BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND                         )                       CAUSE NO. 146

ESTABLISHMENT OF FIELD RULES TO GOVERN                      )

OPERATIONS IN THE LEYDEN GAS STORAGE FACILITY,         )                       DOCKET NO. 0304-GA-02

JEFFERSON COUNTY, COLORADO                                          )

 

NOTICE OF HEARING

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On September 30, 1960, the Commission issued Order No. 146-1 which approved the project for the storage of natural gas in an underground reservoir situated in the Laramie Formations in what is commonly known as the Leyden Coal Mine, Jefferson County, Colorado, as proposed by the Public Service Company of Colorado situated in all or parts of Sections 21-22, 26-28, and 33-35 of Township 2 South, Range 70 West, 6th P.M.  Public Service has operated the Leyden Facility since 1960, injecting and withdrawing natural gas to support its natural gas distribution and delivery operations in the Front Range area of Colorado.

 

            In the Spring of 2000, Public Service announced its decision to close the Leyden Facility due to the increasing incompatibility of its continued gas storage operations with the encroaching residential and commercial development of the surrounding area.  Public Service obtained authority from the Colorado Public Utilities Commission to abandon the Leyden Facility in January, 2001.  Injection of gas into storage ended on September 30, 2001, and Public Service has been withdrawing gas from the Leyden Facility since that time.

 

            In July 2001, the Colorado General Assembly amended the Oil and Gas Conservation Act to give exclusive authority to the Oil and Gas Conservation Commission to regulate the closure of underground gas storage caverns (“Closure Statute”).  Prior to closure of the Leyden Facility, Public Service is required to obtain a certificate of closure from the Commission.  To obtain a certificate of closure, Public Service must demonstrate that its closure plan reasonably protects public hearth, safety and welfare, including protection of the environment.

 

            On March 3, 2003, Public Service Company (“Public Service”) filed an application with the Commission for an order authorizing the closure of the Leyden Underground Natural Gas Storage Facility.  A Closure Plan, which provides for the closure of the Leyden Facility as a gas storage facility following the withdrawal of recoverable storage gas from the caverns and the abandonment of certain wells and equipment, was filed with the application.  Public Service has been withdrawing gas from the Leyden Facility since the last injection occurred in 2001.  Upon issuance of a certificate of closure by the Commission, Public Service will begin to inject potable water through existing wells to flood the underground cavern, displacing storage gas and facilitating the withdrawal process.

 

            The Closure Plan is submitted in accordance with the requirements of the Closure Statute to protect the public health, safety and welfare, including the environment, relating to the closure of the Leyden Facility.  Section III of the Closure Plan provides for the recovery of residual natural gas reasonably recoverable from the underground caverns.  Section IV of the Closure Plan provides for the transfer of certain wells and well sites to Arvada for its use in ongoing water storage operations, while Section V provides for the abandonment of all other wells and reclamation of all other well sites in compliance with the Commission’s rules and regulations.  Section VI of the Closure Plan provides for the abandonment of the mine shafts that were originally sealed during the early 1960’s as part of the process to convert the abandoned coal mine to a gas storage facility.  Sections VII and VIII provide for the abandonment of wells used as observation wells during gas storage operations, and the abandonment of gas gathering pipelines and related above-ground facilities.  Finally, Sections IX and X of the Closure Plan provide for monitoring during and after closure of the Leyden Facility, including corrective actions if such monitoring indicates that the initial measures are insufficient.

 

The closure plan is available on the COGCC website at www.oil-gas@state.co.us by clicking on “Hearings”, then “2003 Hearing Schedule”, then March 3, 2003 under “Applications Due”, and then clicking on the Public Service application.  The closure plan may also be viewed at the COGCC offices at 1120 Lincoln St., Suite 801, Denver, CO between 9:00 a.m. and 3:00 p.m. Monday through Friday.

 

            NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above‑entitled matter for hearing on:

 

                        Date:                                        Monday, April 21, 2003

 

                        Time:                                        10:00 a.m.

 

                        Place:                                       City of Arvada Council Chambers

                                                                        8101 Ralston Rd.

                                                                        Arvada, CO 80002

 

            In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Audra Serlet at (303) 894-2100 ext. 114, prior to the hearing and arrangements will be made.

 

            Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate to protect the health, safety and welfare of the public and to prevent the waste of oil and gas, either or both, in the operations of said field, and to carry out the purposes of the statute.

 

            In accordance with Rule 509., any interested party desiring to protest the granting of the application or to intervene on the application should file with the Commission a written protest or intervention no later than April 7, 2003, briefly stating the basis of the protest or intervention.  Such interested party shall, at the same time, serve a copy of the protest or intervention to the person filing the application.  An original and nine (9) copies shall be filed with the Commission (Rule 503.f.).  Pursuant to Rule 503.e., if a party who has received notice under Rule 503.b. wishes to receive further pleadings in the above-referenced matter, that party must file a protest or intervention in accordance with these rules.

 

                        IN THE NAME OF THE STATE OF COLORADO

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                             OF THE STATE OF COLORADO

 

 

                                                                        By                                                                        

                                                                                       Patricia C. Beaver, Secretary

 

Dated at Suite 801                                             Attorney for Applicant:

1120 Lincoln Street                                            G. Donohue Kane

Denver, Colorado 80203                                      Gorsuch Kirgis LLP

March 21, 2003                                                  1515 Arapahoe Street, Suite 1000

                                                                        Denver, CO  80202

                                    (303)376-5000