Pinedale, USA

What is it?
  • Project producing natural gas in the USA Rocky Mountains.
  • Expected peak production equivalent to 3.5% of Shell’s total 2006 gas production.
  • Up to 1,000 wells required; 175 drilled by the end of 2006.
  • 300 permanent and contractor jobs created, 40% of these filled by locals.
  • Operated and 33% owned by Shell.

The scenic town of Pinedale, Wyoming (population 1,600) lies next to the Pinedale Anticline natural gas field. We have been developing part of this technically challenging field since we bought the project in 2001. From the start, we have listened to and worked closely with regulators and the community to create local benefits and minimise environmental impacts from the project.

For example, we were told that air pollution and protecting wildlife were important concerns and that improving education and reducing drug and alcohol abuse mattered to people in the town. In response, we are using low-emission engines and have introduced new techniques for completing wells that reduce flaring by at least 95%. We have found ways to access more gas from fewer locations, reducing our impact on the land. We also established two, independent, $1 million charities run by a foundation from the local community to protect local wildlife and to address social issues such as substance abuse and education.

In 2005, a social performance review was undertaken for the project. It drew on experience from across the company and identified again the importance of conservation to the local people. To protect wildlife, the Government does not allow drilling in the Anticline from mid-November to May. In practice, this has led to social and environmental problems and hampered development of the field. Operators work more intensively in the short drilling season, causing more disturbance than if they could spread their activities throughout the year. The community gets a seasonal wave of work instead of stable, year-round employment.

Working with stakeholders and the other operators in the area, we developed an approach to working responsibly throughout the year and carried out a successful demonstration project in the winter of 2005/06. The Government’s decision on year-round working is expected during summer 2007.

Rose Skinner, Former Mayor, Town of Pinedale, Wyoming (picture)
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I have lived in Pinedale for almost 40 years and was the mayor for 10 years from 1996. I worked with our citizens and the energy companies to ensure the benefits of developing the gas field outweigh the disadvantages. Shell supports economic and social programmes in this fast-growing town and it works to protect wildlife. I believe Shell is committed to extract the gas in the best manner using the latest technology.
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Rose Skinner
Former Mayor, Town of Pinedale, Wyoming
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