Utah Division endorses Piazza development inclusion in WEXPRO 2 portfolio amid concerns

A significant development in Utah's energy sector emerged during a recent government meeting, where the commission discussed the inclusion of the Piazza development into the WEXPRO II portfolio. This application marks a pivotal shift, as it involves a working interest agreement with WEXPRO participating in financing but not operating the wells, a first for the WEXPRO II program.

Since the approval of the original WEXPRO II agreement in 2012, several properties have been added, including the Horseshoe Bend property last year. The current application, based on a joint operating agreement executed in December 2024, allows WEXPRO to claim a percentage of production from wells operated by another company in Western Colorado.

During the meeting, concerns were raised regarding the implications of this new arrangement. The division highlighted five key issues, including that this gas will not be produced in Utah and that WEXPRO will not be the operator of the wells. Despite these concerns, the division ultimately recommended approval of the application, citing that the benefits to customers would outweigh the drawbacks.

The company addressed the concerns through testimonies, proposing solutions that included providing necessary information to the hydrocarbon monitor ahead of deadlines and utilizing data requests for filing requirements. The division concluded that the acquisition would lower overall gas service costs for Utah ratepayers, making it a favorable addition to the WEXPRO II portfolio.

In summary, the commission is poised to approve the Piazza development, which is expected to enhance the natural gas reserve pool and provide economic benefits to customers, reinforcing the importance of strategic energy partnerships in the region.