RULES AND REGULATIONS
DEFINITIONS
(100 Series)
SURFACE
OWNER SHALL MEAN any
person owning all or part of the surface of land upon which oil and gas
operations are conducted, as shown by the tax records of the
303. COGCC Form 2. REQUIREMENTS FOR APPLICATION FOR PERMIT-TO-DRILL,
DEEPEN, RE‑ENTER, OR RECOMPLETE, AND OPERATE.
[THE FOLLOWING LANGUAGE WILL BE
PLACED ON THE APD BY THE DIRECTOR’S SIGNATURE:
“BASED ON THE INFORMATION PROVIDED HEREIN, THIS APPLICATION FOR
PERMIT-TO-DRILL COMPLIES WITH COGCC RULES AND IS HEREBY APPROVED.”]
a. FORM 2.
APPLICATION FOR PERMIT-TO-DRILL, DEEPEN, RE-ENTER, OR RECOMPLETE, AND
OPERATE.
(1)
Approval of Director. Before any person shall commence operations
for the drilling or re‑entry of any well, such person shall file with the
Director an application on Form 2 for a permit-to-drill, PAY along with a filing and service fee established by the Commission
(see Appendix III), and shall secure the
Director's approval before commencement of operations with heavy equipment.
(2)
Final agency action. THE DIRECTOR’S APPROVAL OF A PERMIT-TO-DRILL
SHALL BE CONSIDERED FINAL AGENCY ACTION FOR PURPOSES OF JUDICIAL REVIEW.
(3)
Operational conflicts. The permit-to-drill shall be binding with
respect to any OPERATIONALLY conflicting local governmental permit or land use
approval process.
(4)
Exemptions. Wells drilled for stratigraphic s exempt from the FIILING OF FORM 2 AND FROM PAYING THE
FILING AND SERVICE FEE provisions
of this rule and notice of intent to re‑enter
a well shall be filed on a Sundry Notice, Form 4.
d. Form 2/2A application and copies to local governmental designees.
triplicate duplicate for wells on all patented private, state and
federal surface lands.
(2) Form 2/2A to local governmental designee. A single, informational
(not official notice) copy of the Permit-to-Drill, Form 2 and Form 2A and
all attachments shall be delivered by the applicant AS THE OFFICIAL NOTICE to
the local governmental designee(s) of the county or municipal corporation
within whose jurisdiction the activity is occurring or is proposed to occur at
or before the time of filing with the Director.
It shall be the responsibility of the Director to promptly provide
the local governmental designee(s) with formal notification of the filing of the
Permit-to-Drill, Form 2. Such notice is
to be sent by facsimile if requested, and, if not, then by first class U.S. Mail.
(3) Comment period for local governmental
designee. Any comments from the
local governmentAL designee concerning the Permit-to-Drill, Form 2, and
Form 2A as filed shall be provided to the Director and to the applicant in
writing within ten (10) days after the date on which the Permit-to-Drill, Form
2 was sent to the local government
designee(s) RECEIVED by the Director. The Director shall take no action with
respect to the Permit-to-Drill, Form 2, prior to the expiration of the ten (10)
day period, except under the circumstances provided for in Rule 303.j.(1) and
(2), or when the Director has received notice from the local governmental
designee(s) waiving the ten (10) day period. Upon written request to the
Director received prior to the expiration of the ten (10) day period, the local
governmentAL designee shall be granted an extension of up to twenty (20)
additional days to consider the application.
(4) Application for hearing by Local
Governmental Designee. If, prior to
the expiration of the comment period provided herein and after participation in
an onsite consultation under Rule 306.a.(3), the local governmental designee
files an application for hearing on the pPermit-to-dDrill,
Form 2, under Rule 503.b.(6), alleging significant impacts on public health,
safety and welfare, including the environment, the dDirector shall withhold the issuance APPROVAL of such permit and the provisions of
Rule 303.k. shall apply.
k. Withholding
APPROVAL OF APPLICATION FOR Permit-to-Drill, Form 2, approval.
(1) The Director
may withhold the issuance of a permit and the granting of approval of any APPLICATION FOR Permit-to-Drill, Form 2, for any
proposed well when, based on
(2) If a request
is made by a local governmental designee under Rules 303.d. and 503.b.(6), such
application shall be granted and the director shall withhold issuance of the
permit-to-drill, Form 2, unless the local government has been disqualified from
making such request under Rule 501.b.
THE DIRECTOR SHALL WITHHOLD APPROVAL OF ANY APPLICATION FOR
PERMIT-TO-DRILL, FORM 2, FOR ANY PROPOSED WELL, WHEN A REQUEST FOR A HEARING
IS MADE BY A LOCAL GOVERNMENTAL DESIGNEE IN ACCORDANCE WITH RULES 303.D. AND 503.B.(6).
(3)
The
Director SHALL withhold APPROVAL of aNY APPLICATION FOR Permit-to-Drill, Form
2, for any proposed well, WHILE A COMPLAINT IS BEING INVESTIGATED AND RESOLVED BY THE DIRECTOR UNDER RULE 522.,
OR WHEN A SURFACE OWNER COMPLAINANT FILES AN APPLICATION FOR HEARING IN ACCORDANCE
WITH RULE 522.C.(2).B.
(4)
In the event such approval is
not granted, when requested by the operator, the Director shall ask the
Commission to issue an emergency order under Rule 502.a. suspending approval of
the Permit-to-Drill for such well and setting the matter for the next hearing. IN THE EVENT THE
DIRECTOR WITHHOLDS APPROVAL OF ANY APPLICATION FOR PERMIT-TO-DRILL, FORM 2,
UNDER THIS RULE 303.K., AN OPERATOR MAY ASK THE COMMISSION TO REVIEW THE
DIRECTOR’S DECISION AND ISSUE AN EMERGENCY ORDER UNDER RULE 502.A.
(5)
Any hearing granted pursuant
to this rule shall be expedited and the matter shall be heard at the next
scheduled commission hearing, and all parties shall be deemed to have waived
any notice requirements to the contrary.
(6)
The Director shall use best
efforts to notify the applicant, local governmental designee, surface owner and
other interested parties as applicable of ANY EXPEDITED HEARING OR REQUEST FOR
EMERGENCY ORDER UNDER THIS RULE 303.K. SO in order that such parties may
participate.in the Commission’s emergency consideration of the matter
L.
SUSPENDING APPROVED
PERMIT-TO-DRILL, FORM 2. PRIOR TO
THE SPUDDING OF THE WELL, THE
DIRECTOR SHALL SUSPEND AN APPROVED PERMIT-TO-DRILL IF THE DIRECTOR HAS
REASONABLE CAUSE TO BELIEVE, BASED ON THE DIRECTOR’S OWN INITIATIVE OR ON A
COMPLAINT, THAT INFORMATION SUBMITTED ON THE PERMIT-TO-DRILL WAS INCORRECT.
305. NOTICES
OF OIL AND GAS OPERATIONS
b. Notices.
4) Final reclamation notice. The following notice requirements shall apply
only to final reclamation operations commenced more than thirty (30) days after
the completion of a well.
A. Not less than thirty (30) days before any final reclamation operations are to take place pursuant to Rule 1004., the operator shall notify the surface owner in accordance with paragraph c. below. Final reclamation operations shall mean those reclamation operations to be undertaken when a well is to be plugged and abandoned or when production facilities are to be permanently removed.
B. Not less than seven (7) days before any final reclamation
operations are to take place, the operator shall notify the Director on a
Sundry Notice, Form 4.
308A. COGCC Form 5. DRILLING COMPLETION REPORT
Within thirty (30) days of the
setting of production casing, the plugging of a dry hole, the deepening or
sidetracking of a well, or any time the wellbore configuration is changed, the
operator shall transmit to the Director the Drilling Completion Report, Form 5,
and one (1)
copy TWO (2) COPIES of all logs run, be
they mechanical, mud, or other, SUBMITTED AS ONE (1) PAPER COPY AND, AS
AVAILABLE, ONE (1) DIGITAL LAS (LOG ASCII) FORMATED COPY, OR A FORMAT
APPROVED BY THE DIRECTOR. Additionally,
if drill stem tests, core analyses, or directional surveys are run, they shall
be submitted at the same time and together with this completion report. All Sections 1 - 22 (if applicable) and the
attachment checklist shall be completely filled out.
310A. COGCC
Form 8. MILL LEVY
On or before March 1, June 1,
September 1 and December 1 of each year, every producer or purchaser, whichever
disburses funds directly to each and every person owning a working interest, a
royalty interest, an overriding royalty interest, a production payment and
other similar interests from the sale of oil or natural gas subject to the
charge imposed by §34‑60‑122 (1) (a) C.R.S., 1973, as amended,
shall file a return with the Director showing by operator, the volume of oil,
gas or condensate produced or purchased during the preceding calendar quarter,
including the total consideration due or received at the point of
delivery. No filing shall be required
when the charge imposed is zero mill ($0.0000) per dollar value.
The Levy shall be an amount fixed by
order of the Commission. The levy amount
may, from time to time, be reduced or increased to meet the expenses chargeable
against the oil and gas conservation fund.
The present charge imposed, as of July 1, 2002 APRIL 1,
2004, is one and
one tenth mill ($0.0011) SIX TENTHS OF A MILL
($0.0006) per dollar value.
312. COGCC
Form 10. CERTIFICATE OF CLEARANCE AND/OR
CHANGE OF OPERATOR
a. Each operator
of any oil or gas well completed after April 30, 1956, shall file with the
Director, within thirty (30) days after initial sale of oil or gas a
Certificate of Clearance and/or Change of Operator, Form 10, in accordance with
the instructions appearing on such form, for each well producing oil or gas or
both oil and gas. A Certificate of
Clearance shall be filed for any well from which oil, gas or other hydrocarbon
is being produced.
A Certificate
of Clearance shall be filed within thirty (30) days should the producing formation(s), the oil transporter (first purchaser) and/or the gas
gatherer (first purchaser) change. In
addition, within fifteen (15) days of an operator change for any well, a Change
of Operator, Form 10, shall be filed with a filing and service fee as set by
the Commission. (See Appendix III)
g. A copy of each Certificate of Clearance and/or Change of Operator,
Form 10 to be filed hereunder shall be sent by the Director to those local
governmental designees who so request.
319. ABANDONMENT
b. Shut‑in and Temporary Abandonment.
(1) A well may
be shut‑in or temporarily abandoned when completed, upon approval of the
Director, for a period not to exceed six (6) months provided the hole is cased
or left in such a manner as to prevent migration of oil, gas, water or other
substance from the formation or horizon in which it originally occurred. All shut‑in or temporarily abandoned
wells shall be closed to the atmosphere with a swedge and valve or packer, or
other approved method. The well sign
shall remain in place. If an operator
requests shut‑in or temporary abandonment status in excess of six (6)
months the operator shall state the reason for requesting such extension and
state plans for future operation. A
Sundry Notice, Form 4, or other form approved by the Director, shall be
submitted annually stating the status of the well and plans for future
operation. The Director shall submit
copies of any Sundry Notice, Form 4, to the local governmental designees who so
requests.
321. DIRECTIONAL
DRILLING
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
Within thirty (30) days of
completion the operator shall submit a Drilling Completion Report, Form 5,
according to Rule 308., with a copy of the directional survey coordinate
listing and the wellbore deviation plots (plan and side views). The survey data shall be provided in a single
analysis report with sufficient detail to determine the location of the
wellbore from the base of the surface casing to the kick off point and from
that point to total depth. It shall be the operator’s responsibility
to ensure that the wellbore complies with the setback requirements in
Commission orders or rules prior to producing the well.
Any changes to an approved Application for
Permit-to-Drill, Form 2, shall be submitted and approved on a Sundry Notice, Form
4, prior to implementation. Any request
to change either the surface or bottom hole location shall be accompanied by a
new proposed directional plan, an updated plat and updated wellbore deviation
plots (plan and side view).
502. PROCEEDINGS NOT REQUIRING THE FILING OF AN APPLICATION
a. Commission's own motion. The Commission may, on its own motion,
initiate proceedings upon any questions relating to conservation of oil and gas or the conduct of oil and gas
operations in the State of
b. Variances.
(1) Variances to
any Commission rules, regulations, or orders may be granted in writing by the
Director without a hearing upon written request by an operator to the Director,
or by the Commission after hearing upon application. The operator or the applicant requesting the
variance shall make a showing that it has MADE A GOOD FAITH EFFORT TO COMPLY OR
IS UNABLE TO COMPLY complied with the specific requirements contained in
these rules to secure a WAIVER OR AN EXCEPTION variance, if any, and
that the requested variance will not violate the basic intent of the Oil and
Gas Conservation Act.
503. ALL OTHER PROCEEDINGS COMMENCED BY FILING AN APPLICATION
b. Applications
to the Commission may be filed by the following applicants:
(6). ALL OTHER PROCEEDINGS COMMENCED BY
FILING AN APPLICATION For
purposes of seeking a hearing on a pPermit-to-dDrill, Form 2, under Rules 303.d. and 303.k.(2),
the relevant local government shall be the applicant, and the hearing shall be
conducted in similar fashion as is specified in Rule 508.j., k and l. with
respect to a public issues hearing. It
shall be the burden of the local government applicant to bring forward evidence
sufficient for the commission to make the preliminary findings specified in
subsection j of Rule 508. at the outset of such hearing.
(7) For
purposes of seeking a hearing on a permit-to-drill, Form 2, under Rule 303.K.(3), THE SURFACE OWNER SHALL BE THE APPLICANT.
(78) For purposes of seeking relief or a ruling from the Commission on
any other matter not described in (1) through (67) above, only persons who can demonstrate that they are
directly and adversely affected or aggrieved by the conduct of oil and gas
operations or an order of the Commission and that their interest is entitled to
legal protection under the act may be an applicant.
522. PROCEDURE TO BE FOLLOWED REGARDING ALLEGED VIOLATIONS
a. Notice of Alleged Violation.
(1) A
complaint requesting that the Director
issue a Notice of Alleged Violation (NOAV), INCLUDING ANY COMPLAINT MADE PRIOR
OR SUBSEQUENT TO THE ISSUANCE OF AN APPLICATION FOR PERMIT-TO-DRILL, may be
made by the mineral owner, surface owner or tenant of the lands upon which the
alleged violation took place, by other state agencies, by the local government
within whose boundaries the lands are located upon which the alleged violation
took place, or by any other person who may be directly and adversely affected
or aggrieved as a result of the alleged violation.
(2) Oral
complaints shall be confirmed in writing.
Persons making a complaint are encouraged to submit a Complaint Form,
Form 18.
(3) If the
Director, on the Director's own initiative or based on a complaint, has
reasonable cause to believe that a violation of the Act, or of any rule,
regulation, or order of the Commission, or of any permit issued by the
Director, has occurred, the Director shall cause the operator to voluntarily
remedy the violation, or shall issue a NOAV to the operator. Reasonable cause requires, at least, physical
evidence of the alleged violation, as verified by the Director.
(4) If the Director, after investigating a
complaint made in accordance with this Rule 522.a.(1), decides not to issue a
NOAV, the complainant may file an application to the Commission pursuant to
Rule 503.b.(4), requesting the Commission enter an Order Finding Violation
(OFV) in accordance with this rule.
(5) NOAV process
A. A NOAV issued
by the Director shall be served on
the operator's designated agent, or on the operator if no agent has been
designated, by personal delivery or by certified mail, return receipt
requested.
B. The NOAV
shall not be placed on the Commission docket, except as part of an application
filed pursuant to subparagraph c. of this rule.
C. The NOAV does
not constitute final agency action for purposes of judicial appeal.
D. The NOAV
shall identify the statute, rule, regulation, order, permit or permit condition
subject to Commission jurisdiction allegedly violated and the facts alleged to
constitute the violation. The NOAV may
propose appropriate corrective action and an abatement schedule, if any, that
the Director elects to require. The NOAV
shall also describe the penalty, if any, which the Director may propose, to be recommended
in accordance with Rule 523.
b. Resolution of a Notice of Alleged
Violation.
(1) Informal
procedures to resolve issues raised by a NOAV with the Director are
encouraged. Such procedures may include,
but are not limited to, meetings, phone conferences and the exchange of
(2) NOAVs may be
resolved by written agreement of the operator and the Director as to the
appropriate corrective action and abatement schedule, a copy of which shall be provided by the Director to the
complainant, if any. Such agreements do
not require Commission approval and shall not be placed on the Commission
docket, except at the request of the operator.
(3) NOAVs which
are not resolved by written agreement for correction and abatement or which
recommend the imposition of a penalty may be provisionally resolved by
negotiation between the operator and the Director. If such negotiations result in a proposed
agreement, an Administrative Order By Consent (AOC) containing such agreement
shall be prepared and noticed for review and approval by the Commission. The Director may propose the terms for an AOC
directly to the alleged violator. Upon
Commission approval, the AOC shall become a final order, and the agreed penalty
imposed. The AOC shall be placed on the
consent agenda and Commission approval may be granted without hearing, unless a
protest thereto is filed. Unless the
operator so agrees, such AOC shall not constitute an admission of the alleged
violation.
(4) The Director
shall advise the complainant of any
c. Order Finding Violation.
(1) If the
operator contests the NOAV, as to the existence of the violation, the
appropriate corrective action and abatement schedule, or as to any proposed
penalty, the Director shall make application to the Commission for an OFV and
shall place the matter on the next available Commission docket, providing that
at least twenty (20) days notice of such application is provided to the
operator.
(2) If the Director
decides not to issue a NOAV, the Commission may conduct a hearing to consider
whether to issue an OFV upon twenty (20) days notice to the affected operator
under the following circumstances:
A. On the
Commission's own initiative if it believes that the Director has failed to
enforce a provision of statute, rule, regulation, order, permit or permit
condition subject to Commission jurisdiction.
B. On the application of a complainant pursuant to Rule 503.b.(4), provided that such complainant has first made a written request to the Director to issue an NOAV and the Director has determined in writing not to do so. An application FOR HEARING by a complainant shall be filed within forty-five (45) days of the RECEIPT OF THE Director's written determination. FOR PURPOSES OF THIS RULE, THE DIRECTOR’S WRITTEN DETERMINATION SHALL BE DEEMED TO BE RECEIVED THREE (3) BUSINESS DAYS AFTER MAILING A COPY THEREOF, FIRST-CLASS POSTAGE PREPAID, TO THE LAST KNOWN ADDRESS OF THE COMPLAINANT.
C. On the application
of a SURFACE OWNER complainant pursuant to Rule 503.b.(7), provided that
such complainant has first made a written request to the Director to issue an
NOAV and the Director has determined in writing not to do so. An application FOR HEARING by a SURFACE OWNER
complainant SHALL BE FILED WITHIN FIVE (5) BUSINESS DAYS OF THE RECEIPT
OF THE DIRECTOR’S WRITTEN DETERMINATION.
FOR PURPOSES OF THIS RULE, THE DIRECTOR’S WRITTEN DETERMINATION SHALL BE
DEEMED TO BE RECEIVED THREE (3) BUSINESS DAYS AFTER MAILING A COPY THEREOF,
FIRST-CLASS POSTAGE PREPAID, TO THE LAST KNOWN ADDRESS OF THE COMPLAINANT.
(3) Upon an
operator's request a settlement conference shall be held with the Director no
less than five (5) days before the hearing on an OFV. If an agreement is reached, an AOC containing
such agreement shall be prepared and noticed for review and approval by the
Commission, at its discretion. Upon such approval, the AOC shall become a final
order, and the agreed penalty shall be imposed.
Such approval may be granted without hearing, unless a hearing thereon
is requested by a complainant. Unless
the operator so agrees, such AOC shall not constitute an admission of the
alleged violation.
(4) A hearing to
consider whether to issue an OFV shall be a de novo proceeding, unless the
parties stipulate as to the facts, or as
to the appropriate corrective action and abatement schedule, in which case the
hearing may be accordingly limited.
(5) The Director
is always a necessary party to a hearing on an OFV. The operator against which an OFV is sought
is always a necessary party but need not present a case. Any person, which is not the applicant for an
OFV, but whose complaint initiated the enforcement proceeding, shall be granted
intervenor status if so requested, pursuant to Rule 509., except that the
filing fee shall be waived.
AESTHETIC AND NOISE CONTROL REGULATIONS
802. NOISE
ABATEMENT
a. Oil and gas operations,
including gas facility operations, shall comply with the following maximum
permissible noise levels for the predominant land use existing in the zone AREA in
which the SOUND MEASUREMENT IS TAKEN operation occurs. ANY LAND USE AREA DETERMINATION SHALL BE
CONTROLLED BY THE ACTUAL CHARACTER OF THE AREA. Any operation involving pipeline or gas
facility installation or maintenance, the use of a drilling rig, completion
rig, workover rig, or stimulation is subject to the maximum permissible noise
levels for industrial zones AREAS AT THE LOCATION WHERE
THE SOUND MEASUREMENT IS TAKEN. In
the hours between
Residential 55db(A) 50 db(A)
Commercial 60db(A) 55 db(A)
Light industrial OR AGRICULTURAL 70 db(A) 65 db(A)
Industrial 80
db(A)
75 db(A)
The
following provide guidance for the measurement of sound levels from oil and gas
operations:
(1) If there are no occupied building
units impacted THE NOISE SOURCE IS LOCATED ON A
SEPARATE PROPERTY, sound levels shall be measured at a distance of twenty-five
(25) feet or more from the SURFACE property line radiating the noise, AND
AT ANY OCCUPIED BUILDING UNIT. IF
THE NOISE SOURCE IS LOCATED ON THE SAME PROPERTY, sound levels at occupied building units shall be measured AT OCCUPIED BUILDING UNITS ON THE SAME
PROPERTY as near as practicable to the exterior edge of the occupied building
unit closest to the area radiating the noise.
EXPLORATION & PRODUCTION
(E&P) WASTE MANAGEMENT
909. SITE INVESTIGATION, REMEDIATION AND
CLOSURE
f. Release of financial assurance. Financial assurance required by Rule 706. may
be held by the Director until the required remediation of SOIL AND/OR ground
water impacts is completed in accordance with the approved workplan, or until
cleanup goals are met.