Monday, November 28, 2011

Purchase of Central Wyoming Gas Field Called Off Amid EPA Investigation

A company has called off its purchase of a central Wyoming gas field where the U.S. Environmental Protection Agency has been investigating groundwater pollution and is preparing to release a report soon on the possible sources. Midland, Texas-based Legacy Reserves LP announced earlier this month it was buying an undisclosed number of gas wells and related assets in the Pavillion area in Fremont County from Calgary, Alberta-based Encana Corp. for $45 million. The week after the sale announcement, the EPA said it had found high levels of benzene and other contaminants in two wells drilled to test for groundwater pollution in the Pavillion area. Previous EPA investigations found hydrocarbons in 17 local water wells. According to a spokesman for Encana, Legacy is not prepared to complete the transaction while the EPA investigation is taking place.

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