Oil and Gas Conservation Commission met on July 14th at
in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for a hearing.
Commission unanimously approved the minutes from the June 3, 2003 hearing.
Director’s Report:DirectorGriebling provided a written report
and discussed the following: DirectorGriebling commended Deputy Director BrianMacke for the great job he did
at the Northwest Oil & Gas Forum.The Energy Expo, organized by EnCana Energy Resources, will be held on July 30, 2003 in GarfieldCounty.There will be posters set up by operators, local
governments and the Colorado Oil and Gas Conservation Commission (“COGCC”) at
the Garfield County Fairgrounds.The
Williams Production RMT Corporation increased density application for federal
lands has been docketed for August.There are no protests on the application at this time.The RatonBasin presentation by AnthonyGorody will be later in today’s
hearing.A Durango Herald article
attached to the Staff Report indicated that oil and gas production provides 61%
of property taxes in La PlataCounty.Oil and Gas Industry Stormwater Discharge
Construction Permitting by CDPHE will affect Colorado oil and gas
operators.COGCC staff member LindaPavelka is the new permitting
supervisor.JulieBranting has been hired on a
contract basis to help out with permits until the permitting technician position
can be filled.One variance was granted
for Energy Search.
Attorney General’s Report:AAG Harmon provided
a Litigation Memo to the Commission.The
first two claims in the DeltaCounty case have been dismissed but the 3rd claim
for relief is still at issue.Oral
arguments in the Rule 303.a. case will be held on August 5, 2003.
Comments:Commission Mueller thanked
COGCC Hearings Manager Tricia
Beaver and AAG Harmon
for their help in the Leyden prehearing conferences.Commissioner Reagan
thanked Deputy Director Macke for all of his outreach efforts involving extensive
was unanimously elected the new Chair of the Commission and Commissioner Cree
was unanimously elected to continue as Vice Chair of the Commission.
GenevieveYoung, petroleum geologist at the Colorado Geological
Survey (“CGS”), presented a decision item for Commissioner consideration
regarding a review of United States Geological Survey (“USGS”) resource
assessment for oil and gas plays within Colorado.The
Commissioners voted unanimously to endorse the project and to submit a letter
to DNR Executive Director
GregWalcher showing their support. Commissioner Sonnenberg thinks it is important for the CGS to perform this study because
methods in performing similar studies have been criticized over the years and
the COGCC should most definitely support the project.
on the DNR Efficiency Study - ShaneHenry, DNR Assistant Director, described the high priority of
the Governor and Executive
Director GregWalcher to save money and become more efficient.The Core Mission Project will bring many
groups together to assess how DNR can run more efficiently.It is an open process for input from all
employees.The Steering Committee will
review group reports and ideas will be implemented in September.MarkCrockett, a principle with Alta Ventures, gave an overview of
the intent and the process of the project.His group would appreciate input from the Commission and may need input
from the Commission on certain issues in August.Mr.Henry also mentioned that a search for a new office
building is ongoing to accommodate all DNR divisions.Approximately 150,000 square feet is needed
to hold all of DNR’s staff.
Comments:KenWonstolen – COGA- the Annual Natural Gas Conference will be
held on August 4-6, 2003.The COGCC Outstanding Operator awards will be
presented at the August 5, 2003 COGA lunch.The presentations at the conference this year will be organized by basins.Ozone violations have been reported recently
and may have some impact on Wattenberg Field production.A model will be used to determine the amount
of emissions from the Wattenberg Field that could be responsible for the ozone
increases.CDPHE has promulgated a
decision tree on oil and gas that is available on the APCD website.WQCC has approved and upheld its decision to
allow a two year implementation delay for stormwater permitting.COGA would like to see COGCC and DNR support
a study on the economic contribution of the oil and gas industry to the state’s
economy.Chair Mueller mentioned asked
COGA to consider litigation costs in its study.COGA would like an endorsement from the Commission on their proposal at
the August hearing.
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, SW½, NE¼ and NW¼
for the production of oil, gas and associated hydrocarbons from the “J” Sand
and Dakota Formations and establishing 40-acre drilling and spacing units in
the E½ SE¼ for the production of oil, gas and associated hydrocarbons from the
“J” Sand, Codell, Niobrara, and Dakota Formations was continued to August.
RatonBasin Study Presentation – LorenAvis, COGCC Environmental
Protection Specialist and AnthonyGorody, Consultant - The main
objective of the project was to collect baseline data (USGS papers, data from
operators, residents, etc.) and gather new data.It was funded by severance tax at a total cost
of $234,000.An executive summary will
be published in the Oil and Gas Journal that will point readers to the COGCC
website for the raw data.Sixty-seven
seeps were detected; most in an area around the PurgatoireRiver.Chair Mueller and Commissioner Klish would like COGCC staff to
present conclusions on the website.