The Town of Frederick is located in northern Colorado in a south central portion of the Denver – Julesburg Basin (DJ Basin). The Denver - Julesburg Basin is an area that contains significant deposits of subsurface natural gas, oil, coal and other minerals. Underground coal formations are the prime source of natural gas. Within the DJ Basin’s most productive area is the Wattenberg field. As the state’s second-largest oil and gas field, the Wattenberg field covers parts of Adams, Boulder, Broomfield, Larimer and Weld counties. Its nearly 12,000 oil and gas wells supply about 30 percent of the natural gas consumed by Front Range homes and businesses. Operators concentrate on producing from the Sussex, Niobrara, Codell and J Sand geologic formations. A typical J Sand well can provide enough natural gas to heat or cool 600 Colorado homes for 10 years. As more homes and businesses are built, more gas wells will be required to serve those homes, and as wells age, maintenance must occur to extend the life of that well.
For more than 30 years, the Wattenberg field has been one of the country’s most important oil and natural gas fields. It generates a significant revenue base for Colorado, including jobs, tax revenues and royalties. It supplies vital energy to local communities. More than 15,000 royalty owners in Adams, Boulder, Broomfield, Larimer and Weld counties receive royalty revenues from Wattenberg producers, and some local school districts receive more than half of their funding from oil and gas property taxes. Lastly, some communities also receive tax royalties and grants for public purposes.