Oil and Gas Conservation Commission met on January 6th and 7th
Those present were:
Stephen Sonnenberg Chair
Brian Cree Vice Chair
Lynn Shook Commissioner
Michael Klish Commissioner
Tom Reagan Commissioner
Peter Mueller Commissioner
Tom Ann Casey Commissioner
Carol Harmon Assistant Attorney General
Richard Griebling Director
Brian Macke Deputy Director
Patricia Beaver Hearings Manager
Commission unanimously approved the minutes from the
Director’s Report: Director Griebling provided a written report
and discussed the following: The total number of Applications for
Permits-to-Drill (“APD”) was 2006 for the year.
The Delta County Seminar series was described by Deputy Director Brian
Macke. Deputy Director Macke will
participate in the three meetings being held every other Tuesday beginning
Bob Chesson presented a summary to the Commissioners on the 2nd year implementation plan by Williams. There are a total of 150 wells; 120 vertical, 30 directional and an estimated 131 new surface locations. 57 APD’s were approved. Most will be drilled directionally, although only two are required to be drilled directionally under the order. Deputy Director Macke believes Williams Production Company is drilling one half of their wells directionally. All of the onsites were performed due to the proximity to wetlands. One onsite was performed on Savage surface due to surface concerns. Staff recommends not preparing a 3rd year plan because all of the information on Williams’ activity is available to the public via the COGCC website.
Assistant Attorney General’s Report: AAG Harmon discussed the Town of
Executive Director’s Report: There was no report.
Commissioner Comments: There were no comments.
Audience Comments: Ken Wonstolen, COGA, mentioned
that he was pleased to hear that the Supreme Court denied the Certiorari in the
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9 West, N.M.P.M. for the drilling of the Koshak BA-A Well for production of gas from the Fruitland Coal seams, was withdrawn.
Cause No. 1, Docket No. 0212-GA-10, request to bring Williams Production RMT before the Commission to determine why payment of proceeds have not been made on several wells in the S½ of Section 1 and the N½ of Section 12, both in Township 7 South, Range 96 West, 6th P.M., was withdrawn.
Cause No. 1, Docket No. 0212-GA-09, Motion to reconsider Order No. 1V-238, was approved. After testimony and exhibits were presented by Monument Gas Marketing and COGCC staff, the Commission unanimously approved the motion to not rescind Order No. 1V-238.
After testimony and exhibits were presented by Bayless and Evergreen in Cause No. 517, Docket No. 0301-SP-02, Bayless’ request for an order to establish 160-acre drilling and spacing units for the NW¼ of Section 7, Township 34 South, Range 65 West, 6th P.M., the SE¼ of Section 1 and the NE¼ of Section 12, Township 34 South, Range 66 West, 6th P.M. for production of gas from the Vermejo Formation, was denied.
Consent Agenda: Prior to adoption of the Consent Agenda, Paige Brock, attorney for William Silverman, asked to make a Rule 510 statement regarding Cause No. 1V, Docket No. 0301-OV-01. Ken Jones, attorney for Evergreen Operating Corporation, objected to hearing the statement because it relates to the application filed by Evergreen for an exception location to be heard at the February hearing. The Commission voted unanimously not to accept the Rule 510 statement. The Commission then unanimously approved the consent agenda, which included the following:
Cause No. 491, Docket No. 0301-SP-01, request for an order to establish 320-acre drilling and spacing units for certain lands under the provisions of the Fortification Creek Field in Township 8, Range 91 West and 92 West, 6th P.M. for the production of gas and associated liquid hydrocarbons from the Mesaverde Formation.
Cause No. 1V, Docket No. 0301-OV-01, request to approve an Administrative Order by Consent finding Evergreen Operating Corporation in violation of Rules 603.a.(2), 305., and 306., failure to obtain a waiver to locate a well closer than 150 feet from a property line and to notify and consult the property owner prior to the commencement of operations with heavy equipment and assessing a fine of Three Thousand dollars ($3,000).
The meeting adjourned at on January 6th and resumed at on January 7th with all Commissioners except Commissioner Mueller present. The meeting adjourned at on January 7th.
The Secretary was therefore authorized to issue the following orders:
Order No. 1-100, Wild Sage Brush,
Order No. 517-9, Lorencito Field, Las
Order No. 491-2, Fortification Creek Field,
Order No. 1V-242, Las Animas County: Approves the Administrative Order by Consent finding Evergreen Operating Corporation in violation of Rules 603.a.(2), 305., and 306., failure to obtain a waiver to locate a well closer than 150 feet from a property line and to notify and consult the property owner prior to the commencement of operations with heavy equipment and assesses a fine of Three Thousand dollars ($3,000).
Patricia C. Beaver, Secretary
Stephen Sonnenberg, Chair