Colorado regulators fine Ursa Resources over drilling error

GRAND JUNCTION, Colo. (AP) — State oil and gas regulators have fined Ursa Resources nearly $30,000 after a drilling error caused a well in western Colorado to encroach on an adjacent unit.

The Daily Sentinel reports the Colorado Oil and Gas Conservation Commission approved the fine this week, finding a well near the Battlement Mesa community encroached within 100 feet (30 meters) of the boundary of its authorized well spacing unit.

The company says the error was related to its use of long-reach directional wells, which aim to reduce the drilling effects on nearby schools and homes.

The company suspended disbursements from the well in an effort to prevent misallocation of revenue from the two sites following the citation. Both sites are operated by the company.

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