BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
IN THE MATTER
OF EXPENDITURES FROM THE OIL AND GAS ) CAUSE NO. 1E
CONSERVATION
AND ENVIRONMENTAL RESPONSE FUND FOR )
THE
REPORT OF THE COMMISSION
1. Two orphaned, plugged
and abandoned wells in northwest
2. The Starbuck #1 Well (05-045-05049) is
located in the NW1/4 of the NW1/4 of Section 25, Township 7 South, Range 92
West, 6th P.M.,
3. The Starbuck #1 Well was plugged and
abandoned on October 21, 1967. Tubing
was pulled, and the perforations from 2,960 feet to 2,976 feet were squeezed
with 50 sacks of cement. The top-most
joint of 5-1/2 inch production casing was backed off, and a 20 sack cement plug
was pumped over the 5-1/2 inch production casing stub. The production casing was cut off 2 feet
below ground, and a plate was welded onto the top of the production casing. The Starbuck #1 Well is currently leaking
water with petroleum constituents to surface in an irrigated pasture. The water leaking from the well is ponded
around the top of the well.
4. COGCC Staff
proposes to stabilize the surface, drill out the surface casing plug, re-enter
the production casing, perforate and squeeze cement at selected downhole
intervals to control the flow of fluids to the surface, and re-set the surface
casing plug in the Starbuck #1 Well. The
estimated cost to re-enter and re-plug the Starbuck #1 Well is $200,000.
5. The Spaulding #1 Well (05-029-05013) is
located in the NE1/4 of the SW1/4 of Section 5, Township 15 South, Range 94
West, 6th P.M.,
6.
The Spaulding #1 Well is an orphan well and was plugged using State
funds in 1996. The original State
plugging procedure called for setting a cast iron bridge plug in the casing at
580 feet and circulating cement from 100 feet to surface. However, upon re-entering the well, a leak or
possible cavern was encountered at 17 feet, and the casing was obstructed or
collapsed at 80 feet and the plugging procedure was modified. Cement
was bullheaded into the casing. COGCC
Staff subsequently tagged cement at 17 feet and suspected that the leak at 17
feet was taking large volumes of fluid.
COGCC Staff used lost circulation material to seal off the leak and
cemented the well to surface. The
Spaulding #1 Well began discharging water and carbon dioxide into the
7. COGCC Staff proposes to drill out the cement
plug, drill through the obstruction at 80’, drill back into the casing or into
the formation to an estimated depth of 600 feet, and cement the hole to surface. The estimated cost to re-enter and re-plug the Spaulding #1
Well is $50,000.
8. The facts set forth in the foregoing
paragraphs Finding No. 1 through Finding No. 7 are the reasons that the
Commission finds the immediate issuance of this emergency order is imperative
for the preservation of public health and safety and that observance of the
requirements for notice and hearing pursuant to §§24-4-105 or 34-60-108(2),
C.R.S. (2004) would be contrary to the public interest.
9. The COGCC was appropriated Two Hundred Twenty
Thousand Dollars ($220,000) in fiscal year 2007-08 for the Plugging Abandonment
and Wellsite Reclamation (PAWR) line item.
These funds are regularly expended throughout the fiscal year, July 1
through June 30, and have already been allocated for engineering projects to plug,
abandon and reclaim orphan wellsites. Allocation
of funds for the Starbuck #1 has been delayed because it would have consumed
most of the available PAWR funds in any given fiscal year. PAWR funds for fiscal year 2007-08 have
already been committed to other projects, leaving an insufficient balance to
fund the proposed activities associated with re-entry, plugging and abandonment
of the Starbuck #1 Well and the Spaulding #1 Well, which pose a current and
ongoing threat to the environment. An
appropriate source of funding for this work is the Emergency Response line
item, which was established by the legislature for the first time in fiscal year
2006-07. This line item gives the COGCC
access to One Million Five Hundred Thousand dollars ($1,500,000) from the Oil
and Gas Conservation and Environmental Response Fund for the investigation,
prevention, monitoring, and mitigation of circumstances which are caused by or
are alleged to be associated with oil and gas activities and which call for
immediate action by the Oil and Gas Conservation Commission. An emergency creates a threat to public
health, safety, or welfare or to the environment as proclaimed by the Oil and
Gas Conservation Commission Director and approved by order of the Oil and Gas
Conservation Commission.
10.
The total estimated cost to re-enter, plug and abandon the Starbuck #1
Well and the Spaulding #1 Well is Two Hundred Fifty Thousand dollars ($250,000.00). In accordance with §34-60-124(7), C.R.S., the
Commission should authorize the expenditure of Two Hundred Fifty Thousand
dollars ($250,000.00) from the One Million Five Hundred Thousand dollars
($1,500,000.00) Emergency Response line item for the re-entry, plugging and
abandonment of the Starbuck #1 Well and the Spaulding #1 Well.
ORDER
NOW, THEREFORE IT IS ORDERED, that in
accordance with §34-60-124(7),
C.R.S., the Colorado Oil and Gas Conservation Commission shall authorize the
expenditure of Two Hundred Fifty Thousand dollars ($250,000.00) from the One
Million Five Hundred Thousand dollars ($1,500,000.00) Emergency Response line
item for the investigation of significant adverse impacts to public health,
safety, welfare, and the
IT IS FURTHER ORDERED, that the
provisions contained in the above order shall become effective forthwith.
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.
IT IS FURTHER ORDERED,
that under the State Administrative Procedure Act the Commission considers this
order to be final agency action for purposes of judicial review within thirty
(30) days after the date this order is mailed by the Commission.
IT IS FURTHER ORDERED, that an
application for reconsideration by the Commission of this order is not required
prior to the filing for judicial review.
ENTERED this day of July, 2007.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
Patricia
C. Beaver, Secretary
Dated at
July 23, 2007