In a recent government meeting, representatives from Heavy Sweet Oil, LLC and AC Oil LLC presented a request for agency action to establish the Asphalt Ridge Enhanced Recovery Unit in Uinta County, aimed at the in-situ production of heavy oil from tar sands. The meeting, attended by legal counsel and expert witnesses, marked the continuation of discussions that began with a pilot project approved in December 2022.
The board was informed that the initial request for unitization was denied in April 2023 due to insufficient drilling data and concerns from Hudu Mining, the oil and gas lessee in the area. However, the current proposal is backed by new drilling data from two wells, which the representatives believe will demonstrate the viability of the target formations as tar sands.
The meeting highlighted the collaborative efforts between Heavy Sweet Oil and Hudu Mining, facilitated by a multiple mineral development agreement that aims to resolve previous disputes over land use. The School and Institutional Trust Lands, which holds mineral rights in the area, expressed support for the current application, indicating a positive shift in relations among the stakeholders.
The board's approval hinges on demonstrating that the proposed operations are necessary under the Oil and Gas Conservation Act and that the benefits of additional recovery will outweigh the costs. The representatives are set to present further evidence and expert testimony to support their case, with the expectation that the board will grant the order to establish the enhanced recovery unit.