OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND IN PARTICULAR WITH REFERENCE TO RULE #326

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CAUSE NO. 1R

 

TYPE: RULEMAKING

 

ORDER NO. 1R-11

(FORMERLY 1-11)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 1972, at 11 a. m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by Law, on the Commission's own motion, for the purpose of determining rules and regulations governing the construction, maintenance, and operation of retaining pits in an area including most of Logan County, Colorado.

FINDINGS

The Commission found as follows:

1. That due notice of the time, place, and purpose of the hearing has been given in all respects as required by law.

2. That the Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. That the area includes most of Logan County, is described as follows:

Logan County, Colorado

All Lands

except for the following which was previously included in the Northern High Plains Ground Water Basin

T. 9N, R. 48W T. 7N, R. 48 thru 50W

Sections 1, 2, 9 thru 17, and All Sections 19 thru 36 T. 7N, R. 51W T. 9N, R. 49W Sections 12, 13, 14, 23, 24, Sections 23 thru 27, and 33 25, 26, 35, and 36 thru 36 T. 6N, R. 48 thru 50W T. 8N R. 48 thru 49W All Sections All Sections T. 6N, R. 51W T. 8N, R. 50W Sections 1, 2, 3, 9 thru 16, Sections 11 thru 15, 21 thru 20 thru 28, and 33, 34, 35 29 and 32 thru 36 and 36

4. That the Pierre Shale underlies the above-described area and is exposed on the north edge of the South Platte River from the Logan County line in the southwest to as far east in the county as the town of Proctor. The Fox Hills Sandstone, which normally overlies the Pierre Shale in other areas of Northeastern Colorado, is confined to small outcroppings in stream drainages in the extreme northwestern edge of Logan County. The lower zone of the White Ri ver formation, the Chadron member, overlies the Pierre Shale

in most of the area. It consists of clay, shale, siltstones, and gravel channel deposits. The thickness of this lower member ranges from 0 to 300 feet. Exposures are found north of the South Platte River. The upper member of the White River formation is the Brule. This member consists mainly of siltstones, local sand lenses and is slightly fractured. Thickness ranges from 0 to 400 feet. The Ogallala formation which usually overlies the Brule member is present only in the extreme north edge of the county, and in the southeastern part of Logan County where it is part of the Northern High Plains Designated Ground Water Basin. This southeastern part of the County and the Ogallala formation was considered under the Commissions Order No. 1-9, issued February 16, 1972. The alluvium, which consists of gravels, sands, and silt, is located mainly in the South Platte Valley and tributaries. The alluvium us ually overlies the White River formation or the Pierre Shale, depending on the amount of erosion that has occurred. Thickness of this alluvial deposit ranges from 0 to 290 feet. The Dune Sands are found principally on the east flank of the South Platte Valley. These deposits consist of very fine to medium-grained sand and range in thickness from 0 to 100 feet.

5. That the Pierre Shale, although not usually considered a source for water, does supply a very limited quantity of water to stock and domestic wells in Logan County. The Fox Hills Sandstone, because of its limited distribution in the county, is not considered as much a potential water source as it, is in other areas of northeastern Colorado, especially that area as described in the Commission's Order No. 1-10, issued March 14, 1972. No water wells are known to penetrate the Fox Hills in the county, The aquifer properties of the Chadron member of the White River Formation are considered poor; however, small quantities of water are available to stock and domestic wells, and are usually from channel deposits. The upper zone of the White River formation, the Brule member, also, is not considered as having good aquifer properties. It yields small amounts of water to stock and domestic wells. In many area s, the water obtained from this member is from fractured zones as well as from locally "porous zone" or channel deposits.

The principal aquifer in the county is the alluvium. This aquifer supplies large quantities of water to irrigation and public-supply wells, as well as others, through out the South Platte Valley area. Almost 3,000 wells are known to have penetrated this aquifer. Depths to the water seldom exceed 100 feet, and are usually less than 30 feet. The Dune Sands are not an important aquifer in the area. They are, however, highly permeable which may cause rapi d downward percolation of applied water.

6. That the aquifer in the alluvium contains the major available supply of water to the area., and contains approximately 3 million acre-feet in storage. The water is generally of good quality. Total dissolved solids are variable and average approximately 1,600 parts per million. Sulphate concentrations usually exceed the U. S. Public Health's recommended limit of 250 parts per million. Because of re-use and evaporation ground water in heavily irrigat ed areas within the main valley is progressively more mineralized downstream. Discharge by pumpage from wells amounts to approximately 115,000 acre-feet, annually while subsurface outflow is about 9000 acre-feet annually. Recharge is mainly from irrigation return, some from precipitation, and about 35,000 acre-feet annually of subsurface inflow. Recharge is slightly less than discharge and water table elevations have dropped an average of five feet in recent years. The water movement is diagonally toward the river at a rate of approximately 520 feet per year.

The quality of the water in the aquifers in the other formations described is generally as good as that of the alluvium.

7. That the aquifer in the alluvium, containing water generally of good quality and the major source of supply, is vital to the economy and general well-being of the area and should be protected. In addition, the lower formations contain aquifers, especially the Chadron and Brule members of the White River group. The aquifers here occur as channel deposits in the former and locally within fractured zones in the latter. Contamination is particularly likely where the water-bearing horizons of the above members are not protected by overlying clays or shales, The Chadron and Brule members might be poor sources of water, but these zones have good permeabilities and locally have water gradients toward the river and, therefore, care should be taken to prevent seepage from pits located on these de posits.

8. That the produced water from the "J" Sand in this area is of lower concentration of total solids than the water from the "D" Sand. The total dissolved solids of the "J" Sand produced water range from approximately 1,000 to 8,000 parts per million. The "D" Sand produced water quality range is from approximately 3,000 to 16,000 parts per million.

9. That accepted standards for water quality have been established by the Water Pollution Control Commission for domestic use as less than 500 parts per million of total dissolved solids, and less than 3, 000 parts per million for livestock and irrigation purposes. These limits are guidelines of acceptable water use depending on varying circumstances and tolerances established by people, livestock, and types of crops.

10. That as indicated in the testimony of the previous hearing on the Northern High Plains Ground Water Basin, a serious oil reserve deficiency situation exists in the United States today and will become more serious in the future. An average of less than 50% of the oil in a reservoir is recovered by present known methods and an effort should be made to keep small fields producing so they will be available for treatment by more sophisticated recovery met hods being developed.

11. That since oil field retaining pits are attractive to and used by ducks, geese, and other wildlife in the area, such pits should be kept free of even small accumulations of oil

The Oil and Gas Conservation Commission has the responsibility and authority to prevent destruction of wildlife from oil field sources.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following shall apply to the area as described in Finding 3 herein.

1. That the Director be authorized and directed to approve on behalf of the Commission:

a. All pits designed and located in accordance with and fully complying with the Commission's regulations (Rules 325 and 326).

b. All pits meeting the standard of (a) above except where the pit is not lined, and applicant supplies substantial evidence to the Director that the quality of the produced water is substantially the equivalent of the underlying aquifer.

c. All pits located in the Pierre Shale or in a member of the White River formation where the pit otherwise meets the standards of (a) above except where the pit is not lined, but is located in or over a stratum of such impervious nature and of such thickness that it would be reasonable to expect that seepage from such pits could not reach any underlying aquifer and also where it would be reasonable to expect that any horizontal flow of the produced waters through formations above such impervious stratum could not reach any nearby wells or other waters of the State.

d. All pits located in the Dune Sands, Alluvium or Fox Hills Sandstone and meeting the standards of (a) above except where the pit is not lined and it is clearly established by substantial evidence or percolation tests that seepage will not reach any underlying aquifer or other waters of the State.                                                     

2. That applicant may, in the event a premature abandonment of producing oil or gas wells will result in not being able to comply with Paragraph 1 herein above, submit to the Director a complete economic statement of the situation, including estimates of lining the pit or other methods of reasonably protecting the pit from seepage and oil accumulations, consideration being given to the volume of water being handled, and estimates as to the production and reserves that may be lost in primary and secondary recovery methods. The Director shall then submit such application to the Commission for its final action.

3. That applicant may, in the event he believes that produced water from his well or wells is of a quality usable for stock or irrigation purposes and that a strict enforcement of Paragraph 1 herein above will prevent such use, submit such test result and materials substantiating such need and a proposed plan showing how such use can be accomplished. The Director shall then submit such application to the Commission for its final action.

4. Notwithstanding Paragraphs 1, 2, and 3 herein above, where it appears to the Director that produced water from a field, fields, or combination of wells should be disposed of underground, he shall notify the Commission of such recommendation and notify the operators in the affected areas. The operators shall have a maximum of one hundred twenty (120) days to continue the use of pits during which time they shall be required to submit a plan for undergro und disposal of the produced water.

5. In the case of any other application not requiring action under the foregoing paragraphs, the Director shall submit such application to the Commission with its recommendation for final action.

6. Any applicant desiring a hearing before the Commission, either before the Director makes any recommendation to the Commission, or after such recommendation., shall be entitled to such hearing upon request. If the hearing is desired because of the Director's recommendation, such request shall be made within thirty (30) days of .notice of the Director's recommendation.

IT IS FURTHER ORDERED., that the Commission expressly reserves its right after notice and hearing to alter, amend, or repeal any and/or all of the above Order.

ORDERED this 21st day of March 1972.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary