For quite a few people, Colorado's La Plata County is their own little patch of heaven. Urban refugees and retirees have snapped up luxurious homes that obliging builders sprinkle across three- to 35-acre tracts. Tucked into the southwestern part of the state, scenic La Plata County also happens to sit in the northern reaches of the prolific San Juan Basin. "In 1998, wells in La Plata County produced 56% of all the natural gas in Colorado," says Gail Aalund, executive director of the La Plata County Energy Council, a Durango-based trade organization. Presently, La Plata County hosts about 1,700 coalbed methane wells; 1998 production from the Fruitland Formation coal seams totaled 31.9 billion cubic feet of gas. The conflict is classic. People, drawn to the stunning vistas and amenable lifestyle of the Colorado Plateau region, buy slices of property that once were windswept ranchland. "During the last five years, building permits in the county have averaged 1,500 per year while well permits have averaged around 70," notes Aalund. Many transplants, despite years of education and decades of professional success, know little or nothing of severed mineral estates, she says. When the holders of preexisting oil and gas leases seek to exercise their drilling rights, tension rises. Recently, the simmering controversy erupted into pandemonium when operators filed two applications with the Colorado Oil & Gas Conservation Commission for increased density drilling. In the southeastern portion of La Plata County, about a dozen companies sought permission to allow a second well on the existing 320-acre units. Of the possible infill locations, 160 lie in the north application, which encompasses many of the exclusive subdivisions. Parties to the application were BP Amoco, J.M. Huber Corp., Hallwood Petroleum Inc., Four Star Oil & Gas Co. and EnerVest San Juan Operating LLC. The southern area, a region that is less developed and that includes the extensive Southern Ute tribal lands, could support 478 infill locations. The same four firms in the north application were joined by the Southern Ute Indian Tribe, Vastar Resources and several small independents. A typical Fruitland well costs between $500,000 to $700,000 and recovers 3- to 5 Bcf of gas during a 25-year life, says Betty Dieter, vice president, Denver-based Hallwood Energy Corp. "These are good, low-risk assets and we are glad we have them in our portfolio," she says. Hallwood is a small operator-it has about 35 wells in the county, and 17 possible infill locations. "We are very environmentally conscious, and we work very hard to make sure that we comply with all the regulations," says Dieter. "We add on top of that our own environmental and safety standards." The surface owners are mightily concerned with the effect of the infill drilling on the quality of their drinking water. "No matter how many times we stress the requirements that the industry meets to safeguard the drinking water, and how very unlikely it is that our drilling is affecting the aquifers, some people are convinced that we are threatening their water supply," she says. "They have a limited understanding of the subsurface." Other local concerns are the visual impacts of the wellsites, the noise created by compressors, and the construction needed for access roads and locations. "We do such things as build berms around our locations to minimize the visual impact," says Dieter. "We fence locations in high-density areas to increase safety, and we make sure we maintain the roads in excellent condition." The operators active in La Plata are also drafting a Health, Safety and Welfare plan covering development in the county. "We've been working really hard with the county commissioners to reach a memorandum of understanding covering these issues," says Dieter. "But it's difficult to work in such a political atmosphere. There are many people in La Plata County who don't want any more wells drilled for any reason." Nevertheless, the state will soon render its decision on infill drilling. "We've already had two public forums and a hearing on the technical issues," says Tricia Beaver, COGCC hearings manager. "The COGCC has approved the applications for increased density. Because La Plata County has intervened on both applications, the next step is a public issues hearing in early June." That hearing will allow the COGCC to consider if additional conditions need to be placed on the orders, notes Beaver. Without a doubt, whatever the COGCC decides will cause more uproar in this little corner of the New West.