BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF CHANGES TO THE RULES AND                                                     9; )             CAUSE NO. 1R

REGULATIONS OF THE OIL AND GAS CONSERVATION                                               )

COMMISSION OF THE STATE OF COLORADO                                                                )             ORDER NO. 1R-101

REPORT OF THE COMMISSION

                        Pursuant to a hearing before the Oil and Gas Conservation Commission on December 7, 2005, in Suite 801, 1120 Lincoln Street, Denver, Colorado, the Oil and Gas Conservation Commission promulgated amendments to its Rules and Regulations as described below:

DRILLING, DEVELOPMENT, PRODUCING AND ABANDONMENT

(300 Series)

303. REQUIREMENTS FOR APPLICATION FOR PERMIT-TO-DRILL, DEEPEN, RE-ENTER, OR RECOMPLETE, AND OPERATE.

c. (18) All visible improvements within two hundred (200) feet of a wellhead (or, in a high density area within four hundred (400) feet of a wellhead) shall be physically tied in and plotted on the well location plat or on an addendum, with a horizontal distance and approximate bearing from the well location. Visible improvements shall include, but not be limited to, all buildings, publicly maintained roads and trails, major above-ground utility lines, railroads, pipelines, mines, oil wells, gas wells, injection wells, water wells, visible plugged wells, sewers with manholes, standing bodies of water, and natural channels including permanent canals and ditches through which water may flow. If there are no visible improvements within two hundred (200) feet of a wellhead (or in a high density area within four hundred (400) feet of a wellhead), it shall be so noted on the Permit-to-Drill, Form 2.

reclamation regulations

(1000 SERIES)

1002. sITE PREPARaTION

c. Protection of soils. All stockpiled soils shall be protected from degradation due to contamination, compaction and, to the extent practicable, from wind and water erosion during drilling and production operations. Best management practices to minimize erosion and offsite sedimentation by controlling stormwater runoff shall be implemented.

d. Drill pad location. The drilling location shall be designed and constructed to provide a safe working area while reasonably minimizing the total surface area disturbed. Consistent with applicable spacing orders and well location orders and regulations, in locating drill pads, steep slopes shall be avoided when reasonably possible. The drill pad site shall be located on the most level location obtainable that will accommodate the intended use. Deep vertical cuts and steep long fill slopes shall be constructed to the least percent slope practical. Best management practices to minimize erosion and offsite sedimentation by controlling stormwater runoff shall be implemented.

e. Surface disturbance minimization; stormwater management. In order to reasonably minimize land disturbances and facilitate future reclamation, well sites, production facilities, gathering pipelines and access roads shall be located, constructed and maintained so as to reasonably control dust, minimize erosion, alteration of natural features and removal of surface materials. Best management practices to minimize erosion and offsite sedimentation by controlling stormwater runoff shall be implemented. These practices will vary with site specific conditions, such as slope, vegetative cover and proximity to water bodies, and may include silt fencing, straw bales, plant buffers, rock filter dikes, slope roughening, mulch and other measures designed to reduce erosion and minimize the transport of soil from disturbed areas.

f. Access roads. Existing roads shall be used to the greatest extent practicable to avoid erosion and minimize the land area devoted to oil and gas operations. Best management practices to minimize erosion and offsite sedimentation by controlling stormwater runoff shall be implemented. Where feasible and practicable, operators are encouraged to share access roads in developing a field. Where feasible and practicable, roads shall be routed to complement other land usage. To the greatest extent practicable, all vehicles used by the operator, contractors, and other parties associated with the well shall not travel outside of the original access road boundary. Repeated or flagrant instance(s) of failure to restrict lease access to lease roads which result in unreasonable land damage or crop losses shall be subject to a penalty under Rule 523.

Attached, as Exhibit A, is a statement giving the basis and purpose of the revisions and such statements are incorporated herein by reference.

 

                                                        DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this ______ day of December, 2005.

IN THE NAME OF THE COLORADO

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

December 7, 2005

Exhibit A

Statement of Basis and Purpose

This statement sets forth the basis, specific authority, and purpose for the amendments to the 300 and 1000 Series of the Rules and Regulations promulgated by the Colorado Oil and Gas Conservation Commission. This statement is hereby incorporated by reference in the Rules adopted.

AUTHORITY

These rules, as amended, are adopted by the Colorado Oil and Gas Conservation Commission under the provision of Title 34, Article 60 of the Colorado Revised Statutes, as amended.

§34-60-102., C.R.S., as amended, declares that it is in the public interest to foster, encourage, and promote the development, production, and utilization of the oil and gas resources in the state of Colorado in a manner consistent with protection of public health, safety, and welfare.

§34-60-103.(6.5), C.R.S. defines "Oil and gas operations" to mean exploration for oil and gas, including the conduct of seismic operations and the drilling of test bores; the siting, drilling, deepening, recompletion, reworking, or abandonment of an oil and gas well, underground injection well, or gas storage well; production operations related to any such well including the installation of flowlines and gathering systems; the generation, transportation, storage, treatment, or disposal of exploration and production wastes; and any construction, site preparation, or reclamation activities associated with such operations.

§34-60-105 (1), C.R.S. provides that "The commission has jurisdiction over all persons and property, public and private, necessary to enforce the provisions of this article, and has the power to make and enforce rules, regulations, and orders pursuant to this article, and to do whatever may reasonably be necessary to carry out the provisions of this article. …"

§34-60-106 (2)(a), C.R.S. provides that the commission has the authority to regulate "[t]he drilling, producing and plugging of wells and all other operations for the production of oil or gas; . ."

§34-60-106 (2)(d), C.R.S. gives the commission authority to regulate "[o]il and gas operations so as to prevent and mitigate significant adverse environmental impacts on any air, water, soil or biological resource to the extent necessary to protect public health, safety, and welfare, in consideration of cost-effectiveness and technical feasibility."

§34-60-106 (11), C.R.S. mandates the commission to "promulgate rules and regulations to protect the health, safety and welfare of the general public in the conduct of oil and gas operations."

§34-60-106 (12), C.R.S. authorizes the commission to promulgate rules to ensure protection of topsoil and proper reclamation of the land and soil affected by oil and gas operations and to ensure the protection of the topsoil during such operations.

PURPOSE

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.

Add a new requirement to expand identification of natural channels to include sites where water may flow.

1000 Series

The 1000 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to protection and reclamation of land and soil from oil and gas operations.

Add a requirement to include gathering pipelines as an area subject to surface disturbance minimization. Add a requirement for oil and gas operators to employ measures designed to minimize erosion through the use of best management practices.