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. On June 1, 2007 an
explosion occurred in the water well pump house associated with the Ben and
Melanie Bounds residence located in the NE¼ NW¼ Section 15 Township 29 South,
Range 67 West, 6th P.M., in Huerfano County. The explosion damaged the water well pump
house.
2. On June 5, 2007
Mr. Bounds contacted John Duran, Colorado Oil and Gas Conservation Commission (COGCC)
engineering field inspector for the
3. On June 7, 2007
Thomas Melland, Petroglyph Inc. – Raton Basin District Manager, contacted Peter
Gintautas COGCC Environmental Protection Specialist (EPS) II for the Raton
Basin and informed him that the water well owned by Mr. Coleman and located in
Section 10 Township 29 South, Range 67 West, 6th P.M., was possibly venting methane. Peter Gintautas contacted Mr. Coleman and was
told that a new pump was going to be installed in the Coleman water well on
June 9, 2007 and arrangements were made for Peter Gintautas to collect a water
sample immediately after the pump was installed.
4. On June 9, 2007 Peter Gintautas inspected the
Bound’s water well and using a combustible gas indicator (CGI), he confirmed
that methane was venting from the water well.
The CGI meter readings exceeded 100% of the lower explosive limit (LEL)
and 99% methane by volume. Peter
Gintautas collected a water sample from the water well and submitted it for
analysis of dissolved methane, stable isotopes of methane, and inorganic
parameters. Dissolved methane was
detected at a concentration of 5.6 milligrams per liter (mg/l). The stable isotope results indicated that the
methane venting from the Bounds well is of thermogenic origin and is similar to
5. On June 9, 2007 Peter Gintautas also
inspected the Vince Coleman water well and, using a combustible gas indicator
(CGI), he confirmed that methane was venting from the water well. He could not collect a water sample from the
Coleman well because there was not a pump in it. The CGI meter readings exceeded 100% of the
lower explosive limit (LEL) and 100% methane by volume.
6. On June 9, 2007
Peter Gintautas collected a gas sample from the Rohr 08-01 Well (API 05-055-06292)
in the NE¼NE¼ of Section 8 Township 29 South, Range 67 West, 6th
P.M., for compositional and stable isotope analyses. Tom Melland, Petroglyph Inc. – Raton Basin
District Manager, was present at the time the sample was collected.
7. On June 18, 2007
John Duran received a complaint from Mr. Kent Smith regarding gas in his water
well, which is located in the SW¼ NW¼ Section 3 Township 29 South, Range 67
West, 6th P.M..
8. On June 19, 2007 John Duran inspected Mr.
Smith’s water well and confirmed that gas was venting from it. Mr. Smith also told John that the well had
started venting gas in late May 2007.
9.
On June 20, 2007 Peter Gintautas collected a water sample from the
Coleman’s water well and submitted it for analysis of dissolved methane, stable
isotopes of methane, and inorganic parameters.
Dissolved methane was detected at a concentration of 10.0 mg/l. The stable isotope results indicated that the
methane venting from the Coleman’s well is of thermogenic origin and is similar
to the
10.
On June 20, 2007 Peter Gintautas conducted a follow up site inspection
of Kent Smith’s water well. The CGI
meter readings were 100% methane and one to two parts per million (ppm)
hydrogen sulfide. Two other water wells
(Mr. Masters’ and Mr. Hopke’s) were inspected and the CGI meter was used to
check for the presence of methane.
Methane was not detected in either Mr. Masters’ or Mr. Hopke’s water wells.
11.
On June 28, 2007 Peter Gintautas and Tom Melland inspected the Lively
#10-02 Well (API 05-055-06148) located in NW¼ NE¼ Section 10 Township 29 South,
Range 67 West, 6th P.M., which was plugged and abandoned by
Petroglyph in 1998. Because of problems
experienced during the plugging and abandoning of this well, COGCC staff
considered it a possible conduit for gas migrations. At the time of this inspection the well bore
was not visible at the surface and areas of stressed or dead vegetation that
might indicate gas seepage were not identified.
12. On June 28, 2007 Peter Gintautas inspected
the Derowitsch water well and, using a combustible gas indicator (CGI), he
confirmed that methane was venting from the water well. The CGI meter a reading at the well head cap
vent was 98% methane by volume. The
Derowitschs were not home at the time of the inspection, so Peter Gintautas
called and told them about the results of his inspection.
13.
On July 5, 2007 Buys and Associates, Inc. (B&A) an environmental
consulting firm was retained by the COGCC to survey all of the water wells within
a 13 square mile area including: Sections 1, 2, 3, 4, 9, 10, 11, 14, and 15 in
Township 29 South, Range 67 West, 6th P.M. and Sections 34, 35, and
36 in Township 28 South, Range 67 West, 6th P.M. The water well survey took five (5) days to
complete. Eighty four well permits or
permit applications were identified in the study area based on data contained
in the Division of Water Resources (DWR) database. Of the 84, a number were actually denied
permit applications and several were for wells that had not been drilled. Based on the DWR data review, 68 locations
were identified and were field checked.
Thirty-seven (37) water wells were located and surveyed. Of the 37 surveyed a total of eleven were
venting methane. This eleven includes
the water wells previously identified as venting gas by Peter Gintautas. Of particular importance is the fact that on
June 20, 2007 Peter Gintautas did not detect methane in the Hopke water well,
but when B&A returned to this well on July 5, 2007 it was venting methane.
14. On July 9, 2007 Peter Gintautas returned to
and inspected the Kent Smith water well and, using a combustible gas indicator
(CGI), he confirmed that methane was venting from the water well. He collected
a water sample from the Smith’s water well and submitted it for analysis of
dissolved methane, stable isotopes of methane, and inorganic parameters. The stable isotope results indicated that the
methane venting from the Smith’s well is of thermogenic origin and is similar
to
15. On July 9, 2007 Peter Gintautas inspected the
Angely water well. The well was being pumped and the sanitary well cap had been
removed on behalf of the COGCC by a licensed water well contractor. A spark from the electrical switch ignited
the methane and caused a small fire that damaged the electrical wiring and box
that contained the switch. The fire was
extinguished with a fire extinguisher by on-scene personnel. The COGCC has retained a licensed contractor
to make the necessary repairs. Class 1
Division 1 (intrinsically safe) electrical components will be used and the
electrical box will be moved away from the well head.
16. On July 10, 2007 COGCC staff met with
Petroglyph to discuss the emerging issues, the potential threats to public
health, safety, and welfare, and the environment from oil and gas operations in
the area, and potential mitigation strategies.
Petroglyph agreed to provide water to two households, install methane
detectors in residences that had methane in their wells, to assist in surveying
water wells in the area for methane, and to review the well records for the
Lively #10-02 Well (API 05-055-06148).
17. On July 10, 2007 LT Environmental (LTE) on
behalf of the COGCC conducted a soil gas survey at Lively #10-02 Well (API
05-055-06148). The survey included a 200
foot by 200 foot area with a 50 foot grid of soil gas probes. Seventeen soil gas measurements were
made. Methane was not detected in any of
the soil gas probe.
18. On July 10 and 11, 2007 LTE on behalf of the
COGCC conducted similar soil gas surveys at two plugged and abandoned well
locations: the Golden Cycle 2 Well (API 05-055-06024) and the Golden Cycle 2A
Well (API 05-055-06034). The survey
included a 200 foot by 200 foot area with a 50 foot grid of soil gas
probes. Methane was not detected at
either location.
19. On July 11, 2007 LTE on behalf of the COGCC
conducted similar soil gas surveys at a gas seep (referred to as #644), which
is located in the vicinity of the Bounds residence. The seep was mapped and appears to be
associated with an igneous dike. LTE
also conducted a soil gas survey around the Bounds house. Methane was detected in the well and in the
soil near the well.
20. On July 11, 2007 COGCC staff provided
information on managing methane in water well to the La Veta Signature
newspaper and Peter Gintautas continued to work with water well owners
discussing physical properties of methane and methods that can be used to
mitigate methane in water wells.
21. From July 2, 2007 through July 14, 2007 LTE
on behalf of the COGCC conducted numerous similar soil gas surveys locations in
Huerfano County where gas seeps had been identified by the Phase II Raton Basin
Methane Seep Mapping Project – Task 1, which was previously planned and in
progress at the time of the discovery of the methane in the eleven water wells.
22. On July 17, 2007 COGCC staff met with
Petroglyph to continue discussion of the possible cause and mitigation of the
methane in the water wells and gas seeps in
23. On July 18, 2007 COGCC staff developed a plan
for ongoing investigation, testing, and mitigation of the methane in the water
wells and gas seeps in
24. On July 20, 2007 COGCC staff met with
Petroglyph to discuss the proposed investigation, testing, and mitigation
plan. Petroglyph agreed to shut in their wells in
25. In addition to the investigation, testing, and
mitigation plan that will be conducted by Petroglyph, COGCC staff and its contractors
will continue to conduct monitoring to ensure that public health, safety,
welfare, and the environment are protected and to track changes in methane
concentration that may occur. The total
estimated cost for this work is One Hundred Eleven
Thousand Seven Hundred dollars ($111,700.00).
The individual components of this work are described below in Finding 26
through Finding 27.
26. Soil Gas Surveys and
Installation of Methane Detection Equipment – LTE will conduct two additional
soil gas surveys at the eleven methane seeps identified in Huerfano County and
at five plugged and abandoned oil and gas wells and four former oil and gas
wells that have been converted to water wells. LTE will also install methane detection
systems at two residences that are located in close proximity to a gas seep in NE¼SW¼
Section 16 Township 28 South, Range 66 West, 6th P.M.. The estimated cost for this work is Seventy
Five Thousand Three Hundred dollars ($75,300.00).
27. Water Well Survey – The 37 water wells will be
surveyed for methane four additional times, beginning on July 23, 2007 and then
on a weekly basis. COGCC staff will
evaluate the need for additional monitoring as this project progresses. The estimated cost for this work is Thirty
Six Thousand Four Hundred dollars ($36,400.00).
28. The facts set forth in the foregoing
paragraphs Finding No. 1 through Finding No. 27 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.
23. The COGCC was appropriated Three Hundred
Twelve Thousand Thirty Three Dollars ($312,033) in fiscal year 2007-08 for the
Environmental Assistance and Complaint Resolution line item. These funds are regularly expended throughout
the fiscal year, July 1 through June 30, on environmental projects to investigate,
prevent, monitor, or mitigate conditions that threaten to cause, or that
actually cause, a significant adverse environmental impact on any air, water,
soil, or biological resource and to investigate alleged violations of any
provision of Title 34 Article 60 C.R.S., any rule, or order of the Commission,
or any permit where the alleged violation threatens to cause or actually causes
a significant adverse environmental impact. If the funds required to continue the health
and safety monitoring for this investigation and mitigation project were taken
from the Environmental Assistance and Complaint Resolution line item, then an
insufficient balance would be left to fund the anticipated activities
associated with the investigations of future allegations of significant adverse
impacts to public health, safety, and welfare from oil and gas activities and
other environmental projects throughout the state for the remainder of FY
2007-08. A more appropriate source of
funding 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.
24.
The total estimated cost for the different aspects of the health and
safety monitoring for this investigation and mitigation project is One Hundred
Eleven Thousand Seven Hundred Fifty dollars ($111,700.00). In accordance with §34-60-124(7), C.R.S., the
Commission should authorize the expenditure of
One Hundred Eleven Thousand Seven Hundred Fifty dollars ($111,700.00) from
the One Million Five Hundred Thousand dollars ($1,500,000) Emergency Response line
item for the health and safety monitoring of the lingering impacts associated
with methane seepage in the area.
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 One Hundred Eleven Thousand Seven Hundred Fifty dollars ($111,700.00)
from the One Million Five Hundred Thousand dollars ($1,500,000) Emergency
Response line item the health and safety monitoring of the lingering impacts
associated with methane seepage in the area.
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, as of July 23, 2007.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
Patricia
C. Beaver, Secretary
Dated at
July 23, 2007