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


Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...

Reduce Engineering Project Complexity

Engineering document management presents unique and complex challenges. A solution based in Enter...

Revolutionizing Asset Management in the Electric Power Industry

With the arrival of the Industrial Internet of Things, data is growing and becoming more accessib...