The Oil and Gas Conservation
Commission met on March 15, 2004 at 10:00 a.m. in Suite 801, The Chancery
Building, 1120 Lincoln Street, Denver, Colorado, for a hearing in Cause Nos. 1V
(13 matters), 300 (2 matters), and 318.
Those
present were:
Peter
Mueller Chair
Brian
Cree Vice
Chair
John
Ashby Commissioner
Tom
Ann Casey Commissioner
Mike
Klish Commissioner
Tom
Reagan Commissioner
Richard
Griebling Director
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The Commission unanimously approved
the minutes from the February hearing.
Executive
Director’s Report: Russell George, Executive
Director of the Natural Resources Department, wanted to say hello to the
Commission and to let them know that he is available should the Commission
require any help. Shane Henry, DNR
Assistant Director provided an update on the new State Geologist, Vince
Matthews. A task force to review
drilling and spacing units is being assembled that will result in a document describing
how mineral owners will participate in receiving royalties. Chair Mueller asked Executive Director George
about the starting time of the hearings.
Executive Director George said he believes that the starting time for
hearings should consider an accommodation to the people who live outside of
Director’s Report: Director Griebling provided a written report
and Deputy Director Macke discussed the following: Statistics are projected at
2500 Applications for Permits-to-Drill for the year, which will be a record
since the present record was set back in 1981.
The next Northwest Oil and Gas Forum will be held on
Assistant
Attorney General’s Report: AAG Harmon
provided a written confidential litigation memo.
Commissioner
Comments: Chair Mueller thanked Deputy
Director Macke for his outreach efforts.
The Commissioners agreed to change the start time of hearings from
Audience
Comments: Greg Schnacke, COGA, said that
COGA is in favor of the budget request and would be open to future requests as
industry activity increases. Mr.
Schnacke appreciates the Commissioners’ interest in presenting the Outstanding
Operator Awards at the COGA National Gas Conference. COGA is trying to explore ways to determine
economic impacts from oil and gas operations.
Mr. Schnacke believes
Ken
Wonstolen, COGA, believes a gas gathering rulemaking may not go forward as he
had previously expected and it is likely that there will not be a consensus
rulemaking proposal. The Air Pollution
Control Commission’s two (2) day hearing on ozone last week resulted in a
rule. The rule is flexible in that it allows
oil and gas operators to place controls on the wells they believe are most
needed. Operators have to demonstrate
that controls have been placed on wells by April 2006. Controls must be in place on 46% of the wells
by April 2007. Seven hundred to eight
hundred enclosed flare units will be required in the Wattenberg Field in
approximately eighteen months at an installation cost of approximately $10
million.
A
presentation on San Juan Basin Monitoring from the 3M Project was made. John Peterson from LT Environmental provided
an overview of the Fruitland Coal monitoring program. COGCC Environmental Supervisor Debbie Baldwin
provided an overview of the Fruitland Coal pressure and outcrop monitoring,
water well sampling and complaint response.
Comments were made by Rusty Reise of BP, Paul Oldaker and Mike
Wozniak. Steve Clay, La Plata County
LGD, raised issues primarily concerning safety.
Cause No. 407, Docket No.
0401-UP-01, request for an order to pool
all non-consenting owners in the 80-acre drilling and spacing unit consisting
of the W½ SW¼ of Section 34, Township 6 North, Range 67 West, 6th P.M. for the
development and operation of the Codell/Niobrara Formation was withdrawn.
Cause
No. 407, Docket No. 0402-UP-02, request for an order to pool all non-consenting
owners in the 80-acre drilling and spacing unit consisting of the E½ SW¼ of
Section 34, Township 6 North, Range 67 West, 6th P.M. for the development and
operation of the Codell/Niobrara Formation was withdrawn.
Cause
No. 112, Docket No. 0403-AW-05, request for an order to allow a second well to
be completed in an existing 320-acre drilling and spacing unit in the S½ of Section
12, Township 33 North, Range 10 West, N.M.P.M. for the production of gas and
associated hydrocarbons from the Fruitland coal seams was continued to the
April hearing.
Cause
No. 1, Docket No. 0403-GA-02, request for a variance to notice only those mineral
owners affected by a forced pooling application instead of all the mineral
owners in the University 9-1 Well, located in the SE¼ SW¼ of Section 9,
Township 34 North, Range 9 West, N.M.P.M. was continued to the April hearing.
Consent
Agenda: The Commission unanimously
approved all matters on the consent agenda, which included the following:
Cause No. 300, Docket No.
0402-AW-01, request
for an order to allow up to four (4) wells to be drilled in the existing
160-acre drilling and spacing units located in certain sections of Township 2
South, Ranges 43 and 44 West, 6th P.M. and Township 3 South, Range 43 West, 6th
P.M. for the production of gas and associated hydrocarbons from the Niobrara
Formation.
Cause No. 318, Docket No.
0402-AW-02, request
for an order to allow up to three (3) wells to be drilled in the existing
160-acre drilling and spacing units located in certain sections of Township 1
North, Range 45 West, 6th P.M. for the production of gas and associated
hydrocarbons from the Niobrara Formation.
Cause No. 300, Docket No.
0403-AW-04, request for an order to allow up to four (4) wells to be drilled in
the existing 160-acre drilling and spacing units located in certain sections of
Township 1 South, Range 43 West, 6th P.M., Township 2 South, Ranges 43 and 44
West, 6th P.M. and Township 3 South, Ranges 43 and 44 West, 6th P.M. for
production of gas and associated hydrocarbons of the Niobrara Formation.
Cause No. 1V, Docket No.
0403-OV-07, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the
Bujalski #41-25 Well located in the NE¼ NE¼ of Section 25, Township 4 North,
Range 68 West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-08, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the
Wyscaver #23-5 Well located in the NE¼ SW¼ of Section 5, Township 4 North,
Range 63 West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-09, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Bryce
#21-28 Well located in the NE¼ NW¼ of Section 28, Township 2 North, Range 64
West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-10, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Gutterson
#23-17 Well located in the NE¼ SW¼ of Section 17, Township 3 North, Range 63
West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-11, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Jeffers
#41-35 Well located in the NE¼ NE¼ of Section 35, Township 4 North, Range 68
West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-12, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Knox #41-3
Well located in the NE¼ NE¼ of Section 3, Township 5 North, Range 67 West, 6th
P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-13, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the NHF
#13-9 Well located in the NW¼ SW¼ of Section 9, Township 5 North, Range 63
West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-14, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the NHF
#32-21 Well located in the SW¼ NE¼ of Section 21, Township 5 North, Range 63
West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-15, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Wells
Ranch #23-11 Well located in the NE¼ SW¼ of Section 11, Township 5 North, Range
63 West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-16, request to approve an Administrative Order by Consent finding Petroleum
Development Corporation in violation of Rules 303.b., 301. and Section
34-60-117.(1) of the Oil and Gas Conservation Act, failure to have an approved
Application for Permit-to-Drill or Application for Permit to Recomplete to the
Codell Formation, not providing written notice of intention to do work and to
protect correlative rights of all owners in every field or pool for the Wells
Ranch #32-3 Well located in the SW¼ NE¼ of Section 3, Township 5 North, Range
63 West, 6th P.M., and assessing a fine of five thousand dollars.
Cause No. 1V, Docket No.
0403-OV-17, request to approve an Administrative Order by Consent finding Elm
Ridge Resources in violation of Rules 906.b.(3) and 906.c., failure to report a
spill to the COGCC and to consult with the landowner prior to commencing operations
to remediate a spill, and assessing a fine of two thousand dollars.
Cause No. 1V, Docket No.
0403-OV-18, request to approve an Administrative Order by Consent finding Petrogulf
Corporation in violation of Rules 305.b.1., 306., and 306.a., failure to
provide thirty (30) days notice to surface owner, to consult with the affected
surface owner and to provide information to the landowner and local
governmental designee for the Hand 8-44V Well located in Section 8, Township 33
South, Range 67 West, 6th P.M., and assessing a fine of three thousand dollars.
Cause No. 1V, Docket No.
0403-OV-19, request to approve an Administrative Order by Consent finding DeClar
Oil & Gas, Inc. in violation of Rules 324A., 907.a., 910.a., 1004.a., and
1004.b., failure to prevent significant adverse environmental impacts to air,
water, soil, or biological resources, to prevent the unauthorized discharge or
disposal of E&P waste, to ensure that E&P waste is properly stored,
handled, transported, treated, recycled or disposed to prevent threatened or
actual significant adverse environmental impacts, for exceeding the allowable
concentrations for soil in Table 910-1 and for failure to complete final
reclamation within three (3) months for cropland at the former Stites #1 tank
battery located in the NE¼ SE¼ of Section 17, Township 1 South, Range 56 West,
6th P.M., and assessing a fine of one thousand dollars.
The
meeting adjourned at
====================================================================
The Secretary was therefore authorized to issue the
following orders:
Order No. 300-8, Beecher Island Field, Yuma County: Approves the request by Petroleum Development
Corporation for an order allowing up to four (4) wells to be drilled in the
existing 160-acre drilling and spacing units located in certain sections of
Township 2 South, Ranges 43 and 44 West, 6th P.M. and Township 3 South, Range
43 West, 6th P.M. for the production of gas and associated hydrocarbons from
the Niobrara Formation.
Order
No. 318-8, Republican Field,
Order
No. 300-9, Beecher Island Field, Yuma
County: Approves the request by Mountain Petroleum
Corporation for
an order allowing up to four (4) wells to be drilled in the existing 160-acre
drilling and spacing units located in certain sections of Township 1 South,
Range 43 West, 6th P.M., Township 2 South, Ranges 43 and 44 West, 6th P.M. and
Township 3 South, Ranges 43 and 44 West, 6th P.M. for production of gas and
associated hydrocarbons of the Niobrara Formation.
Order No. 1V-256,
Order No. 1V-257,
Order No. 1V-258,
Order No. 1V-259,
Order No. 1V-260,
Order No. 1V-261,
Order No. 1V-262,
Order No. 1V-263,
Order No. 1V-264,
Order No. 1V-265,
Order No. 1V-266, La
Plata County:
Approves the an Administrative Order by Consent finding Elm Ridge
Resources in violation of Rules 906.b.(3) and 906.c., failure to report a spill
to the COGCC and to consult with the landowner prior to commencing operations
to remediate a spill, and assesses a fine of Two Thousand ($2,000) dollars.
Order No. 1V-267, Las
Animas County:
Approves the Administrative Order by Consent finding Petrogulf
Corporation in violation of Rules 305.b.1., 306., and 306.a., failure to
provide thirty (30) days notice to surface owner, to consult with the affected
surface owner and to provide information to the landowner and local
governmental designee for the Hand 8-44V Well located in Section 8, Township 33
South, Range 67 West, 6th P.M., and assesses a fine of Three Thousand ($3,000)
dollars.
Order No. 1V-268, Washington
County: Approves the
Administrative Order by Consent finding DeClar Oil & Gas, Inc. in violation
of Rules 324A., 907.a., 910.a., 1004.a., and 1004.b., failure to prevent
significant adverse environmental impacts to air, water, soil, or biological
resources, to prevent the unauthorized discharge or disposal of E&P waste,
to ensure that E&P waste is properly stored, handled, transported, treated,
recycled or disposed to prevent threatened or actual significant adverse
environmental impacts, for exceeding the allowable concentrations for soil in
Table 910-1 and for failure to complete final reclamation within three (3) months
for cropland at the former Stites #1 tank battery located in the NE¼ SE¼ of
Section 17, Township 1 South, Range 56 West, 6th P.M., and assesses a fine of
One Thousand ($1,000) dollars.
_________________________________
Patricia
C. Beaver, Secretary
Approved:
__________________________________
Peter M. Mueller, Chair