| Drilling/Completion Operations | Form: (02A )
400221309
11/30/2011 | Best Management Practice for a Horizontal Wellbore Fracturing Stimulation
1. At least seven (7) days prior to fracture stimulation, the operator is to notify all operators of non-operated wells within 300 feet of the wellbore to be fracture stimulated of the anticipated date stimulation date and the recommended best management practice to shut-in all wells within 300’ of the stimulated wellbore completed in the same formation.
2. The operator will monitor the bradenhead pressure of all wells within 300 feet of the well to be fracture stimulated.
3. Bradenhead pressure gauges are to be installed 24 hours prior to stimulation. The gauges are to read at least once during every 24-hour period until 24-hours after stimulation is completed (post flowback). The gauges are to be of the type able to read current pressure and record the maximum encountered pressure in a 24-hour period. The gauge is to be reset between each 24-hour period. The pressures are to be recorded and saved.
4. If at any time during stimulation or the 24-hour post-stimulation period, the bradenhead annulus pressure of the treatment well or offset wells increases more than 200 psig, as per Rule 341, the operator of the well being stimulated shall verbally notify the Director as soon as practicable, but no later than twenty-four (24) hours following the incident. Within fifteen (15) days after the occurrence, the operator shall submit a Sundry Notice, Form 4, giving all details, including corrective actions taken.
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| Traffic control | Form: (02A )
401471030
3/21/2018 | An access route from the highway or county road to the proposed oil and gas location has been prearranged. Required access road permits will be obtained before construction begins and any special requirements outlined by the municipality will be followed. Emergency routes will be chosen prior to the commencement of operations and will be clearly marked and maintained throughout drilling, completion and production activities. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | Crestone Peak Resources places road base, rock and recycled asphalt to assist with dust abatement. During construction, drilling, completions and reclamations phases, Crestone monitors each site and if needed we will run water trucks. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | Flammable liquids shall not be stored within fifty (50) feet of the wellbore, except for the fuel in the tanks of operating equipment or supply for injections pumps. Where terrain and location configuration do not permit maintaining this distance, equivalent safety measures should be taken. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | All surface trash, debris, scrap or discarded material connected with the operations of the property shall be removed from the premises or disposed of in a legal manner. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | Any material not in use that might constitute a fire hazard will be removed a minimum of twenty-five (25) feet from the wellhead, tanks and separator. Any electrical equipment installations inside the bermed area will comply with API RP 500 classifications and comply with the current national electrical code as adopted by the State of Colorado. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | The well site will be cleared of all non-essential equipment, trash and debris after ninety days of a well P&A. |
| General Housekeeping | Form: (02A )
401471030
3/21/2018 | Crestone will identify plugged and abandoned wellbores according to Rule 319.a.(5). including the location of the wellbore with a permanent monument as specified in Rule 319.a.(5). Crestone will also inscribe or imbed the well number and date of plugging upon the permanent monument. |
| Material Handling and Spill Prevention | Form: (02A )
401471030
3/21/2018 | All loadlines will be capped for every location in the DJ. |
| Material Handling and Spill Prevention | Form: (02A )
401471030
3/21/2018 | Well effluent containing more than ten (10) barrels per day of condensate or within two (2) hours after first encountering hydrocarbon gas of salable quality will be directed to a combination of sand traps, separators, surge vessels, and tanks as needed to ensure safe separation of sand, hydrocarbon liquids, water, and gas and to ensure salable products are efficiently recovered for sale or conserved and that non-salable products are disposed of in a safe and environmentally responsible manner.
First sign of salable gas to be turned to sales
Rules 912 venting or flaring of natural gas: have BMP on well pad 2A associated with temporary flowback flaring. |
| Material Handling and Spill Prevention | Form: (02A )
401471030
3/21/2018 | Leak Detection Program
• Annual hydrostatic test on the oil dump line from the separator to the tank battery.
• Annual hydrostatic “static” tests on our oil tanks.
• Annual hydrostatic “static” tests on our produced water tank and water dump line from the separator to the produced water tank.
• Lease Operator inspections of all equipment not to exceed 48 hours.
• Monthly documented inspections (EU).
• Annual environmental inspections of all battery and well equipment and pads.
• Annual UT inspections of the pressure vessels and input into Crestone’s RIPL Predictive Integrity Maintenance Program. (HLP separators and fuel gas separators) |
| Construction | Form: (02A )
401471030
3/21/2018 | The pad will be constructed in such a manner that noise mitigation may be installed and removed without disturbing the site or landscaping. |
| Construction | Form: (02A )
401471030
3/21/2018 | Subject pad will have all weather access roads to allow for operator and emergency response. |
| Construction | Form: (02A )
401471030
3/21/2018 | Crestone will install fencing to restrict access to wellheads and equipment. |
| Construction | Form: (02A )
401471030
3/21/2018 | At the time of construction, all leasehold roads will be constructed to accommodate local emergency vehicle access requirements, and will be maintained in a reasonable condition. |
| Construction | Form: (02A )
401471030
3/21/2018 | Crestone will comply with COGCC Rule 1002.f.(2). by utilizing BMPs at the oil and gas location to control stormwater runoff in a manner that minimizes erosion, transport of sediment offsite, site degradation and protects surface waters.
Timing for inspections is bimonthly and/or after a precipitation event. Examples of engineering controls that could be used when needed are:
o Surface roughening
o Silt fence
o Erosion control blanket
o Temporary slope drain
o Temporary outlet protection
o Sediment control log
o Vehicle tracking control
o Sediment trap
o Stabilized staging area |
| Noise mitigation | Form: (02A )
401471030
3/21/2018 | Crestone will perform a baseline noise survey prior to any operational activity measuring dBA at a distance 350 feet from the noise source or sound levels will be measured at a point twenty-five (25) feet from the structure towards the noise source.
In situations where measurement of noise levels at three hundred and fifty (350) feet is impractical or unrepresentative due to topography, the measurement may be taken at a lesser distance and extrapolated to a 350-foot equivalent using the formula stated in Rule 802 of the State of Colorado Oil and Gas Conservation Commission. As necessary, based on the survey, Crestone will install temporary sound walls to minimize noise and light impacts during drilling and completions and will install permanent noise mitigation at the facility location as necessary to meet all COGCC regulations. |
| Emissions mitigation | Form: (02A )
401471030
3/21/2018 | Flow lines, separators, and sand traps capable of supporting green completions as described in Rule 805 will be installed on subject location at which commercial quantities of gas are reasonably expected to be produced based on existing adjacent wells within 1 mile. |
| Emissions mitigation | Form: (02A )
401471030
3/21/2018 | Temporary flowback flaring and oxidizing equipment will include: adequately sized equipment to handle 1.5 times the largest flowback volume of gas experienced in a ten mile radius. If there is overrun, Crestone will shut in the well versus freely venting. |
| Emissions mitigation | Form: (02A )
401471030
3/21/2018 | Crestone will follow and comply with all leak detection and repair and storage tank emission management plan conditions as
required by Colorado Air Quality Control Commission Regulation Number 7. This will include at least monthly Audible,
Visual and Olfactory (AVO) inspections of the components and tanks at our Production Facilities at most weekly or at least
monthly starting on January 1, 2017. In addition, Crestone will perform infra-red camera inspections of these components and the storage tanks at most monthly or at least annually. |
| Odor mitigation | Form: (02A )
401471030
3/21/2018 | Crestone operations will be in compliance with the Department of Public Health and Environment, Air Quality Control Commission, Regulation No. 2 Odor Emission, 5 C.C.R. 1001-4, Regulation No. 3 (5 C.C.R. 1001-5), and Regulation No. 7 Section XVII.B.1 (a-c) and Section XII. Where possible, drilling rig and completion equipment engine exhaust will be directed away from occupied buildings to assist in mitigating potential odors. As necessary, Crestone may utilize chemical additives during drilling operations to mitigate odor impacts. Sealed tanks with pressure relief valves and emissions controls will be utilized for the production facilities. |
| Drilling/Completion Operations | Form: (02A )
401471030
3/21/2018 | Crestone will employ a rig without kelly that has double ram with blind and pipe ram and an annular preventer. At least one person at the well site during drilling operations will have Mineral Management certification or Director approved training for blowout prevention. |
| Drilling/Completion Operations | Form: (02A )
401471030
3/21/2018 | Guy line anchors in the DJ Basin are not installed. Crestone will use an engineered base beam that we guy wire anchor the derricks to. |
| Drilling/Completion Operations | Form: (02A )
401471030
3/21/2018 | Closed-top tanks will utilize backpressure systems that exert a minimum of four (4) ounces of backpressure and a maximum that does not exceed the pressure rating of the tank to facilitate gathering and combustion of tank. |
| Drilling/Completion Operations | Form: (02A )
401471030
3/21/2018 | Crestone will utilize a closed-loop system for drilling operations at this location. |