Basin, an area that straddles the New Mexico-Colorado state line, is on the verge of a shale-oil boom, according to industry experts. They say a new pipeline would ensure the oil developed as a result gets to market.

Saddle Butte’s project would be made up of dozens of miles of smaller pipelines thatwould be used to gather crude oil at well pads and other points. A larger pipeline would move the oil south to a distribution center near Interstate 40 in western NewMexico.

Environmental groups are concerned that approval of the pipelinewould open the door to at least a fivefold increase in production in the San Juan Basin.

“This is unprecedented,” said Mike Eisenfeld of the San Juan Citizens Alliance. “There are a lot of unanswered questions. They’re talking about an enormous amount of pipeline capacity. We, like everybody else, want more information and we want it scientifically analyzed, not just a boilerplate environmental assessment.”