052416_YKBP_A7.pdf
Broadcaster Press 7
May 24, 2016 www.broadcasteronline.com
Gamble On Wasta Oil Well Project Leaves State
With Deep, Costly Hole
BY BOB MERCER
State Capitol Bureau
PIERRE – An attempt three years
ago to drill an oil well 9,700 feet deep,
through multiple water aquifers and
a highly dense layer of pre-Cambrian
rock, near Wasta ended very badly.
The drill bit broke partway down
after going through several aquifers.
The bit and a long length of drill pipe
are still in the hole.
Cement plugs to protect the aquifers
from each other can’t be installed. The
broken bit and pipe block the way.
Worse yet, the project’s developers
ran out of money. Now South Dakota
officials don’t know what to do next.
The state Board of Minerals and
Environment approved permits for two
wells at the site in March 2013.
The board and its professional staff
at the state Department of Environment
and Natural Resources knew the project
was iffy.
They required the developers, led
by a woman from Deadwood named
Natali Ormiston, to post a bond of
$130,000 for the first well.
Normally the board requires a bond
of only $20,000 for an oil well.
The $130,000 is deposited in a Pierre
bank. So far DENR officials haven’t
sought to cash the bond.
It’s not even close to enough money
to plug the well, according to Mike
Lees, an environmental scientist for
DENR
The cost would be $2 million, he
said, because of the broken bit and the
150 feet of drill pipe that remain in the
hole about a mile into the earth.
Lees said multi-direction drilling
would be needed to get around them.
The concern is that one of the aquifers
that’s been punctured, known as the
Minnelusa, could flow upward into an-
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other punctured aquifer, known as the
Inyan Kara, through artesian pressure.
The top of the Minnelusa aquifer is
about 3,900 feet below the earth at that
location and about 800 feet below the
bottom of the Inyan Kara aquifer. Lees
said a plugging project would need to
reach 3,300 to 3,800 feet.
The permit requirements called for
cement plugs at specific depths to protect seven aquifer-bearing formations.
Meanwhile several creditors want
DENR to release the bond money to
them.
The minerals board members
decided Thursday they’ll talk about the
situation again at their June meeting.
“We’re snookered right now,” said
board member Doyle Karpen of Jefferson. “I don’t see any magic trick
coming.”
The state permits were issued to
Quartz Operations, a limited liability company formed by Ormiston in
November 2012. After receiving the
permits, the company changed hands
quickly.
The role of registered agent transferred from Ormiston to Leon Somsen
of Yankton on June 5, 2013, then from
Somsen to Mark Eske of Sioux Falls on
Nov. 8, 2013.
A second company started by
Ormiston, called Quartz Oil Exploration LLC, also changed hands during
the same period. She transferred the
role of registered agent for the second
company to Somsen on June 5, 2013.
More than a year later, on Sept. 11,
2014, more activity involving Quartz Oil
Exploration ensued. A Somsen-created
company called South Dakota Quantum
Fund LLC filed notice of disassociation
from Quartz Oil Exploration.
The same day in 2011 three men
including Somsen filed notices of
disassociation Quartz Oil Exploration.
Ormiston in turn transferred the role
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of registered agent five days later on
Sept. 16, 2014, to a Pierre legal firm, CT
Corporation System.
Just who’s in charge isn’t clear. Lees
said Thursday he’s talked recently with
Somsen. Lees said Somsen told him
there aren’t any plans to try to plug the
well.
Whether the open hole poses a
threat to water quality isn’t certain.
Lees said approximately 1,000 cubic
feet of Inyan Kara water could be affected by Minnelusa water.
He said the Inyan Kara aquifer is
popular for domestic wells but the
nearest is six miles. The community
of Wall, twelve miles away, taps Inyan
Kara as its supply.
Several of the state board members
are lawyers. One, Bob Morris of Belle
Fourche, cautioned against taking action yet. “I think this needs to stay on
our radar,” Morris said.
Another, Rex Hagg of Rapid City,
wasn’t ready to pursue the $130,000
bond yet either. Hagg asked for the
state Office of Attorney General to bring
legal advice next month to the board.
Said Lees, “It’s sort of uncharted
territory.”
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USD Truman Scholar
Hopes to Shape Public
Policy Through Science
Joshua Arens grew up on a farm just north of Yankton, South
Dakota, where his family raised cattle, corn, beans and alfalfa. And,
like many a Midwestern farm boy, “I had my share of chores,” he
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In part to avoid a future of manual labor on the farm, Arens
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South Dakota three years ago. He hasn’t completely strayed from
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On campus, Arens works in the chemistry lab of associate professor Hoaran Sun, developing novel fluorinated compounds that
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Capitalizing on his interest in and knowledge of politics -- he
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the research behind all the important issues that affect the environment and agriculture and try to translate that to those in the
public sphere and in politics,” he said. “You see a lot of politicians
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bridge these worlds.”
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