RECORD OF PROCEEDINGS
December
3, 2001
The
Oil and Gas Conservation Commission met on December 3rd at 10:00
a.m. in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, for a hearing in Cause No. 522 and a
discussion on the proposed COGCC Policy for Plugged and Abandoned Wells and
E&P Waste Encountered by Surface Development Projects.
Those
present were:
Stephen
Sonnenberg Chair
Brian
Cree Commissioner
Michael
Klish Commissioner
Peter
Mueller Commissioner
Abe
Phillips Commissioner
Lynn
Shook Commissioner
Carol
Harmon Assistant
Attorney General
Rich
Griebling Director
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
All Commissioners except
Commissioner Cree unanimously approved the minutes from the October 2001 meeting.
Director’s Report: Director Griebling provided a written report
and discussed the following: It is
anticipated that the number of permits approved this year will not break the
record, but will come close. COGCC
staff met the December 1st deadline to get the draft annual report
required by the Williams Fork 20-acre density order out to the parties for
review. A presentation will be made at
the January 2002 hearing on the final report.
The 3M Project is on hold until the spring. John Duran is the new southeast Colorado field inspector. Ernie Slatton is the new IT person. Barbara Browning will retire on December 28th
after approximately six years of service. The January 2002 hearing will be held in Greeley. Four variances were granted this month under
Rule 502.b.
AAG’s Report: Assistant Attorney General Harmon has
provided a memo today regarding encroachment on structures to oil and gas
facilities. Her time has been taken up
with numerous litigation matters. She
has a difference of opinion with the La Plata County attorney over what should
be designated as the record in the Rule 303.a. judicial review matter. An executive session is needed to discuss
the Allen Oil and Gas federal case which is being handled by Will Allen of the
litigation section of the AG’s office.
The Commission approved unanimously the going into and coming out of
executive session.
Commissioner
Comments: There were no comments.
Overview
of the Report on Economic Comparison of the Rules and Regulations of the COGCC:
Lisa McDonald made a presentation on
the results from the economic comparison of Colorado’s rules with rules of
other states. She described the process
used to gather and analyze data, and provided insights and recommendations for
the Commission’s consideration.
Discussion of the draft
COGCC Policy for Plugged and Abandoned Wells and E&P Waste Encountered by
Surface Development Projects: Brian
Macke presented an overview of and explained the purpose for the proposed policy
with updated language based on written comments received from John
Spillane. Comments were provided by
John Spillane on behalf Gateway American Properties, LLC and other surface
developers, by Ken Wonstolen on behalf of COGA, by Gordon Stevens on behalf of
Adams County, and by Rick Brady on behalf of the City of Greeley and the
Colorado Municipal League. After
discussion, the amended policy was adopted unanimously by the Commission.
Executive Director’s
Report: Shane Henry, Assistant Director, Department of Natural Resources discussed
the following: The Department is in the
final stages of completing its annual report on all the agencies within DNR to
be sent to hundreds of interested parties.
Chris Castilian has been selected as the new Director of the State Land
Board and will start on December 17th.
Audience Comments: Greg Schnacke, Colorado Oil and Gas
Association (“COGA”) welcomed new Commissioners Mueller and Shook; he thanked
Lisa McDonald for the report she prepared and presented; Mac Duckworth who
works for Devon is the new COGA Raton Basin chapter president; COGA has
prepared a new brochure for distribution; COGA is concerned about a JBC
recommendation to move all excess severance taxes to the general fund; the COGA
Legislative Reception will be held January 17, 2002 at the Grant-Humphries
Mansion; the recently broadcast Channel 9 news story regarding a homeowner near
a gas well recently is actually old news and has already been handled by the
oil and gas company after a Commission hearing. That was not made clear during the broadcast; Channel 9 asked
COGA, who declined, to identify potential targets in the oil and gas fields
that might be attacked by terrorists.
Cause No. 232, Docket
No. 0112-UP-07, request by Patina Oil & Gas Corporation for an order to
pool all non-consenting interests in the 320-acre drilling and spacing unit consisting of the E½ of Section 2, Township 4
North, Range 64 West, 6th P.M. for the development and operation of
the “J” Sand Formation was withdrawn.
Cause No. 1V, Docket
No. 0112-OV-10, request to approve an Order Finding Violation finding Rocky Mountain Operating Company in
violation of Rule 326.b.(1), failure to perform and pass a mechanical integrity
test on the Nichols No. 1-14 Well, located in the SE¼ NW¼ of Section 14,
Township 10 South, Range 97 West, 6th P.M. was continued to the
January 2002 hearing.
Cause
No. 1V, Docket No. 0112-OV-11, request to approve an Order Finding Violation
finding Rocky Mountain Operating Company in
violation of Rule 326.b.(1), failure to perform and pass a mechanical integrity
test on the Nichols No. 1-23 Well, located in the SW¼ NE¼ of Section 23,
Township 10 South, Range 97 West, 6th P.M. was continued to the
January 2002 hearing.
Consent Agenda: The Commission unanimously approved the
consent agenda, which included the following:
Cause No. 522, Docket No.
0112-SP-04, request by Walsh Production, Inc. to remove the SW¼ NW¼ and SW¼ NE¼
of Section 13, Township 8 North, Range 59 West from the provisions of Order No.
492-2 and to establish 80-acre spacing in Sections 13 and 24, Township 8 North,
Range 59 West, 6th P.M. for production of oil and associated hydrocarbons from the “D” Sand Formation.
The
meeting adjourned at 12:55 p.m.
==============================================
The Secretary was therefore authorized to issue the
following orders:
Order No. 522-1, South Lilli
Field, Weld County: Approves the
request by Walsh Production, Inc. to remove the SW¼ NW¼ and
SW¼ NE¼ of Section 13, Township 8 North, Range 59 West from the provisions of
Order No. 492-2 and to establish 80-acre spacing in Sections 13 and 24,
Township 8 North, Range 59 West, 6th P.M. for production of oil and associated hydrocarbons from
the “D” Sand Formation.
Signed:
Patricia C. Beaver, Secretary
Approved:
Stephen Sonnenberg, Chair