Colorado Oil and Gas Conservation Commission

Application for Permit to Drill (APD), Form 2

Specifications

Introduction

Every new well shall require a valid Application for Permit to Drill (APD) prior to building location.  Included with this process is the requirement to notify the surface owner 30 days in advance of operations (Rule 305), good faith effort to consult with the surface owner for the location of well, equipment and access roads (Rule 306), and Local Government Designee (LGD) requirements such as permit notice (Rule 303 d) and consultation (Rule 306).  Review the website (http://cogcc.state.co.us) application for specific requirements for the county and/or municipal in which your well is to be located; use the "Local Gov" button on the menu located on the left side of the web pages.

1 TYPE OF WORK

Deepen – to set up and drill deeper in an existing well

Re-enter – to locate and re-open a previously abandoned well

Recomplete – to perforate or open a previously completed wellbore in a new formation not authorized by an unexpired permit

Sidetrack – to drill a new wellbore from a previously approved wellbore (a permit shall authorize only one wellbore to be created). Upon approval gets a new sidetrack code at the end of the api number.

If the hole was lost:

1. Notify COGCC permitting and/or engineering department immediately to receive verbal approval from the engineering and/or permitting department to move to new location and abandon existing location. This move is treated as a new well, requiring a new Permit to Drill.

2. Immediately follow up with form 2 (Permit to drill) for new location, form 5 (Drilling Report) for lost hole and form 6 (Plugging report.) for lost hole.

Refiling - There are no permit extensions, a refiling is for an expired or expiring permit. Check the refiling box on the form. You do not need to wait until the old permit expires to submit a refile.

Requires a new 30 day notice letter to the surface owner (rule 305)

Surface location must be the same or within a few feet of the old location, bottom hole location may be changed.

Does not require submitting duplicate data if there is a statement in the comment section of the permit (32) stating the following: No changes have been made to the surface use or visible improvements within 400’ since the last permit was issued.

 

2 TYPE OF WELL

This part of the form is completed to state the anticipated product or use of the well.  If the well is not to be a producer then the use of the well shall be provided in the blank following "other "; some other uses could be disposal, injection, observation, or monitoring.  If you are not sure if it will be an oil well or a gas well you can permit it either way. It will be adjusted when you send in your form 5A and the Gas/Oil ratio is calculated. The form should also indicate if it is anticipated to complete in one or more zones and if it is from multiple zones whether they will be commingled.

 

3 OGCC OPERATOR NAME

This section will identify the operator.  Every operator in the state is required to register with the COGCC. Upon registration operators are assigned a unique COGCC Operator Number. This operator number is required on all COGCC reporting. A suffix designation will be assigned for any regional office(s) listed on the Form 1, Registration of Operators. This suffix may be used in conjunction with the operator number to identify where the report originates and where any correspondence pertaining to the report should be sent; it is not a mandatory item. . If you are not sure what your operator number is you can look it up on the OGCC website www.cogcc.state.co.us Call 303-894-2100 if you need help finding it.

4 OPERATOR NUMBER0

Name of the company that is applying for the permit.

5 ADDRESS

Address where permit is to be returned

6 CONTACT INFORMATION

Person who can answer any questions pertaining to the permit, valid phone and fax numbers.

7 WELL NAME & WELL NUMBER

You must have a well name and number. Even though there are no limitations on the length of the well name or number, we do encourage operators to keep them short. The well name and number should be unique to that well.   Wells that are re-drills should have some identifying character in the name or number so the new well can be differentiated from the original. 

8 UNIT NAME & UNIT NUMBER

The unit name and its assigned unique identifying number should be provided if the well is to be completed as a unit well. If well is not in a unit leave this blank.

9 PROPOSED TOTAL DEPTH

The anticipated total depth should be listed.  This depth should be as deep as the well will possibly be drilled. If this depth will be exceeded, the operator is to notify the COGCC by sundry notice prior to drilling beyond the permitted depth.

10 WELL LOCATION INFORMATION - SURFACE

Must match location plat and location plat must have every item listed in rule 303c.

Quarter/Quarter, Section, Township, Range, and Principal Meridian must be filled in.

Latitude and Longitude  in decimal degrees to a precision of five (5) decimal places using North American Datum (NAD) 1983 (e.g. ; latitude 37.12345 and longitude -104.45632)

Footage from exterior section lines as seen on location plat. Attach location plat.

11 FIELD NAME & NUMBER

Field names and numbers are available on the COGCC website under " help

12 GROUND ELEVATION

Must match ground elevation on location plat. If it is not a whole number, please round it.

13 COUNTY

Must match county on location plat. This is very important as api numbers are based on the county where the surface location of the well is located.

14 GPS DATA:  RULE 215

Date of Measurement is the date the GPS coordinates were gathered.

PDOP :Position dilution of precision (PDOP) values shall not be higher than six (6).

Instrument Operator Name:  The individual who took the readings.

15 DIRECTIONAL WELLS: RULE 321

Footage from: exterior section lines, section, township, range

top of the production formation

bottom hole

Must match deviated drilling plan

Must comply with drilling setbacks as specified in rule 318 or the spacing order that applies to the productive portion of the wellbore.

If an operator intends to drill a horizontal or deviated wellbore utilizing controlled directional drilling methods, other than whipstocking due to hole conditions, the plans shall accompany an application for Permit-to-Drill, Form 2. In addition to the information required on the plat in Rule 303.c., the plat shall also show the surface and bottom hole location. If the surface location is in a different section than the bottom hole location, a plat depicting each section is required. Additionally, the proposed directional survey including two (2) wellbore deviation plots, one depicting the plan view and one depicting the side view, shall accompany the application.

Attach Deviated Drilling Plan

16 HIGH DENSITY AREAS (RULE 603 B.)

Provide explanation and the data used when it is determined that the well location is in a high density area. A high density area shall be determined at the time the well is permitted on a well-by-well basis by calculating the number of occupied building units within the seventy-two (72) acre area defined by a one thousand (1000) foot radius from the wellhead or production facility. If thirty-six (36) or more actual or platted building units (as defined in the 100 Series rules) are within the one thousand (1000) foot radius or eighteen (18) or more building units are within any semi-circle of the one thousand (1000) foot radius (i.e., an average density of one (1) building unit per two (2) acres), it shall be deemed a high density area. If platted building units are used to determine the density, then fifty percent (50%) of said platted units shall have building units under construction or constructed. See more details under rule 603.

17, 18, 19 DISTANCES TO:

When less than 1 mile provide distance in feet to:

building, road, utility (Rule 603a.) - no exception location waivers allowed!

surface property line (Rule 603a.)

nearest well in same formation producing or permitted/proposed (Rules 318a., 318b., spacing orders)

Do not enter N/A. If greater than 1 mile enter how many miles it is.

LEASE, SPACING, AND POOLING INFORMATION

20 Identify for each new objective formation:

Common Geologic name for the formation

OGCC formation code – can be found on the OGCC website www.cogcc.state.co.us under " help ."

Spacing order if any, if not spaced leave blank, if you are not sure if it is spaced - call and the permitting staff will help you: 303-894-2100.

acreage assigned to well if spaced, if not spaced leave blank.

Quarter section subdivision description of unit, if not spaced leave blank.

OWNERSHIP:

21 The type of ownership of minerals within the path of the wellbore, if not fee provide lessors number which should be on the mineral lease.

22 Type of ownership at surface location

23 Is the surface owner also the mineral owner? (ask your landman) If yes simply mark the "yes" box.

If No

Submit the surface agreement if there is one, or

Provide a surface bond (Rule 703)

Surface Surety: Rule 703

Fee surface (non-irrigated land) $2,000

Fee surface (irrigated land) $5,000

Fee surface blanket bond $25,000

State land requires bond with State Board of Land Commissioners (303) 866-3454

Federal or Indian surface requires bond with designated agency, attach the 13 point surface use plan.

LEASE AREA DESCRIPTION:

24 Describe entire mineral lease. Only describe the lease where the wellbore is producing. Use aliquot descriptions. If lots or any metes and bounds are used in the description, provide a plat or diagram. You may attach a map that shows the lease boundaries. Many operators find this section very confusing. If there are 1280 acres in your mineral lease you must describe the entire mineral lease not just the qtr/qtr or spacing unit where the well is. For example your well may be located in the SWNE Sec 34-T3N-R66W spaced on 320 E/2 but the mineral lease encompasses 1280 acres described as follows T3N-R66W Sec 34 – E/2, Sec 35 – all, Sec 36 – W/2.

 

25 Distance to nearest lease line – this refers to the mineral lease not the surface property line. Distance includes any productive portion of the wellbore (Rule 318 or spacing order.) If the wellbore is highly deviated or directional at the producing formation the entire productive portion of the wellbore will be reviewed for setback from lease line

If the well is in a spaced area, setback is from the unit boundary.

26 Total acres includes only the acres in the described lease.

27,28,29, 30 If H2S is expected additional information is required (Rule 607)

If oil or salt based mud is to be used, the drilling pit shall be permitted or lined (Rule 903)

Use Sensitive Area Guidance Document (appendix 2)

Pit permit form 15 may be required - DO NOT ATTACH TO THE PERMIT PACKET. Send in as a separate packet

31 MUD DISPOSAL

Must be completed if not air drilling

Onsite or offsite must be identified as well as the method of disposal

Earthen pits used for recompletion fluids are considered special purpose pits and must be permitted (Rule 903 a.)

CASING AND CEMENTING

Must be completed on form and comply with Rule 317 – your engineering or drilling department should provide this information for you.

The casing program adopted for each well must be so planned and maintained as to protect any potential oil or gas bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil, gas or water from one (1) horizon to another, that may result in the degradation of ground water.

Water well depths can now be viewed on the Division of Water Resources Internet GIS available at http://water.state.co.us/pubs/gis.asp, the water well data will be reviewed by the COGCC to insure aquifer protection.

32 BOP

Complete for the all equipment to be used

More than one type may be checked

If location is in a high density area, comply with Rule 603 b.

33 COMMENTS:

Please use to explain any special circumstances or situations

Identify exception location requests

34 RULE 306 CONSULTATION

Provide supporting documentation if consultation has been waived or good faith effort did not result in consultation.

ATTACHMENT CHECKLIST

Please use the list as a guide to help file a complete application

Include an original form 2 and 1 copy for a total 2 Form 2s (Rule 303 d.)

Include Form 2A if surface ownership is not Federal or Indian, along with the required 2 color photographs

Include well location plat – must comply with rule 303c

Include topographic map that shows 3 mile radius around proposed well

MINERAL LEASE MAP

Provide when lease description is complex

When description includes lots

When description includes metes and bounds

When lease is very large

SURFACE AGREEMENT/SURETY

Must be signed by both parties

Must include land description or well name

Does not replace the surface owner notice requirement (Rule 305)

Does not replace surface owner consultation (Rule 306)

May include waiver language for Rules 305 and 306

30-DAY NOTICE LETTER – NEW DRILLS

Rule 305 drilling and re-entry

Required on all fee and state lands

Must be submitted to the county – local government designee (LGD)

Must include one copy with application

Must include a copy of Commission’s informational brochure for surface owners

May be waived by surface owner

30-DAY NOTICE LETTER -SUBSEQUENT WELL OPERATIONS

Rule 305 deepening and recompletion

Required on all fee and state lands

7 days prior to commencement of operations

No local governmental designee notice requirement

DEVIATED DRILLING PLAN

If well is directional submit deviated drilling plan – footages should match those on the permit and on the location plat.

EXCEPTION LOCATION

Must include a request letter to the Director for any exception location.

Must include exception location waivers from encroached upon parties (Rule 318 c.)

H2S CONTINGENCY PLAN

If H2S is anticipated attach contingency plan.

FEDERAL DRILLING PERMIT

If drilling on Federal Surface or Minerals attach a copy of the form 3160-3, the 10 point drilling plan and the 13 point surface use plan.

 

HELPFUL HINTS

DO NOT SEND DUPLICATES OF ANY OF THESE ATTACHMENTS!!!

If you put your attachments in the same order as the checklist, it will be quicker and easier for the permitting staff to review your packet and get them approved more quickly.

Don’t staple your permit packets, use paper clips or binder clips. Since every document has to be scanned, staples really slow down the process.

Don’t attach a cover letter.

If you aren’t sure what to enter on the form, please call and we will help you. 303-894-2100.