The Oil and Gas Conservation
Commission met on
Those
present were:
Peter
Mueller Chair
Brian
Cree Vice
Chair
John
Ashby Commissioner
Tom
Ann Casey Commissioner
Mike
Klish Commissioner
Tom
Reagan Commissioner
Lynn
Shook Commissioner
Carol
Harmon Assistant
Attorney General
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
Morris
Bell Operations
Manager
The Commission unanimously approved
the minutes from the March hearing.
Executive
Director’s Report: Shane Henry, Department
of Natural Resources (“DNR”) Assistant Director stated that DNR Executive
Director Russell George has sent out a memorandum to all the Boards and
Commissions regarding a start time for hearings differing from
Director’s Report: Director Griebling provided a written report
and Deputy Director Macke discussed the following: Statistics have been updated
and are now projected at 2600 Applications for Permits-to-Drill for the
year. The next Northwest Oil and Gas
Forum will be held on
Director Macke described the chronology of the West
Divide Creek gas seep in Mamm Creek Gas Field from
Since the March hearing, the COGCC staff has worked
with the Department of Water Resources (“DWR”) to develop an informational
pamphlet to provide with water well permits issued for Fruitland Formation
wells. Dick Wolfe and Glenn Graham from
DWR described the number and depth of water wells in the area near the
Fruitland coal outcrop.
Paula Neal has announced her retirement as of
Assistant
Attorney General’s Report: AAG Harmon
provided a written confidential litigation memo and gave an update on the BDS
case and
Commissioner
Comments: Chair Mueller thanked the staff
for its additional work to address new issues raised at the March hearing,
performed in light of all the regular work and the emerging gas seep issues.
Audience
Comments: There were no comments.
Cause No. 112, Docket No.
0403-AW-05, request for an order to allow
a second well to be completed in an existing 320-acre drilling and spacing unit
in the S½ of Section 12, Township 33 North, Range 10 West, N.M.P.M. for the production of gas and associated
hydrocarbons from the Fruitland coal seams was continued to the May
hearing.
After
staff presentation, audience comments and Commission deliberation, Cause No.
1R, Docket No. 0404-RM-01, request to approve amendments to Rules 303.a.,
303.d., 303.k., 303.l., 305.b.(4), 308A., 310A., 312., 319.b., 321., 502.,
503.b., 522.c., and 909.e. and the statement of basis and purpose were approved
with minor modifications.
Consent
Agenda: The Commission unanimously
approved the following two matters:
Cause No. 440, Docket No.
0404-SP-02, request
for an order to segregate the 320-acre drilling and spacing unit consisting of
the N½ of Section 6, Township 7 South, Range 95 West, 6th P.M. into two
160-acre drilling and spacing units consisting of the NW¼ and NE¼ for the
production of gas and associated hydrocarbons from the Williams Fork Formation.
Cause No. 112, Docket No.
0404-SP-04, request
for an order to vacate the 320-acre drilling and spacing units and the 990 foot
setbacks in Sections 11 and 14, Township 34 North, Range 6 West, N.U.L,
N.M.P.M. and to establish Sections 11 and 14 as one approximately 939-acre
drilling and spacing unit with 660 foot setbacks for the drilling of a
horizontal well system and to pool unleased mineral interests owners.
Commissioner Ashby recused himself and the Commission
approved the following matter:
Cause
No. 1V, Docket No. 0404-OV-20, request for an Administrative Order by Consent
finding Fritzler Resources, Inc. in violation of Rules 324A.a., 906.b.,
907.a.(1), and 907.c.(2), failure to prevent significant adverse environmental
impacts to air, water, soil or biological resources, to prevent the
unauthorized discharge or disposal of E&P waste, to report the
spill/release as required by the June 2, 2003 field inspection, to ensure that
E&P waste is properly stored, handled, transported, treated, recycled or
disposed to prevent threatened or actual significant adverse environmental
impacts, and for disposing of produced water in an unauthorized manner at the
Fehringer #1 tank battery located in the NW¼ NE¼ of Section 28, Township 12
North, Range 52 West, 6th P.M. and assessing a fine of one thousand dollars.
The
meeting adjourned at
====================================================================
The Secretary was therefore authorized to issue the following
orders:
Order No. 440-27, Parachute Field, Garfield County: Approves the request by Williams Production
RMT Co. for an order to segregate the 320-acre drilling and spacing unit
consisting of the N½ of Section 6, Township 7 South, Range 95 West, 6th P.M.
into two 160-acre drilling and spacing units consisting of the NW¼ and NE¼ for
the production of gas and associated hydrocarbons from the Williams Fork
Formation.
Order
No. 112-171, Ignacio-Blanco Field, La
Plata County: Approves the request by CDX Gas, LLC for an order vacating the
320-acre drilling and spacing units and the 990 foot setbacks in Sections 11
and 14, Township 34 North, Range 6 West, N.U.L, N.M.P.M. and to establish
Sections 11 and 14 as one approximately 939-acre drilling and spacing unit with
660 foot setbacks for the drilling of a horizontal well system and to pool
unleased mineral interests owners.
Order
No. 1V-269, Logan County: Approves the
Administrative Order by Consent finding Fritzler Resources, Inc. in violation
of Rules 324A.a., 906.b., 907.a.(1), and 907.c.(2), failure to prevent
significant adverse environmental impacts to air, water, soil or biological
resources, to prevent the unauthorized discharge or disposal of E&P waste,
to report the spill/release as required by the June 2, 2003 field inspection,
to ensure that E&P waste is properly stored, handled, transported, treated,
recycled or disposed to prevent threatened or actual significant adverse
environmental impacts, and for disposing of produced water in an unauthorized
manner at the Fehringer #1 tank battery located in the NW¼ NE¼ of Section 28,
Township 12 North, Range 52 West, 6th P.M. and assesses a fine of One Thousand
($1,000) dollars.
Order No. 1R-94, Statewide: Approves amendments to Rules 303.a., 303.d., 303.k., 303.l., 305.b.(4), 308A.,
310A., 312., 319.b., 321., 502., 503.b., 522.c., and 909.e. of the Rules and
Regulations and approves the statement of basis and purpose.
_________________________________
Patricia
C. Beaver, Secretary
Approved:
__________________________________
Peter M. Mueller, Chair