The
Oil and Gas Conservation Commission met on March 17th at
Those
present were:
Stephen
Sonnenberg Chair
Tom
Ann Casey Commissioner
Michael
Klish Commissioner
Peter
Mueller Commissioner
Tom
Reagan Commissioner
Richard
Griebling Director
Brian Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The
Commission unanimously approved the minutes from the
Executive Director’s Report:
Shane Henry, Assistant Director for the Department of Natural Resources
(“DNR”) stated that four million dollars will be transferred from the severance
tax to fund the general fund, leaving one million dollars in the severance tax
fund. Greg Walcher, Executive Director
of the Department of Natural Resources, sits on the Energy Impact Assistance
Committee (“EAIC”) and Mr. Henry sometimes fills in for him. He discussed a letter that the MEGA Board
sent to the EIAC suggesting limits to the amount of money given to counties
that are not friendly to oil and gas operations, along with other provisions to
restrict funding. There is interest from
the Joint Ag Committee to have a coalbed methane presentation on April 16th. IOGCC wants to update committee lists and is
seeking input from anyone interested in serving.
Director’s Report: Director Griebling provided a written report
and discussed the following: The number of Applications for Permits-to-Drill (“APDs”)
is on track for issuance of approximately 2000 permits this year. The Northwest Oil and Gas Forum was held last
month on February 20. There were three
times as many folks that attended than the typical number of attendees. The next meeting is on
Assistant Attorney General’s Report:
There was no report.
Commissioner Comments:
Commissioner Mueller thanked EnCana for the field tour that
morning. He thinks they are using a lot
of thought and innovation to reduce surface impacts. Commissioners Casey and Reagan agreed with
Commissioner Mueller. Chair Sonnenberg
mentioned that the IOGCC is soliciting more members for its committees.
Audience Comments: There were no
comments.
Cause No. 328, Docket No. 0303-EX-01, request for an order allowing an exception
to the permitted location for the Monk #1-7 Well to be located in the NE¼ SE¼ of
Section 7, Township 4 North, Range 46 West, 6th P.M. for the production of gas
and associated hydrocarbons from the Niobrara Formation for the 160-acre
drilling and spacing unit consisting of the SE¼, was withdrawn.
Cause No. 328, Docket No. 0303-EX-02,
request for an order allowing an exception to the permitted location for the
Monk #2-7 Well to be located in the SW¼ NE¼ of Section 7, Township 4 North,
Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons
from the Niobrara Formation for the 160-acre drilling and spacing unit
consisting of the NE¼, was withdrawn.
Cause No. 328, Docket No. 0303-EX-03, request for an order allowing an exception to
the permitted location for the Phoebe #2-6 Well to be located in the NE¼ NW¼ of
Section 6, Township 4 North, Range 46 West, 6th P.M. for the production of gas
and associated hydrocarbons from the Niobrara Formation for the 160-acre
drilling and spacing unit consisting of the NW¼, was withdrawn.
Cause No. 328, Docket No. 0303-EX-04, request for an order allowing an exception to
the permitted location for the Phoebe #4-6 Well to be located 1189' FNL and
565' FWL in the NW¼ NW¼ of Section 6, Township 4 North, Range 46 West, 6th P.M.
for the production of gas and associated hydrocarbons from the Niobrara
Formation for the 160-acre drilling and spacing unit consisting of the NW¼, was
withdrawn.
Consent Agenda: The Commission
unanimously approved the consent agenda, which included the following:
Cause No. 334, Docket
No. 0303-AW-01, request for an order to allow additional wells to be drilled in
certain 320-acre drilling and spacing units in Section 32 and the N½ of Section
33, Township 10 North, Range 93 West, 6th P.M. for the production of
gas and associated hydrocarbons from the Middle Lewis Formation.
Cause No. 290, Docket
No. 0303-AW-02, request for an order to allow additional wells to be drilled in
certain 320-acre drilling and spacing units in Sections 10-11, 14-15 and 22-23,
Township 10 North, Range 94 West, 6th P.M. for the production of gas
and associated hydrocarbons from the Middle Lewis Formation.
Cause No. 1V, Docket
No. 0303-OV-03, request to approve an Administrative Order by Consent finding
Setex Oil & Gas Company in violation of Rules 319.b.(3) and 326.b.(1),
failure to obtain Director approval for continuing shut-in status and to
perform a mechanical integrity test within thirty (30) days of removing the
surface production equipment from the RMPCP (UPRR) Everitt #1 Well located in the
SE¼ SE¼ of Section 19, Township 6 South, Range 64 West, 6th P.M. and
the RMPCP (UPRR) Everitt “A” #41-30 Wells located in the NE¼ NE¼ of Section 30,
Township 6 South, Range 64 West, 6th P.M.
The meeting adjourned at
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The Secretary was therefore
authorized to issue the following orders:
Order No. 290-2, Moffat County: Approves the request by Tom Brown, Inc. to
allow additional wells to be drilled in certain 320-acre drilling and
spacing units in Sections 10-11, 14-15 and 22-23, Township 10 North, Range 94
West, 6th P.M. for the production of gas and associated hydrocarbons
from the Middle Lewis Formation.
Order No. 334-4,
Order No. 1V-244,
Elbert County: Approves
the Administrative Order by Consent finding Setex Oil & Gas Company in
violation of Rules 319.b.(3) and 326.b.(1), failure to obtain Director approval
for continuing shut-in status and to perform a mechanical integrity test within
thirty (30) days of removing the surface production equipment from the RMPCP
(UPRR) Everitt #1 Well located in the SE¼ SE¼ of Section 19, Township 6 South, Range
64 West, 6th P.M. and the RMPCP (UPRR) Everitt “A” #41-30 Wells
located in the NE¼ NE¼ of Section 30, Township 6 South, Range 64 West, 6th
P.M. and assesses a fine of Four Thousand dollars ($4,000) for the violations.
Signed:
Patricia
C. Beaver, Secretary
Approved:
Stephen Sonnenberg, Chair