Overview & Location

Lowry Ranch is a proposed oil and gas project in Arapahoe County, Colorado. Crestone will be rolling out a Comprehensive Area Plan later in 2022. A Comprehensive Area Plan (CAP) is a holistic, consultative process for planning and permitting locations for the production of oil and gas in Colorado by the Colorado Oil and Gas Conservation Commission (COGCC).
overview
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CAP-Area Boundary

The map represents the total area developed by the project. Via long-reach laterals, Axis will develop this area from a limited number of surface locations, concentrated on the Lowry Ranch away from residential buildings.
Cap boundary
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Estimated Community Financial Benefits

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The Lowry Ranch development is projected to generate as much as

$300m

in state and local tax revenues over the lifetime of the project, with around 60 percent being paid within the first decade.

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Oil and gas production from the project will further generate royalties for mineral owners in the development area. This production is estimated to generate over

$500m

for the local, state, and federal governments via their holdings.

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Private mineral owners will receive royalties estimated to total over

$200m

including over $80 million to individual owners.

In addition to these revenues, Civitas anticipates paying lease bonus payments to some mineral owners up-front.

Air Quality – Air Monitoring

Civitas is committed to responsible oil and natural gas production and to finding solutions, making investments and adopting new technologies to safeguard public health, the environment and quality of life for all Coloradans. As part of this commitment, we are adopting new technology to improve air quality. This includes:

Deploying real-time, continuous air quality monitors in partnership with Project Canary, which will alert Civitas to any abnormal readings so the company can take immediate action.

Using a vent-free fully-enclosed flowback process to capture temporary natural gas emissions coming from a well before it goes into production and directing this gas to a pipeline to be transported offsite, rather than vented or flared, reducing any potential impact on air quality.

Ground Water Protections

Civitas is committed to meet water standards set by the Colorado Oil and Gas Conservation Commission

(COGCC) and conducts monthly monitoring and reporting to track water levels in its operating regions.

Prior to drilling, the company measures water tables to monitor impact, then uses a protective casing and cement around wells past the water table. Monitoring wells are tested on a prescribed cycle to ensure local freshwater resources are protected. Water quality is tested prior to drilling to establish a baseline, and monthly testing continues throughout the drilling and completion phase. Finally, Civitas conducts a test six months after production as a last method of verification to ensure the integrity of its operating assets. 

If the company were to ever have an event that impacts water quality, COGCC remediation protocols would be followed.

The company reduces water use through numerous efforts, including the use of tanks and temporary collapsible water pipelines to minimize unnecessary water evaporation. At sites where water collection infrastructure systems are available, Civitas reverses piped water disposal systems to enable water reuse. The subsurface zones targeted in the DJ basin generally do not produce water in sufficient volumes to supply other operations, therefore opportunities to recycle water are more limited than in other geographies.

When water is disposed, Civitas uses saltwater disposal (SWD) wells provided by a third party.

Consistent with regulatory requirements and industry best practice, Civitas discloses the chemicals it uses during the hydraulic fracturing process through FracFocus.org.

Q&A

Who are Axis Exploration and Crestone Peak Resources?

Axis and Crestone are wholly-owned subsidiaries of Civitas Resources.

Who is Purple Land Management?

Purple Land is working on behalf of Axis leasing the minerals.

Where will the wells be drilled?

The oil and gas wells that will be used to develop these leases will be sited east of Monaghan Rd., and over 2000’ from any residences as shown in orange on the map.

How deep will Civitas Resources be drilling?

Approximately 8000’ down from the surface and then over 15,000’ horizontally.

What formation will we be drilling?

The Niobrara Formation will be horizontally drilled.

Are local officials aware of this leasing effort?

Yes, local elected officials with impacted constituents are aware of this project.

What are the next steps for this project?

Crestone will be rolling out a Comprehensive Area Plan later in 2022.

What is a Comprehensive Area Plan?

A Comprehensive Area Plan (CAP) is a holistic, consultative process for planning and permitting locations for the production of oil and gas in Colorado by the Colorado Oil and Gas Conservation Commission (COGCC), under COGCC Rule 314.

The COGCC’s mission is to regulate the development and production of the natural resources of oil and gas in Colorado in a manner that protects public health, safety and welfare, including protection of the environment and wildlife resources. Because the CAP process supports this mission, COGCC is encouraging oil and gas operators to develop and submit CAPs for review, rather than taking the traditional approach of permitting one oil and gas location at a time.

The CAP approach can result in fewer well sites, less land disturbance, better consideration of cumulative impacts of energy production and more protection for disproportionately impacted communities, compared with the traditional oil and gas development approach.

Any Questions?

Please do not hesitate to contact us with questions about this proposed development. You can reach us via email at LowryRanchCAP@civiresources.com, by phone 720-279-9842 or by using the below contact form.