The Oil and Gas Conservation
Commission met on
Those
present were:
Peter
Mueller Chair
Brian
Cree Vice
Chair
John
Ashby Commissioner
Tom
Ann Casey Commissioner
Mike
Klish Commissioner
Tom
Reagan Commissioner
Lynn
Shook Commissioner
Rich
Griebling Director
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The Commission unanimously approved
the minutes from the April hearing.
Executive
Director’s Report: There was no report.
Director’s Report: Director Griebling provided a written report
and Deputy Director Macke discussed the following: Jim Wason
and David Siple were thanked for the field tour of a
Kerr-McGee gas site and a Patina air emissions site. Statistics show an increase in the issuance
of drilling permits estimated at 2700 for this year. One-third of the Applications for
Permit-to-Drill (“APDs”) are expected to be in
Over 700 people attended the EnCana Energy Job
Expo, resulting in positive interface with the public. A report on the Leyden Gas Storage Facility
closure was included in the Director’s Report.
Some storage gas from the 1960’s was found when a new
water well was being drilled. Paula Neal
has announced her retirement effective
Assistant
Attorney General’s Report: AAG Harmon
provided a written confidential litigation memo. The COGCC received a favorable decision in
the BDS International matter. A letter
to the Town of
Commissioner
Comments: Chair Mueller thanked Kerr-McGee
and Patina for the field tour and commented that it was very enlightening to
see how operators are dealing with developers and setbacks. Chair Mueller also expressed his appreciation
to the Weld County Commissioners for visiting with the Commission.
Audience
Comments: Greg Schnacke, COGA,
congratulated the COGCC staff for their quick response to the Divide Creek
issue and providing the public with information. He said he thought the LGD Seminar was a good
idea and thinks additional seminars are warranted. COGA is in support of next year’s COGCC
budget requests. The Outstanding
Operations Awards will be presented at the COGA Natural Gas Conference on
Cause No. 232, Docket No. 0405-SP-06, request for an
order to segregate the 320-acre drilling and spacing unit consisting of the S½
of Section 22, Township 5 North, Range 67 West, 6th P.M. into two 160-acre
drilling and spacing units consisting of the SE¼ and the SE¼ of said Section 22
for production of oil and gas from the “J” Sand Formation was withdrawn.
Consent
Agenda: The Commission unanimously
approved all matters on the consent agenda, which included the following:
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.
Cause No. 112, Docket No.
0405-UP-03, request for an order to pool all non-consenting interests for the
drilling of a well in the 320-acre drilling and spacing unit of the W½ of
Section 11, Township 33 North, Range 7 West, N.M.P.M. for production of gas and
associated hydrocarbons from the Fruitland coal seams.
Cause No. 226, Docket No.
0405-SP-05, request to rescind the 80-acre drilling and spacing unit in the W½
of Section 10, Township 5 South, Range 60 West, 6th P.M. for production of oil
from the Muddy “J” Sand Formation and to allow the lands to be developed
pursuant to COGCC Rule 318, with a 200 foot tolerance for each well location.
Cause No. 1, Docket No.
0405-SP-08, request for an order to change the existing well setbacks in Rule
318.a. that apply to certain lands in Township 3 South, Range 49 West, 6th
P.M., to allow wells to be located no closer than 300 feet from the boundaries
of any lease line and no closer than 600 feet from any producible or drilling
well or wells for production of oil, gas and associated hydrocarbons from the
Niobrara, “D” Sand, “J” Sand and
Paleozoic-Mississippian Formations.
Cause No. 506, Docket No.
0405-SP-07, request to vacate Order No. 506-1, which established 320-acre
drilling and spacing units for certain lands in Township 3 North, Ranges 96 and
97 West, 6th P.M. for the production of gas and associated hydrocarbons from
the Cameo coal seams and allow the lands to be developed pursuant to COGCC Rule
318.
Cause
No. 1V, Docket No. 0405-OV-21, request
for an Administrative Order by Consent finding Starlight Resources LLC in
violation of Rule 326.d., failure to repair or plug and abandon the Mark Degenhart #10 Well located in the SE¼ NE¼ of Section 18,
Township 1 South, Range 67 West, 6th P.M. within six (6) months of failing a
mechanical integrity test and assessing a fine of one thousand dollars.
Cause No. 1V, Docket No. 0405-OV-22, request for an
Administrative Order by Consent finding Swift Beef Company in violation of
Rules 206., 309., and 310A., failure to file accurate and complete reports, to
submit an Operator's Monthly Report of Operations, Form 7 within forty-five
(45) days after the month in which production occurs and to submit Oil and Gas
Conservation Levy, Form 8 and levy payments for eleven wells located in certain
sections of Township 4 North, Range 66 West, 6th P.M. and Township 5 North,
Range 64 West, 6th P.M. and assessing a fine of one thousand dollars.
The
meeting adjourned at
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The Secretary was therefore authorized to issue the
following orders:
Order No. 1-105, Washington County: Approves the request by Delta Petroleum
Corporation for an order to change the existing well setbacks in Rule 318.a.
that apply to certain lands in Township 3 South, Range 49 West, 6th P.M., to
allow wells to be located no closer than 300 feet from the boundaries of any
lease line and no closer than 600 feet from any producible or drilling well or
wells for production of oil, gas and associated hydrocarbons from the Niobrara,
“D” Sand, “J” Sand and Paleozoic-Mississippian Formations.
Order No. 112-172, Ignacio-Blanco Field, La Plata County: Approves the request by Maralex Resources,
Inc. for an order to pool all
non-consenting interests for the drilling of a well in the 320-acre drilling
and spacing unit of the W½ of Section 11, Township 33 North, Range 7 West,
N.M.P.M. for production of gas and associated hydrocarbons from the Fruitland
coal seams.
Order
No. 112-173, Ignacio-Blanco Field, La
Plata County: Approves the request by Four Star Oil and Gas
Co. for an
order allowing
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.
Order No. 226-22, Peoria Field, Arapahoe County: Approves the request by Tyler Rockies
Exploration, Ltd. for an order to remove the 80-acre drilling and spacing unit consisting
of the W½ of Section 10, Township 5 South, Range 60 West, 6th P.M. from the
provisions of Order No. 226-8 for production of oil from the Muddy “J” Sand
Formation and to allow the lands to be developed pursuant to COGCC Rule 318,
with a 200 foot tolerance for each well location.
Order No. 506-3, Pinyon Ridge Area, Rio Blanco & Moffat Counties: Approves the request by KLT Gas, Inc. for an
order to vacate Order No. 506-1, which established 320-acre drilling and
spacing units for certain lands in Township 3 North, Ranges 96 and 97 West, 6th
P.M. for the production of gas and associated hydrocarbons from the Cameo coal
seams and to allow the lands to be developed pursuant to COGCC Rule 318.
Order
No. 1V-270, Adams County: Approves the Administrative
Order by Consent finding Starlight Resources LLC in violation of Rule 326.d.,
failure to repair or plug and abandon the Mark Degenhart
#10 Well located in the SE¼ NE¼ of Section 18, Township 1 South, Range 67 West,
6th P.M. within six (6) months of failing a mechanical integrity test and assesses
a fine of One Thousand ($1,000) dollars.
Order No. 1V-271, Weld County: Approves the Administrative Order by Consent finding Swift Beef Company in violation
of Rules 206., 309., and 310A., failure to file accurate and complete
reports, to submit an Operator's Monthly Report of Operations, Form 7 within
forty-five (45) days after the month in which production occurs and to submit
Oil and Gas Conservation Levy, Form 8 and levy payments for eleven wells
located in certain sections of Township 4 North, Range 66 West, 6th P.M. and
Township 5 North, Range 64 West, 6th P.M. and assesses a fine of One Thousand
($1,000) dollars.
_________________________________
Patricia
C. Beaver, Secretary
Approved:
__________________________________
Peter M. Mueller, Chair