Source: http://cogcc.state.co.us/Hearings/Minutes/2002/jan02.htm
Timestamp: 2018-01-18 11:18:24
Document Index: 760184637

Matched Legal Cases: ['§34', '§34', '§34', '§34', '§34', '§34']

The Oil and Gas Conservation Commission met on January 7th at 10:00 a.m. in Room 201, Greeley Recreation Center, 651 10th Avenue, Greeley, Colorado, for a hearing in Cause Nos. 1 (4 matters), 315, 316, 317, and 331.
The Commission unanimously approved the minutes from the December 2001 meeting after amendments recommended by Vice Chair Cree were made. Vice Chair Cree reminded the Commission he was absent from the October hearing and that the October minutes should be amended to reflect his absence.
Executive Director’s Report: Ron Cattany, Deputy Director of the Department of Natural Resources (DNR) discussed the following: The Governor established a state Office of Security. DNR is in the process of updating its Emergency Plan (last updated in 1996). DNR will be designing the National Resources Building for the State Fair, including displaying a scale model of a drilling rig. DNR is in the process of updating its county profile booklet to show what each agency does in every county of the state. DNR is finalizing its annual report. The Corp of Engineers has created a liaison position to coordinate with DNR and together they are working on revamping three recreation facilities. The Colorado Water Conservation Board is working on a water supply study. The State Land Board has completed a federal aid audit. The Division of Wildlife reports that hunting permits are down 50%. DNR has a light legislative agenda this session with only six bills identified. The only item affecting the COGCC is the incorporation of a two year reserve of monies into the Oil and Gas Conservation Act. The Executive Director is working on appointing a MEGA Board replacement for former Commissioner Johnson’s vacancy.
Director’s Report: Director Griebling provided a written report and discussed the following: In year 2001, 2,435 drilling and recompletion permits were issued. Deputy Director Macke will present the Review of 1st Year Implementation of Barrett Orders later in the hearing. Deputy Directory Macke, Field Inspector Linda Pavelka and Environmental Protection Specialist Randall Ferguson will make presentations at the Private Property Oil and Gas Development Seminar in Brighton on February 21, 2002. The COGCC staff presented its 2000-2001 Fiscal Year report to the Water Quality Control Commission at its December 10, 2001 hearing. The February 2002 hearing will be held in Trinidad with a one night stay and a dinner/reception. Well log imaging has been completed with approximately 100,707 logs imaged. The COGCC has received many favorable comments on its website. Local Governmental Designee (LGD) participation has increased with the new LGD program. Three variances were granted this month under Rule 502.b.
Review of First Year Implementation of Order Nos. 479-7, 440-19, 139-34 and 510-4. Deputy Director Macke described the report and staff’s conclusion that communication has been improved from all parties, site specific plans help the environmental group and proposed plans are being implemented in the field. The staff recommends no changes to the order and reporting back to the Commission in December 2002. The report is available on the COGCC website.
AAG’s Report: The Commission’s decision was affirmed by the court in regard to the Lively matter. The Commission filed its Amicus brief in the Town of Frederick case.
Commissioner Comments: There were no comments.
Audience Comments: Ken Wonstolen, Colorado Oil and Gas Association (“COGA”), reminded the Commission of COGA’s January 17, 2002 Annual Legislative Reception at the Grant-Humphries Mansion. COGA will recommend no reform to the severance tax and will support the two year surplus to COGCC as a statutory change. Mr. Wonstolen further described COGA’s position with respect to upcoming legislation. COGA may support the elimination of conservation levy if funding through severance taxes can be assured to replace the levy. COGA will be involved in the following bills: 1) overturning the Westerman v. Rogers court decision, 2) surface owner compensation bill sponsored by Representative Larson, and 3) the Surface Development Coordination Act to reduce conflicts between surface developers and oil and gas developers. Region 8 of the Environmental Protection Agency is developing Best Professional Guidelines for disposal of produced water from coalbed methane wells.
Cause No. 191, Docket No. 0201-SP-01, request by Calpine Gas Company to vacate the orders which established a 640-acre drilling and spacing unit in Section 22, Township 6 South, Range 92 West, 6th P.M. for the production of oil, gas and associated hydrocarbons from the Mesaverde Formation was withdrawn.
Cause No. 1, Docket No. 0201-GA-01, request by Bruce Reed for payment of proceeds from DJ Production Services was approved. Reed provided the necessary testimony and exhibits to support his request. No one from DJ Production Services attended the hearing. After deliberation, the Commission ordered DJ Production Services Inc. to pay Reed Twenty Thousand two hundred two and ninety-seven cents ($20,202.97) plus interest due from September 1, 2000 through October 31, 2001, calculated in accordance with §34-60-118.5.(4), assessed a fine of Two Thousand dollars ($2000) against DJ Production Services Inc. for failure to pay Reed royalty payments from September 1, 2000 through October 31, 2001; if DJ Production Services does not pay Reed within thirty (30) days of the date the order is entered, a fine of One Thousand dollars ($1000) per day shall be assessed against DJ Production Services Inc.; ordered DJ Production Services Inc. to pay Reed Eighty dollars and thirty-seven cents ($80.37) for reimbursement of the cost to publish the notice of hearing as required by §34-60-108.(4), C.R.S.; and encouraged DJ Production Services Inc. to transfer the responsibility of issuing royalty payments to Duke Energy Field Services to ensure that payment to Reed in accordance with §34-60-118.5. is accurately and timely.
Cause No. 1V, Docket No. 0112-OV-10, request to approve an Order Finding Violation finding Rocky Mountain Operating Company in violation of Rule 326.b.(1) for the Nichols No. 1-14 Well, located in the SE¼ NW¼ of Section 14, Township 10 South, Range 97 West, 6th P.M. was approved. Jaime Adkins, Northwest Field Inspector provided testimony and exhibits in support of the staff’s position. Edward Neibauer, President of Rocky Mountain Operating Company attended the hearing and provided testimony. After deliberation, the Commission ordered Rocky Mountain Operating Company to repair or plug and abandon the Nichols No. 1-14 Well by April 15, 2002, unless extenuating circumstances exist as to why the work cannot be performed. If Rocky Mountain Operating Company demonstrates to the Commission’s satisfaction that extenuating circumstances exist as to why the Nichols No. 1-14 Well cannot be repaired or plugged and abandoned by April 15, 2002, then Rocky Mountain Operating Company shall have until May 15, 2002 to perform the work. If the work is not completed by May 15, 2002, COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well; if Rocky Mountain Operating Company does not repair or plug and abandon the well by April 15, 2002, and no extenuating circumstances exist, a fine of Two Thousand dollars ($2,000) for violation of Rule 326.b.(1) shall be assessed, payable by May 15, 2002 and COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well.
Cause No. 1V, Docket No. 0112-OV-11, request to approve an Order Finding Violation finding Rocky Mountain Operating Company in violation of Rule 326.b.(1), for the Nichols 1-23 Well located in the SW¼ NE¼ of Section 23, Township 10 South, Range 97 West, 6th P.M. was approved. Jaime Adkins, Northwest Field Inspector provided testimony and exhibits in support of the staff’s position. Edward Neibauer, President of Rocky Mountain Operating Company attended the hearing and provided testimony. After deliberation, the Commission ordered Rocky Mountain Operating Company to pay a fine of One Thousand dollars ($1,000) for the violation; Rocky Mountain Operating Company was ordered to repair or plug and abandon the Nichols No. 1-23 Well by April 17, 2002, unless extenuating circumstances exist as to why the work cannot be performed and these circumstances are documented in writing to the Commission’s satisfaction. If Rocky Mountain Operating Company demonstrates to the Commission’s satisfaction that extenuating circumstances exist as to why the Nichols No. 1-23 Well cannot be repaired or plugged and abandoned by April 17, 2002, then Rocky Mountain Operating Company shall have until May 17, 2002 to perform the work. If the work is not completed by May 15, 2002, COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well; if Rocky Mountain Operating Company does not repair or plug and abandon the well by April 17, 2002, and no extenuating circumstances exist, a fine of One Thousand dollars ($1,000) for violation of Rule 326.b.(1) will be assessed and COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well.
Cause No. 315, Docket No. 0201-SP-02, request by Williams Production Company to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for certain lands in Sections 3, 7, 8, 17 and 29, Township 1 South, Range 44 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation was approved.
Cause No. 316, Docket No. 0201-SP-03, request by Williams Production Company to allow
the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for certain lands in Sections 6 and 18, Township 2 North, Range 46 West, 6th P.M., Sections 1-2, 5, 8-11, 13 and 14, Township 2 North, Range 47 West, 6th P.M. and in Sections 25-26, 33-34 and 36, Township 3 North, Range 47 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation was approved.
Cause No. 317, Docket No. 0201-SP-04, request by Williams Production Company to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for Section 16, Township 3 North, Range 47 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation was approved.
Cause No. 331, Docket No. 0201-SP-05, request by Williams Production Company to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for Section 16, Township 3 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation was approved.
Cause No. 1, Docket No. 0201-OV-01, request to approve an Administrative Order by Consent, finding by Elm Ridge Resources, Inc in violation of Rules 324A.a., 604.c.(3), 902.c., 906.b(1).,906.c., 907.a.(1), 907.a.(2), failure to ensure E&P waste is properly managed, failure to prevent unauthorized access; failure to maintain two feet of free board, failure to remove oil from pit, failure to report the release, failure to obtain landowner approval, failure to prevent unauthorized discharges for the Harmon A#1-A Well in the NW¼ SE¼ of Section 17, Township 33 North, Range West, N.M.P.M., and assessing a fine of Ten Thousand dollars ($10,000).
Order No. 1-97, Roggen Field, Weld County: Approves the request by Bruce Reed for payment of proceeds from DJ Production Services and ordered DJ Production Services Inc. to pay Reed Twenty Thousand two hundred two and ninety-seven cents ($20,202.97) plus interest due from September 1, 2000 through October 31, 2001, calculated in accordance with §34-60-118.5.(4); assessed a fine of Two Thousand dollars ($2000) against DJ Production Services Inc. for failure to pay Reed royalty payments from September 1, 2000 through October 31, 2001; if DJ Production Services does not pay Reed within thirty (30) days of the date the order is entered, a fine of One Thousand dollars ($1000) per day shall be assessed against DJ Production Services Inc.; ordered DJ Production Services Inc. to pay Reed Eighty dollars and thirty-seven cents ($80.37) for reimbursement of the cost to publish the notice of hearing as required by §34-60-108.(4), C.R.S.; and encouraged DJ Production Services Inc. to transfer the responsibility of issuing royalty payments to Duke Energy Field Services to ensure that payment to Reed in accordance with §34-60-118.5. is accurately and timely.
Order No. 1V-217, Ignacio-Blanco Field, La Plata County: Approves an Administrative Order by Consent, finding by Elm Ridge Resources, Inc in violation of Rules 324A.a., 604.c.(3), 902.c., 906.b(1).,906.c., 907.a.(1), 907.a.(2), failure to ensure E&P waste is properly managed, failure to prevent unauthorized access; failure to maintain two feet of free board, failure to remove oil from pit, failure to report the release, failure to obtain landowner approval, failure to prevent unauthorized discharges for the Harmon A#1-A Well in the NW¼ SE¼ of Section 17, Township 33 North, Range West, 6th P.M., and assesses a fine of Ten Thousand dollars ($10,000).
Order No. 1V-218, Mesa County: Approves the Order Finding Violation finding Rocky Mountain Operating Company in violation of Rule 326.b.(1), for the Nichols No. 1-14 Well, located in the SE¼ NW¼ of Section 14, Township 10 South, Range 97 West, 6th P.M. Rocky Mountain Operating Company was ordered to repair or plug and abandon the Nichols No. 1-14 Well by April 15, 2002, unless extenuating circumstances exist as to why the work cannot be performed. If Rocky Mountain Operating Company demonstrates to the Commission’s satisfaction that extenuating circumstances exist as to why the Nichols No. 1-14 Well cannot be repaired or plugged and abandoned by April 15, 2002, then Rocky Mountain Operating Company shall have until May 15, 2002 to perform the work. If the work is not completed by May 15, 2002, COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well; if Rocky Mountain Operating Company does not repair or plug and abandon the well by April 15, 2002, and no extenuating circumstances exist, a fine of Two Thousand dollars ($2,000) for violation of Rule 326.b.(1) shall be assessed, payable by May 15, 2002 and COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well.
Order No. 1V-219, Mesa County: Approves the Order Finding Violation finding Rocky Mountain Operating Company in violation of Rule 326.b.(1), request to approve an Order Finding Violation finding Rocky Mountain Operating Company in violation of Rule 326.b.(1), for the Nichols 1-23 Well located in the SW¼ NE¼ of Section 23, Township 10 South, Range 97 West, 6th P.M. Rocky Mountain Operating Company was ordered to pay a fine of One Thousand dollars ($1,000) for the above violation. Rocky Mountain Operating Company shall repair or plug and abandon the Nichols No. 1-23 Well by April 17, 2002, unless extenuating circumstances exist as to why the work cannot be performed and these circumstances are documented in writing to the Commission’s satisfaction. If Rocky Mountain Operating Company demonstrates to the Commission’s satisfaction that extenuating circumstances exist as to why the Nichols No. 1-23 Well cannot be repaired or plugged and abandoned by April 17, 2002, then Rocky Mountain Operating Company shall have until May 17, 2002 to perform the work. If the work is not completed by May 15, 2002, COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well; if Rocky Mountain Operating Company does not repair or plug and abandon the well by April 17, 2002, and no extenuating circumstances exist, a fine of One Thousand dollars ($1,000) for violation of Rule 326.b.(1) shall be assessed, payable by May 17, 2002 and COGCC staff is authorized to commence a claim on the Thirty Thousand dollar ($30,000) Cashier’s Check posted by Rocky Mountain Operating Company in order to plug, abandon and reclaim the well.
Order No. 315-7, Vernon Field, Yuma County: Approves the request to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for certain lands in Sections 3, 7-8, 17 and 29, Township 1 South, Range 44 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation.
Order No. 316-7, Shout Field, Yuma County: Approves the request to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for certain lands in Sections 6 and 18, Township 2 North, Range 46 West, 6th P.M., Sections 1-2, 5, 8-11, 13 and 14, Township 2 North, Range 47 West, 6th P.M. and in Sections 25-26, 33-34 and 36, Township 3 North, Range 47 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation.
Order No. 317-7, Whisper Field, Yuma County: Approves the request to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for Section 16, Township 3 North, Range 47 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation.
Order No. 331-7, Buckboard Field, Yuma County: Approves the request to allow the first well drilled in a 160-acre drilling and spacing unit to be located 560 feet from the outer boundaries of the unit for Section 16, Township 3 North, Range 46 West, 6th P.M. for the production of gas and associated hydrocarbons from the Niobrara Formation.