Fowler Oil and Gas (fka FWOG)

[humboldt111502]

State fair OKs methane well -- far away from the fun
INCOME: Buildings and electrical and sewage systems need repairs.

By ZAZ HOLLANDER
[e-mail]
(Published: December 15th, 2007)

WASILLA -- The Alaska State Fair board of directors gave a historic go-ahead for gas drilling at the Palmer fairgrounds, until now a place where methane rose only from the farm exhibits.
The seven fair directors approved a contract with Fowler Oil and Gas Corp. to allow a single coal bed methane well on one acre, said fair general manager Ray Ritari.

The well, if drilled, would sit well away from fair exhibits and attractions on the south side of the fairgrounds near Rebarchek Avenue, Ritari said.

Fair-goers -- 300,000 attended this year -- "will not know (Fowler crews) are there at any time," he said. "It's back behind the shop area in a wooded area."

The contract represents the fair's first mining lease, Ritari said. Fairs began at the site in 1936. A nonprofit corporation manages the fair, which has a $4.5 million budget and in recent years has struggled with declining attendance and sagging facilities.

"We've got millions and millions and millions of dollars of work that needs to be done on our electrical system, our sewer system, getting different buildings up to code," the manager said.

"It's difficult, if not impossible, to get those numbers through gate receipts and vendor fees," he said about the well's promise of raising new revenue.

Ritari would not disclose the amount of royalties specified in the contract. He also would not say what the fair spent on environmental and legal reviews of the methane drilling operation, other than to say that "it was pretty substantial for our sized budget."

Fowler Oil and Gas chairman and chief executive Bob Fowler was not available for comment Friday morning. Ritari said Fowler was out of town and did not attend Thursday night's meeting.

The relatively new company, with a Palmer office for its Alaska operations, has yet to drill a well. As part of the fair contract, any drilling must wait until Fowler drills first on farm property near the intersection of Trunk and Bogard roads. The company in October got permission from the Matanuska-Susitna Borough for that pilot well but still needs the go-ahead from the Alaska Oil and Gas Conservation Commission.

Fowler said in an earlier interview he hopes to start drilling that first well next spring if all the permits are granted.



http://www.alaska.com/adn/front/story/9520312p-9430928c.html