January 5 and 6, 2004
The Oil and Gas Conservation
Commission met on January 5th at
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
Richard
Griebling Director
Brian
Macke Deputy
Director
Patricia
Beaver Hearings
Manager
The Commission unanimously approved
the minutes from the September and December hearings.
Executive
Director’s Report: Greg Walcher,
Director of the Natural Resources Department, requested an executive session
with the Commissioners to discuss personnel issues under the Open Meetings Act §24-6-402(3)(a).
No decisions were made during the executive session.
Director’s Report: Director Griebling provided a written report
and discussed the following: The 2003 statistics were finalized at 2,245
Applications for Permit-to-Drill (“APDs”).
A continued high level of activity is projected for 2004. COGCC staff member Jaime Adkins has been
relocated to Battlement Mesa. COGCC
staff members Randall Ferguson and Bob Chesson attended the Air Pollution
Control Division meeting on ozone in November.
Director Griebling described the four bar charts attached to the Staff
Report.
Assistant
Attorney General’s Report: AAG Harmon
provided a written confidential litigation memo. A discussion on what should be placed on APDs
in light of the recent court decision in the Rule 303.a. was held over the
lunch break.
Brian
Macke, COGCC Deputy Director, provided a written update on the COGCC program to
review inactive wells. A presentation will
be made at the March hearing on the results from the first query.
COGCC
Operations Manager Morris Bell discussed a policy describing how the COGCC
staff proposes recommended fines for Administrative Orders by Consent, which
was approved by the Commission.
Commissioner
Comments: Commissioner Cree asked
whether or not the COGCC would be staying in the office space it currently leases. He also requested a list of county
commissioners and other staff in
Audience
Comments: Ken Wonstolen, COGA, reserved
the right to comment on the policy for recommended fines after he gets feedback
from members of COGA. Mr. Wonstolen
described the cost to the industry on the ozone issue. COGCC would have to request party status in
the ozone rulemaking by
Cause
No. 407, Docket No. 0401-UP-01, request for an order to pool all non-consenting
owners in the 80-acre drilling and spacing unit consisting of the W½ SW¼ of
Section 34, Township 5 North, Range 67 West, 6th P.M. for the development and
operation of the Codell-Niobrara Formation, was continued to February.
After testimony and exhibits were presented by
EnCana Energy Resources, Inc. in Cause
No. 1, Docket No. 0401-GA-01, St. Vrain Partners, LLC’s request for an order to revoke the variance and three permits-to-drill
granted by the Director to EnCana Energy Resources, Inc. for wells located in
the SW¼ of Section 7, Township 2 North, Range 67 West, 6th P.M. was
denied. In addition, EnCana’s Cross-Application
was denied. The Commission upheld
the Director’s decision to grant the variances and approve the APDs but
expressed safety concerns regarding the rig transport and drilling
operations. The following conditions
were added to address safety concerns: “All public roads and other public
access within one hundred fifty (150) feet of the wellhead including sidewalks
shall be closed during drilling rig transport and operation. It is recommended that during the transport
of the drilling rig to and from the location, pilot vehicle, flagmen, including
temporary road blocks be used to ensure the safe conduct of such transport
operations”.
After testimony and exhibits were presented by
EnCana Energy Resources, Inc., Jabek Ltd., Kelly Couey, and the Bureau of Land
Management, in Cause No. 139, Docket
No. 0401-EX-02, EnCana’s request for an order allowing an exception to the
permitted well location for certain lands in Townships 6 & 7 South, Ranges
92 & 93 West, 6th P.M. for wells to be located less than 600 feet from the
common boundary of the Hunter Mesa and Grass Mesa federal exploratory units was
approved as an exception to Rule 318.d.(3).
Consent
Agenda: The Commission unanimously
approved all matters on the consent agenda, which included the following:
Cause Nos. 139, 440, 479,
495 and 510, Docket No. 0401-SP-01, request for an order to amend Order Nos. 139-38,
440-23, 479-11, 495-3 and 510-8 to change the well setbacks to 100 feet from
the boundaries of the drilling and spacing unit for certain lands in Township 6
South, Ranges 94-96 West, 6th P.M. and Township 7 South, Ranges 95 and 96 West,
6th P.M. for production from the Williams Fork Formation.
Cause No. 133, Docket No.
0401-EX-01, request
for an order allowing an exception to the permitted location for the Lion
Government #14-26 Well to be located at a proposed location of 448' FSL and
1187' FWL in Section 26, Township 12 North, Range 101 West, 6th P.M. for
production from the Fort Union-Lance-Lewis Formations.
Cause No. 1V, Docket No.
0401-OV-01, request to approve an Administrative Order by Consent finding Tom
Brown Inc. in violation of Rule 1004.a., failure to complete reclamation within
three (3) months of plugging the Borne #1-7 Well located in the SW¼ NW¼ of
Section 7, Township 10 South, Range 95 West, 6th P.M., assessing a fine of One
Thousand ($1,000) dollars.
Cause No. 1V, Docket No.
0401-OV-02, request to approve an Administrative Order by Consent finding
EnCana Oil & Gas (USA) Inc. in violation of Rule 602.b., failure to comply
with the approved Access and Transportation Plan for access to Grass Mesa gas
operations in Township 6 South, Range 93 West, 6th P.M., assessing a fine of
One Thousand ($1,000) dollars.
Cause No. 1V, Docket No.
0401-OV-03, request to approve an Administrative Order by Consent finding Pease
Oil & Gas Company in violation of Rules 906.d.(2), 909.e., and 1004,
failure to remediate spills/releases to meet the allowable concentrations in
Table 910-1 and failure to complete the remediation of impacted soils and
reclamation at the former Schwartz #1-X tank battery located in the NE¼ NE¼ of
Section 28, Township 3 South, Range 50 West, 6th P.M., assessing a fine of One
Thousand ($1,000) dollars.
Cause No. 1V, Docket No.
0401-OV-04, request to approve an Administrative Order by Consent finding Pease
Oil & Gas Company in violation of Rules 324A.a., 910.a., and 1004, failure
to complete the remediation and reclamation of produced water impacted soils at
the Whittier "A" lease located in the E½ NE¼ of Section 21, Township
9 North, Range 53 West, 6th P.M. and for exceeding the COGCC Allowable
Concentrations for Inorganics in Soil in Table 910-1., assessing a fine of One
Thousand ($1,000) dollars.
The
meeting adjourned at
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The Secretary was therefore authorized to issue the
following orders:
Order No. 1-104, Wattenberg
Field, Weld County: Denies the
request by St. Vrain Partners, LLC and upholds the Director’s decision to grant the variances and approve
the APDs with the following conditions added to address safety concerns: “All
public roads and other public access within one hundred fifty (150) feet of the
wellhead including sidewalks shall be closed during drilling rig transport and
operation. It is recommended that during
the transport of the drilling rig to and from the location, pilot vehicle,
flagmen, including temporary road blocks be used to ensure the safe conduct of
such transport operations”. Denies the
Cross-Application filed by EnCana Oil & Gas (USA) Inc.
Order
No. 133-23, Hiawatha West Field, Moffat County: Approves the
request by Ensign Operating Co. for an order allowing an exception to the permitted
location for the Lion Government #14-26 Well to be located at a proposed
location of 448' FSL and 1187' FWL in Section 26, Township 12 North, Range 101
West, 6th P.M. for production from the Fort Union-Lance-Lewis Formations.
Order
Nos. 139-41, 440-26, 479-13, 495-4, 510-9, Rulison, Parachute and Grand Valley
Fields, Garfield County: Approves the request by Williams Production
RMT Co. for an
order to amend Order Nos. 139-38, 440-23, 479-11, 495-3 and 510-8 to change the
well setbacks to 100 feet from the boundaries of the drilling and spacing unit
for certain lands in Township 6 South, Ranges 94-96 West, 6th P.M. and Township
7 South, Ranges 95 and 96 West, 6th P.M. for production from the Williams Fork
Formation.
Order No. 139-42, Hunter Mesa and Grass Mesa
Fields, Garfield County: Approves the request by EnCana
Oil & Gas (USA) Inc. for an order
allowing an exception to the permitted well location for certain lands in
Townships 6 & 7 South, Ranges 92 & 93 West, 6th P.M. for wells to be
located less than 600 feet from the common boundary of the Hunter Mesa and
Grass Mesa federal exploratory units.
Order No. 1V-250,
Order No. 1V-251,
Order No. 1V-252, Logan
County: Approves the
Administrative Order by Consent finding Pease Oil & Gas Co. in violation of
Rules 906.d.(2), 909.e., and 1004, failure to remediate spills/releases to meet
the allowable concentrations in Table 910-1 and failure to complete the
remediation of impacted soils and reclamation at the former Schwartz #1-X tank
battery located in the NE¼ NE¼ of Section 28, Township 3 South, Range 50 West,
6th P.M., assesses a fine of One Thousand ($1,000) dollars and authorizes the
COGCC to make a claim on the plugging bond.
Order No. 1V-253, Logan
County: Approves the
Administrative Order by Consent finding Pease Oil & Gas Co. in violation of
Rules 324A.a., 910.a., and 1004, failure to complete the remediation and
reclamation of produced water impacted soils at the Whittier "A"
lease located in the E½ NE¼ of Section 21, Township 9 North, Range 53 West, 6th
P.M. and for exceeding the COGCC Allowable Concentrations for Inorganics in
Soil in Table 910-1., assesses a fine of One Thousand ($1,000) dollars and
authorizes the COGCC to make a claim on the plugging bond.
_________________________________
Patricia
C. Beaver, Secretary
Approved:
__________________________________
Peter M. Mueller, Chair