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IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND IN PARTICULAR WITH REFERENCE TO RULE #326 |
CAUSE NO. 1R
ORDER NO. 1R-9 (was 1-9) TYPE: RULEMAKING |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on January 18, 1972, at 9 a. m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, for the purpose of determining rules and regulations governing the construction, maintenance, and operation of retaining pits in an area known as the Northern High Plains Ground Water Basin located in Cheyenne, Kiowa, Kit Carson, Lincoln, Logan, Phillips, Prowers, Sedgwick Washington, and Yuma Counties, Colorado.
FINDINGS
The Commission finds as follows:
1. That due notice of the time, place, and purpose of the hearing has been given in all respects as required by law.
2. That 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.
3. That the Ogallala Formation, of Pliocene age, is exposed over most of the Northern High Plains Ground Water Basin. It consists of poorly sorted sand, silt, clay, and gravel and is overlain in many places by alluvial deposits, dune sands, and loess. The formation. increases in thickness regionally west to east, becoming 400 feet thick near the State line. The Ogallala is underlain in places in the northern part of the basin by the formations of the White River Group (which may have some aquifers). Under this group and the Ogallala in the rest of the area is the Pierre Shale of Cretaceous age which is considered the bedrock formation due to its impermeable nature.
4. That throughout said Basin the Ogallala formation contains an aquifer of usable water with a fairly predictable subsurface level. The water in this aquifer generally flows east along the top of the Pierre Shale and eventually feeds into the rivers and streams or leaves the state in the aquifer.
5. That the Ogallala aquifer in the Northern High Plains Ground Water Basin contains some 310 billion barrels of water and receives an annual recharge, almost entirely from rainfall, of some 3.3 billion barrels. However, it loses annually through appropriation some 7-3/4 billion barrels of water. The appropriation policy guideline followed by the State Engineer's office permits well depletion at a rate that will result in no more than 40% depletion of the recoverable reserves in a period of 25 years. Most of the Basin is densely developed by wells to the Ogallala aquifer and the water produced is used for domestic, stock and irrigation purposes. The inhabitants of the Colorado portion of the Basin, including those of Burlington, Wray, Holyoke and four smaller towns, are entirely dependent on the water from this aquifer for domestic use. It is, however, evident that the area now, or to an even greater extent, in the future will desperately need any w ater usable for stock and irrigation that can be made available. If any of the water produced from the oil wells could be used or rendered usable for any of the purposes aforementioned, it would be most beneficial to the State.
6. That the rate of percolation of water through the alluvium, loess, or Ogallala Formation is extremely variable depending upon the exact porosity and permeability of the sand, gravel, silt, or clay encountered in any particular area. Only by a proper percolation test of any pit could the precise seepage-- therefrom be determined.. From the testimony submitted at this hearing it would, however, be reasonable to assume that in this Basin unless unique c onditions were by evidence proved to exist in any field or particular pit, any produced water placed in an untreated pit would -ultimately enter the Ogallala Formation. and thus reach. the waters of the State. No evidence was produced, however, showing that pollution of the Ogallala aquifer by oil or gas operations had occurred to date although such operations have been carried on in the area for many years. Generally the water in the Ogallala aquifer moves horizontally at a rate of about 300 to 400 feet per year.
7. That the water from the Ogallala Formation has relatively low concentrations of dissolved solids, most of which is calcium bicarbonate. It is less than the 500 parts per million which is considered an upper limit of the water quality standard for domestic use. The concentration, however, does increase considerably in the extreme southeastern part of said ground water basin in Prowers and Kiowa Counties. Here the total dissolved solids are as high a s 2, 500 parts per million. The saturated thickness of the Ogallala aquifer may have an affect on the quality of water found. Usually, in areas of less saturated thickness; i.e., 50 feet or less; the total dissolved solids will be considerably higher than in the water where the saturated thickness of the aquifer may be 300 feet or more. In addition, it has been noted where water is formation the alluvium above the Ogallala Formation, the quality is usually much poorer.
8. That the produced water from the "J" Sand in this area is of lower concentration of total solids than the water from the "D" Sand. The total dissolved solids of the "J" Sand produced water range from approximately 2, 000 parts per million in most cases to some isolated instances of 4,400 parts per million. The "D' Sand produced water quality range is from approximately 3,000 to over 6,000 parts per million and seems to be less uniform throughout the area than the quality of the "J" Sand water. The produced water from the Mississippian Formation in the southeastern part of the basin is of very poor quality and reaches to over 16,000 parts per million total dissolved solids
9. That accepted standards for water quality have been established by the Water Pollution Control Commission for domestic use as less than 500 parts per million of total dissolved solids, and 3,000 parts per million for livestock and irrigation purposes. These limits are the guidelines of acceptable water use depending on varying circumstances and tolerances established b people, livestock, and types of crops.
10. That although testimony was introduced indicating the cost of lining pits at Brandon with a very heavy liner would run approximately $0.40 per square foot installed no satisfactory evidence was submitted with regard to other material or methods for rendering pits impermeable.
11. That a serious oil reserve deficiency situation exists in the United States today and will become more serious in the future. An average of less than 40% of the oil in a reservoir is recovered by present known methods and an effort should be made to keep small fields producing so that they will be available for treatment by the more sophisticated recovery methods that are being developed.
12. That the Commission in connection with its efforts to assure that the waters of the State are not polluted by oil field operations should also take into consideration both the need for "usable water" in the Northern High Plains Ground Water Basin and the need to assure that no unnecessary eventual waste of oil or gas resources is caused by forced premature abandonment of wells.
13. That the area is under a migratory bird and fowl fly way, and since lake and streams are not prevalent in the area, oil field retaining pits are attractive to and used by ducks, geese, and other wild life and should therefore be kept free of even small accumulations of oil. The Oil and Gas Conservation Commission has the responsibility and authority to prevent destruction of wild life from oil field sources.
14. That the conditions encountered in the Northern High Plains Ground Water Basin. are not such as to permit any pit standard or design being set for the whole area.
ORDER
NOW, THEREFORE, IT IS ORDERED that the following shall apply to the Northern High Plains Ground Water Basin as described in Exhibit "A" attached hereto.
1. That the Director be authorized and directed to approve on behalf of the commission:
a. All pits designed and located in accordance with and fully complying with the Commission's regulations (Rules 325 and 326).
b. All pits meeting the standard of (a) above except where the pit is not lined, and applicant supplies substantial evidence to the Director that the quality of the produced water is substantially the equivalent of the underling aquifer.
c. All pits meeting the standards of (a) above except where the pit is not lined and it is clearly established by substantial evidence or percolation tests that seepage will not reach the underlying aquifer or waters of the State.
2. The applicant may, in the event a premature abandonment of producing oil or gas wells will result in not being able to comply with Paragraph 1 herein above, submit to the Director a complete economic statement of the situation, including estimates of lining the pit or other methods of reasonably protecting the pit from seepage and oil accumulations, consideration being given to the volume of water being handled, and estimates as to the production and reserves that may be lost in primary and secondary recovery methods. The Director shall then submit such application to the Commission for its final action.
3. The applicant may, in the event he believes that produced water from his well or wells is of a quality usable for stock or irrigation purposes and that a strict enforcement of Paragraph 1 herein above will prevent such use, submit such test results and materials substantiating such need and a proposed plan showing how such use can be accomplished.
4. Notwithstanding Paragraphs 1, 2, and 3 herein above, where it appears to the Director that produced water from a field, fields, or combination of wells could be disposed of underground, he shall notify the Commission of such recommendation and notify the operators in the affected areas. The operators shall have a maximum of one hundred twenty (120) days to continue the use of pits during which time they shall be required to submit a plan for undergro und disposal of the produced water.
5. In the case of any other application not requiring action under the foregoing paragraphs, the Director shall submit such application to the Commission with his recommendation for final action.
6. Any applicant desiring a hearing before the Commission, either before the Director makes any recommendation to the Commission, or after such recommendation, shall be entitled to such hearing upon request within thirty (30) days of notice of the Director's recommendation.
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 Order.
ORDERED this 16th day of February 1972.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary
Northern High Plains Ground Water Basin
Cheyenne, Kiowa, Kit Carson, Lincoln, Logan, Phillips, Prowers, Sedgwick, Washington, and Yuma Counties, Colorado
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T. 11N, R. 42W
Sections 7,8,17,18,19,20,29,30,31, and 32 |
T. 8N R. 42W thru 49W (incl.)
All Sections
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T. 11N, R. 43W
Sections 13 thru 16 (incl.), and 20 thru 36 (incl,) |
T. 8N, R. 50W Sections 11 thru 15 (incl.), 21 thru 29 (incl.), and 32 thru 36 (incl.)
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T. 11N, R. 44W
Sections 25 thru 29 (incl.) and 31 thru 36 (incl.)
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T. 7N, R. 42W thru 50W (incl.) All Sections |
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T. 10N, R. 42W thru 44W (incl.) All Sections |
T. 7N, R. 51W Sections 12, 13, 14, 23, 24, 25, 26, 35 and 36
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T. 10N, R. 45W
Sections 1
thru 4 (incl.) and 7 thru 36 (incl.)
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T. 6N, R. 42W thru 50W (incl.) All Sections |
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T. 10N R. 46W Sections 8 thru 36 |
T. 6N R. 51 W Sections 1, 2, 3, 9 thru 16 (incl. ) (incl.) 20 thru 28 (incl. ) and 33, 34 35, and 36
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T. 10N R. 47W Sections
13, 24 thru 28 (incl.) and 32 thru 36 (incl.) |
T. 5N R. 42W thru 50W (incl.) All Sections |
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T. 9N, R. 42W thru 47W (include.) All Sections |
T. 5N R. 51W Sections 1, 2, 3, 4, 8 thru 17 (incl.), and 19 thru 36 (incl.) |
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T. 9N R. 48W Sections
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T. 4N R. 42W thru 50W (incl.) All Sections |
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T. 9N R. 49W Section 23, 24, 25, 26, 27 and 33, 34, 35, and 36 |
T. 4N R. 51W Sections 1, 2, 3, 4, 5, 8 thru 17 (incl.), 19 thru 27 (incl. ), and 33, 34, 35, and 36 |
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T. 3N, R. 42W thru 50W (incl. ) All Sections |
T. 3S R. 53W Sections 1 thru 5 (incl. ), 9 thru 16 (incl. ), 21 thru 28 (incl. ), 33, 34 35, and 36 |
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T. 3N, Range 51W Sections 1, 2, 3, 4, 5, and 7 thru 36 (incl.) |
T. 4S R. 42W thru 52W (incl.) All Sections |
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T. 3N R. 52W Sections
13, 14, 15, 21 thru 28 (incl. ), and 32, 33, 34, 35, and 36 |
T. 4S R. 53W Sections 1, 2, 3, 4, 9 thru 16 (incl.), and 20 thru 36 (incl.) |
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T. 2N R. 42W thru 52W (include.) All Sections |
T. 5S, R. 42W thru 53W (incl.) All Sections |
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T. 2N; R. 53W Sections
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T. 5S R. 54W Sections 11 thru 16 (incl.) and 19 thru 3 6 (incl. ) |
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T. 1N, R. 42W thru 52W (incl.) All Sections |
T. 5S R. 55W Sections 25, 34, 35, and 36 |
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T. 1N R. 53W Sections
1, 11, 12, 13, 14, 15, 22 thru 27 (incl. ) and 33, 34, 35, and 36
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T. 6S R. 42W thru 54W (incl.) All Sections |
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T. 1S R. 53W Sections
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T. 6S R. 55W Sections 1, 2, 3, 10 thru 16 (incl.), and 20 thru 36 (incl.) |
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T. 2S R. 42W thru 52W (incl.) All Sections |
T. 7S, R. 42W thru 55W (incl.) All Sections |
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T. 2S R. 53W Sections
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T. 7S R. 56 W Sections 1, 2, 3, 4, 9 thru 16 (incl. ), and 21 thru 36 (incl.) |
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T. 3S, R. 42W thru 52W (incl.) All Sections |
T. 8S R. 42W thru 55W (incl.) All Sections
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T. 8S R. 56W Sections 1 thru 6 (incl. ), and 9, 10, 11, 12
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T. 9S, R. 53W Sections 1 thru. 31 (incl.), and 34, 35 and 36 |
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T. 9S R. 54W Sections 1 thru 26 (incl. ), and 36
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T. 13S, R. 46W Sections 1 thru 5 (incl. ), 9 thru 16 (incl. ), 22 thru 26 (incl. ), 35 and 36
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T. 9S R. 55W Sections 1, 2, 3, 4, 11, 12, and 13
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T. 14S, R. 41W thru 45W (incl.) All Sections
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T. 10S, R. 42W thru 52W (include.) All Sections
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T. 14S, R. 46W Sections 1, 2, 11, 12, 13, 14, 23, 24, 25 26 and 34, 35, and 36
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T. 10S R. 53W Sections
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T. 15S, R. 46W Sec 1, 2, 3, 10, 11, 12, 13, 14, 23, 24, 25, and 36
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T. 11S R. 51W Sections 1 thru 30 (incl.), N/2 of 33 and 35 and 36
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T. 11S R. 52W Sections
1 thru 6 (incl.), 8 thru 16 (incl.) and 22 thru 27 (incl.)
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T. 16S. R. 45W Sections 1 thru 5 (incl.), 9 thru 14 (incl.) 23, 24, 25, and 36
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T. 11S R. 53W Section 1
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T. 17S R. 41W thru 43W (incl.) All Sections
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T. 12S R. 41W thru 46W (include.) All Sections
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T. 17S, R. 44W Sections 1 thru 17 (incl.), 21 thru 27 (incl.) 35, and 36
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T. 12S, R. 47W Sections 1 thru 18 (incl.), and 22 thru 27 (incl.)
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T. 12S, R. 48 Sections 1, 2, 3, 4, and 10 thru 15 (incl.)
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T. 18S, R. 44W Sections 1, 2, 12, 13, 24, 25, 26 35 and 36
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T. 21S, R. 41W Sections 5 thru 8 (incl.) 17 thru 20 (incl.), and 29 thru 32 (incl.)
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T. 19S., R. 44W Sections 1, 2 11, 12, 13, 14, 15, 22, 23, 24, 25, and 36
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T. 21S, R. 42W Sections 1 thru 27 (incl. ) and 35, and 36
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T. 20S., R. 41W Sections 5, 6, 7, 8, 17, 18, 19, 20, 29, 30, 31, and 32
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T. 21S, R. 43W Sections 1, 2, 11, 12, and 13
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T. 22S, Range 41W Sections 5 thru 8 (incl.)
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T. 22S, Range 42W Section 1 and east one-half of Section 2
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