Karnes County Explosion Proves Costly

Encan Corp Q1

Almost one month after a fiery oil rig explosion in Karnes county, Encana Corp released final figures to state regulators.

Encana Corp. reported that the accident released over 760,000 pounds of crude oil and possibly tens of thousands of pounds of gas and into the air. The company estimates that the crude was worth more than $197,000.

The county sheriff called the May 19th accident the ‘worst environmental disaster in more than 20 years’, leaving trees, fields, roads and houses covered in oil and displacing numerous families.

Related: Karnes County Accident Worst in 20 Years

The clean up has been a massive effort and has included subcontractors to control runoff, pump out nearby stock tanks, evaluate livestock, take soil samples, evaluate vegetation, clean homes and repair nearly half a mile of roadway on FM 792.

First quarter results for Encana show improved production and lower costs for its Eagle Ford operations. Highlights include:

• Drilled its fastest three wells to date and reduced normalized drilling costs by 15%
• Reduced drilling and completion costs by $1 million per well
• Promising early results from new wells in an area known as the Graben
• Base optimization efforts reduced decline rates by 50%
• 27 net wells were drilled
• Liquids production averaged 36,000 bbls/d

Read more at encana.com

Pipeline Explodes in DeWitt County

DeWitt County Pipeline Explosion

An underground pipeline belonging to Energy Transfer Partners exploded late Sunday in DeWitt County near the town of Cuero.

The explosion sparked a massive fire and caused several area homes to be evacuated as a precaution. There were no injuries and all residents were able to return home safely.

Clean-up from the blast will involve crews replacing sections of the pipeline that were damaged. include repairs on a stretch of roadway that melted under the heat of the fire as well as

“Sheriff Zavesky said the fire died down around 11:30 pm Sunday, but a trench where the affected pipeline was buried could still be seen smoldering on Monday afternoon.”

— The San Antonio Business Journal

Officials from Texas Railroad Commission, Energy Transfer Partners and county officials are investigating the accident.

This is the second explosion of its kind in the Eagle Ford since the beginning of the month. An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Related: Karnes County Accident Worst in 20 Years

Karnes County Accident Worst in 20 Years

Karnes County Well Explosion

An accident at an Encana Corp well last month is still wreaking havoc on a small area of Karnes County.

Related: Eagle Ford Well Explodes

In what the county sheriff is calling the worst environmental disaster in more than 20 years, the well blow-out displaced numerous families and left trees, fields, roads and houses covered in oil.

The clean up effort is proving costly and has included resurfacing more than half a mile of roadway of FM 792. Encana is also making a full environmental assessment of the area including bringing in veterinarians, soil testers and arborists.

“More than two weeks after the accident, a line still separates green and lush vegetation nurtured by recent rains from brown trees and grass that were soaked by condensate and natural gas. Leaves on the trees and bushes are black and remain coated with a slick oily substance.”

— The San Antonio Tribune

Encana spokesman Doug Hock confirmed that there are five households that are still not able to return home and another couple of unoccupied homes that are not yet accessible.

Eagle Ford Well Explodes

Well Explodes

An Eagle Ford oil well exploded Tuesday afternoon and forced the evacuation of several nearby homes.

Related: Eagle Ford Rig Worker Injured in Explosion Dies

The well, operated by Enaca Corp was located off of FM 792 about four miles east of Karnes City, TX. Karnes County, Sheriff Dwayne Villanueva said the well pump that exploded was shut off but hydrogen sulfide gas still escaped. No one was reported injured.

The latest update on Wednesday at 3pm was that the flow of gas has been slowed and the company was working to shut it down completely.

An Encana spokesman affirmed "that the company is providing accommodation and incidental expenses to evacuated residents until the well is shut down and Encana and the Karnes County Sherriff’s Department determine it's safe for them to return to their homes."

“At approximately 3:30 p.m. CST on May 19, 2015 Encana experienced a well control situation at the Dromgoole 8BH well located near the intersection of Highway 792 and Highway 343 approximately 4 miles east of central Karnes City, Texas.

No injuries have been reported from the location. We immediately activated our emergency response plan. As a precaution, neighbors living in the immediate area were evacuated. Local authorities are on location.

We are monitoring for the presence of H2S. Our main priority is to ensure the safety of our staff and community. We will continue to monitor the area.

We are working to shut down well and will provide additional information as it becomes available. The cause is not known at this time.

We will work to determine the exact cause and will conduct a comprehensive review into what occurred.”

— Official statement from Encana

Eagle Ford Family Wants Their Day in Court

Appeals Court Hears Arguments Against Oil Companies

A Texas Court of Appeals heard arguments last week from the attorneys of an Eagle Ford family who wants their day in court.

In a lawsuit filed in 2013, Michael and Myra Cerny claim that oil drilling near their Karnes county residence has caused numerous health issues and made their home unlivable. The case was thrown out last year by Judge Stella Saxson who ruled the family did not prove their allegations that gas emissions caused the family’s issues.

All parties are back in court hoping to persuade the three-judge panel that the Cerny family deserves a jury trial.

Macy Stokes, one of the attorneys representing Marathon Oil and Plains Exploration, argued that nothing has changed since the August ruling and that,

“They still have to prove causation, that the emissions caused this inconvenience, that the emissions actually made it to their property and inconvenienced them.”

Other recent Texas legal battles between oil companies and mineral owners include a case before the Texas Supreme Court last month where Chesapeake challenges a 2014 Appeals Court ruling that would cost them at least $1million. At the heart of the case is the property owners (Hyders) allegations that Chesapeake improperly deducted money from their royalty checks to cover post-production costs.

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