Anchorage Daily News

WASILLA -- A slipped timeline on a coal-bed methane well proposed by Fowler Oil & Gas Corp. marks the latest of several setbacks for the Palmer-based company.

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Bob Fowler

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In May, Fowler got the necessary state permission to start work on the proposed well, located in a hayfield along Trunk Road.

A gravel road and pad appeared in the lush green field this summer, as did a company sign.

In June, Fowler chief executive Bob Fowler said in an e-mail that he expected to start producing gas this fall.

But a timeline on the company's Web site now puts the start of production at next spring, with initial drilling to start this fall.

At least as of this week, no drilling was under way. Fowler did not respond to several phone messages and e-mail requests for information.

Fowler's is the first attempt to plumb coal seams in populated areas for the lucrative gas since Colorado's Evergreen Resources Inc. left the state in 2004 amid fears of private property invasion and fouled water.

Last October, amid largely good reviews for "environmentally friendly" methane drilling plans, Fowler got a Matanuska-Susitna Borough permit to drill a pilot well in the field. The well sits on a large parcel shared by four farm families who stand to gain royalties.

CHANGE OF PLANS

But despite Fowler's permitting and public-relations successes, the company suffered some setbacks this year, including some hinting at possible financing troubles.

In February, company president Arlen Ehm resigned, saying he hadn't been paid. The same day, the company with which Fowler shares staff and some funding -- New York-based Native American Energy Group -- told shareholders in a written statement it was struggling to find capital.

Fowler, who distanced himself from the energy firm, has refused to answer questions about the resignation. But the company issued a statement saying there were "more issues at play here than just back pay."

Contacted last week, Ehm said he has yet to get a response on pay from Fowler despite written requests asking him to "address the issue."

A contractor who talked with Fowler about the project also said Fowler balked when it came time to commit to a contract and payment schedule.

Wayne Westberg, owner of M-W Drilling Inc. in Anchorage, said Fowler first approached him to drill the well several years ago. But Fowler backed off early this year after Westberg pressed for a contract, which usually means paying monthly estimates in advance for work to be done, he said.

"I basically told him if he was going to use my name, we were going to need a contract," Westberg said in a phone interview from Nome, where he was installing water wells for a housing project. "I haven't heard anything since."

Meanwhile, the company's plan to move into a new office space in downtown Palmer also appears to be behind schedule.

The Fowler Oil and Gas name hangs at the top of a marquee at the newly renovated Downtown Palmer Depot. Yet the company continues to operate from a small office above the Wells Fargo branch a few blocks away.

Depot owner Richard Stryken said earlier this year that Fowler and 30 employees were expected to move into the top floor in April, as part of a 10-year lease. This week, Stryken said despite the delay, his working relationship with his tenant remains solid.

"He had a change in his plans," Stryken said, asked about the still-empty space. "I don't know what his total plan is right now."

MORE WORK TO DO

It also appears Fowler Oil and Gas has a bit more process-oriented work to do, despite a June Web site message saying the company has all the permits it needs.

Fowler still lacks final approval on a state driveway permit, according to Dawn Hancock, a permitting officer with the Alaska Department of Transportation & Public Facilities. Fowler still needs to pave the first 30 feet of the gravel road leading to his proposed well under permit conditions that protect Trunk Road from pavement-scouring gravel.

The company can use the 800-foot road now, Hancock said, but needs to finish the work by next year or risk losing the road.

Fowler also needs to notify the Alaska Oil and Gas Conservation Commission before drilling so engineers can inspect the well site, though that notice customarily only needs to come a day or so in advance.

State officials said they hadn't heard from Fowler since approving his drilling permit in May. The permit is good for two years.

At least one company appears happy to do business with Fowler when the time comes to sign a contract.

Anchorage-based Aurora Power Resource Inc. has been "talking on and off for quite a while" with Fowler, said David Boelens, vice-president for Aurora's Alaska operations, which include a well services company.

The company is not currently under contract with Fowler, Boelens said.

If Fowler does plan to drill his well this fall, Aurora would first need to finish another job that ends around Thanksgiving.

"We'd certainly be interested in working with him if they get in a position where they're ready to drill it," he said.

Find Zaz Hollander online at adn.com/contact/zhollander or call 352-6711.

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