March 17, 2003

 

            The Oil and Gas Conservation Commission met on March 17th at 12:30 p.m. in the Birch Banquet Room, The Ramada Inn & Suites, 124 W. 6th Street, Glenwood Springs, Colorado, for a hearing in Cause Nos. 1, 290 and 334.

           

            Those present were:

 

                        Stephen Sonnenberg              Chair

                        Tom Ann Casey                      Commissioner

                        Michael Klish                           Commissioner

                        Peter Mueller                           Commissioner

                        Tom Reagan                           Commissioner

                        Richard Griebling                    Director

Brian Macke                            Deputy Director

                        Patricia Beaver                       Hearings Manager

 

            The Commission unanimously approved the minutes from the February 10, 2003 hearing.

 

Executive Director’s Report:  Shane Henry, Assistant Director for the Department of Natural Resources (“DNR”) stated that four million dollars will be transferred from the severance tax to fund the general fund, leaving one million dollars in the severance tax fund.   Greg Walcher, Executive Director of the Department of Natural Resources, sits on the Energy Impact Assistance Committee (“EAIC”) and Mr. Henry sometimes fills in for him.  He discussed a letter that the MEGA Board sent to the EIAC suggesting limits to the amount of money given to counties that are not friendly to oil and gas operations, along with other provisions to restrict funding.  There is interest from the Joint Ag Committee to have a coalbed methane presentation on April 16th.  IOGCC wants to update committee lists and is seeking input from anyone interested in serving.

 

            Director’s Report:  Director Griebling provided a written report and discussed the following: The number of Applications for Permits-to-Drill (“APDs”) is on track for issuance of approximately 2000 permits this year.  The Northwest Oil and Gas Forum was held last month on February 20.  There were three times as many folks that attended than the typical number of attendees.  The next meeting is on June 19, 2003.  COGCC staff is pleased with EnCana’s operations in Garfield County and their communication with staff and other parties.  The Club 20 meeting was held on March 7th and 8th.  Both Brian Macke and Carol Harmon participated in the meeting.  The EPA has revised its Environmental Assessment of Pits program for 2003.  The WQCC/WQCD and COGCC meeting was held on February 11 with Commissioner Klish as the COGCC representative.  Commissioner Casey would like a short presentation on the water well issues in the state presented at that meeting.  The April Hearing will most likely last two days in Arvada with the Leyden and Williams applications.  The statistics for weekly, monthly and annual are posted on the website and were handed out to the Commissioners.  A variance was granted to BP America for the Neva Dove A No. 2 Well located in the SE¼ SW¼ of Section 1, Township 34 North, Range 7 West, 6th P.M.

 

Assistant Attorney General’s Report:  There was no report.

 

Commissioner Comments:   Commissioner Mueller thanked EnCana for the field tour that morning.  He thinks they are using a lot of thought and innovation to reduce surface impacts.  Commissioners Casey and Reagan agreed with Commissioner Mueller.  Chair Sonnenberg mentioned that the IOGCC is soliciting more members for its committees.

 

Audience Comments:  There were no comments.

 

Cause No. 328, Docket No. 0303-EX-01, request for an order allowing an exception to the permitted location for the Monk #1-7 Well to be located in the NE¼ SE¼ of Section 7, Township 4 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation for the 160-acre drilling and spacing unit consisting of the SE¼, was withdrawn.

 

Cause No. 328, Docket No. 0303-EX-02, request for an order allowing an exception to the permitted location for the Monk #2-7 Well to be located in the SW¼ NE¼ of Section 7, Township 4 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation for the 160-acre drilling and spacing unit consisting of the NE¼, was withdrawn.

 

Cause No. 328, Docket No. 0303-EX-03, request for an order allowing an exception to the permitted location for the Phoebe #2-6 Well to be located in the NE¼ NW¼ of Section 6, Township 4 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation for the 160-acre drilling and spacing unit consisting of the NW¼, was withdrawn.

 

Cause No. 328, Docket No. 0303-EX-04, request for an order allowing an exception to the permitted location for the Phoebe #4-6 Well to be located 1189' FNL and 565' FWL in the NW¼ NW¼ of Section 6, Township 4 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation for the 160-acre drilling and spacing unit consisting of the NW¼, was withdrawn.

 

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

 

Cause No. 334, Docket No. 0303-AW-01, request for an order to allow additional wells to be drilled in certain 320-acre drilling and spacing units in Section 32 and the N½ of Section 33, Township 10 North, Range 93 West, 6th P.M. for the production of gas and associated hydrocarbons from the Middle Lewis Formation.

 

Cause No. 290, Docket No. 0303-AW-02, request for an order to allow additional wells to be drilled in certain 320-acre drilling and spacing units in Sections 10-11, 14-15 and 22-23, Township 10 North, Range 94 West, 6th P.M. for the production of gas and associated hydrocarbons from the Middle Lewis Formation.

 

Cause No. 1V, Docket No. 0303-OV-03, request to approve an Administrative Order by Consent finding Setex Oil & Gas Company in violation of Rules 319.b.(3) and 326.b.(1), failure to obtain Director approval for continuing shut-in status and to perform a mechanical integrity test within thirty (30) days of removing the surface production equipment from the RMPCP (UPRR) Everitt #1 Well located in the SE¼ SE¼ of Section 19, Township 6 South, Range 64 West, 6th P.M. and the RMPCP (UPRR) Everitt “A” #41-30 Wells located in the NE¼ NE¼ of Section 30, Township 6 South, Range 64 West, 6th P.M.

 

The meeting adjourned at 1:27 p.m.

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            The Secretary was therefore authorized to issue the following orders:

 

            Order No. 290-2, Moffat County:  Approves the request by Tom Brown, Inc. to allow additional wells to be drilled in certain 320-acre drilling and spacing units in Sections 10-11, 14-15 and 22-23, Township 10 North, Range 94 West, 6th P.M. for the production of gas and associated hydrocarbons from the Middle Lewis Formation.

 

Order No. 334-4, Moffat County:  Approves the request by Tom Brown, Inc. to allow additional wells to be drilled in certain 320-acre drilling and spacing units in Section 32 and the N½ of Section 33, Township 10 North, Range 93 West, 6th P.M. for the production of gas and associated hydrocarbons from the Middle Lewis Formation.

 

Order No. 1V-244, Elbert County:  Approves the Administrative Order by Consent finding Setex Oil & Gas Company in violation of Rules 319.b.(3) and 326.b.(1), failure to obtain Director approval for continuing shut-in status and to perform a mechanical integrity test within thirty (30) days of removing the surface production equipment from the RMPCP (UPRR) Everitt #1 Well located in the SE¼ SE¼ of Section 19, Township 6 South, Range 64 West, 6th P.M. and the RMPCP (UPRR) Everitt “A” #41-30 Wells located in the NE¼ NE¼ of Section 30, Township 6 South, Range 64 West, 6th P.M. and assesses a fine of Four Thousand dollars ($4,000) for the violations.

 

 

Signed:

Patricia C. Beaver, Secretary

 

Approved:

Stephen Sonnenberg, Chair