June 3, 2003

 

            The Oil and Gas Conservation Commission met on June 3^rd at 10:00 a.m. in the Conference Center, Holiday Inn Express, 2121 E. Main Street, Cortez, Colorado, for a hearing in Cause Nos. 1 (2 matters), 351 and 489.

           

            Those present were:

 

                        Brian Cree                             Vice Chair

                        Tom Ann Casey                    Commissioner

                        Michael Klish                         Commissioner

                        Peter Mueller                         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 April 21, 2003 hearing.

 

            Vice Chair Cree thanked Bob Clayton of Kinder Morgan for organizing the McElmo Dome Field Tour.  He also thanked the Montezuma County Commissioners for taking several hours out of their evening to meet with the Colorado Oil and Gas Conservation Commission (“COGCC”) and staff.

 

Executive Director’s Report:  Shane Henry, Assistant Director for the Department of Natural Resources (“DNR”) echoed Vice Chair Cree’s comments about the field tour.  COGCC staff, the Department of Water Resources (“DWR”), and Mr. Henry gave a presentation in April on Coalbed Methane water issues to the Joint Agricultural Committee that was very productive.  The Western Governors’ Association (“WGA”) is hosting a Best Management Practices workshop on Wednesday and Thursday that Mr. Henry will be attending.   If the State of Colorado gets involved, he will be leaning heavily on COGCC staff for input.  Mr. Henry will email the agenda and participants of WGA’s meeting to the Commissioners.  DNR will be providing comments on the Roan Plateau Environmental Impact Statement.  DNR signed a Memorandum of Understanding with the Bureau of Land Management to assist in preparing the Roan Plateau Management Plan.   The Colorado Geological Survey has selected someone to fill the oil and gas geologist position vacated by Laura Wray.  The new geologist will start soon.  The DNR Boards and Commissions lunch and reception will be held on August 22, 2003 in Pueblo during the State Fair.

 

            Director’s Report:  Director Griebling provided a written report and discussed the following: A letter to all counties and cities in Colorado regarding setbacks from oil and gas wells and facilities is being sent out to put them on notice about safety issues.  Director Griebling will report back to the Commissioners next month on the response from the counties and cities.  COGCC staff met with Evergreen Resources to work on a policy for production reporting to differentiate between the coal and clastic Raton and Vermejo Formations.  Evergreen will separately report the formations to show where production is coming from.  Statistics show the COGCC is on track for 2000 Applications for Permit to Drill (“APDs”) this year.  There has been a slight increase in APDs so there may be more than 2000 approved this year. The Southeast Colorado Raton Basin Project is progressing and the report will be published in the Oil and Gas Journal.  We have had over 200,000 hits on our website which continues to show an increase in web activity.  There is a new kids link on our website that has all types of energy information.  Two variances have been granted since last month - exception locations for Rosewood Resources. 

 

            The Commission unanimously approved the Outstanding Operators Awards as recommended by COGCC Operations Manager Morris Bell.

 

Assistant Attorney General’s Report:  AAG Harmon filed an answer brief in the Delta County case on approval of the four APDs.  Delta County’s response will be due in ten days.  She stated that Director Griebling’s letter to the counties and cities was excellent.  AAG Harmon believes the Commission does have jurisdiction over setbacks due to the oil and gas operations definition but thinks it is much easier for local governments to take action on safety issues for setbacks.

 

Commissioner Comments:  Commission Mueller thanked COGCC Hearings Manager Tricia Beaver and AAG Harmon for their help in the Leyden prehearing conferences.  Vice Chair Cree thanked Commissioner Mueller for his willingness to step up as Hearing Officer for the Leyden matter.

 

Audience Comments:  William Hendrickson – resident of Mancos, asked the Commission how he could identify if there is a possibility of oil and gas underlying his minerals before he is offered a lease.  Only resident representing his county.

 

Cause No. 1, Docket No. 0302-GA-01, request for a variance to allow the Kildare 42-20 Well to be located closer than 150 feet from the surface owner’s property was withdrawn.

 

Cause No. 112, Docket No. 0306-UP-03, request for an order to pool all interests in the 320-acre drilling and spacing unit comprised of the N½ of Section 24, Township 35 North, Range 7 West, N.M.P.M. and to allow the proposed well, Petrogulf #24-22, to be drilled at an exception location 2510 FNL and 1980 FWL of Section 24 was withdrawn.

 

Cause No. 112, Docket No. 0306-UP-04, request for an order to pool all interests in the 320-acre drilling and spacing unit comprised of the N½ of Section 23, Township 35 North, Range 7 West, N.M.P.M. and to allow the proposed well, Petrogulf #23-32, to be drilled at an exception location 2510 FNL and 1980 FEL of Section 23 was withdrawn.

 

Cause No. 407, Docket No. 0306-UP-02, request for an order to pool all interests within the drilling unit comprised of the E½ NW¼ of Section 2, Township 5 North, Range 67 West, 6th P.M. was withdrawn.

 

Cause No. 1, Docket No. 0306-GA-04, request for a variance to extend the time within which Gunnison Energy may commence operations on the Spaulding Peak #1 Well, the Dever Creek #1 Well and the Lone Pine #1 Well from July 3, 2003 until July 3, 2004 and on the Stevens Gulch #1 Well from July 15, 2003 until July 15, 2004 was approved.  Tony Gale, Vice President of Gunnison Energy Corporation, described the history of the approval of the permits by Delta County and explained that nothing had changed in the applications from when they were first submitted to the COGCC.

 

Consent Agenda:  The Commission unanimously approved all matters on the consent agenda, which included the following:

 

Cause No. 489, Docket No. 0306-AW-06, request for an order to allow up to two (2) additional wells to be drilled in existing 160-acre drilling and spacing units in certain sections of Township 4 North, Range 47 West, 6th P.M., to be located no closer than 560 feet to the outer boundaries of the units, for the production of gas and associated hydrocarbons from the Niobrara Formation.

 

Cause No. 351, Docket No. 0306-AW-07, request for an order to allow up to two (2) additional wells to be drilled in existing 160-acre drilling and spacing units in certain sections of Township 5 North, Range 46 West, 6th P.M. and Township 5 North, Range 47 West, 6th P.M., to be located no closer than 600 feet to the outer boundaries of the units, for the production of gas and associated hydrocarbons from the Niobrara Formation.

 

Cause No. 1, Docket No. 0306-GA-03, request to authorize COGCC staff to make a claim on the Pittenger's No. 1 Well Two Thousand Five Hundred dollar ($2,500) plugging bond to plug, abandon and reclaim the Pittenger No. 1 Well located in the SE¼ SE¼ of Section 13, Township 6 South, Range 94 West, 6th P.M. was approved.

 

The meeting adjourned at 11:30 a.m.

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            The Secretary was therefore authorized to issue the following orders:

 

Order No. 489-6, Buffalo Grass Field, Yuma County:  Approves the request for an order to allow up to two (2) additional wells to be drilled in existing 160-acre drilling and spacing units in certain sections of Township 4 North, Range 47 West, 6th P.M. with the wells to be located no closer than 560 feet to the outer boundaries of the units, for the production of gas and associated hydrocarbons from the Niobrara Formation.

 

Order No. 351-4, Rock Creek Field, Yuma County:  Approves the request for an order to allow up to two (2) additional wells to be drilled in existing 160-acre drilling and spacing units in certain sections of Township 5 North, Ranges 46 and 47 West, 6th P.M. to be located no closer than 600 feet to the outer boundaries of the units, for the production of gas and associated hydrocarbons from the Niobrara Formation.

 

Order No. 1-101, Delta County:  Approves the request for a variance to extend the time within which Gunnison Energy may commence operations on the Spaulding Peak #1 Well, the Dever Creek #1 Well and the Lone Pine #1 Well from July 3, 2003 until July 3, 2004 and on the Stevens Gulch #1 Well from July 15, 2003 until July 15, 2004.

 

Order No. 1-102, Rulison Field, Garfield County:  Approves the request to authorize COGCC staff to make a claim on the Pittenger's No. 1 Well Two Thousand Five Hundred dollar ($2,500) plugging bond to plug, abandon and reclaim the Pittenger No. 1 Well located in the SE¼ SE¼ of Section 13, Township 6 South, Range 94 West, 6th P.M.

 

 

Signed:

Patricia C. Beaver, Secretary

 

Approved:

Brian Cree, Vice Chair