The
Oil and Gas Conservation Commission met on August 18th at
Those
present were:
Tom
Ann Casey Commissioner
Lynn
Shook Commissioner
Carol
Harmon Assistant
Attorney General
Richard
Griebling Director
Brian Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The
Commission unanimously approved the minutes from the
Executive Director’s Report: There was no report.
Director’s Report:
Assistant Attorney General’s Report:
AAG Harmon provided the Commissioners with a confidential litigation
memo. A hearing will be held to consider
combining the
Commissioner Comments: There
were no comments.
Audience Comments:
Cause No. 146, Docket No. 0304-GA-02, request for an order authorizing the closure
of the Leyden Underground Natural Gas Storage Facility in the caverns of the
abandoned Leyden Coal Mine. Chair
Mueller made opening remarks on the purpose of the
The Commission heard expert testimony and reviewed exhibits from:
Benjamin Fowke, Vice President/Treasurer, Public Service, regarding Public Service’s financial position to guarantee performance and the ability to fulfill any obligation imposed under §34-60-106(17), C.R.S., including by not limited to, post closure corrective action.
Dave Cox, Senior Consultant, Questa Engineering Corp., regarding the potential for gas leakage out of the Facility, methods to abandon wells, amount of gas remaining in the Facility at closure and the proposed use of the Facility for water storage.
The Commission heard staff analysis from:
Morris Bell, COGCC Operations Manager and Al Amundson, Mining Engineer with the Division of Minerals and Geology, who having reviewed the expert reports and heard the testimony from the expert witnesses are in support of the proposed closure plan with several amendments.
Kevin Rein, Water Engineer with the Division of Water Resources, State Engineer’s Office, who described the manner in which water wells are permitted by his office, and the agreement currently in place to notify Public Service of any proposed water well over or within a one-half (½) mile of the Leyden Facility.
Public comments
were made under Rule 510. by the following:
Roy Laws, Jefferson County Health
Department, Environmental Engineer – has been with JeffCo for five years. Advocates science-based decisions. Agrees with using the caverns for underground
storage of water. Would like a better
accounting of lost and unaccounted for gas.
Would like to see the Colorado School of Mines work with Public Service
to do more science.
After deliberation, the
Commission suggested that Public Service consider installing additional soil
gas monitoring wells in an effort to provide nearby homeowners with more
data. Public Service consented to the
installation of twenty (20) new soil gas monitoring wells, to be evenly spaced
along the perimeter of the Facility, where it can obtain surface access, not
located near the landfill or Superfund site, and with the wells to remain in
place for two (2) years post-closure. In
addition, Public Service proposed that approval of the location of the
additional soil gas monitoring wells by COGCC staff be obtained within ninety
(90) days of the date of the hearing and agreed to let
Consent Agenda: The Commission
unanimously approved all matters on the consent agenda, which included the
following:
Cause Nos. 232 and 499,
Docket No. 0307-SP-04, request for an
order to amend the drilling and spacing units in Section 32, Township 5 North,
Range 63 West, 6th P.M. by establishing 80-acre drilling and spacing units in
the W½ SE¼, SW¼, NE¼, and NW¼ and establishing 40-acre drilling and spacing
units in the E½ SE¼ for the production of oil, gas and associated hydrocarbons
from the Dakota, “J” Sand, Codell and Niobrara Formations.
Cause No. 133, Docket No. 0308-AW-08, request for an order to allow up to
eight (8) wells to be drilled in the existing 320-acre drilling and spacing
units in Section 26 and the N½ of Section 36, Township 12 North, Range 101
West, 6th P.M. for the production of oil and associated hydrocarbons from the
Wasatch, Fort Union/Lance/Lewis and Mesaverde Formations.
Cause Nos. 139 and 440,
Docket Nos. 0308-AW-09 and 0308-AW-10, request for an order to increase well
density, the equivalent of 1 well per 20 acres, from the Williams Fork
Formation in Sections 1 and 2, Township 7 South, Range 94 West, 6th P.M. for
the production of gas and associated hydrocarbons from the Williams Fork
Formation.
Cause Nos. 139, 440,
479 and 510, Docket No. 0308-SP-05, request
for an order to increase well density, the equivalent of 1 well per 10 acres,
in certain sections of Township 6 South, Ranges 94-96 West, 6th P.M. and
Township 7 South, Ranges 95 and 96 West, 6th P.M. for the production of gas and
associated hydrocarbons from the Williams Fork Formation.
Cause No. 1V, Docket No. 0308-OV-05, request to approve an Administrative
Order by Consent finding Puckett Energy Company in violation of Rules 325.a.,
210, and 326.b., failure to obtain written authorization for injection, to
install a well sign, and to conduct an MIT on a shut-in well every five (5) years
for the Dalke #2 Well located in the SW¼ SW¼ of Section 11, Township 8 North,
Range 54 West, 6th P.M., assessing a fine of Ten Thousand Dollars ($10,000).
Cause No. 1V, Docket No. 0308-OV-06, request to approve an Administrative
Order by Consent finding Antelope Energy Company in violation of Rules 308A.,
301., 319.b.(1), and 1003.b., failure to submit a Drilling Completion Report,
Form 5 within thirty (30) days of the suspension of commenced drilling
activities prior to reaching total depth, to provide written notice of
intention to change plans previously approved, to obtain approval of the
Director for temporarily abandoning the well and failure to close the well to
the atmosphere prior to the temporary abandonment and to reclaim the location
within twelve (12) months after drilling operations for the Maddy #1 Well
located in the SE¼ SW¼ of Section 31, Township 10 North, Range 57 West, 6th
P.M., assessing a fine of One Thousand Dollars ($1,000).
The meeting adjourned at
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The Secretary was therefore
authorized to issue the following orders:
Order No. 133-22, Hiawatha
West Field, Moffat County: Approves the request by Ensign Operating
Company to allow up to eight (8) wells
to be drilled in the existing 320-acre drilling and spacing units in Section 26
and the N½ of Section 36, Township 12 North, Range 101 West, 6th P.M. for the
production of oil and associated hydrocarbons from the Wasatch, Fort
Union/Lance/Lewis and Mesaverde Formations.
Order Nos. 139-39 and 440-24, Rulison and Parachute Fields, Garfield
County: Approves the request by Tom Brown, Inc. to increase well
density, the equivalent of 1 well per 20 acres, from the Williams Fork
Formation in Sections 1 and 2, Township 7 South, Range 94 West, 6th P.M. for
the production of gas and associated hydrocarbons from the Williams Fork
Formation.
Order Nos. 139-40, 440-25, 479-12 and 510-9, Rulison, Parachute and
Grand Valley Fields, Garfield County: Approves the request by Williams
Production RMT Co. to increase well density,
the equivalent of 1 well per 10 acres, in certain sections of Township 6 South,
Ranges 94-96 West, 6th P.M. and Township 7 South, Ranges 95 and 96 West, 6th
P.M. for the production of gas and associated hydrocarbons from the Williams
Fork Formation.
Order No. 146-3,
Order Nos. 232-237 and 499-75, Wattenberg and Codell-Niobrara Spaced
Area, Weld County: Approves the request by CFG Energy, Inc. and
Eddy Oil Company to amend the drilling and spacing units in Section 32,
Township 5 North, Range 63 West, 6th P.M. by establishing 80-acre drilling and
spacing units in the W½ SE¼, SW¼, NE¼, and NW¼ and establishing 40-acre
drilling and spacing units in the E½ SE¼ for the production of oil, gas and
associated hydrocarbons from the Dakota, “J” Sand, Codell and Niobrara
Formations.
Order No. 1V-246, Logan
County: Approves
the Administrative Order by Consent finding Puckett Energy Co. in violation of Rules 325.a., 210., and
326.b., for failure to obtain written authorization for injection, to install a
well sign, and to conduct an MIT on a shut-in well every five (5) years for the
Dalke #2 Well located in the SW¼ SW¼ of Section 11, Township 8 North, Range 54
West, 6th P.M., and assesses a fine of Ten Thousand Dollars ($10,000).
Order No. 1V-247,
Signed:
Patricia C. Beaver, Secretary
Approved: