BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND

ESTABLISHMENT OF FIELD RULES TO GOVERN

OPERATIONS IN THE LEYDEN GAS STORAGE 

RESERVOIR, JEFFERSON COUNTY, COLORADO

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CAUSE NO.   146

 

ORDER NO.   146-2

 

REPORT OF THE COMMISSION

 

 

                        This cause came on for hearing before the Commission on February 11, 1999 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the verified application of Public Service Company of Colorado, for an order approving Public Service Company's exercise of condemnation authority as part of a plan to expand the existing Leyden Gas Storage Reservoir pursuant to §34-64-104, C.R.S.

 

FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Public Service Company of Colorado (“PSCo”) as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

                        2.  Due notice of 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 terms of a Memorandum of Understanding between the Commission and the bureau of Land Management.

 

                        4.  On September 30, 1960, the Commission issued Order No. 146-1 which approved a storage project for the storage of natural gas in an underground reservoir situated in the Laramie Formation located in what is commonly known as the Leyden Coal Mine, located in Sections 21, 22, 26, 27, 33, 34 and 35 of Township 2 South, Range 70 West, 6th P.M., Jefferson County, Colorado.

 

                        5.  On August 28, 1998, PSCo, by its attorneys, filed with the Commission an application for an order approving PSCo's exercise of condemnation authority as part of a plan to expand the existing Leyden Gas Storage Reservoir pursuant to §34-64-104, C.R.S.  The Applicant requests an order from the Commission to condemn the below listed lands owned by Northwest Industrial Subdivision II:

 

Lots 1-15, Block A, except that part of said block lying within that property described in Public Trustee’s Deed recorded January 3, 1986 at Reception No. 86001122;

 

Lots 1-10, Block B, Lots 1-12, Block C, and Lots 1-7, 10, 13 and Lot 14, Block D, except that part of Lots 13 and 14 lying within that property described in Public Trustee’s Deed recorded at Reception No. 86001122 all within the Northwest Industrial, County of Jefferson, State of Colorado;

 

Together with and including those private streets located within said subdivision known as Bronco Lane, Avalanche Street and Six Street lying westerly of the west lot line of that property described in Public Trustee’s Deed recorded January 3, 1986 under Reception No. 86001122.

 

                        6.  On September 11, 1998, Northwest Industrial Subdivision II (“NWIS II”) filed with the Commission a protest to the application and requested a continuance of the hearing to December, 1998.  On September 15, 1998, PSCo filed with the Commission a response to the protest and requested a continuance of the hearing to October, 1998.  At its hearing on September 22, 1998, after the Commission heard from the applicant and the protestant regarding the requests for continuance, the hearing was continued to December, 1998 and a prehearing conference was scheduled.  On October 14, 1998 the Secretary convened a prehearing conference and on October 19, 1998 the applicant and protestant filed a joint request to continue the matter in order to amend the application.

 

                        7.  On December 1, 1998, PSCo, by its attorneys, filed with the Commission an amended application for an order from the Commission to condemn the Subsurface Interests in the properties described below:

 

Township 2 South, Range 70 West, 6th P.M.

Section 21:  SE¼ SE¼ SE¼

Jefferson County, Colorado

Containing 10 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 21:  E½ E½, lying South of the Railroad right of way, less the

SE¼ SE¼ SE¼

Jefferson County, Colorado

Containing 39 acres, more or less


Township 2 South, Range 70 West, 6th P.M.

Section 21:  200’ Denver and Rio Grande Railroad right of way in the NE¼ SE¼

Jefferson County, Colorado

Containing 6.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 21:  E½ E½ lying between Colorado State Highway No. 72 and the

Railroad right of way

Jefferson County, Colorado

Containing 35 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 21:  State Highway No. 72

Jefferson County, Colorado

Containing 2.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  All that portion of the S½ lying South of that certain parcel of land conveyed for railway purposes and more particularly described in Quit Claim Deed dated June 23, 1903 recorded at Book 121, Page 290 of the records of the Office of the Clerk and Recorder, Jefferson County, Colorado.

 

Section 27:  NE¼

 

EXCEPTING FROM EACH OF SAID TRACTS OF LAND ALL THAT PORTION THEREOF described in that certain Bargain and Sale Deed dated December 29, 1960 recorded at Book 1331, Page 472 of the records of the Office of the Clerk and Recorder, Jefferson County, Colorado.

Containing 127 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  All that portion of the S½ more particularly described in Deed dated June 23, 1903 recorded at Book 121, Page 290 of the records of the office of the Clerk and Recorder, Jefferson County, Colorado.

Containing  25 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Lot 11, Block D

Northwest Industrial Subdivision

Containing 1 acre, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Lot 8, Block D

Northwest Industrial Subdivision

Containing 1.2 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Lots 9 and 12, Block D

Northwest Industrial Subdivision

Containing 2.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Lots 11 and 12, Block B

Northwest Industrial Subdivision

Containing 3 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Lots 16, 17, 18, Part of Lot 15 and Part of Lot 19, Block A,

Lot 15, Part of Lot 13 and Part of Lot 14, Block D,

Together with that part of Bronco Lane adjacent to said Lots,

Northwest Industrial Subdivision

(Said tract is also described by metes and bounds in that certain Warranty Deed

dated November 2, 1990, recorded November 7, 1990 at Reception Number

90094824 of the Jefferson County, Colorado deed records.)

Containing 9.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  Tract A, Block A

Northwest Industrial

Containing 0.44 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Sections 22 and 23:  Lot one,

TOSCO FILING NO. 1

Containing 70 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  State Highway No. 72 as described in Book 814, Page 367

Containing 1 acre, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  State Highway No. 72 less that portion described in Book 814,

Page 367

Containing 5.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot C

Containing 0.78 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Tracts A & B

Containing 3.25 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 2, Tract A

Containing 5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot 7

Containing 3 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Umber Road

Containing 1 acre, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot 5

Containing 5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot 6

Containing 1.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot 4

Containing 6 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Strip Tract A (Adjacent to Lot 4 of Rocky Flats Industrial District Filing No. 1)

Containing .01 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lot 3

Containing 4 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Strip Tract B (Adjacent to Lots 2 and 3 of Rocky Flats Industrial District Filing No. 1)

Containing .02 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Rocky Flats Industrial District Filing No. 1, Lots 1 and 2

Containing 6 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  Strip Tract C (Adjacent to Lot 1 of Rocky Flats Industrial District Filing No. 1)

Containing .01 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  All those certain parcels or tracts more particularly described in various deeds for “railway purposes” as follows:

            Quit Claim Deed recorded July 28, 1905 at book 125, page 194.

            Quit Claim Deed recorded June 2, 1902 at book 114, page 545.

            Quit Claim Deed recorded July 28, 1902 at book 114, page 566.

EXCEPTING FROM THE ABOVE DESCRIBED TRACTS

All that portion thereof described in Deed recorded September 10, 1968 at

book 2046, page 602.

Containing 13 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Sections 23 and 26:  That certain parcel or tract described in Warranty Deed dated July 30, 1993 recorded November 9, 1993 at Reception No. 93184796

EXCEPTING THEREFROM,

All that portion of the property described in Public Service Company Gas

Storage Lease recorded at Reception Number 89065818 and also described

in Deed recorded November 4, 1960 at book 1317, page 6.

Containing 130 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that portion of Blocks 3, 4, 5, 6, 7, 14, 15 and 16 Wheat Ridge Gardens 2nd Filing lying within the existing Right of Way of The Denver and Rio Grande Western Railroad Company

EXCEPTING THEREFROM:

All that portion thereof described in Public Service Company Gas Storage

Lease recorded at Reception Number 89065818 and also described in Deed

recorded November 4, 1960 at book 1317, page 6.

Containing 1.5 acres, more or less more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that certain parcel or tract more particularly described in Warranty Deed recorded March 31, 1986 at Reception No. 86031985

EXCEPTING THEREFROM,

All that portion of the property described in Public Service Company Gas

Storage Lease recorded at Reception Number 89065818 and also described

in Deed recorded November 4, 1960 at book 1317, page 6.

Containing 11.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that portions of Blocks 1, 2, 3, 4, Wheat Ridge Gardens 2nd Filing,

comprising the Right of Way of Colorado State Highway 72.

Containing 3 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that portion of Wheat Ridge Gardens 2nd Filing as shown on the Map thereof recorded March 7, 1895 at Map book 2, page 35 comprising the streets and roads thereon except “Old Territorial Road”.

Containing 1.5 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that portion or tract described in Warranty Deed recorded November 8, 1962 at book 1536, page 193.

Containing 0.6 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that portion of the tract or parcel described in Warranty Deed recorded May 27, 1980 at Reception No. 80039324

Containing 1.06 acres, more or less

EXCEPTING THEREFROM:

All that portion thereof described in Public Service Company Gas Storage

Lease recorded at Reception Number 89065818 and also described in

Deed recorded November 4, 1960 at book 1317, page 6.

Remaining Acreage:  Containing  .06 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 26:  All that certain tract or parcel of land more particularly described in Warranty Deed recorded at book 1451, page 410.

Containing 0.4 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  All that portion of the S½ lying North of the North Right of Way line  of Colorado State Highway No. 72, less and except; that parcel of land lying in the S½ of Section 23 owned by the City of Arvada as described in that certain Warranty Deed recorded in Reception No. F0126099 of the Jefferson County, Colorado Clerk and Recorder’s Office.

Containing 175 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 23:  A parcel of land located in the SE¼ of Section 23 as described in Warranty Deed recorded in Reception No. F0126099 of the Jefferson County, Colorado Clerk and Recorder’s Office.

Containing 1.3 acres, more or less

 

Township 2 South, Range 70 West, 6th P.M.

Section 22:  All that certain tract or parcel of land described in Right-of-Way Deed recorded July 17, 1940 at Book 421, page 356 of the Jefferson County Deed records.

 

All that certain tract or parcel of land described in Right-of-Way Deed recorded August 18, 1965 at book 1815, page 604 of the Jefferson County deed records.

 

All that portion of the NE¼ lying within those certain tracts or parcels of land described in Right-of-Way Deeds recorded July 17, and recorded August 17, 1965 at book, page 604 of Jefferson County Deed records.

Containing 19 acres, more or less

 

                        8.  On January 4, 1999, Ground Equipment Company, LLC, Ground Exploration Company, Inc., Ground Leasing, LLC, GEC Pump Inc., Joseph T. Bender and Patricia A. Bender, by their attorneys, filed with the Commission a joint Notice of Protest.

 

                        9.  On January 4, 1999, Great Western Inorganics, Inc. (“GWI”), by its attorney, filed with the Commission a Notice of Protest.

 

                        10.  On January 5, 1999, PSM Properties, Inc. and Perry S. McKay, by their attorney, filed with the Commission a Notice of Protest and Intervention.

 

                        11.  On January 5, 1999, Ground Equipment Company, LLC, Ground Exploration Company, Inc., Ground Leasing, LLC, GEC Pump Inc., Joseph T. Bender and Patricia A. Bender, by their attorneys, filed with the Commission a Motion to Dismiss Amended Application of Public Service Company of Colorado.

 

                        12.  On January 5, 1999, NWIS II, by its attorneys, filed with the Commission a Motion to Dismiss Amended Application of Public Service Company of Colorado.

 

                        13.  On January 5, 1999, NWIS II, by its attorneys, filed with the Commission a Protestant’s January 1999 Hearing Brief Regarding Amended Application of Public Service Company of Colorado.

 

                        14.  On January 6, 1999, Charles C. McKay filed with the Commission a Letter of Concurrence with the protests filed by PSM Properties Inc. and Perry S. McKay.

 

                        15.  On January 11, 1999, PSCo, by its attorney, filed with the Commission a Reply to NWIS II’s Hearing Brief.

 

                        16.  On January 13, 1999, Union Pacific Railroad Company (“UPRC”), by its attorney, filed with the Commission a Notice of Protest.  This protest was received after the protest deadline.

 

                        17.  On January 15, 1999, the Commission heard arguments from NWIS II on its motion to dismiss.  The Commission determined that it was not ready to rule on the motion until some testimony was presented by PSCo and denied the motion to dismiss.

 

                        18.  At the January 15, 1999 hearing the Commission heard opening statements from PSCo and NWIS II and heard testimony from two PSCo witnesses.  Prior to cross-examination of PSCo’s second witness the Commission polled the parties as to the time necessary to complete the hearing and continued the matter to an interim hearing scheduled for February 11 and 12, 1999.

 

                        19.  On February 8, 1999, Kenneth K. Skogg filed with the Commission on behalf of NWIS II an entry of appearance and Respondent’s Combined Reply to PSCo’s Response to NWIS II’s Motion to Dismiss and Hearing Brief.

 

                        20.  On February 11, 1999, GWI, by its attorney, filed with the Commission an Objection to PSCo’s Request for Authority to Condemn the Subsurface Interests in GWI’s Property, and GWI’s Notice of Election Not to Participate Further in the Hearing.

 

                        21.  After completion of PSCo’s testimony at the February 11, 1999 hearing, NWIS II argued its three (3) separate motions to dismiss the PSCo Application before the Commission.

 

                        22.  Joseph T. Bender and Patricia A. Bender, by their attorney, joined in with NWIS II on two of the motions to dismiss.  UPRC and Weis Craft, by their attorney, joined in all motions to dismiss.

 

                        23.  COGCC staff presented its conclusions on the requested application to the Commission.

 

                        24.  Upon deliberation, the Commission finds that PSCo failed to make a showing based on substantial evidence that the amended buffer zone, as proposed by the applicant, meets the statutory standard set forth in §34-64-104, C.R.S. that the land sought to be condemned is in the public interest and welfare, and that the storage reservoir is suitable and practicable and that the formation or formations sought to be condemned is non-productive of oil or gas in commercial quantities.

 

ORDER

 

                        NOW, THEREFORE IT IS ORDERED that the Application filed by Public Service Company of Colorado for an order to expand the existing Leyden Gas Storage Reservoir is hereby denied without prejudice.

 

                        IT IS FURTHER ORDERED that the provisions contained in the above order shall become effective forthwith, as the party agreed to accept the verbal order of the Commission.

 

                        IT IS FURTHER ORDERED that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

 

                        ENTERED this                         day of March, 1999, as of February 11, 1999.

 

                                                                        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

July 18, 2018