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Ely Echo Editorial
Journalists, investors and company officials waited patiently in the pouring rain to see and hear the roar of Pulsar Helium’s well east of Babbitt on May 21. That howl of escaping gas was worth the wait.
Pulsar Helium has been working through the process of determining how much helium is stored below the surface in a remote area miles from the nearest home.
That there was a high concentration of helium has been known for over a dozen years. But just how much is there is about to be determined.
When a copper nickel drilling operation encountered a pocket of high-pressure gas in 2011 at a depth of 1,778 feet, the gas pressure was sufficient to blow the core tube and associated drill fluid out of the hole. They thought the pocket would be depleted in a matter of hours, however the gas flow persisted for four continuous days with no obvious drop in pressure.
There was also a capture of the gas that tested at the time at 10.5 percent helium, one of the highest levels ever recorded. Further testing in February found helium levels at 13.8 percent.
Pulsar has been working on the ground and behind the scenes to secure leases on over 1,000 acres of land from private landowners and is now pursuing state and federal leases as well.
With the exploration work they have done and the leases they have in place, Pulsar has placed itself well ahead of any competition. The company also benefited from legislation passed in St.
Paul that will put rules in place on how helium can be extracted included when the state gets an 18.75 percent royalty.
“Minnesota is open for business, and we are grateful to the state for supporting this new industry. The new legislation gives Pulsar certainty moving forward, creating a clear regulatory pathway for us to take Topaz to production. As a result, we are now planning to accelerate our works at Topaz and expand our footprint in Minnesota,” said Pulsar president and chief executive officer Thomas Abraham-James after the legislation was passed and signed by the governor.
After the van load of guests headed back to Babbitt that day, the company planned to complete further testing. That included three, 12-hour flow tests to see if the Jetstream well has the same staying power as the 2011 borehole did.
We’ve been following this development closely and while the geology may determine the outcome, we’re encouraged by the folks in charge. Both Abraham-James and Marc Farrington have been transparent, open and honest about the entire process. While they benefit from an operation that has been called “green helium,” they have taken additional steps to make sure the impact to the environment is negligible. That is to be applauded.
But just how long the wait will be for $1 million a day worth of helium to be trucked out of the woods is unknown right now. Stay tuned, this one should help balloon our local economy.
