The
Oil and Gas Conservation Commission met on October 28th at 10:00
a.m. in
Those
present were:
Brian
Cree Vice
Chair
Lynn
Shook Commissioner
Tom
Ann Casey Commissioner
Michael
Klish Commissioner
Tom
Reagan Commissioner
Carol
Harmon Assistant
Attorney General
Rich
Griebling Director
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The
Commission unanimously approved the amended minutes from the September 2002
meeting.
Director’s
Report: Director Griebling provided a
written report and discussed the following: The COGCC is on track for approving
2000 Applications for Permits-to-Drill for the year, which is running about 10%
behind last year’s totals. Ron Wackowski
was thanked for the ChevronTexaco tour in Rangely Field. Tricia Beaver provided testimony on behalf of
the Commission at the Air Pollution Control Commission hearing for rulemaking. Commissioner Casey asked about the
Thom
Kerr described the need for a policy on guarantees of performance as financial
assurance. COGCC staff believes this
form of financial assurance is risky and difficult to evaluate. State auditors had a concern that no process was
in place for the review of guarantees of performance. After several questions from the
Commissioners were answered, a motion was made by Commissioner Reagan, and
seconded by Commissioner Klish to adopt the proposed guarantee of performance
policy. The motion was approved
unanimously.
Assistant Attorney General’s Report: AAG Harmon informed the Commission that the
19 parties in the
Executive Director’s Report: Representative Mark Larson has emailed a few
of the Commissioners regarding the right-of-way issues with the Colorado
Department of Transportaion (“CDOT”).
Shane Henry clarified that he did not speak on behalf of the
Commissioners to decline Larson’s request to come before the Commission. The
Coalbed Methane Water workshop will be held on November 20th in
Commissioner Comments: Commissioner Casey mentioned the GORT meeting
last week and the discussion on the fire policy. An operator at the meeting asked if the COGCC
could work with other agencies to develop a fire policy if needed in the future
to ensure consistency. The industry is
concerned that there were approximately five policies in place. Morris Bell explained that it is hard to
coordinate a statewide policy with local issues. He suggested that policies be developed early
on to attempt consistency.
Cause Nos. 499, 232 and 407, Docket No. 0209-SP-12, request
for an order to establish a 160-acre drilling and spacing unit consisting of
the NW¼ of Section 3, Township 4 North, Range 63 West, 6th P.M. for
production of oil and gas from the Dakota, “J” Sand, Codell and Niobrara
Formations and to pool all nonconsenting owners, was continued to December but
will be withdrawn.
Cause No. 112, Docket No. 0210-UP-07, request for an order to pool
all non-consenting owners in the N½ of Section 8U and Lots 1, 2, 3, & 4 of
Section 5U, Township 34 North, Range 9 West,
N.M.P.M. for the drilling of the Koshak BA-A Well, was continued to
December.
Consent Agenda:
The Commission unanimously approved the consent agenda, which included
the following:
Cause No. 112, Docket No. 0210-AW-04, request for an order allowing
up to four (4) additional wells to be drilled on certain 320-acre drilling and
spacing units for the production of gas and associated hydrocarbons from the
Mesaverde Formation with the permitted well to be located no closer than 660
feet from the boundaries, to stratigraphically define the Mesaverde Formation,
to amend the well location setbacks for the Dakota Formation to coincide with
the proposed amended setbacks for the Mesaverde Formation, and to authorize the Director, without additional notice and
hearing or consent, to grant an exception to the well location setbacks up to
and including 100 feet, but not beyond, to avoid archaeological sites.
Cause No. 499 and 232, Docket No. 0210-SP-13, request
for an order to segregate the N½ of Section 31, Township 4 North, Range 63 West
into two 160-acre drilling and spacing units was approved.
The
meeting adjourned at
============================================
The Secretary was therefore authorized to issue the
following orders:
Order No. 499-74 and 232-236, Wattenberg Field, Weld
County: Approves the request by
United States Exploration to segregate the N½ of Section 31, Township 4 North, Range 63 West into
two 160 acre drilling and spacing units
for the production of oil, gas and associated hydrocarbons from the Dakota and
“J” Sand Formations.
Order No. 112-168, Ignacio-Blanco Field, La Plata
County: Approves the request by Burlington Resources
Oil and Gas Company, LP to drill up to four (4) additional wells to be drilled on certain 320-acre
drilling and spacing units for the production of gas and associated
hydrocarbons from the Mesaverde Formation with the permitted well to be located
no closer than 660 feet from the boundaries, to stratigraphically define the
Mesaverde Formation, to amend the well location setbacks for the Dakota
Formation to coincide with the proposed amended setbacks for the Mesaverde
Formation, and to authorize the Director,
without additional notice and hearing or consent, to grant an exception to the
well location setbacks up to and including 100 feet, but not beyond, to avoid
archaeological sites.
Signed:
Patricia
C. Beaver, Secretary
Approved:
Brian Cree, Vice Chair