South Dakota Deals With Struggling Natural Gas Project

KELO Department of Energy

Dozens of natural gas wells that were drilled from 2006 to 2010 in northwestern South Dakota have been idled since the project fell dormant amid a series of problems.
It could cost $1.2 million to plug the 40 wells near Buffalo. The state Department of Environment and Natural Resources started revocation proceedings against the project’s permits last month.
Republican Sen. Ryan Maher of Isabel says he’s concerned landowners may be left to pay for the dormant wells.
Texas-based Spyglass Cedar Creek LP undertook the project with Colorado-based New Frontier Energy Inc. The project ran into multiple issues, including a drop in natural gas prices, a lender’s bankruptcy, at least four lawsuits and a tax-fraud indictment against a New Frontier official.

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