| Planning | Form: (02A ) 401737736 3/25/2019 | The six new horizontal wells being proposed will utilize an existing location with three existing wells. The facilities will be consolidated for all nine wells to be on one location to conserve the surface area for the surface owner. |
| Traffic control | Form: (02A ) 401737736 3/25/2019 | An access route from the highway or county road to the proposed oil and gas location will be discussed and agreed upon with the Town of Firestone. 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 ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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. |
| General Housekeeping | Form: (02A ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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. |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | Frequency on valve and fitting inspections: Crestone Lease Operators inspect all equipment on their locations at a minimum of once every 48 hours, but most sites are inspected every 24 hours. Valves and fittings inspections are part of the daily job duties of our lease operators. Any valve or fitting that is found to be leaking is either repaired immediately by the lease operator or shut-in procedures are implemented as described below. Additionally, lease operators conduct a documented monthly inspection of the facility and this includes inspection of all valves and fittings. |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | Measures for when leaks are discovered:
- If we suspect a leak we shut in the well and hydrotest the line. If it passes, then the well is brought back onto production.
- If there is an actual leak, well is kept shut in while leak is found and fixed. Not until the line has passed hydrotesting, would the well be brought back online. |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | All loadlines will be capped for every location in the DJ. |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | 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. |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | 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.
• UT inspections of the pressure vessels every five years and input into Crestone’s RIPL Predictive Integrity Maintenance Program. (HLP separators and fuel gas separators) |
| Material Handling and Spill Prevention | Form: (02A ) 401737736 3/25/2019 | The Crestone lease operator inspections are done as a routine part of the lease operators job. The lease operator would typically visit each of their assigned locations daily. They conduct a visual inspection of the facility which includes all valves, fittings, wellhead, tanks, vapor control systems and all connections. The lease operator also checks our Cygnet automation system for system pressures and flows.
The monthly documented inspection is done using an electronic form that is recorded in the EU system. This inspection and documentation requires the lease operator to inspect all aspects of the site and then triggers work orders for any leaks, or housekeeping issues.
The Lease operators also conduct a weekly CDPHE Regulation 7 – Audible, Visual, and Olfactory (AVO)inspection, which focus on the tanks and vapor control system.
In addition, the sites are inspected with optical gas imaging cameras on a routine schedule, annually for compliance purposes with our Spill Prevention Containment and Countermeasures (SPCC) plan; depending on the status of reclamation the sites are also inspected on either a 14-day, 30-day, annual or rain triggered event in accordance with both the COGCC and the CDPHE Stormwater Management Plans (SWMP). |
| Construction | Form: (02A ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | Subject pad will have all weather access roads to allow for operator and emergency response. |
| Construction | Form: (02A ) 401737736 3/25/2019 | Crestone utilizes 24” tall corrugated galvanized metal berm walls with a capacity in excess of 150% of the largest tank contained within the wall. In addition, Crestone best practices mandates the use of impervious liners that extends under each storage tank and up the walls, permanently affixed to the top of the metal berm wall. Protrusions of piping that come through the liner include a fully sealed “boot” to prevent leakage. |
| Construction | Form: (02A ) 401737736 3/25/2019 | Crestone will install fencing to restrict access to wellheads and equipment. Fencing style will be installed as required by the Town of Firestone. |
| Construction | Form: (02A ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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. 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 |
| Construction | Form: (02A ) 401737736 3/25/2019 | All newly installed or replaced crude oil and condensate storage tanks will be designed, constructed, and maintained in accordance with National Fire Protection Association (NFPA) Code 30 (2008 version). Crestone will maintain written records verifying proper design, construction, and maintenance, and will make these records available for inspection by the Director. In addition, onsite inspections are conducted internally to insure guidelines are met. |
| Noise mitigation | Form: (02A ) 401737736 3/25/2019 | Crestone’s construction crew will operate only during daylight hours. During drilling, all permanent equipment with engines or motors that can be electrified will be electrified from the power grid. If electricity from the power grid is unavailable at the Sheley well pad, Crestone will use quiet design mufflers (also referred to as hospital grade or dual dissipative) or equivalent, or acoustically insulated housing or covers to enclose the motor or engine at the site. Additionally, Crestone agrees to use the Liberty Quiet Fleet or comparable technology from an alternative vendor for completion operations. Crestone will erect walls around the pad to limit air flow through the well sites during the drilling and completion of wells. These walls will have a minimum height of thirty-two (32) feet, and Crestone will consult with Firestone regarding whether the walls should have a height of more than thirty-two (32) feet at this site. Crestone will also utilize sound dampening panels, as needed, for additional noise mitigation. |
| Noise mitigation | Form: (02A ) 401737736 3/25/2019 | The subject location will be constructed to allow potential future noise mitigation installation without disturbance. |
| Emissions mitigation | Form: (02A ) 401737736 3/25/2019 | 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 ) 401737736 3/25/2019 | 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. First sign of salable gas will be turned down the line. |