The
Oil and Gas Conservation Commission met on September 23rd at
Those
present were:
Stephen
Sonnenberg Chair
Brian
Cree Vice
Chair
Lynn
Shook Commissioner
Tom
Ann Casey Commissioner
Michael
Klish Commissioner
Tom
Reagan Commissioner
Peter
Mueller 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 August 2002
meeting.
Director’s
Report: Director Griebling provided a
written report and discussed the following: Statistics show that the number of
permits is approximately 10 percent below last year’s number of permits. It is the second highest record level. RSVP’s for the
Director Griebling recommended
a possible rulemaking to require a notice to offset mineral owners in certain
drilling and spacing units. Chair
Sonnenberg suggested that the rulemaking be docketed for December if there were
no objections from the Commissioners.
Assistant Attorney General’s Report: AAG Harmon reminded the Commissioners that
September 23 was the deadline for the Commission’s response in the
Director Griebling handed out a letter from people
in favor of development in
Commissioner Comments: Commissioner Casey mentioned her concern that
production from the Lewis Formation is reported as a part of the Mesaverde
Formation, rather than being defined stratigraphically on its own. The staff will look into this and report back
to the Commissioners.
Audience Comments:
Ken Wonstolen, COGA – Mr. Wonstolen complimented the staff and
Department of Natural Resources (“DNR”) on the Colorado State Fair
exhibit.
Executive Director’s Report: Mary Marchun, the new legislative liaison has
been responding to legislator’s questions on the COGCC and the makeup of the
Commission. She is trying to participate
in CCI’s new Commission orientation and also wants to participate in the orientation
session for new legislators. A forum to
address water issues related to coalbed methane wells is planned to be held on
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 October.
Cause No. 1R, Docket No. 0209-RM-02, rulemaking to
amend Rule 310A. to increase the charge assessed for conservation levy to
0.0011 mill and to amend Rule 1003.a. for guy line anchors was approved. The COGCC will send out a notice of levy
change to all operators and payors by
Consent Agenda:
The Commission unanimously approved the consent agenda, which included
the following:
Cause No. 112, Docket No. 0209-UP-06, request for an
order to pool all nonconsenting owners in the 320-acre drilling and spacing
unit consisting of the S½ of Section 8U, Township 34 North, Range 9 West,
N.M.P.M. for the development and operation of the Fruitland coal seams was
approved.
Cause No. 1V, Docket No. 0209-OV-23,
Cause No. 1V, Docket No. 0209-OV-10,
Cause No. 1V, Docket No. 0209-OV-11, Weld
County, request to issue an Order Finding Violation finding D J Production
Services, Inc. in violation of Rules 309., 310A., 319.b.(1), 319.b.(3) and
326.b., for the Cuykendall “C” No. 3 Well located in the NW¼ NE¼ of Section 25,
Township 2 North, Range 63 West, 6th P.M. was approved. The Commission heard testimony and reviewed
exhibits presented by Morris Bell, Operations Manager and Ed DiMatteo,
Engineering Supervisor in support of the COGCC staff’s position. After deliberation, the Commission found D J
Production in violation, ordered D J Production to pay a fine of one thousand
dollars ($1,000) for the violation within thirty (30) days of the date the
order is entered and either plug, abandon
and reclaim, perform and pass a mechanical integrity test, or produce the Cuykendall "C" No. 3 Well by November
1, 2002. If D J Production does not
perform the work described above by
Cause No. 1V, Docket No. 0209-OV-12, Weld County, request to issue an
Order Finding Violation finding D J Production Services, Inc. in violation of
Rules 309., 310A., 319.b.(1), 319.b.(3) and 326.b., for the Sargent Farms “A”
No. 1-A Well located in the SE¼ SE¼ of Section 25, Township 2 North, Range 63
West, 6th P.M. was approved.
The Commission heard testimony and reviewed exhibits presented by Morris
Bell, Operations Manager in support of the COGCC staff’s position. After deliberation, the Commission found D J Production
in violation, ordered D J Production to pay a fine of One Thousand Five Hundred
dollars ($1,500), payable within thirty (30) days of the date the order is
entered, either plug, abandon and reclaim, perform and pass a mechanical
integrity test, or produce the Sargent Farms
"A" No. 1-A Well by November 1, 2002 and submit all delinquent
Production Reports, Form 7 and Production Levy Reports, Form 8 by November 1,
2002. If D J Production does not perform
the work described above by
Cause No. 1V,
Docket No. 0209-OV-13, Weld County, request to issue an Order Finding Violation
finding D J Production Services, Inc. in violation of Rules 309., 310A., 319.b.(1),
319.b.(3) and 326.b., for the Sargent Farms “A” No. 2-A Well located in the SE¼
SE¼ of Section 25, Township 2 North, Range 63 West, 6th P.M. was
approved. The Commission heard testimony
and reviewed exhibits presented by Morris Bell, Operations Manager in support
of the COGCC staff’s position. After
deliberation, the Commission found D J Production in violation, ordered D J
Production to pay a total fine of One Thousand Five Hundred dollars ($1,500)
payable within thirty (30) days of the date the order is entered, either plug,
abandon and reclaim, perform and pass a mechanical integrity test, or produce
the Sargent Farms "A" No. 2-A
Well by November 1, 2002 and
submit
all delinquent Production Reports, Form 7 and Production Levy Reports, Form 7 by
November 1, 2002. If D J Production does not perform the
work described above by
Cause
No. 1V, Docket No. 0209-OV-14, Weld County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Sargent Farms “A” No. 1-D Well
located in the SE¼ SW¼ of Section 25, Township 2 North, Range 63 West, 6th
P.M. was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager,
in support of the COGCC staff’s position.
After deliberation, the Commission found D J Production in violation,
ordered D J Production to pay a total fine of One Thousand Five Hundred dollars
($1,500) payable within thirty (30) days of the date the order is entered,
either plug, abandon and reclaim, perform and pass a mechanical integrity test,
or produce the Sargent Farms "A" No. 1-D
Well by November 1, 2002 and
submit all delinquent Production Reports, Form 7 and Production Levy Reports,
Form 7 by November 1, 2002. If D J Production does not perform the
work described above by
Cause
No. 1V, Docket No. 0209-OV-15, Weld County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Sargent Farms “B” No. 2-B Well
located in the SE¼ NE¼ of Section 25, Township 2 North, Range 63 West, 6th
P.M. was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager in
support of the COGCC staff’s position.
After deliberation, the Commission found D J Production in violation,
ordered D J Production to pay a total fine of One Thousand Five Hundred dollars
($1,500) payable within thirty (30) days of the date the order is entered,
either plug, abandon and reclaim, perform and pass a mechanical integrity test,
or produce the Sargent Farms "B" No.
2-B Well by November 1, 2002 and submit all delinquent Production
Reports, Form 7 and Production Levy Reports, Form 7 by November 1, 2002. If D J Production does not perform the work
described above by
Cause
No. 1V, Docket No. 0209-OV-16, Phillips County, request to issue an Order
Finding Violation finding D J Production Services, Inc. in violation of Rule
326.b., for the Willis F. Demmel No. 1 Well located in the SE¼ SE¼ of Section
35, Township 9 North, Range 44 West, 6th P.M. was approved. The Commission heard testimony and reviewed
exhibits presented by Morris Bell, Operations Manager in support of the COGCC
staff’s position. After deliberation,
the Commission found D J Production in violation, ordered D J Production fine
of One Thousand dollars ($1,000) for the above-described rule violation,
payable within thirty (30) days of the date the order is entered and either
plug, abandon and reclaim, perform and pass a mechanical integrity test, or
produce the Willis F Demmel No. 1 Well by
November 1, 2002. If D J Production does
not perform the work described above by
Cause
No. 1V, Docket No. 0209-OV-17, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309., 310A.,
319.b.(1), 319.b.(3) and 326.b., for the Danford-Champlin No. 1-24 Well located
in the NW¼ NE¼ of Section 24, Township 3 South, Range 64 West, 6th
P.M. was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager
and Larry Robbins, Field Engineer in support of the COGCC staff’s
position. After deliberation, the
Commission found D J Production in violation, ordered D J Production to pay a
total fine of One Thousand Five Hundred dollars ($1,500) payable within thirty
(30) days of the date the order is entered, either plug, abandon and reclaim,
perform and pass a mechanical integrity test, or produce the Sargent Farms "A" No. 2-A Well by
November 1, 2002 and submit all delinquent Production Reports, Form 7 and
Production Levy Reports, Form 7 by November 1, 2002. If D J
Production does not perform the work described above by
Cause
No. 1V, Docket No. 0209-OV-18, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Piland No. 1-12 Well located in
the NW¼ SE¼ of Section 12, Township 3 South, Range 64 West, 6th P.M.
was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager in
support of the COGCC staff’s position.
After deliberation, the Commission found D J Production in violation, ordered
D J Production to pay a total fine of One Thousand Five Hundred dollars
($1,500) for the above-described rule violations, payable within thirty (30)
days of the date the order is entered, either plug, abandon and reclaim,
perform and pass a mechanical integrity test, or produce the Piland No. 1-12 Well by November 1, 2002, and
notify COGCC staff prior to performing any work on the Piland No. 1-12 Well. D J
Production Services, Inc. shall submit all delinquent Production Reports, Form
7 and Production Levy Reports, Form 8 by
Cause
No. 1V, Docket No. 0209-OV-19, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Piland No. 3-6 Well located in
the SW¼ NW¼ of Section 6, Township 3 South, Range 63 West, 6th P.M.
was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager in
support of the COGCC staff’s position. After
deliberation, the Commission found D J Production in violation, ordered D J
Production to pay a total fine of One Thousand Five Hundred dollars ($1,500)
for the above-described rule violations, payable within thirty (30) days of the
date the order is entered, either plug, abandon and reclaim, perform and pass a
mechanical integrity test, or produce the Piland
No. 3-6 Well by November 1, 2002, and notify COGCC staff prior to
performing any work on the Piland No. 3-6
Well. D J Production Services, Inc.
shall submit all delinquent Production Reports, Form 7 and Production Levy
Reports, Form 8 by
Cause
No. 1V, Docket No. 0209-OV-20, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Piland No. 1-6 Well located in
the NE¼ SW¼ of Section 6, Township 3 South, Range 63 West, 6th P.M.
was approved. The Commission heard testimony
and reviewed exhibits presented by Morris Bell, Operations Manager in support
of the COGCC staff’s position. After
deliberation, the Commission found D J Production in violation, ordered D J
Production to pay a total fine of One Thousand Five Hundred dollars ($1,500)
for the above-described rule violations, payable within thirty (30) days of the
date the order is entered, either plug, abandon and reclaim, perform and pass a
mechanical integrity test, or produce the Piland
No. 1-6 Well by November 1, 2002, and notify COGCC staff prior to
performing any work on the Piland No. 1-6
Well. D J Production Services, Inc.
shall submit all delinquent Production Reports, Form 7 and Production Levy
Reports, Form 8 by
Cause
No. 1V, Docket No. 0209-OV-21, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rules 309.,
310A., 319.b.(1), 319.b.(3) and 326.b., for the Piland No. 4-6 Well located in
the NE¼ NW¼ of Section 6, Township 3 South, Range 63 West, 6th P.M.
was approved. The Commission heard
testimony and reviewed exhibits presented by Morris Bell, Operations Manager,
Ed DiMatteo, Engineering Supervisor and Larry Robbins, Field Engineer in
support of the COGCC staff’s position. After
deliberation, the Commission found D J Production in violation, ordered D J
Production to pay a total fine of One Thousand Five Hundred dollars ($1,500)
for the above-described rule violations, payable within thirty (30) days of the
date the order is entered, either plug, abandon and reclaim, perform and pass a
mechanical integrity test, or produce the Piland
No. 4-6 Well by November 1, 2002, and notify COGCC staff prior to
performing any work on the Piland No. 4-6
Well. D J Production Services, Inc.
shall submit all delinquent Production Reports, Form 7 and Production Levy
Reports, Form 8 by
Cause
No. 1V, Docket No. 0209-OV-22, Adams County, request to issue an Order Finding
Violation finding D J Production Services, Inc. in violation of Rule 309., for
the Piland No. 1-6 Well located in the SW¼ SW¼ of Section 6, Township 3 South,
Range 64 West, 6th P.M. was approved. The Commission heard testimony and reviewed
exhibits presented by Morris Bell, Operations Manager in support of the COGCC
staff’s position. After deliberation,
the Commission found D J Production in violation, ordered D J Production to pay
a total fine of Five Hundred dollars ($500) for the above-described rule violations,
payable within thirty (30) days of the date the order is entered, and submit
all delinquent Production Reports, Form 7 by
The
meeting adjourned at
============================================
The Secretary was therefore authorized to issue the
following orders:
Order No. 112-167, Ignacio-Blanco Field, La Plata
County: Approves the request by
ChevronTexaco to pool all nonconsenting owners in the 320-acre drilling and
spacing unit consisting of the S½ of Section 8U, Township 34 North, Range 9
West, N.M.P.M. for the development and operation of the Fruitland coal seams
for the drilling of the Koshak A-3 Well.
Order No. 1R-91, Statewide: Approves amendments to Rules 310A. and 1003.a.
of the Rules and Regulations and approves the statement of basis and purpose.
Order No. 1V-227,
Order No. 1V-228,
Order No. 1V-229,
Order No. 1V-230,
Order No. 1V-231,
Order No. 1V-232,
Order No. 1V-233, Weld County: Approves the Order Finding Violation finding
D J Production Services, Inc. in violation of Rules 309., 310A., 319.b.(1),
319.b.(3), and 326.b., for the Sargent Farms “A” No. 1-A Well located in the
SE¼ SE¼ of Section 25, Township 2 North, Range 63 West, 6th P.M. and
assesses a fine of one thousand five hundred dollars ($1,500) for the above
violation.
Order No. 1V-234, Weld County: Approves the Order Finding Violation finding
D J Production Services, Inc. in violation of Rules 309., 310A., 319.b.(1),
319.b.(3), and 326.b., for the Sargent Farms “A” No. 2-A Well located in the
SE¼ SE¼ of Section 25, Township 2 North, Range 63 West, 6th P.M. and
assesses a fine of one thousand five hundred dollars ($1,500) for the above
violation.
Order No. 1V-235,
Order No. 1V-236,
Order No. 1V-237,
Order No. 1V-239,
Order No. 1V-240, Weld County: Approves the Order Finding Violation finding
D J Production Services, Inc. in violation of Rules 324A.a., 907.a., and 910.a.
for the Sargent Farms “B” tank battery located in the SE¼ NE¼ of Section 25,
Township 2 North, Range 63 West, 6th P.M. and assesses a fine of one
thousand dollars ($1,000) for the above violation.
Order No. 1V-238,
Patricia
C. Beaver, Secretary
Approved:
Stephen Sonnenberg, Chair