May 2012 - Rocky Mountain Association of Geologists

OUTCROP
Newsletter of the Rocky Mountain Association of Geologists
Volume 61 • No. 5 • May 2012

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Vol. 61, No. 4 2
April 2012

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Newsletter of the Rocky Mountain Association of Geologists
CONTENTS
Features
6 Lead Story: Welcome to
Grand Junction!
20 REVIEW: Why We Hate the
Oil Companies
24 AAPG Emblem Contest
association news
8 RMAG Celebrating Ninety
Years of Service to the
Geologic Community
12 2012 Award of Excellence
for Teaching of Earth
Science
14 Summit Sponsorship Sign
Up Today
15 Summit Sponsors
23 Earth Scientists – Publish
Your Paper in The
Mountain Geologist!
26 On-the-Rocks Field Trips
28 From the May, 1977
Outcrop
29 The Outcrop Needs YOU!
30 Call for Papers: The
Mountain Geologist
32 2012 RMAG Golf
Tournament at Fossil
Trace
34 Field Trip Photos from
1977
Departments
4 RMAG March Board of
Directors Meeting
10 President's Column
16 New Members
18 Luncheon Program
21 In the Pipeline
35 Advertisers Index
35 Calendar of Events
COVER PHOTO
White House Cliff dwellings in aeolian
sandstones of the Permian De Chelly
Formation. Photo by Phil Winner.
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Volume 61 • No. 5 • May 2012
www.rmag.org

RMAG March Board of Directors Meeting
By Kimberley Alanis, Secretary (Kimberley.Alanis@qepres.com)
The Board of Directors meeting was held on March
21, 2012 in the RMAG office board room. The meeting
started out with a review of February’s income and
expenses. I am happy to report that we are continuing
to increase our income considerably from the same time
last year. The increase is largely due to the sponsorship
“Summit" program, along with the registration for the
3-D Seismic Symposium. Our expenses are still down
from last year, as well. We plan to continue the year with
a positive financial report.
The Continuing Education Committee reported
that they have lunch talks scheduled through June. As
a reminder, in order to keep the cost to our members
down, RMAG has decided to move the luncheon talks
from the Marriott City Center to the Sheraton Hotel
starting in June. We can look forward to the fall short
course with a horizontal drilling and fracture theme in
October. There is potential talk of having a “Legends of
Geology” event, possibly an evening series. More details
about this potential event will follow next month. RMAG
members would have the opportunity to listen to the
stories and meet some of the greatest geologist in our
community. Without a doubt, I would look forward to
this event. For me, it would be like a young basketball
player meeting Michael Jordan!
The Publications Committee reported that they have
sold over 130 publications this year. RMAG has decided
to reduce the price of some publications during RMAG
events. Please look for discounts at the RMAG table
and pick up your favorite publication at a discount. The
Mountain Geologist should have a couple great issues
coming out shortly. For all you social media members,
RMAG has created Facebook and Twitter pages. Keep
your eyes out for upcoming events through them.
The meeting included the approval of a couple
motions, including the decision to discount some
publication during RMAG events. I have to give credit to
Pete Varney (President), he keeps the meeting moving
and everything gets addressed resulting in another short
and sweet board meeting.
The RMAG Golf Tournament, which will be held on
June 28th at Fossil Trace this year, sold out in 6 days.
Thank you to all who have registered. We cannot wait
to see you out there!
The April Board of Director’s meeting was held
on Wednesday, April 18th, at the University Building
conference room on the 11th floor. The May meeting
will be held May 16th at the same location.
»
Vol. 61, No. 4
4
April 2012

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The Rocky Mountain Association of Geologists
910 16th Street • Suite 1125 • Denver, CO 80202 • 303-573-8621
The Rocky Mountain Association of Geologists (RMAG) is a nonprofit organization whose purposes are to promote
interest in geology and allied sciences and their practical application, to foster scientific research and to encourage
fellowship and cooperation among its members. The Outcrop is a monthly publication of the RMAG.
2012 Officers and Board of Directors
Co-Editors
Kristine Peterson
k.peterson@laramidegeo.com
Holly Sell
hsell@nobleenergyinc.com
Catherine Campbell
ccampbell@bayless-cos.com
Design/Production
Debbie Downs
debradowns@att.net
Wednesday Noon
Luncheon Reservations
RMAG Office: 303.573.8621
Josh Robbins, ext. 2
Fax: 303-628-0546
RMAGdenver@aol.com
www.rmag.org
PROFESSIONAL CARDS
Will be actual size.
HELPFUL HINTS – Both black
and white and color art will be
accepted. If you are submitting
digital files, please save in the PC
format. Minimum resolution for
jpg, tif, pdf or eps files is 300 dpi.
Simple line art and photographs
provide helpful illustration.
Borders are recommended
on large copy. An advertising
agreement will be sent to you.
President – Pete Varney
pete.varney@alumni.mines.edu
President-Elect – Debra Higley-Feldman
higley@usgs.gov
1st Vice-President – Paul Lillis
Full plillis@usgs.gov
Page 2/3 Page
2nd Vice-President – Greg Anderson
ganderson@samson.com
Secretary – Kimberly Alanis
Kimberley.alanis@qepres.com
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Treasurer – Larry Rasmussen
larryr@whiting.com
Treasurer Elect – Mike Kozimko
mkozimko@yatespetroleum.com
Counselor (1 Year) – Mark D. Sonnenfeld
sonnenfeld@whiting.com
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john.ladd@fmr.com
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The Outcrop is a monthly publication of the Rocky Mountain Association of Geologists
910 16th Street, Suite 1125 • Denver, CO 80202
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LEAD STORY
Welcome to Grand Junction!
By Jay Scheevel, RMS AAPG 2012 General Chair
Great rocks, increased knowledge, and good friends: all good reasons to come to Grand Junction,
Colorado this September 9 – 12 for the 2012 Rocky Mountain Section meeting of the AAPG.
Located in the beautiful Grand Valley at the
confluence of the Colorado and Gunnison Rivers in
western Colorado, Grand Junction not only sits in an area
surrounded by great geology, but also in an area where
this great geology produces oil, gas, coal, uranium, and
potash. Come join your fellow geoscientists in probing
the outcrops of the area during one of our eight planned
field trips. Increase your knowledge by attending one of
the five short courses and attending the two and onehalf
days of talks ranging from geology of the Colorado
Plateau and Rocky Mountains to the exploration and
exploitation of all of these resources, both conventional
and unconventional. And enjoy being with friends and
colleagues in the wine capital of Colorado.
Grand Junction took its name from the confluence
of two rivers, the Colorado (formerly the Grand) and
the Gunnison (formerly
the Eagle-Tail). Almost
since its inception, Grand
Junction has also been the
confluence of many sources
of economic geology, with
the nearby coal, uranium,
oil, gas, potash and
even oil shale, arranged
geographically like spokes
on a wheel around the hub
of Grand Junction. The
economy of Grand Junction
has historically also been
dominated by abundant
farming and fruit cultivation,
with apples, cherries,
peaches and apricots now
partially giving way to noble
vines and the emergence
of the modern “mountain”
wine industry.
We welcome you to join
us for “Vintage Geology” in
the most beautiful season
Vol. 61, No. 4 6
in western Colorado, early September (9-12), the wine
grape harvest season. Following the pre-meeting field
trips, we will spend Sunday through Wednesday in quality
technical sessions and informal time allowing you to
connect with your colleagues from the mountain west.
Following the meeting, on Thursday through Saturday
of the same week you may choose to enjoy field trips
and the renowned Colorado Mountain Wine Fest and
spend the entire week enjoying the western slope of
Colorado.
Our technical sessions will include everything from
the most recent work on resource plays across the west,
to the sedimentary and structural architecture of the
latest plays in the Rockies or the impact and future of
energy minerals. Short courses will allow professionals to
brush up on the latest in resource evaluation practices,
unconventional reservoir
petrophysics, GIS and more.
The stable autumn weather
and unmatched outcrop
exposures will showcase our
strong suite of pre- and postmeeting
field trips which range
from a complete E-W transect
of Niobrara across the entire
state of Colorado, to a float trip
on the San Juan River through
the Honaker Trail Fm., to the
stratigraphic architecture of
the Piceance and Uinta Basins,
to the history and geology
of Uranium, Oil Shale and
Saline economic minerals, and
the history of the enigmatic
Unaweep Canyon. There will
also be a half day “Wine and
Geology” field trip that ties
the terroirs and climate of the
Grand Valley to the fine wines.
This will bridge the RMS-AAPG
meeting into the Colorado
April 2012

Lead Story
Mountain Wine Fest. The wine events will be hosted by
Master Sommelier, AAPG-RMS member, and geologist,
Wayne Belding, along with local geologist, mountain
wine pioneer, and owner of DeBeque Canyon Winery,
Bennett Price.
We will provide plenty of opportunities for informal
interaction by bringing back the popular Sunday morning
RMS-AAPG golf tournament at the acclaimed Redlands
Mesa Golf Course, the Sunday afternoon Icebreaker,
generous post-session happy hours featuring local
microbrews and local wines, along with a special informal
poster “chat” session featuring renowned “Vintage
Geologists” of the Rocky Mountain region. We invite you
to join us for our special evening of fine dining hosted at
the Dinosaur Journey Museum of Western Colorado.
The All-Convention luncheon will feature a special
guest speaker, John Hickenlooper, the governor of the
State of Colorado, who will give his deep insight into the
latest in hydraulic fracturing disclosure and regulation.
The DPA luncheon will feature Thomas Kerr, the director
of the Colorado Oil and Gas Conservation Commission
who will brief us on the current state of oil and gas activity
in Colorado.
In addition we will welcome Dr. Scott Tinker, the
director of the Bureau of Economic Geology in Austin
Texas, an expert on the future of energy supplies, who
will host a showing of the acclaimed documentary Switch.
The screening will be held at the historic Avalon theatre
on Main Street in Grand Junction a short walk from the
Convention Center.
Our meeting will be held in the pedestrian-friendly
downtown district of Grand Junction with exhibits and
technical sessions at the Two Rivers Convention Center.
Three of the Convention hotels are within 30-100 yards
of the meeting venue and all are within close walking
distance to a wealth of restaurants, night clubs, shops
and the Museum of the West. Everything is just a short
walk down the tree-lined Main Street from the Convention
Center and the Convention Hotels. Our meeting venue is
unsurpassed and will lead to a very fulfilling meeting in
all respects.
We hope you all can join us in September and allow
us to host you for another great Rocky Mountain Section
meeting!
Please visit our website RMSAAPG2012.com for
registration, housing, airfare discounts and all meeting
details.
»
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www.rmag.org

RMAG Celebrating Ninety Years of Service
to the Geological Community
Vol. 61, No. 4
8
April 2012

Editors note: In honor of RMAG celebrating ninety years of service to the geologic
community we are reprinting some excerpts from “vintage” issues of the Outcrop.
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www.rmag.org

President’s Column
By Pete Varney
May President's Musing
So far in this series, I have talked about energy
equivalents, EROI and a consideration of how we use a
barrel of oil. If there is any thread that connects all of
these, it is that petroleum products are indispensable
to our way of life and increasingly expensive. With
that in mind, let’s see if we can come up with a partial
explanation for the increasing price of these products
based on what it costs, on a relative basis, to drill a well.
First, let’s look at a little history.
Authors such as Daniel Yergin (The Prize), Ruth
Sheldon Knowles (The Greatest Gamblers) and Walter
Youngquist (GeoDestinies) point out that in the early
days of the petroleum industry, oil was abundant and
easily produced. In places such as Oklahoma, some of
the earliest wells were drilled using a spring pole. Drilling
depths were shallow and initial production amounts
were high, occasionally very high. A spring pole is the
“mainspring” of a human-powered cable tool-like drilling
method. The earliest spring poles were nothing more
than bent saplings and the method was in use early
on: There is even a picture of a spring pole in Georgius
Agricola’s 1556 De re Metallica. Even though drilling a
well in this manner was inexpensive, the early drillers
had to face one harsh reality – increased drilling cost
with increasing depth.
Obviously, it costs more to drill a deep well than it
does a shallow well. There are fewer shallow wells drilled
each year, so it follows that drilling an average-depth
well today costs more than it did 50 years ago. There
is some indication that increased efficiency of modern
drilling methods is actually reducing the cost per foot but
drilling cost is not depth linear as shown by the following
example.
Back in the 70s, a rough rule of thumb in a company
I worked for was that dry-hole cost for an 8,000
foot Minnelusa test in the Powder River Basin was
approximately $400 thousand, or $50 per foot. Later,
at Impel Energy, we projected a target depth of about
19,000 feet and drilling time of about a year for our Loch
Katrine #1 on the east side of Oregon Basin, Wyoming.
It took two years, reached more than 20,000 feet and
had a rumored cost of about $32 million – about $1600
per foot if the final cost figure is correct. Loch Katrine
was a dry hole. Granted, these are different places and
different times, both over 30 years ago, but the point is
that deeper costs more, a lot more.
So it looks like that there is good evidence that drilling
costs increase in a nonlinear manner with depth. This
begs the question of whether or not per-foot drilling costs
have decreased, at any given depth, as the technology
of drilling has improved. The Joint Association Survey on
drilling costs (JAS), suggests that per-foot costs have,
indeed,declined, until recently. The JAS includes work by
Vol. 61, No. 4 10
April 2012

President's Column
the American Petroleum Institute (API),
Independent Petroleum Association
of America and Mid-Continent Oil
and Gas Association and is available
at the Colorado School of Mines
library.
So far, I’ve been talking about
vertical wells. What is the situation
with horizontal wells? In areas with
more or less horizontal formations,
it seems that horizontal drilling has
become the norm. According to the
US Energy Information Administration,
the cost of drilling a horizontal well is
very roughly two times the cost of a
vertical well, rule of thumb, but there
is an increase in production that
may be greater than three times,
sometimes much greater. Further,
because the wellbore “sees” more of
the formation than in a vertical well,
recoverable reserves can be greater
and the production rate can be much
higher, leading to faster return on
investment (ROI).
Ultimately, the question, once the
rig is on location, is “what does it cost
to recover a barrel of oil”? It’s looking
like if a horizontal well costs two times
more but recovery is three times
more, drilling cost to per barrel has
declined by 33%. Too, because ROI
is enhanced the economic viability
of the project is higher. It all of this
is sounding too good to be true,
remember that pre-drilling activities
such as 3D seismic surveys have
added much to the overall cost of
finding oil. According to the 9 April,
2012 issue of Time Magazine, it costs
$45/barrel, minimum, to more than
$100/barrel to recover one barrel
of oil.
We are more or less back to
where we started. Petroleum, the
indispensable material we depend
upon for basic energy needs, has
become more and more valuable, and
expensive, partly because the finding
and producing costs have increased
significantly as drilling depths have
increased. But, we knew that, didn’t
we?
»
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www.rmag.org

2012 Award of Excellence
for
Teaching of Earth Science
Sponsored by the
Rocky Mountain Association of Geologists
THE WINNER RECEIVES
A Plaque and a
$1000 Cash Award
If you teach earth science in K-12 and
think you qualify, contact the RMAG
office at 303-573-8621 for an application.
Deadline is May 4. Previous winners have used
this award as a springboard to other national
awards.
The RMAG is a professional organization representing
over 2000 earth scientists working in the Denver and
Rocky Mountain area. In its capacity as the leading
geologic organization in the Rocky Mountain area, each
year the RMAG Foundation provides funding for an
annual award presented to a teacher in recognition of
his or her commendable efforts in introducing young
minds to the earth sciences.
Check out the RMAG website at www.rmag.org.
Vol. 61, No. 4 12
April 2012

William F. Hoppe
Consulting Geologist
6746 W. 96th Court
Westminister, CO 80021
(H) 720-898-5757
(C) 505-360-8853
willhoppe@comcast.net
For Independents and Small
Companies
• JLog® Petrophysical Software
• Consulting and Training
Jack Bowler – Bowler Petrophysics, Inc.
303 860 1641 www.jlog.biz
jack@bowler-petrophysics.com
YOUR AD HERE
(Professional Card Ad Size)
Only $144.00
per year
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13
www.rmag.org

SUMMIT SPONSORSHIP
SIGN UP
TODAY
Sponsorship has never been so easy!
Summit Sponsors support the entire RMAG calendar of events for 2012 and gain added
recognition on our special “Summit Sponsor” page on the RMAG website, in the Outcrop, and at
our Monthly Luncheon Meetings. Please consider becoming a Summit Sponsor and get more bang
out of your sponsorship buck, while helping your geological society provide the very best in
symposia, short courses, prospect fairs, social events and so much more. Your sponsorship
keeps our costs low and greatly enhances your visibility and reputation in the Rocky Mountain
Oil and Gas Community. Thank you for your continued support!
WWW.RMAG.ORG
Vol. 61, No. 4 14
April 2012

2012 Summit Sponsorship
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www.rmag.org

New Members
Welcome to New Active Members...
Terrance Jensen
Terrance is a Geological Supervisor at Pioneer Natural Resources
located in Denver, CO.
H. Brown III
Mr. Brown is the President of Alpine Resources located in Denver,
CO.
Ryan Schaefer
Ryan is a sales representative for SLS/DS located Denver, CO.
Mary Ray
Mary currently resides in Colorado Springs, CO.
William Manthey
William is a Consultant located in Oklahoma City, OK.
Andrew Eck
Andrew is a Geologist at Mull Drilling located in Wichita, KS.
Donald Lehman
Donald is a Geologic Manager for Energen Resources located in
Birmingham, AL.
Robert Ressetar
Robert is the Senior Geologist for the UGS located in Salt Lake
City, UT.
Matt Legatt
Matt is a Manager for Newfield located in Denver, CO.
Norma Mozee
Norma is an Account Manager at Microseismic, Inc. located in
Denver, CO.
Glenn Makechnie
Glenn is currently employed at Newfield Exploration located in
Denver, CO.
»
Register by
2 APRIL and
save up to $100
www.aapg.org/longbeach2012
It all adds up
to one blockbuster event!
11 short courses 19 field trips 400+ oral presentations
700+ poster presentations 200+ exhibitors
Vol. 61, No. 4 16
April 2012

NeuraLaserColor
Reliable Log Printing Solutions
www.Neuralog.com
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17
www.rmag.org

Luncheon Program – May 2 nd
Anatomy of the Revolution in U.S. Oil and Gas Supplies
By Pete Stark, Senior Research Director and Advisor, IHS CERA RMAG, May 2, 2012
2012 will be difficult
for gas producers who
face substantial excess
supplies and sub-$2.00
gas prices.
Unprecedented breakthroughs in liberating production from source
rocks and tight reservoirs have stimulated dramatic shifts in oil and
gas supplies and market factors. The “shale gale” unlocked a 100 year
supply for natural gas. But it also triggered excess production capacity
and a collapse of gas prices that has forced massive adjustments across
the supply chain. 2012 shapes up as a pivotal year as markets adjust
to availability of abundant low-cost supplies and producing assets are
consolidated by owners with long-term horizons. The “great revival” of U.S.
oil production is no longer in doubt. But public concerns about perceived
risks from horizontal drilling and hydraulic fracturing plus lack of an energy
policy cloud understanding of how to take advantage of this added bonus
for energy supplies.
2012 will be difficult for gas producers who face substantial excess
supplies and sub-$2.00 gas prices. March 30, 2012 gas storage stood at
record high levels - 2,400 Bcf, some 750 Bcf above the 5-year average and
900 Bcf above 2011 levels. This is bearish for gas prices and third quarter
production curtailments loom if summer demand does not consume the
surplus gas. Long awaited reductions in gas directed drilling – especially
in dry gas plays like the Haynesville, Fayetteville and parts of the Marcellus
LuNcHEoN RESER
ESERv
vATI
oNS
& INfoRMATIoN
Luncheons will be held at the Marriott City Center at California and 17th St. Please check the event
listing in the lobby for the room. People gather at 11:30 a.m., lunch is served at 12:00 noon, and the
speaker presentation begins at about 12:20 p.m. The price of the luncheon is $30.00. Checks should
be made payable to RMAG. No reservation is required for the talk only and the cost is $5.00. Please
make your reservation prior to 10:30 a.m. on the Monday before the luncheon. Please Note: If you make
a reservation and do not attend the luncheon, you will be billed for the luncheon. Cancellations are not
guaranteed after 10:30 a.m. the Monday before the talk. You may send someone in your stead.
Your attendance is welcomed
and encouraged. Bring a guest
or new member!
Call 303-573-8621
Vol. 61, No. 4 18
April 2012

Luncheon Program
Drilling activity in the
Bakken and Eagle Ford
plays has soared beyond
optimistic projections
and other liquids plays
are benefitting from
this shift.
are underway. The April 4, 2012 Baker-Hughes gas directed rig count stood
at 647 rigs, down 31 percent from the recent high of 936 rigs in October
2011. Six hundred or fewer gas rigs, though, will be required to rebalance
the gas market. Operators are redirecting investments to liquids rich plays
to take advantage of the huge spread between oil and gas prices. Drilling
activity in the Bakken and Eagle Ford plays has soared beyond optimistic
projections and other liquids plays are benefitting from this shift. Liquids
directed drilling and production are climbing in the Permian Basin, Niobrara,
Mississippi lime, Granite Wash and Woodford shale plays. Promising early
results suggest the Utica play in Ohio could challenge the Marcellus shale
as the poster child for the Appalachian basin. 2011 liquids production
increased by 456,000 barrels per day (b/d) and expanding developments
point to an increase of more than 600,000 b/d during 2012.
Scenarios indicate U.S. oil supplies could add 3.0 million to 5.5 million
b/d (from 2010 levels) by 2020. The aggressive scenario hints at the
possibility that North America might achieve the long desired independence
from overseas oil imports. Nevertheless, substantial uncertainties about
energy policies and above ground concerns must be de-risked to assure
the size of the prize. If properly managed, abundant, secure and affordable
oil and gas supplies could be the foundation of a renaissance for U.S.
industrial and economic growth.
»
North America’s Next Big Light
Oil Resource Play
Sanish/Three Forks
Canadian Discovery’s Three Forks Project confirms the
excellent development potential of this impressive
unconventional reservoir.
5 oil play types ranging from
unconventional resource plays to
more conventional subcrop plays
are identified.
Contact Cheryl Wright to Subscribe
403.269.3644 | info@canadiandiscovery.com
www.canadiandiscovery.com
Saskatchewan
Bakken
Studies
Montana
Wyoming
STUDY
AREA
Manitoba
North Dakota
South Dakota
CONTACTÊUS
Canadian
Discovery Ltd.
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www.rmag.org

REVIEW
Why We Hate the Oil Companies
By John Hofmeister, Publisher: palgrave/macmillan, 2010
Review by S. Duff Kerr
Hofmeister covers the industry’s
long standing inability to communicate
with the Public and Government at all
levels. The author is not the typical
Industry spokesperson. He had only a
few years exposure before he retired
as President of Shell Oil Co. in 2006.
He had joined the Royal Dutch Shell
Group after 42 years with non-oil
companies including General Electric,
Nortel, and Allied Signal/Honeywell.
He was taught the oil business at the
highest levels of Shell, a company
which, like most of its industry had
exclusively promoted its executives
from within the organization. Thus, he
brings a unique, outsider, viewpoint
to assessing the oil industry. His
viewpoint is largely driven by the
lack of any real, current or historic
National Energy Policy. He is aware
of the deep lack of understanding of
the Industry by the Public and most
particularly by Political Leaders.
Problems he recognized before 2010
have only been amplified in the short
time since! Public concerns have
generally been limited to the price
being charged for products; how the
price is determined is rarely known,
and mostly not cared about until an
upward spike occurs.
Environmental issues have
come to the fore and reflect the
competing forms of energy available
for use. Drilling for new sources of
hydrocarbons brings outcries from
NIMBYists (and viewers of “Gasland”
type propaganda… reviewer) to limit
points or areas of access and add
taxes and regulation on a local basis.
Demands for “Green” (non-carbon
or renewable) energy sources bring
in many economic factors, largely
ignored, into the puzzle of choice.
Costs increase through the use of
inefficient sources and compensating
subsidies. All the many alternative
energy sources each have their cadre
of enthusiasts lobbying for adoption.
Through this mélange of rants,
choices ultimately become driven by
politics rather than logic! Hofmeister
states that the energy economy and
its environmental consequences is
the major domestic and international
issue of our time. The author derides
several popular concepts:
The concept of energy independence
for the U.S. is a dream.
We will never run out of energy,
unless we choose wrong policies or
do not implement right policies.
“Clean Energy” is a misnomer.
There are relative differences, but
every known form of energy requires
some modification to be useful.
Hofmeister lists and provides
pro- and con- evaluations for the
many possible alternative energy
sources, first for electricity and
second for transportation. With so
many alternatives, his conclusion is
that we will not be short of energy.
Some of the alternates need research
to become practical economically
or environmentally acceptable,
eventually a reasonable choice will
remain.
Furthermore, global warming and
climate are succinctly dispatched.
After considering what we do with
liquid and solid waste, we dispose
of them in various ways to avoid
the pollution which could otherwise
result. So, why not do the same with
gaseous trash (emissions)? Why
not take it in the same manner and
dispose of it efficiently? That course
is necessary because the evidence
is readily apparent that it is quite
harmful to population and the entire
planet. We can argue about global
warming even while cleaning the
atmosphere just because it must be
done!
The last part of the book focuses
on the political confrontations
which mark much of the history of
confrontations since World War II. His
analysis concludes that Lawmakers
and Oil Industry operate on different
time schemes: Political Time (in two
and four year election cycles), and
Energy Time (project cycles which,
from idea to completed plan, last from
months to as long as 20 years). The
needs of the two rarely coincide! Under
the chapter title, Our Government is
Broken, he points out the internal
interrelationships, or lack thereof,
which preclude a lot of possible
interaction between the branches of
government. Hofmeister’s conclusion
is that no logical Energy Policy will ever
make its way through Congress and
the White House. Too many political
traps and no interest in compromise
among the Parties is the cause.
The author’s proposal is quite
far-reaching. His proposal is modeled
Continued on page 23 »
Vol. 61, No. 4
20
April 2012

In the Pipeline
May 1, 2012
DWLS Spring Workshop. “Petrophysics of Horizontal
Logging.” For reservations, call Jennifer Bartell at 303-
770-4235.
May 2, 2012
RMAG Luncheon. Anatomy of the Revolution in U.S.
and Gas Supplies, Pete Stark. See page 18 for more
information.
May 8, 2012
Desk and Derrick Luncheon. For reservations,
please contact RSVP@deskandderrick.org.
May 11, 2012
DIPS Luncheon. For reservations contact Anders
Elgerd: aeglerd@directpetroleum.com or 303-285-
9136.
May 14-16, 2012
Hart DUO. Denver, CO.
May 15, 2012
DWLS Luncheon. For reservations, call Jennifer
Bartell at 303-770-4235.
May 17, 2012
DAPL/DGS/SPE Networking Happy Hour.
Marlowe’s 4:00 p.m. – 6:30 p.m.
May 19, 2012
On The Rocks Field Trip. Niobrara and Greenhoen
Formations, Florence- Cañon City Area. See page 26
for more information.
May 23, 2012
Oilfield Christian Fellowship Luncheon. To RSVP
call Barb Burrell at 303-675-2602 or e-mail OCF-
DenverChapter@pxd.com.
May 29, 2012
RMS-SEPM Luncheon. Speaker Mary Kraus
from the University of Colorado at Boulder. “PETM
Paleosols in the Eocene Willwood FM, Bighorn Basin,
WY.” For reservations call 303-572-3550 or go to
Luncheons@rmssepm.org.
May 30-31, 2012
Bakken Tight Oil Congress 2012. Denver,
Colorado. See page 33 for more information.
June 9, 2012
Mudrocks of the Southern Denver Basin, Pueblo,
CO. Graneros, Greenhorn, Carlile, and Niobrara
Formations. See page 27 for more information.
July 21, 2012
On The Rocks Field Trip. Glacial Outburst Floods on
the Upper Arkansas Valley.
August 25, 2012
On The Rocks Field Trip. Geology of the Medicine
Bow Mountains, Wyoming.
September 15, 2012
On The Rocks Field Trip. Geology of Glenwood
Canyon Bicycle Trip.
»
If you have any events that you would like to post in this
column, please submit via email to Holly Sell at hsell@
nobleenergyinc.com or to the RMAG office at rmagdenver@
aol.com for consideration.
OUTCROP
21
www.rmag.org

2
1
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DECISIONS
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6
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Vol. 61, No. 4 22
April 2012

Why We Hate the Oil Companies
Continued from page 20
on the Federal Reserve Board, which was created 100
years ago to provide financial stability after several
crises. He proposes creation of a Federal Energy
Resources Board to regulate the energy system and
related environmental issues. This agency would be
funded by a fee on each unit of BTU or KWH produced,
thus it could remain independent of Congress and the
Executive because neither is responsible for funding,
like the Federal Reserve Board. This is a tall order for
a Congress nearly dysfunctional by partisanship and
Earth Scientists
Publish Your Paper in
The Mountain Geologist!
The Mountain Geologist
is RMAG’s peer-reviewed,
quarterly journal. It focuses on the geology of the Rocky
Mountain area of the United States and related topics
from outside the Rocky Mountain area. We accept
manuscripts from almost every sub-discipline in the
geosciences, from authors in academia and industry.
Share your ideas, experience and wisdom! The
Mountain Geologist circulates to over 3000 members and
about 200 university libraries and industrial associates.
It has been published by RMAG since 1964. Our review/
revision process averages about 10 months.
Please email manuscripts or suitability questions to
Joyce Trygstad Nelson at jtpetr@aol.com . Manuscripts
must be written in accordance with The Mountain
Geologist
Authors Style Guide, available online at www.
rmag.org.
»
regionalism. Hofmeister proposes it be promoted as a
grassroots issue by the electorate.
Let’s face it, a grassroots issue rarely gets far with
Washington. True, it spans the entire Nation and involves
issues affecting essentially every Citizen. It also involves
the economic well-being of the entire Nation. Hofmeister
is truly pessimistic about our ability to solve the
problem under the present political situation. However,
the challenge of long-term energy flux, including new
technology and competition among the nations of the
world requires facing the present realities. In conclusion,
Hofmeister is basically optimistic about the ability of our
nation to rise to the challenge, as it has before, and solve
its energy problems.
»
Editor’s note: This book was recently re-issued
in paperback edition.
Neil H. Whitehead, III
Consulting Geologist
PhD CPG-AIPG PG WY
Rocky Mountain Basins
Wellsite to Petroleum Systems
ArcGIS
303-679-8573 fax 303-679-8574 neil3@q.com
31634 Black Widow Way Conifer, CO 80433-9610
OUTCROP
23
www.rmag.org

AAPG Emblem Contest
Vol. 61, No. 4 24
April 2012

AAPG Emblem Contest
Editors note – This emblem submittal and contest write-up
appeared in the November 10, 1955 Outcrop – and yes, the
Outcrop was “printed” on green paper back then.
OUTCROP
25
www.rmag.org

On-the-Rocks Field Trip
Niobrara & Greenhorn Formations, Florence-Cañon City Area
Trip Leader: Stephen A. Sonnenberg, Colorado School of Mines, Saturday, May 19, 2012
The Niobrara Formation of the Rocky Mountain Region
is currently of great interest for oil and gas exploration.
The Niobrara Petroleum System of the U.S. Rocky
Mountain Region is a major tight petroleum resource
play. The Niobrara is self-sourced and reservoirs are low
permeability chalks, shales, and sandstones. Source
beds have total organic carbon contents that range from
2 to 8 weight percent. Source beds are thermally mature
in the deeper parts of many of the Laramide basins in
the Rocky Mountain region. Continuous or pervasive
accumulations occur in thermally mature areas.
The Niobrara source rocks are dominantly Type II
(sapropelic) oil-prone kerogens. Oil accumulations occur
where source beds are in the thermogenic oil window
(e.g., Denver Basin). Thermogenic gas accumulations
occur where the source beds have entered the gas
generating window in deeper parts
of basins (e.g., Piceance Basin).
Biogenic methane occurs in shallow
chalk reservoirs on the east flank
of the Western Interior Cretaceous
Basin (e.g., eastern Colorado). In
addition shallow gas fields are found
in northern Montana (e.g., Bowdoin
field).
Natural fractures are important
in controlling sweet spots in the
play and form for several causes.
Several models have been proposed
for fractures in the Niobrara
and include folding and faulting
(local structures), stress relief
with Neogene regional uplift and
erosion, regional horizontal stress
(regional orthogonal fractures)
and hydrocarbon generation pore
pressure.
The Niobrara is a technology
reservoir that requires horizontal
drilling and multi-stage hydraulic
fracturing. The Niobrara petroleum
system is present over most of
the Rocky Mountain Region and is
prospective in many areas.
This field trip will examine the Niobrara in outcrops
between Florence and Cañon, CO. The petroleum
system of the Niobrara and Graneros-Greenhorn will
be emphasized. Reservoirs, source beds, and fracture
models will be discussed.
To register, please contact Ron Pritchett (pritchett61@
msn.com, 303-829-9606). We will leave from the Mineral
light rail station parking lot (NE corner of Santa Fe and
Mineral) at 8:00 a.m. We will arrange car pools at the
parking lot so please contribute for gas to your driver. The
group is limited to 30 people. Plan for moderate hiking.
The day may be hot, so please consider your physical
condition prior to registration. Participants should bring
their own lunches and abundant beverages, especially
water. The RMAG link for registration is: http://www.rmag.
org/i4a/pages/index.cfm?pageid=3290.
Wealth Planning Services
Michael Slishinsky
Vice President - Financial Advisor
© 2012 RBC Wealth Management, a division of RBC Capital Markets, LLC,
Member NYSE/FINRA/SIPC.
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Traditional and Roth IRAs
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For sound recommendations and service you can
count on, call today.
»
2/8/12 8:55 AM
Vol. 61, No. 4 26
April 2012

On-the-Rocks Field Trip
Mudrocks of the Southern Denver Basin, Pueblo, CO: Graneros,
Greenhorn, Carlile, and Niobrara Formations
Trip Leaders: Jeffrey A. May, Geologic Consultant, and Edmund (Gus) R. Gustason, Enerplus Resources,
Saturday, June 9, 2012
West of Pueblo, Colorado, down-cutting by the
Arkansas River across the broad Rock Canyon Anticline
has revealed approximately 4000 feet of Middle to
Upper Cretaceous strata. Excellent exposures, as well
as abundant macro- and micro-fossils plus bentonites,
make this a classic area for defining the physical,
bio-, and chronostratigraphy of the Cenomanian to
Campanian stages (99.6 to 77.6 Ma). Both small-scale
depositional cycles as well as high-energy event beds are
superimposed on large-scale transgressive-regressive
successions. Of special note are exceptional mudrock
outcrops of the Graneros, Greenhorn, Carlile, and
Niobrara formations, the focus of this field trip.
Currently of great interest for oil and gas exploration,
G.K. Gilbert first described many of these mudrocks in
the late 1800s. He observed rhythmic alternations of
argillaceous shale, calcareous shale, and limestone in
the Greenhorn and Niobrara sections, postulating that
intermittent transport of terrestrial clay into the ocean
diluted biogenic carbonate sedimentation. Gilbert
believed these patterns likely reflected periodic variations
in the Earth’s orbit, now known as Milankovitch cycles.
Thorough mapping of lithostratigraphically-defined
formations in the Pueblo area took place during the
1960’s to early 1970s, led by Glenn Scott of the USGS.
Concurrently, William Cobban collected extensive
ammonite and inoceramid assemblages from these
units, leading to seminal findings on time-stratigraphy,
paleogeography, and macrofaunal evolution of the
Western Interior Cretaceous Seaway.
In the 1970s, Erle Kauffman defined a series of
third-order transgressive-regressive cycles for the
Cretaceous, including two emphasized on this field trip:
the Cenomanian through Middle Turonian Greenhorn
Cycle (Graneros, Greenhorn, and lower Carlile formations)
and Late Turonian through earliest Campanian Niobrara
Cycle (upper Carlile, Niobrara, and Pierre formations).
Then during the late 1970s through 1980’s, Kauffman
supervised a team of students who studied the
lithostratigraphy, chemostratigraphy, biostratigraphy,
and chronostratigraphy of the Greenhorn and Niobrara
cyclothems in the Pueblo area. He and his students
OUTCROP
27
used this high-resolution chronostratigraphy to confirm
Milankovich-driven cyclicity of the limestone-shale bundles,
recognize systematic changes in organic geochemistry,
refine the micro and macro biostratigraphy, and even
established a link between limestone-shale couplets and
higher frequency shoreline parasequences.
During our trip, we will examine yet another significant
feature: the Global Boundary Stratotype Section and
Point (GSSP) for the Cenomanian-Turonian boundary. This
horizon occurs within the Bridge Creek Limestone Member
of the Greenhorn Formation. The Cenomanian-Turonian
GSSP is defined here by widespread bentonites with
radiometric ages of 93 to 93.5 Ma and a positive excursion
in C-13 isotopes corresponding to a global oceanic anoxic
event (OAE II). Thus, this field excursion provides an
opportunity to examine geologically significant and wellexposed
mudrock outcrops from the Graneros, Greenhorn,
Carlile, and Niobrara formations. We will compare and
contrast stratigraphic cycles and depositional events
in argillaceous, siliceous, and calcareous successions.
Ultimately, these rocks allow us to relate parameters
important when evaluating shale plays – such as lithology,
organic-carbon content, chronostratigraphic framework,
and mechanical stratigraphy - to the underlying controls of
sea-level change, orbital and climatic cycles, and oceanic
oxygenation and circulation.
To register, please contact Denis Foley (303-916-
3736, denis_foley@hotmail.com). We will leave from
the Mineral light rail station parking lot (NE corner of
Santa Fe and Mineral) at 7:00 am; it is a 2-hour drive to
our first stop at Lake Pueblo State Park. We will arrange
car pools at the parking lot, with each car required to
pay the park entrance fee. The group is limited to 30
people. Plan for moderate hiking, including a slow climb
up a fairly steep hillside. The day may be hot, so please
consider your physical condition prior to registration.
Participants should bring their own lunches and abundant
beverages, especially water. We plan to leave the Pueblo
area, heading back to Denver, between 4:00 and 5:00
pm. The RMAG link for registration is: http://www.rmag.
org/i4a/pages/index.cfm?pageid=3290.
»
www.rmag.org

From the May, 1977 Outcrop
Vol. 61, No. 4 28
April 2012

The Outcrop
Needs YOU!
We need articles and
photos for the Outcrop!
Have you attended a great lecture or read an interesting
new geology or energy book? Have you attended a class or
gone on a field trip that would interest the membership?
Have you learned a new technique or found some great
public domain software? Share your research so we can
grow together. We are looking for articles about the new
water laws, basin modeling on the “cheap,” new geologic
trails or programs, legislative concerns, new technology.
Please submit your ideas or articles and photos to:
Josh Robbins
staff@rmag.org
Kristine Peterson
k.peterson@laramidegeo.com
Cat Campbell
Catherine.e.campbell@gmail.com
Holly Sell
HSell@nobleenergyinc.com
Please be sure to include a phone number and
make sure our emails are white-listed. We have had a
few submissions that we wished to run but we could not
reach the submitters by email and had no other contact
information.
OUTCROP
29
www.rmag.org

CALL FOR PAPERS:
THE MOUNTAIN GEOLOGIST
ATTENTION Geologists, Earth Science Professors and Graduate Students
Publish your Paper in The Mountain Geologist!
The Mountain Geologist is RMAG’s peer-reviewed, quarterly journal. It focuses on
the geology of the Rocky Mountain area of the United States and related topics from
outside the Rocky Mountain area. We accept manuscripts from almost every subdiscipline
in the geosciences, from authors in academia and industry.
Share your ideas, experience and wisdom! The Mountain Geologist circulates to over
2200 members and about 200 university libraries and industrial associates. It has been
published by RMAG since 1964.
Please email manuscripts or suitability questions to Joyce Trygstad Nelson at
jtpetr@aol.com or Mel Klinger mel.klinger@fidelityepco.com . Manuscripts must be
written in accordance with The Mountain Geologist Authors Style Guide, available online
at www.rmag.org.
YOUR AD HERE
(Professional Card Ad Size)
Only $144.00
per year
Vol. 61, No. 4 30
April 2012

PTTC Workshops
Petroleum Geology for Non-Geologists
Tuesday June 26, 2012, 8:30 am – 5:00 pm
Colorado School of Mines, Berthoud Hall room 241
Fee: $225 (includes food at breaks, workbook, and PDH certificate)
Instructor: Dr. Stephen Sonnenberg (Colorado School of Mines)
Course is for petroleum industry personnel in need of basic geological training. Course
participants include: engineering, geophysical, technical support, and administrative personnel.
Topics covered include: plate tectonics and sedimentary basins, geologic time; the petroleum
system; depositional systems; porosity and permeability; conventional reservoirs; unconventional
reservoirs; well log correlation and analysis; contour maps and cross sections; source rocks and
seals.
Petroleum Engineering for Non-Engineers
Wednesday June 27, 2012, 8:30 am – 5:00 pm
Colorado School of Mines, Berthoud Hall room 241
Fee: $225 (includes food at breaks, workbook, and PDH certificate)
Instructor: Dr. Jennifer Miskimins (Colorado School of Mines)
This one-day short course provides a broad, basic understanding of various petroleum
engineering topics for non-engineers. The focus of the course is placed on the design,
construction, stimulation, and production of wells. Specific topics discussed include the drilling
of wells, rig types, wellbore integrity and design, completion types, casing and tubing
definitions, downhole tools such as packers, formation damage, and stimulation including
hydraulic fracturing. As the title implies, the course is designed for those who work in the oil and
gas industry but do not have a technical background in subsurface topics. Previous attendees that
have found the course useful include landmen, technicians, accountants, financiers, and field
personnel.
Class Descriptions and Register Online: www.pttcrockies.org
For more information, contact Mary Carr, 303.273.3107, mcarr@mines.edu
OUTCROP
31
www.rmag.org

2012 RMAG Golf
Tournament
Location: Fossil Trace Golf Course
City: Golden, Colorado
Date: June 28 th , 2012
Cost: $200.00 Per Player
ONLY 240 Slots Available
Please register online at www.rmag.org
Vol. 61, No. 4 32
April 2012

OUTCROP
33
www.rmag.org

Field Trip Photos from 1977
Vol. 61, No. 4 34
April 2012

Advertisers Index
AAPG .............................7, 16, 37
Applied Geophysics................ 21
Bakken Tight Oil .................... 33
Banko Petroleum ................... 23
Bowler Petrophysics .............. 13
Breckenridge Expl. Co., Inc. .....4
Canadian Discovery ............... 19
Discovery Group ..................... 13
Foothills Animal Shelter ........ 13
Geosteering ...............................6
Hoppe, William F. ................... 13
Horizontal Solutions Intl. ....... 31
I.H.S. ...........................................2
Innovative GeoTech ................ 19
Karo, James C. ..........................4
MJ Systems ............................ 29
Mazzullo Energy Corp. ........... 13
Neuralog ..................................17
PTTC ........................................ 31
RBC Wealth Management .... 26
RMS/AAPG ............................. 16
Rockware Inc. ........................ 36
Rose and Associates ............. 11
TGS .......................................... 22
Whitehead, Neil H., III ............ 23
Wyotex Oil Company .............. 33
May 2012
SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY
1 2 3 4 5
DWLS Spring
Workshop
RMAG
Luncheon
Speaker:
Pete Stark
6 7 8 9 10 11 12
Desk & Derrick
Luncheon
13 14 15 16 17 18 19
DWLS Spring
Luncheon
Hart DUO
20 21 22 23 24 25 26
27 28 29 RMAG/ 30 31
SEPM
Luncheon
Speaker:
Mary Kraus
Oilfield
Christian
Fellowship
Luncheon
Bakken Tight Oil
Congress 2012
DAPL/
DGS/SPE
Networking
Happy Hour
DIPS
Luncheon
On the Rocks
Field Trip
OUTCROP
35
www.rmag.org

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Vol. 61, No. 4 36
April 2012
MapInfo
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OUTCROP
Rocky Mountain Association of Geologists
910 16th Street, Suite 1125
Denver, CO 80202
37
www.rmag.org