Council approves change order after casing gets stuck during Tar Canyon well drilling

Gunnison City Council on July 15 approved a change order for the Tar Canyon well project to cover costs from unanticipated drilling conditions after contractors encountered stuck casing deep in the borehole.

City engineering staff told the council the contractor had to use a crane and a large air package to attempt to free a 14-inch casing that had bound up at roughly the 800–880-foot zone. The engineer said the likely cause is a swelling formation or ledge and that crews had to perform multiple recovery efforts and recondition the borehole before continuing work.

"After coordinating the well driller and looking at the project documents, we think a change order is warranted for the unforeseen conditions," the city engineer said, recommending approval to keep the project moving.

Mayor (chair) and councilors pressed staff on alternatives if the casing remains stuck. Staff said crews could insert a smaller-diameter screen inside the existing 14-inch casing and still achieve functional production, though that approach could reduce gravel-pack volume and complicate future maintenance. Staff added that, based on prior test work, most production is expected from higher in the column and that the reduced bottom access would not necessarily limit pump capacity.

Council members said they were surprised by the additional cost but were reassured that even with this change order the project remains below the original budgeted estimate. The council approved Change Order No. 2 by voice vote (3–1) with one councilor opposing; council direction emphasized finishing the project without additional unplanned costs where possible.

The council also discussed test-pump equipment sizing (1,200 vs. 1,600 gpm) and agreed to defer final decisions about permanent equipment until post–test-pump results are available. Staff said they do not expect further major change orders related to the stuck casing but cautioned some smaller line items could change as testing and development continue.

The project will proceed under the revised scope; staff will report results of the next recovery and the test pump to the council as information becomes available.