BEFORE
THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF
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
Pursuant to a hearing before the Oil and Gas
Conservation Commission on
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
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
________________________
Patricia C. Beaver, Secretary
Dated
at
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.