FAQs
General
    
        Who is Collier Resources Company (CRC) and
        what does the company do?
        In the early 20th Century, advertising magnate Barron Gift Collier
        came to Southwest Florida and, inspired by the promise of this land, he
        bought more than a million acres and was instrumental in creating
        Collier County.
        Today, nearly 100 years later, two family companies – The Barron
        Collier Companies and Collier Enterprises – continue to realize his
        vision through a commitment to integrity, strong business values and a
        deep respect for the land.
        Both companies engage in businesses that include agricultural
        operations, land management, real estate development, oil and gas
        production, as well as the conveyance of land for preservation.
        Together, the two companies manage the family’s mineral holdings
        through Collier Resources Company (CRC) and are part of the more than
        seven-decade history of successful oil exploration and development in
        Southwest Florida.
        How many mineral acres does CRC own?
        CRC is the largest private mineral company in South Florida,
        managing and developing more than 800,000 mineral acres in Collier, Lee
        and Hendry Counties.
     
    History
    
        What is the history of oil operations in
        Southwest Florida?
        The first oil discovery in Florida was made in Collier County by the
        Humble Oil and Refining Company, known today as ExxonMobil, in 1943 on
        Collier minerals in the Sunniland Oil Trend, located just south of
        Immokalee.
        Since that time, eight Southwest Florida commercial oil fields have
        produced more than 120 million barrels of oil from the Sunniland Oil
        Trend at some of the highest on-shore per-well flow rates in the
        country. In 1977, the Sunniland had a peak year, producing more than
        14,000 barrels of oil per day.
        For many years, Humble Oil and Refining Company was the predominant
        operator in the Sunniland Trend. In addition to Sunniland field, it
        discovered and produced oil under leases from Collier Resources Company
        (CRC) in the Big Cypress National Preserve at Bear Island beginning in
        the mid-1970s and at Raccoon Point beginning in the early 1980s.
        ExxonMobil later sold its interest to Calumet Florida, LLC in
        1993.
        Today, BreitBurn Florida, LLC, the successor to Calumet, continues
        to produce oil from the Bear Island and Raccoon Point fields within the
        Big Cypress National Preserve, as well as three other fields located
        north of the preserve, all within the Sunniland Oil Trend.
        What is the Sunniland Oil Trend?
        The Sunniland Trend is a well defined, onshore hydrocarbon-bearing
        geological layer that stretches from Fort Myers to Miami. It is located
        on the northeast flank of the South Florida basin, the largest
        unexplored geological basin in the lower United States.
        Sunniland Oil Trend wells produce from limestone hills at an average
        depth of more than two miles underground and its fields contain very
        low amounts of gas, making them low pressure and requiring submersible
        pumps to bring the oil to the surface.
        Oil from the Sunniland Oil Trend is of the heavy-sour variety with a
        consistency of liquid tar. Its refined products include automobile and
        aviation fuels, various grades of diesel fuel, lube oils and
        asphalt.
        Oil and gas production has been continuous from Southwest Florida
        oil fields since the Sunniland Oil Trend's first discovery at the
        Sunniland Field in 1943. Over the past 70 years, 14 named discoveries
        have been made in the trend and an excess of 120 million barrels of
        crude oil have been produced from eight commercial oil fields.
     
    Regulatory
    
        Who regulates oil and gas activities in
        South Florida?
        The number of agencies regulating oil and gas activities depends on
        where the activities are taking place. Generally, the State of Florida
        regulates oil and gas activities through the Department of
        Environmental Protection’s Oil and Gas Division.
        However, should an oil and gas activity be located in wetlands or on
        federally-owned surface lands, such as the Big Cypress National
        Preserve, then one or more federal agencies, such as the U.S. Army
        Corps of Engineers, the U.S. Fish and Wildlife Service or the National
        Park Service (NPS), must also approve such activities.
        What federal agency regulates oil and gas
        activity in the Big Cypress National Preserve?
        The lead federal agency in permitting oil and gas operation in the
        Big Cypress National Preserve is the U.S. Department of the Interior's
        NPS. The NPS Ochopee office has oil and gas specialists who monitor
        existing operations and work with oil and gas operators in proposing
        new operations. Consultations with, or direct permits from, U.S. Fish
        and Wildlife Service, the U.S. Army Corps of Engineers and
        Environmental Protection Agency are also required.
        Have any regulatory agencies ever found
        that oil exploration and development were adversely effecting the
        environment?
        No. In fact, twice during its 37 years of regulating oil and gas
        activities, the State of Florida has examined the effects of oil and
        gas exploration and drilling on the environment of Southwest Florida
        and concluded that no detrimental impacts to the environment have
        resulted.
        Congress twice concluded the same in authorizing the Big Cypress
        National Preserve Enabling Act of 1974 and the Big Cypress Preserve
        Addition Act of 1988. The NPS in its 1992 programmatic environmental
        impact assessment of the Big Cypress National Preserve's General
        Management Plan, and more specifically its Mineral Management Plan,
        published a matrix of environmental protection requirements developed
        specifically to provide effective protection to Southwest Florida's
        most sensitive lands.
     
    Environment
    
        Is there is oil drilling taking place in
        the Everglades?
        No. There has not been any oil exploration or development activities
        allowed in the Everglades since 1957, when all oil and gas rights were
        extinguished by the act that created Everglades National Park in 1947.
        Interestingly, the road leading up to the observation tower at Shark
        River Slough and the pad the tower sits on were originally built for an
        exploratory oil well.
        Additionally, there is a long history of oil exploration and
        development in the Big Cypress National Preserve and the area has had
        active oil production since the inception of the preserve in 1974. In
        fact, the Big Cypress Preserve was established as a preserve, in part,
        for the purpose of maintaining certain existing rights – one of which
        was oil and gas exploration and development.
     
    Safety
    
        Has there been a history of oil spills in
        Southwest Florida?
        In more than 70 years of producing oil in Southwest Florida, no
        major spills have occurred in producing oil fields. When small spills
        have occurred, most or all of the oil has been recovered with cleanup
        efforts.
        Statistics indicate that most incidents have occurred around well
        heads and tank batteries and have been contained on limestone pads
        precluding environmental impact. Incidents occurring off limestone pads
        and into standing water, if present, are subject to a spill response
        plan, an operating requirement that is practiced every year and
        incorporates state and federal agency cleanup and vegetative
        restoration supervision.
        Southwest Florida oil fields also include production monitoring
        systems to alert field personnel and minimize spills.
        Together, with federal and state regulators, Collier Resources
        Company is committed to protecting and preserving the environment and
        ensuring oil exploration and development activities have a minimal
        impact on the surrounding environment.
     
    Groundwater Resources
    
        Have past oil development and production
        activities contaminated groundwater?
        No. It has been suggested that groundwater resources could have been
        contaminated at the Collier-Hogan well site south of Lake Trafford
        because third-party’s claimed nearby wells were not properly plugged.
        However, a review of the public records found this to be factually
        inaccurate.
        How are groundwater resources protected
        during exploration activities?
        Four layers of steel pipe and a layer of concrete separate the oil
        being produced in the well at depths greater than two miles from the
        aquifer. This will provide groundwater resources with five layers of
        protection. Consequently, the risk of water contamination is extremely
        unlikely.
        For more information on this, please click here for a groundwater modeling analysis
        conducted by Conestoga-Rovers & Associates.
        How big is the risk of H2S being released
        from the well?
        There has never been an evacuation from a drilling site in South
        Florida due to a gas release or explosion since oil production was
        first established in 1943. And, in fact, in South Florida, there is so
        little gas and pressure that there is very little threat of H2S or any
        gas being released.
        Though risk is minimal, as a precautionary measure, the Florida
        Department of Environmental Protection (FDEP) still mandates that any
        company requesting a drilling permit must first establish a safety plan
        that includes H2S detection.
        How is H2S monitored and what happens if
        it is detected?
        H2S, if it were present, would be located in the targeted reservoir,
        which is approximately 12,000 feet below the surface. Accordingly, once
        the well reaches a depth of 9,000 feet, the operator will have a
        contracted third party safety company on location 24 hours a day
        monitoring for H2S.
        Should H2S be detected, alarms will sound at the well site,
        notifications will automatically be sent to the lessee’s personnel and
        the well will be immediately shut down. The lessee will then have a
        safety meeting to evaluate the situation and will not resume operations
        until the proper safety measures are implemented.
     
    Exploration and Production Techniques
    
        How does the 3-Dimensional seismic survey
        work?
        A 3-D seismic survey uses sound waves to locate oil formations at
        great depths, much like an MRI produces a map of the human body. This
        process is carried out in one of two ways: 1. By drilling small
        diameter holes and placing small charges underground or 2. By using
        sets of vibrosis trucks.
        The drilling process begins by creating a carefully designed grid of
        small seismic charges and listening devices called geophones on the
        surface. A drill mounted on a buggy is used to sink a small diameter
        casing 100 to 150 feet into the earth. A small seismic charge is pushed
        through and out the bottom of the casing. The casing is then withdrawn,
        sealing off the charge from the surface and allowing the soil to fall
        back into place. Once the seismic charges have been placed, geophones
        are positioned on the surface and turned on. The charges are then
        individually discharged. The resulting sound waves travel downward and
        reflect off layers of the earth providing a highly accurate
        three-dimensional map of all underground structures within the survey
        area. This map reveals the presence or absence of geological formations
        similar to those that have produced oil.
        The second methodology for conducting a survey is the use of
        vibrosis machines. The grid layout for a vibrosis operation is similar
        to that used in the drilling/charge process. Instead of a buggy mounted
        drill, a set of three machines follows the grid pattern and at each
        designated location the machines stop, set their vibrating pads on the
        ground, vibrate for 20 seconds and move on to the next location. The
        machines, although large, are equipped with balloon tires and have a
        displacement pressure of 26 psi. Which is less pressure exerted on the
        ground than a pickup truck. To view a video demonstration of the use of
        vibrosis trucks, please visit the 3-D Seismic Exploration Page.
        The accuracy of the 3D seismic survey reduces the need to drill
        multiple exploratory wells and allows more strategic placement of
        development wells; thus, reducing the impact to the environment.
        How does the survey determine the
        possibility of oil?
        The survey shows whether geological formations or hills equivalent
        to those already producing oil are present, and if so, the shape,
        orientation and exact location of those formations. The survey
        identifies potential oil bearing structures and if potential is found,
        then a test well is drilled to determine whether or not oil is
        present.
        What is the environmental impact of a 3-D
        seismic survey?
        When exploring with a 3-D seismic survey, Collier Resources Company
        (CRC) and its lessees work to develop the most minimally invasive
        survey plan possible. The lessees also follow a comprehensive list of
        operational rules and conditions set forth by the Florida Department of
        Environmental Protection and the industry’s best management practices,
        including helicopter delivery of survey equipment, use of existing
        roads and trails, when possible, on-foot surveying, placement and
        retrieval of geophone listening devices, and use of third-party
        observers to ensure rule compliance.
        Isn't the use of seismic charges harmful
        to wildlife?
        Seismic charges are generally small. From a only few hundred feet
        away, charge detonation sounds and feels like a very low frequency
        thump with very little vibration. The sound magnitude is no greater
        than a muted thunder clap immediately adjacent to the charge location.
        No soil is displaced into the air from the detonation because the
        seismic charge placement process completely isolates it from the
        surface. Wildlife has not been displaced by this survey activity, but
        may avoid areas for the very short and temporary survey period in which
        equipment and human activity is present.
     
    Operation
    
        How loud will the rig be?
        Collier County has a noise ordinance that limits detectable levels
        to 75 decibels in agricultural areas.
        A typical drilling rig produces 90 decibels at the rig floor, where
        the operations are the loudest, and at 300 feet from the rig floor the
        levels are reduced to only 60 decibels. These levels were recorded and
        confirmed by a consultant on a drilling rig operating in Collier
        County.
        Collier Resources Company (CRC) is confident that drilling
        operations will not violate the noise ordinance.
        Will the noise from a drilling operation
        scare wildlife, like panthers, and push them out of their natural
        habitats?
        CRC relies on the expertise of regulators and panther biologists to
        address the issue of impacts to panther habitats; but, notably many
        respected panther biologists in Southwest Florida have publicly stated
        that oil exploration and development activities do not impact the
        panthers in Southwest Florida.
        In addition, we encourage you to visit the Environmental Stewardship
        page which displays an image indicating telemetry points of
        panthers, indicating their prevalence within the Big Cypress National
        Preserve.