Bill Barrett enters into settlement agreement on Cottonwood Gulch asset

Bill Barrett Corp.

Bill Barrett Corp. (NYSE: BBG) has entered into a settlement agreement with the US Department of Interior and certain conservation organizations regarding its Cottonwood Gulch natural gas asset located on the Roan Plateau of Northwest Colorado.

Under the settlement, the Department of Interior cancels approximately 36,000 gross acres of the 40,650 gross acres under lease and Bill Barrett Corp. receives a lease bonus refund of $42.3 million net to the company.

The funds are expected to be received in the first quarter of 2015. The company will retain a 90% interest in 4,650 gross acres, which it considers the most prospective leasehold acreage as it immediately offsets existing production and infrastructure. The settlement accelerates the timetable for future access to this and other third-party acreage at the base of the plateau and reduces the potential for future environmental challenges to development of potentially significant natural gas reserves.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now


Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...