BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF CHANGES TO THE             )           CAUSE NO. 1

RULES AND REGULATIONS OF THE OIL          )

AND GAS CONSERVATION COMMISSION        )           ORDER NO. 1R-93

OF THE STATE OF COLORADO                          )

 

REPORT OF THE COMMISSION

 

Pursuant to a hearing before the Oil and Gas Conservation Commission on February 10, 2003, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, the Oil and Gas Conservation Commission promulgated amendments to its Rules and Regulations to amend Rules 303.d., 303.k., 503.b.(6)., 508.j., and 508.k.  Said Rules should henceforth read as attached Exhibit A.

 

Attached, as Exhibit B, is a statement giving the basis and purpose of the revisions and additions, and such statements are incorporated herein by reference.

 

DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this      10th     day of   February   , 2003.

 

                  OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

          By ________________________

Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

February 10, 2003

 

 

 

 Exhibit A

 

 

303.      COGCC Form 2.   APPLICATION FOR PERMIT-TO-DRILL, DEEPEN, RE-ENTER, OR RECOMPLETE, AND OPERATE

 

d.        Form 2/2A application and copies to local governmental designees.  In addition to the above, an applicant filing a Permit-to-Drill, Form 2, shall also attach a completed Form 2A, except that the Form 2A shall not be required on federal or Indian owned surface lands when a Federal 13 Point Surface Use Plan is included.  The Form 2A requires the attachment of a minimum of two (2) color photographs; one (1) of the staked location and one (1) of the existing or proposed access road.  Each photograph shall be identified by: date taken, well name, location and direction of view.  Permit-to-Drill, Form 2, shall be filed with the Director in triplicate for wells on all patented, state and federal surface lands.  A single, informational (not official notice) copy of the Permit-to-Drill, Form 2 and Form 2A and all attachments shall be delivered by the applicant to the local governmental designee(s) of the county or municipal corporation within whose jurisdiction the activity is occurring or is proposed to occur at or before the time of filing with the Director.  It shall be the responsibility of the Director to promptly provide the local governmental designee(s) with formal notification of the filing of the Permit-to-Drill, Form 2.  Such notice is to be sent by facsimile if requested, and, if not, then by first class U.S. Mail.  Any comments from the local government designee concerning the Permit-to-Drill, Form 2, and Form 2A as filed shall be provided to the Director and to the applicant in writing within ten (10) days after the date on which the Permit-to-Drill, Form 2 was sent to the local governmental designee(s) by the Director.  The Director shall take no action with respect to the Permit-to-Drill, Form 2, prior to the expiration of the ten (10) day period, except under the circumstances provided for in Rule 303.j.(1) and (2), or when the Director has received notice from the local governmental designee(s) waiving the) ten (10) day period.  Upon written request to the Director received prior to the expiration of the ten (10) day period, the local governmental designee shall be granted an extension of up to twenty (20) additional days to consider the application.  If, prior to the expiration of the comment period provided herein and after participation in an onsite consultation under Rule 306.a.(3), the local governmental designee files an application for hearing on the permit-to-drill, Form 2, under Rule 503.b.(6), alleging significant impacts on public health, safety and welfare, including the environment, the Director shall withhold the issuance of such permit and the provisions of Rule 303.k. shall apply.

 

k.         Withholding Permit-to-Drill, Form 2, approval. The Director may withhold the issuance of a permit and the granting of approval of any Permit-to-Drill, Form 2, for any proposed well when, based on information supplied by a surface owner, or by staff analysis, and where appropriate as confirmed by an onsite inspection, the Director has reasonable cause to believe that a proposed well location raises significant concerns regarding potential significant adverse impacts to public health, safety and welfare, including the environment.  If a request is made by a local governmental designee under Rules 303.d. and 503.b.(6), such application shall be granted and the Director shall withhold issuance of the permit-to-drill, Form 2, unless the local government has been disqualified from making such request under Rule 501.b.  Any hearing granted pursuant to this rule shall be expedited and the matter shall be heard at the next scheduled commission hearing, and all parties shall be deemed to have waived any notice requirements to the contrary.  In the event such approval is not granted, when requested by the operator, the Director shall ask the Commission to issue an emergency order under Rule 502.a. suspending approval of the Permit-to-Drill for such well and setting the matter for the next hearing.  The Director shall use best efforts to notify the applicant, local governmental designee, surface owner and other interested parties as applicable of such request in order that such parties may participate in the Commission’s emergency consideration of the matter.

 

503.      ALL OTHER PROCEEDINGS COMMENCED BY FILING AN APPLICATION

 

b.(6).  All other proceedings commenced by filing an application for purposes of seeking a hearing on a permit-to-drill, Form 2, under Rules 303.d. and 303.k., the relevant local government shall be the applicant, and the hearing shall be conducted in similar fashion as is specified in Rule 508.j., k and l. with respect to a public issues hearing.  It shall be the burden of the local government applicant to bring forward evidence sufficient for the Commission to make the preliminary findings specified in subsection j of Rule 508. at the outset of such hearing.

 

(7)        For purposes of seeking relief or a ruling from the Commission on any other matter not described in (1) through (6) above, only persons who can demonstrate that they are directly and adversely affected or aggrieved by the conduct of oil and gas operations or an order of the Commission and that their interest is entitled to legal protection under the act may be an applicant.

 

508.      LOCAL PUBLIC FORUMS, HEARINGS ON APPLICATIONS FOR INCREASED WELL DENSITY AND PUBLIC ISSUES HEARING.

 

j.          Public issues hearing

 

Upon a request by an applicant, protestant, or intervener, or on the Commission’s own motion, a public issues hearing shall be convened provided the Commission makes the following preliminary findings:

 

(1)     That the public issues raised by the application reasonably relate to potential significant adverse impacts to the environment or public health, safety and welfare that are within the Commission’s jurisdiction to remedy; and

 

(2)     That the potential impacts were not adequately addressed by:

           

            A.         In the case of an application for increased well density, the application or by the Proposed Plan; or

           

            B.         In the case of an Application for Permit-to-Drill, by such permit.

 

 (3)    That the potential impacts are not adequately addressed by the rules and regulations of the Commission.

 

k.         Conduct of the public issues hearing:

 

(1)     The rules and regulations of the Commission shall apply to all participants in the public issues hearing.

 

(2)     The public issues hearing shall be conducted, to the extent practicable, in accordance with Rule 528.

 

(3)     After the public issues hearing the Commission may attach conditions to its order on the application to protect the environment from significant adverse impacts or to protect public health safety and welfare as are warranted by the relevant testimony, and that are not otherwise addressed by these rules and regulations and the Proposed Plan.  In addition, the Commission may without limitation:

 

A.         Direct the applicant to amend its Proposed Plan for Commission review and approval for all or a portion area to address specific issues related to the environment or public health, safety and welfare, including any identified impacts of increased well density within all or a portion of the application area, rather than on a single well basis.

 

B.         Include in any order a provision to allow the Director discretion to attach specific conditions to individual well permits as the Commission determines are reasonable and necessary to protect the environment or public health, safety, and welfare.

.

 

 

Exhibit B

 

 

Statement of Basis & Purpose

 

C.R.S. 34-60-106(14), as amended charges the Oil and Gas Conservation Commission with providing advance notice of drilling to local governments that register for receipt thereof.  C.R.S. 34-60-106(11) as amended, gives the Commission the authority to promulgate rules to protect the health, safety and welfare of the general public in the conduct of oil and gas operations.

 

300 Series

 

The 300 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to drilling, development, producing and abandonment of oil and gas wells.

 

Amend Rule 303.d. which provides a notice requirement to a local government designee to review a proposed Application for Permit-to-Drill and comment thereon.  Currently, the rule allows a seven-day local review period, with an automatic ten-day extension upon request.  The proposed change will allow a ten-day local review period, with an automatic twenty-day extension upon request in order to allow local governments to make referrals among their relevant departments, to participate in the onsite consultation already provided for in Commission rules, and to formulate comments, or to make a decision to request a hearing.

 

500 Series

 

The 500 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to the rules of practice and procedure before the Commission.

 

Add new Rule 503.b.(6) to provide an opportunity to a local government to obtain a hearing on significant issues related to public health, safety and welfare, including the environment, that remain unresolved at the end the review period provided in Rule 303.d. by filing an application, with the issuance of the APD to be withheld pending the hearing.  The hearing would be conducted in accordance with Rule 508.j.

 

Amend Rule 508.j.(2) to include Applications for Permit-to-Drill under the provisions of conducting a public issues hearing.

 

Amend Rule 508.k.(3) and (3)B. to delete “on the application” to apply to both applications for increased well density and Applications for Permit-to-Drill.