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Federal lands official warns of ongoing uncertainty around Paradox Basin operator; wells under close watch
Summary
A BLM lands official told Dolores County commissioners that a sequence of bankruptcies, a gas‑plant fire and staffing gaps left the Paradox Basin operator (Paradox/Paradox Resources → G&G Ventures/American Helium) unable to produce; the agency has secured locations and is pushing for plugging and remediation while monitoring unpaid royalties and potential enforcement actions.
Ryan Joiner, assistant general manager for lands and minerals at the federal field office, briefed the Dolores County Board of County Commissioners on a multi‑county oil and gas situation centered in the Paradox Basin.
Joiner said the BLM’s office received a directive from the Office of Natural Resources Revenue in January 2024 to shut in Paradox wells after the company allegedly failed to pay federal royalties. Paradox later declared bankruptcy and its assets were acquired by another group identified in the briefing as G&G Ventures, doing business in some materials as American Helium. Joiner said the Lisbon gas plant later suffered a fire that disrupted processing and left the operator with little capacity to move gas or helium to market.
“Paradox went bankrupt in March 2024,” Joiner said, and the new operator arrived with a much smaller staff and limited regulatory personnel. The BLM contracted with a private firm to secure locations, remove liquids and protect wells after field personnel worried about abandoned tanks and unattended facilities. Agency expenditures to secure sites and address immediate hazards were described by the field office as substantial.
Joiner told the board the operator has since applied for state plugging funds for a subset of wells and has submitted some remediation plans, but the field office is still pursuing compliance and said it sent plug letters for dozens of locations this year. He said the operator had not produced measurable volumes to date and that the BLM is coordinating closely with state regulators and other federal offices on inspections and potential enforcement.
The presentation stressed two practical consequences for the county: lost local payroll/tax revenue while fields remain idle, and the risk that poorly capitalized operators could leave orphaned wells if they go out of business. Joiner described BLM steps to avoid orphaning — increased inspections, surface remediation and targeted sampling — and said the agency is prepared to escalate civil penalties if the operator fails to follow through on remedial and plugging commitments.
Joiner also gave an overview of helium potential in the region: helium occurs in small percentages in some local gas streams but requires processing capacity and consistent gas volumes to be meaningful economically. He said the presence of helium in samples does not alter the larger problem that the county’s gas processing infrastructure is currently offline or constrained.
The commissioners asked about next steps and asked BLM staff to provide maps and lists of affected locations; Joiner agreed to send a county‑focused map and to provide updates.
Ending: The board asked the BLM to continue updates; commissioners said they want more information on which wells are subject to plugging plans and how federal remediation costs will be recovered.
