BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF ENTEK GRB, LLC REQUESTING: 1) A VARIANCE
FROM RULE 303.j.(1) TO OBTAIN A DRILLING PERMIT EXTENSION FOR THE
FOCUS
RANCH UNIT FEDERAL 3-1 WELL LOCATED IN SECTION 3, TOWNSHIP 11 NORTH, RANGE 88
WEST, 6TH P.M.; AND 2) EQUITABLE TOLLING OF THE JUNE 29, 2013
PERMIT EXPIRATION FOR THE FOCUS RANCH UNIT
FEDERAL 3-1 WELL FOR THE NIOBRARA
FORMATION, UNNAMED FIELD, ROUTT COUNTY, COLORADO |
)
)
)
)
)
)
)
)
)
) |
CAUSE NO. 1
DOCKET NO. 1307-GA-03
ORDER NO. 1-185 |
REPORT OF THE COMMISSION
The Commission heard this matter on July 29, 2013, at offices of the
Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver,
Colorado, upon application for an order seeking: 1) a variance from Rule
303.j.(1) to obtain a drilling permit extension for the Focus Ranch Unit Federal
3-1 Well, Permit No. 1636575, located in Section 3, Township 11 North, Range 88
West, 6th P.M., for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation, and 2) equitable tolling of the June
29, 2013 expiration of the permit for the Well pending a full hearing by the
Commission.
FINDINGS
The Commission finds as follows:
1.
ENTEK GRB, LLC (“Entek” or “Applicant”), as applicant herein, is an
interested party in the subject matter of the above-referenced hearing.
2.
Due notice of the time, place and purpose of the hearing has been given
in all respects as required by law.
3.
The Commission has jurisdiction over the subject matter embraced in said
Notice, and of the parties interested therein, and jurisdiction to promulgate
the hereinafter prescribed order pursuant to the Oil and Gas Conservation Act.
4.
Rule 502.b.(1) provides that the operator or the applicant requesting a
variance shall make a showing that it has made a good faith effort to comply, or
is unable to comply with the specific requirements contained in the rules,
regulations, or orders, from which it seeks a variance, including, without
limitation, securing a waiver or an exception, if any, and that the requested
variance will not violate the basic intent of the Oil and Gas Conservation Act.
5.
On June 30, 2011 the Commission, through Director David Neslin, issued
Permit No. 1636575 (“Permit”), for the Focus Ranch Unit Federal 3-1 Well (API
No. 05-107-06229) (“Well”) in Routt County, Colorado. The Permit expires on June 29, 2013.
6.
On June 28, 2013, Entek, by its attorneys, filed with the Commission a
verified application (“Application”) for an order seeking: 1) a variance from
Rule 303.j.(1) to obtain a drilling permit extension for the Well located on the
below-described lands (“Application Lands”) for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation, and 2) equitable tolling of
the June 29, 2013 expiration of the permit for the Well pending a full hearing
by the Commission:
Township 11 North, Range 88 West, 6th P.M.
Section 3:
SE¼ NE¼
In support of the Application,
Entek states that surface access to the Well depends upon approval of an access
road that is included as part of a Geographic Area Plan (“GAP”) and that the
approval of the GAP has been significantly delayed due to factors beyond Entek’s
control. Further, wildlife
stipulations in Routt County limit Entek’s ability to operate to a window
between July 1 and November 30 and other regulatory timing issues will greatly
delay Entek’s ability to drill the Well absent the requested extension.
7.
On July 29, 2013, Entek, by its attorneys, appeared before the Commission
to request approval the Application based on the merits of the verified
Application, testimony provided by its expert witnesses and supporting exhibits.
8.
Testimony and exhibits submitted in support of the Application by Entek,
by its attorneys, showed Entek is working with the Routt County Government and
the Bureau of Land Management to obtain full permit approval to drill, but due
to several delays beyond Entek’s control, it was unable to do so. Testimony concluded that extending
the permit expiration would allow for the efficient and economic extraction of
hydrocarbons, would prevent waste and would not damage correlative rights,
consistent with the Oil and Gas Conservation Act, §34-60-117.
9.
Testimony from the Hearing Officer, Roger M. Allbrandt, showed the
Commission had previously approved a similar extension to the permit-to-drill in
Order No. 1-172, Docket No. 1203-GA-01, for the State Chase 33-36 Well.
10. The
above-referenced testimony and exhibits show that granting the Application will
allow more efficient reservoir drainage, will prevent waste, will assure a
greater ultimate recovery of hydrocarbons, and will not violate correlative
rights.
11.
Entek agreed to be bound by oral order of the Commission.
12.
Based on the facts stated in the verified Application, having received no
protests, and based on the Hearing Officer review of the Application under Rule
511, the Commission should enter an order seeking: 1) a variance from Rule
303.j.(1) to obtain a drilling permit extension for the Focus Ranch Unit Federal
3-1 Well, Permit No. 1636575, located in Section 3, Township 11 North, Range 88
West, 6th P.M., for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation, and 2) equitable tolling of the June
29, 2013 expiration of the permit for the Well pending a full hearing by the
Commission.
ORDER
IT IS HEREBY ORDERED:
1.
A variance from Rule 303.j.(1) to obtain a drilling permit extension for
the Focus Ranch Unit Federal 3-1 Well, Permit No. 1636575, located in Section 3,
Township 11 North, Range 88 West, 6th P.M., is hereby approved.
2.
The expiration date of June 29, 2013 for Permit No. 1636575, is hereby
extended to November 30, 2014.
IT IS FURTHER ORDERED:
1.
The provisions contained in the above order shall become effective
immediately.
2.
The Commission expressly reserves its right, after notice and hearing, to
alter, amend or repeal any and/or all of the above orders.
3.
Under the State Administrative Procedure Act the Commission considers
this Order to be final agency action for purposes of judicial review within 30
days after the date this Order is mailed by the Commission.
4.
An application for reconsideration by the Commission of this Order is not
required prior to the filing for judicial review.
ENTERED this 27 day
of August, 2013, as of July 29, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary