record of proceedings · kudos to margaret ash and her staff for this important work. questions for...

RECORD OF PROCEEDINGS

of 41

January 26, 2015 The Colorado Oil and Gas Conservation Commission (“COGCC”) met on January 26, 2015, at the COGCC Denver Office, 1120 Lincoln St., Suite 801, Denver, CO 80203. Roll Call of Commissioners:

Present:

Tom Compton Chairman Andrew Spielman Vice-Chairman Richard D. Alward Commissioner Mike King Commissioner Bill Hawkins Commissioner John Benton Commissioner Deann Craig Commissioner Larry Wolk Commissioner (arrived at 9:10 a.m.) Matt Lepore Director Jake Matter Assistant Attorney General Jill Dorancy Acting Secretary

Absent:

Tommy Holton Commissioner Approval of Proceedings: Commissioner Benton made a motion to approve the minutes from the December 15 and 16, 2014 hearing. The motion was seconded by Commissioner Craig and approved unanimously. Report from the Executive Director’s Office: The Governor’s oil and gas task force will be meeting February 2nd and 3rd – their second to last meeting. Proposals are coming in from the task force for legislation, urban mitigation planning, staffing, and involvement of local governments and public input—the Task Force’s last meeting will be Feb 26th and 27th, and then they will make their recommendations to the Governor. There will probably be things for the Commission to consider from the Task Force’s recommendations. The Legislature may have to make amendments to statute, and decide whether the recommendations are legislative or administrative. The Colorado Water Congress is meeting this week, and the Governor is speaking on Thursday morning on the state of water in Colorado. The Legislature has begun, and DNR bills are moving, including severance tax issues—none are administration bills. Report from the Director: Staffing changes—new additions include Katrina Andrus, a new permit technician and Tom Peterson, a new field inspector. Cheryl Sunseth is retiring the end of this month—she has been with COGCC for a long time, and we appreciate her work. Director Lepore asked Deputy Director Kulmann to give an update on new complaint process. Kulmann noted that the new process was rolled out on January 9—so far the COGCC has received 18


of 41

complaints with 27 different issues. 17 of 18 were filed online with our new tool, the last via paper form. COGCC’s central response team is working well, the written complaints are getting to the field, inspections are being completed and communication with complainants is going well. Overall, the new complaint process going very well—we can improve documentation requirements, but overall pretty positive. Director Lepore reported that staff has noticed another rulemaking regarding flood lessons learned. Staff has consulted with the regulated community regarding the 600 series rules, and plans to conduct a rulemaking at the March hearing. The Commission has the proposed rules – seven changes—before them. A stakeholder meeting will be held this Wednesday and a second on February 17th if necessary. On January 13, the Commission received a petition for a rulemaking from the Colorado Prairie Initiative seeking changes to reclamation rules. Staff has not had a lot of time to review it yet. We have a full regulatory agenda that has already been sketched out for this year, and we need to juggle and make decisions on what is the highest priority. Staff will consider the petition and discuss with Commission in March. Director Lepore gave statistical highlights from 2014, including: 53,000 active wells as of January 3, about 2000 new starts each year, the COGCC approved over 4,000 drilling permits, and received 698 applications for hearings last year—a 22% increase over 2013. We have asked for an additional hearings staffer to keep up with the increase. A total of 57% of all permits were for horizontal wells. The Field Inspection Unit performed 33,612 inspections of wells in 2014— a 43% increase over 2013. At that rate, we will inspect every well every 1.6 years—a 170% increase over 2011. Kudos to Margaret Ash and her staff for this important work. Questions for the Director on his report included: Commissioner Alward: Wanted to highlight the really good record of inspections. Very impressed and pleased with the work of the staff. Commissioner Craig: How are you aligning inspections on the basis of bradenhead testing, wells, how do you prioritize? Director Lepore: A year ago, field inspection unit published a risk based inspection report which created a way to prioritize wells for inspection and takes into account different factors—NOAVs, buildings, surface water, time from last inspection. This is a new program, so can’t yet evaluate how often the high priority wells are being inspected. There is a robust effort to prioritize wells based on these factors. Commissioner Craig: I’d like to get a report once we have those numbers. Director Lepore: We’ll do that. Commissioner Comments: Commissioner Compton: We’ve run into problems in Southwestern Colorado with the inspection and reclamation process. We have meetings set up to work through this. In terms of a rulemaking for reclamation rules— Commissioner Alward just published a paper on oil well reclamation, and I also have an interest because of agricultural implications—I hope my colleagues are interested in a reclamation rulemaking. We did it in 2008; it may be time to do it again. Especially since


of 41

Commissioner Alward and I are done July 1 as Commissioners, I’d like to see that happen. Can we have a brief discussion on Commissioners’ thoughts today? We have a full agenda, so not sure if we can make it work. Commissioner King: There is a risk of rulemaking fatigue. Prioritization is critical. I would like a more complete picture of the menu before I weigh in on priorities. Several significant rulemakings all at the same time especially considering the price of oil and gas is concerning. We need to be cognizant of the pressures industry is under. We also have to acknowledge that the task force is likely to make recommendations regarding increased inspections. Commissioner Craig: Where is Dr. Alward’s paper published? Commissioner Alward: Ecological Applications is the publication, it is the top journal in applied ecology. It is published as an open article, so anyone can access it. It should be available online today. I’d like to continue the conversation on reclamation rules—cognizant of Commissioner King’s concerns and staff’s on workload and timing. First of all, it’s the law. We’ve were directed by statute in 2007 to develop rules to ensure adequate and timely rehabilitation of wildlife habitat, and we promised to start in 2009. Reclamation has a lot of benefits for conservationists, for hunters, and for operators who are seeking a social license to operate in wildlife habitat. We’ve heard recently that it’s a concern of the industry, because we just increased fines from a maximum of $10,000 to $10,000 ($15,000) a day—we should clarify for industry what we’re holding them to if we’re increasing our penalties. We do have good performance based standards, but there is lack of definition in quantitative measurements, both before and after, as well as reporting requirements. We need reporting requirements, and benchmarks to help operators progress towards success. This issue is timely, urgent, and we have a petition before us, and I seek support from the Commission, to ask staff to find out what timeline we’re looking at and to take care of it this year, preferably in the first half. Commissioner Compton: Comments? So, since Director, you’ve outlined briefly what we have on our plate, do we need a more definitive plan from you? Though it may be a moving target. Director Lepore: I will read to you what staff put together last fall and it is broken out by quarter: We penciled in for the first quarter of this year flood lessons learned, for the second quarter, any rulemaking made by the Governor’s Task Force as well as making a formal rule out of the horizontal wellbore policy for the Denver-Julesberg area. For the third quarter, a possible update to the 900 series on flaring, unlined skim pits, and a review on the arsenic table. We need to tighten up rules on flaring so that there is no flaring if a well is completed. For the 4th quarter, we will be looking at updating rules on noise, particularly on the C scale. Our noise rule today doesn’t have a clearly enforceable standard. The wellbore policy should be easy, but noise is a high priority as well as whatever comes out of the Gov’s task force. My thoughts on reclamation is to get input from Commissioner Alward and staff on the petition and some scoping out of what that rulemaking might look like. I appreciate the urgency given Commissioner Alward and Commissioner Holton’s time on the Commission, though that feels ambitious given the Governor’s Task Force. Audience Comments:

1) Amanda Harper: Good morning Commissioners, my name is Amanda Harper, I am a Pleasant View stakeholder. I have been going to every Weld and Boulder County Commissioner meeting and have been meeting with other communities. Egregious neighbors submit applications for high industrial facilities in the middle of neighborhoods, even though the community has expressed its


of 41

concern. Encana has submitted such an application—more than 4 wells which produce seismic activity, noise, and emit poisonous emissions. The road access point will create excessive truck passage at the neighborhood’s only ingress and egress point. Let’s call a duck a duck—visual blight, noise, dangers of explosions—let’s call a major industrial site a major industrial site. How can oil and gas be exempt in Weld County from being called a major industrial site and be exempt from local zoning rules? We are a high density agricultural neighborhood, and we are very concerned. I am asking for a statewide zoning rule for public planning and required access permits for county roads. It should be a COGCC rule for LGDs to comment. Please see Boulder County LGD comments. I am also asking for a statewide emergency ban on high density industrial developments. The road issue is not being addressed correctly. Encana has not worked with Boulder or Weld County. Encana worked briefly with us to describe their plans, but has not worked to solve the problems. Mr. Hawk said a moratorium doesn’t solve anything, but it would protect communities from extraction invasions until new restrictions can be placed on these sites. Noble has a different approach. Our pleas to the COGCC have fallen on deaf ears. The COGCC should protect Pleasant View and many other communities. Why isn’t this happening? Please remove those applications until further rulemaking can happen to protect us. Thank you for your time.

Director Lepore: I have been to Ms. Harper’s house and there are ongoing talks with Encana re:

12 horizontal wells, 30 tanks, and associated production equipment. We are aware of the road issues and others—the permits are in process. There is no reason that we would take them out, but we are continuing to work with Encana to mitigate impacts as appropriate.

Amanda Harper: Quick response, I did ask if there was a reason to remove these wells. You said

no, and I think that’s because of how the COGCC works. You need people in your agency to review community issues. Where is the community piece of the COGCC?

Commissioner Compton: I appreciate your passion, and your concern. 2) Kate Hall: I am the mother of a Bethke Elementary student. The wells are to be located 2,000 ft

from the Elementary school. I have located 19 errors in Peterson’s applications—including incorrect well locations, incorrect distances to buildings. I notified COGCC staff of these errors, but the supporting documentation is still incorrect. Referencing rule 303.e., I request that all form 2s and 2As be returned to Peterson energy—significant problems have no place so close to 600 elementary students. I hope you’ll do the right thing.

Director Lepore: We are aware of this situation. The proposed wells are not in the city of

Tinmath, they are in unincorporated Larimer County. The Larimer LGD is involved and the OGLA staff has been working through the error issues. Mr. Noto can speak to the process. Public comment has been extended several times.

Kate Hall: I’m not disputing clerical errors, I’m speaking of substantive errors that are not being

addressed. For example, the deviated drilling plan is not included for one of the wells. Wells are ID’d as being located in Windsor, this is not Windsor. The underlying survey plats are still wrong. There are also other errors that place the well in a completely different location—approximately 5 miles away. All I’m asking for is to prevent errors up front to prevent errors later. These children deserve that. I can provide list of 50 to 100 different errors. I’m not asking for this well to go away, but for complete review of the rules that are in place to protect these children.

Commissioner Compton: Director Lepore, I am counting on your staff to handle these concerns.


of 41

Commissioner Benton: I’d like to hear from Mr. Noto. John Noto: Hello, I’m John Noto, COGCC OGLA Supervisor. We have been very involved with

the Peterson wells, including a public meeting that was held at the elementary school, we’ve had over 200 public comments that we’ve gone over and have addressed internally, contacted the operator and addressed externally. Initially, the distance to the building didn’t include distance to permanent modular school buildings. That has been updated, and we are continuing to work through other issues until we’re satisfied.

Commissioner Craig: This is also to the operator’s benefit to get everything right at the beginning. Commissioner Spielman: I don’t know much about this, but this is an elementary school classroom, there is no room for error. The public shouldn’t have to find these errors. Greg Deranleau: I’m Greg Deranleau, COGCC Environmental Manager, I would like to stress that this is the reason we have public comment and local government comment on these proposals. We are very appreciative when we receive information such as classrooms being added. This is an example of working to get the best information from relevant people who have that information. Kate Hall: There was a week of the comment period where people were not able to comment on Form 2A. Please look carefully at deviated wells. Strong oversight will prevent problems with reclamation and inspections later down the road.

3) Ellen Readio: Good morning, I have a quick handout. I registered a complaint which has not yet played out. It is the first page in your packet regarding seismic activity in a cemetery close to the Pleasant View community. The complaint shows seismic activity which dates back to September 2014, within 20 feet of a tombstone. The surface owner did not consent to trespass on hallowed ground. Fluorescent paint was put on grave markers. I’m asking you to do what you can do as common sense administrators if there is a balance between communities and companies. I’m asking in this instance to apply some common sense that would provide supportive guidance to stay back from cemeteries and landmark properties. Commissioner Compton: Thank you for your extraordinary representation.

The Commission took a ten minute break. Consent Agenda Commissioner Benton noted questions with respect to group H on the consent agenda, Southwestern’s application for a drilling and spacing unit. Group H was pulled from the consent agenda for separate consideration. Commissioner Benton made a motion to approve consent agenda with the exception of group H as

recommended by staff, as follows:

Group A-

Docket No. 150100070, Unnamed Field, Weld County


of 41

Applicant: Carrizo Oil and Gas, Inc. (Operator No. 10439) Attorneys: Elizabeth Y. Spencer & Kurt V. Tyler

Subject: Request for an order to among other things: Approve an additional 12 horizontal wells, for a total of up to 16 horizontal wells within an approximate 960-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 11 North, Range 58 West, 6th P.M. Section 27:

S½ Section 34: All Docket No. 150100074, Unnamed Field, Weld County Applicant: Carrizo Oil and Gas, Inc. (Operator No. 10439) Attorneys: Elizabeth Y. Spencer & Kurt V. Tyler

Subject: Request for an order to among other things: Approve an additional 10 horizontal wells, for a total of up to 16 horizontal wells within an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.


All Docket No. 150100071, Unnamed Field, Weld County Applicant: Carrizo Oil and Gas, Inc. (Operator No. 10439) Attorneys: Elizabeth Y. Spencer & Kurt V. Tyler

Subject: Request for an order to among other things: Establish an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation and approve up to 16 horizontal wells within the unit.


S½ Section 35: N½

Group B- Docket No. 150100033, Wattenberg Field, Weld County Applicant: Verdad Oil & Gas Corporation (Operator No. 10485) Attorneys: Jamie L. Jost & Joseph M. Evers


of 41

Subject: Request for an order to among other things: Pool all interests in an approximate 320-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


E½ Docket No. 150100034, Wattenberg Field, Weld County Applicant: Verdad Oil & Gas Corporation (Operator No. 10485) Attorneys: Jamie L. Jost & Joseph M. Evers



E½ Group C-

Docket No. 150100001, Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) Attorneys: Jamie L. Jost & Joseph M. Evers



W½W½ Section 30: W½W½ Section 31: NW¼NW¼ Township 2 North, Range 67 West, 6th P.M. Section 24: E½E½ Section 25: E½E½ Section 36: NE¼NE¼


Subject: Request for an order to among other things: Pool all interests in an approximate 400-acre designated horizontal wellbore spacing unit established for the Application


of 41

Lands, for the development and operation of the Niobrara Formation.


N½NE¼ Township 4 North, Range 66 West, 6th P.M. Section 36: E½


Subject: Request for an order to among other things: Pool all interests in an approximate 200-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Codell Formation.


NE¼ NE¼ Township 4 North, Range 66 West, 6th P.M. Section 36: E½ E½


Subject: Request for an order to among other things: Pool all interests in three approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.


W½ Section 11: N½ NW¼ Group D-


Subject: Request for an order to among other things: Pool all interests in an approximate 311-acre designated horizontal wellbore spacing spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


of 41

Application lands: Township 2 North, Range 65 West, 6th P.M. Section 2: W½ W½ Section 3: E½ E½


Subject: Request for an order to among other things: Pool all interests in three approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.


W½ E½, E½ W½ Section 11: NW¼ NE¼, NE¼ NW¼ Docket No. 150100027, Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in two approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 2 North, Range 65 West, 6th P.M. Section 2: E½

Section 11: N½ NE¼ Docket No. 150100028, Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in two approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.


W½ W½ Section 2: E½ E½ Section 11: NE¼ NE¼ Section 12: NW¼ NW¼ Section 36: NE¼NE¼

Docket No., Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP


of 41

(Operator No. 47120) Attorneys: Jamie L. Jost & James P. Parrot

Subject: Request for an order to among other things: Pool all interests in an approximate 640-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Codell Formation.


W½ W½ Section 26: E½ E½ Section 35: E½ E½ Section 36: W½ W½

Group E-

Docket No. 150100050, Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: Pool all interests in an approximate 640-acre designated horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation.


E½ E½ Section 12: W½ W½ Section 13: W½ W½ Section 14: E½ E½


Subject: Request for an order to among other things: Pool all interests in two approximate 640-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 2 North, Range 67 West, 6th P.M. (“WSU” No. 1)

Section 11: E½W½, W½E½ Section 14: E½W½, W½E½ Township 2 North, Range 67 West, 6th P.M. (“WSU” No. 2) Section 11: E½ Section 14: E½

Docket No. 150100052, Wattenberg Field, Weld County Applicant: Kerr-McGee Oil & Gas Onshore LP


of 41

(Operator No. 47120) Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: Pool all interests in an approximate 480-acre designated horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation.


SE¼ SW¼, SW¼ SE¼ Section 8: E½ W½, W½ E½ Section 17: NE¼ NW¼, NW¼ NE¼


Subject: Request for an order to among other things: Pool all interests in four approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 1 North, Range 65 West, 6th P.M. (“WSU” No. 1)

Section 5: SW¼SW¼ Section 8: W½W½ Section 17: NW¼NW¼ Township 1 North, Range 65 West, 6th P.M. (“WSU” Nos. 2 and 3) Section 5: S½SW¼ Section 8: W½ Section 17: N½NW¼ Township 1 North, Range 65 West, 6th P.M. (“WSU” No. 4) Section 5: SE¼SW¼ Section 8: E½W½ Section 17: NE¼NW¼




SW¼ SW¼ Section 6: SE¼ SE¼ Section 7: E½ E½ Section 8: W½ W½ Section 17: NW¼ NW¼ Section 18: NE¼ NE¼


of 41




SE¼ SE¼ Section 22: SW¼ SW¼ Section 27: W½ W½ Section 28: E½ E½ Section 33: NE¼ NE¼ Section 34: NW¼ NW¼

Group F-


Subject: Request for an order to among other things: Pool all interests in an approximate 480-acre designated horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell Formation.




Subject: Request for an order to among other things: Pool all interests in nine approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 3 North, Range 65 West, 6th P.M. (WSU No. 1)

Section 21: SE¼ SE¼ Section 28: E½ E½ Section 33:


of 41

NE¼ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU Nos. 2-4) Section 21: S½ SE¼ Section 28: E½ Section 33: N½ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU Nos. 5-7) Section 21: SE¼ SW¼, SW¼ SE¼ Section 28: E½ W½, W½ E½ Section 33: NE¼ NW¼, NW¼ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 8) Section 21: SW¼ SE¼ Section 28: W½ E½ Section 33: NW¼ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 9) Section 21: SW¼ SE¼ Section 28: W½ E½, E½ SW¼, SE¼ NW¼ Section 33: NE¼ NW¼, NW¼NE¼


Subject: Request for an order to among other things: Pool all interests in four approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 3 North, Range 65 West, 6th P.M. (WSU Nos. 1-

3) Section 16: S½ SE¼ Section 21: E½ Section 28: N½ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 4) Section 16: SE¼ SE¼ Section 21: E½ E½ Section 28: NE¼ NE¼


Subject: Request for an order to among other things: Pool all interests in three approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 3 North, Range 65 West, 6th P.M. (WSU Nos. 1-

2) Section 16: SE¼ SW¼, SW¼ SE¼ Section 21: E½ W½, W½ E½ Section 28: NE¼ NW¼, NW¼ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 3) Section 16: SW¼ SE¼ Section 21: W½ E½ Section 28: NW¼ NE¼


of 41


Subject: Request for an order to among other things: Pool all interests in five approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.


Section 21: SE¼ SW¼ Section 28: E½ W½ Section 33: NE¼ NW¼ Township 3 North, Range 65 West, 6th P.M. (WSU Nos. 2-4) Section 21: S½ SW¼ Section 28: W½ Section 33: N½NW¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 5) Section 21: SW¼ SW¼ Section 28: W½ W½ Section 33: NW¼ NW¼


Subject: Request for an order to among other things: Pool all interests in two approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.


Section 20: SE¼ SE¼ Section 21: SW¼ SW¼ Section 28: W½ W½ Section 29: E½ E½ Section 32: NE ¼ NE ¼ Section 33: NW¼ NW¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 2) Section 21: SW¼ SW¼ Section 28: W½ W½ Section 33: NW¼ NW¼


Subject: Request for an order to among other things: Pool all interests in six approximate 240-acre to 480-acre horizontal wellbore spacing units established for the Application Lands, effective as of the date of the


of 41

Application, for the development and operation of the Codell and Niobrara Formations.


Section 16: SE¼ SW¼ Section 21: E½ W½ Section 28: NE¼ NW¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 2) Section 16: SW¼ SE¼, SE¼ SW¼ Section 21: E½ W½, W½ E½ Section 28: NE¼ NW¼, NW¼ NE¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 3-5) Section 16: S½ SW¼ Section 21: W½ Section 28: N½ NW¼ Township 3 North, Range 65 West, 6th P.M. (WSU No. 6) Section 16: SW¼ SW¼ Section 21: W½ W½ Section 28: NW¼ NW¼


Subject: Request for an order to among other things: Pool all interests in an approximate 480-acre horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation



Group G-

Docket No. 150100038, Wattenberg Field, Weld County Applicant: Apollo Operating, LLC (Operator No. 10051) Attorneys: Brent D. Chicken

Subject: Request for an order to among other things: 1) Vacate Order No. 407-536 which established an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.


All Group I-

Docket No. 150100029, Wattenberg Field, Weld County Applicant: DJ Resources, Inc. (Operator No. 10213)


of 41

Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: 1) Establish an approximate 320-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 2) Approve up to eight horizontal wells within the unit.

Application lands: Township 7 North, Range 65 West, 6th P.M. Section 2: E½ Docket No. 150100043, Wattenberg Field, Weld County Applicant: Bill Barrett Corporation (Operator No. 10071) Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Approve up to 16 horizontal wells within the unit.

Application lands: Township 4 North, Range 61 West, 6th P.M. Section 9: All

Section 16: All Docket No. 150100044, Wattenberg Field, Weld County Applicant: Bill Barrett Corporation (Operator No. 10071) Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: 1) Maintain two approximate 640-acre drilling and spacing units established by Order Nos. 407-779 and 535-4 for Sections 27 and 34, Township 5 North, Range 62 West, 6th P.M., for the production of existing oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and approve up to 16 horizontal wells for the Niobrara Formation within the unit; 3) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation and approve up to four horizontal wells for the Codell Formation within the unit.


All Section 34: All


of 41

Docket No. 150100048, Wattenberg Field, Weld County Applicant: Bill Barrett Corporation (Operator No. 10071) Attorneys: Jillian Fulcher

Subject: Request for an order to among other things: 1) Maintain an approximate 640-acre drilling and spacing unit established by Order Nos. 407-779 and 535-4 for Section 3, Township 6 North, Range 62 West, 6th P.M., for the production of existing oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Vacate Order No. 407-878; 3) Vacate an approximate 1280-acre drilling and spacing unit established by Order No. 407-900 for Sections 1 and 2, Township 6 North, Range 62 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 4) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and approve up to 16 horizontal wells for the Niobrara Formation within the unit; 5) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation and approve up to four horizontal wells for the Codell Formation within the unit.


Section 3: All

Group J- Docket No. 150100006, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan

Subject: Request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.


All Section 12: All Docket No. 150100007, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459)


of 41

Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan

Subject: Request for an order to among other things: 1) Establish an approximate 1246.3-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.


All (only those lands lying within the State of Colorado, approx. 617.90 acres) Section 22: All (only those lands lying within the State of Colorado, approx. 628.40 acres)

Group K-

Docket No. 150100008, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459)150100007 Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan



All Section 35: All Docket No. 150100009, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan



All Section 15: All

Group L- Docket No. 150100010, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan


of 41





Application lands: Town Township 11 North, Range 65 West, 6th P.M.

Section 17: All Section 20: All Group M-

Docket No. 1501000017, Unnamed Field, Weld County Applicant: Extraction Oil & Gas, LLC (Operator No. 10459) Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan






of 41


All Section 25: All Group N-







All Section 27: All Group O-


Subject: Request for an order to among other things: 1) Establish an approximate 1280-acre horizontal well unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.


All Township 11 North, Range 68 West, 6th P.M. Section 35: All


of 41




All Township 11 North, Range 68 West, 6th P.M. Section 34: All


Subject: Request for an order to among other things: 1) Establish an approximate 1244.37-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.


All (only those lands lying within the State of Colorado, approx. 612.07 acres) Section 30: All

Group P-

Docket No. 150100037, Wattenberg Field, Weld County Applicant: Noble Energy, Inc. (Operator No. 100322) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: 1) Establish an approximate 1120-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 2) Approve up to nine horizontal wells within the unit.


SW¼ NE¼, S½ NW¼, SW¼, W½ SE¼ Section 18: N½ NW¼, NW¼ NE¼ Township 6 North, Range 66 West, 6th P.M. Section 12: S½ N½, S½ Section 13: N½ N½


of 41

Docket No. 150100045, Wattenberg Field, Weld County Applicant: Bonanza Creek Energy Operating Company (Operator No. 100322) Attorneys: Jamie L. Jost & James P. Parrot

Subject: Request for an order to among other things: 1) Maintain an approximate 640-acre drilling and spacing unit established by Order No. 535-12 for Section 9, Township 6 North, Range 62 West, 6th P.M., for the existing production of gas and associated hydrocarbons from the Niobrara Formation. 2) Vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-37 for Section 4, Township 6 North, Range 62 West, 6th P.M., for the production of gas and associated hydrocarbons from the Niobrara Formation. 3) Vacate Order No. 535-67, which pooled all non-consenting interests in an approximate 640-acre drilling and spacing unit established for Section 4, Township 6 North, Range 62 West, 6th P.M., for the development and operation of the Niobrara Formation. 4) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 5) Approve up to eight horizontal wells within the unit.


Section 9: All Docket No. 150100047, Wattenberg Field, Weld County Applicant: Bonanza Creek Energy Operating Company (Operator No. 100322) Attorneys: Jamie L. Jost & James P. Parrot

Subject: Request for an order to among other things: 1) Pool all interests in an approximate 1280-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.


Section 9: All Group Q-

Docket No. 1412-UP-323, Unnamed Field, Weld County Applicant: Bayhorse Petroleum, LLC (Operator No. 10234) Attorneys: Jamie L. Jost & Joseph M. Evers


of 41

Subject: Request for an order to, among other things: 1) Establish an approximate 80-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Shawnee, Lansing-Kansas City, Marmaton, Cherokee, Morrow, Keyes and Mississippian System (St. Genevieve Formation to Warsaw Formation); 2) Approve one well within the unit.

Application lands: Township 18 South, Range 47 West, 6th P.M. Section 21:

S½ NE¼ Docket No. 1412-UP-359, Wattenberg Field, Weld County Applicant: Great Western Operating Company, LLC

(Operator No. 10110)

Attorneys: Jamie L. Jost & James P. Parrot

Subject: Request for an order to among other things: Pool all interests in two approximate 320-acre designated horizontal well spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 1 South, Range 67 West, 6th P.M. (WSU #1)

Section 18: E½ Township 1 South, Range 67 West, 6th P.M. (WSU #2) Section 18: E½

Docket No. 1412-UP-363, Wattenberg Field, Weld County Applicant: PDC Energy, Inc.

(Operator No. 90950)

Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in an approximate 160-acre wellbore spacing unit established for the Application Lands, for the development and operation of the Codell-Niobrara Formation.


NW¼ Docket No. 1412-UP-364, Wattenberg Field, Weld County Applicant: PDC Energy, Inc. (Operator No. 90950) Attorneys: Jamie L. Jost & Joseph M. Evers Subject: Request for an order to among other things: Pool all

interests in an approximate 80-acre drilling and spacing unit established for the Application Lands, for the


of 41

development and operation of the Codell-Niobrara Formation.


W½ NW¼

Group R-

Docket No. 1412-UP-336, Wattenberg Field, Weld County Applicant: Noble Energy, Inc. (Operator No. 100322) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in an approximate 567.26-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


SE¼, S½NE¼ Section 22: E½ Docket No. 1412-UP-338, Wattenberg Field, Weld County Applicant: Noble Energy, Inc. (Operator No. 100322) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in an approximate 404.19-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


SE¼ SW¼, SW¼ SE¼ Section 22: E½ W½, W½ E½ Docket No. 1412-UP-339, Wattenberg Field, Weld County Applicant: Noble Energy, Inc. (Operator No. 100322) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in an approximate 485.40-acre designated horizontal well spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


E½ SW¼, W½ SE¼ Section 22: E½ W½, W½ E½ Docket No. 1412-UP-366, Wattenberg Field, Weld County Applicant: K.P. Kauffman Company, Inc.


of 41

(Operator No. 46290) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in two approximate 320-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 4 North, Range 66 West, 6th P.M. Section 3: S½

S½ Section 10: N½ N½ Docket No. 1412-UP-367, Wattenberg Field, Weld County Applicant: K.P. Kauffman Company, Inc. (Operator No. 46290) Attorneys: Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: Pool all interests in three approximate 160-acre and three approximate 320-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.


N½ WSU #1 (Niobrara) Township 4 North, Range 66 West, 6th P.M. Section 10: N½ WSU #2 (Codell) Township 4 North, Range 66 West, 6th P.M. Section 10: N½ WSU #3 (Niobrara) Township 4 North, Range 66 West, 6th P.M. Section 10: N½N½ WSU #4 (Niobrara) Township 4 North, Range 66 West, 6th P.M. Section 10: S½N½ WSU #5 (Niobrara) Township 4 North, Range 66 West, 6th P.M. Section 10: S½N½ WSU #6 (Niobrara)

Group S-

Docket No. 1412-AW-26, Ignacio-Blanco Field, La Plata County Applicant: Four Star Oil & Gas Company Attorneys: Scott M. Campbell & Cody C. Bourke

Subject: Request for an order to among other things: Approve an additional two wells, for a total of four wells, within an approximate 320-acre drilling and spacing unit established for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Fruitland Coal Formation.

Application lands: Township 33 North, Range 10 West, N.M.P.M. Section 9:

E½


of 41

Group T-

Docket No. 1412-SP-2201, Hereford Field, Weld County Applicant: EOG Resources, Inc. (Operator No. 27742) Attorneys: Jamie L. Jost & Jamie L. Jost & Joseph M. Evers

Subject: Request for an order to among other things: 1) Establish twelve approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve one horizontal well within each unit. (Note: The Commission approved the drilling and spacing units below, but continued two other DSUs to its March hearing. The Secretary will be authorized to issue an order following that hearing.)

Application lands: Township 11 North, Range 63 West, 6th P.M. (DSU #1)

Section 7: All Section 18: All Township 11 North, Range 63 West, 6th P.M. ( DSU #2) Section 20: All Section 29: All Township 12 North, Range 63 West, 6th P.M. (DSU #4) Section 21: All Section 28: All Township 12 North, Range 63 West, 6th P.M. (DSU #5) Section 22: All Section 27: All Township 12 North, Range 63 West, 6th P.M. (DSU #6) Section 23: All Section 26: All Township 12 North, Range 63 West, 6th P.M. (DSU #7) Section 24: All Section 25: All Township 12 North, Range 63 West, 6TH P.M. (DSU #8) Section 32: All Township 11 North, Range 63 West, 6th P.M. Section 5: All Township 12 North, Range 63 West, 6th P.M. (DSU #10) Section 33: All Township 11 North, Range 63 West, 6th P.M. Section 4: All Township 12 North, Range 63 West, 6th P.M. (DSU #11) Section 34: All Township 11 North, Range 63 West, 6th P.M. Section 3: All Township 12 North, Range 63 West, 6th P.M. (DSU #12) Section 36: All Township 11 North, Range 63 West, 6th P.M. Section 1: All

Docket No. 150100039, Hereford Field, Weld County Applicant: EOG Resources, Inc. (Operator No. 27742) Attorneys: Jamie L. Jost & James P. Parrot

Subject: Request for an order to among other things: 1) Establish four approximate 1280-acre drilling and spacing units for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve one horizontal well within each unit.


of 41

Application lands: Township 11 North, Range 63 West, 6th P.M. – DSU #1 Section 9: All Section 16: All Township 11 North, Range 63 West, 6th P.M. – DSU #2 Section 19: All Section 30: All Township 11 North, Range 63 West, 6th P.M. – DSU #3 Section 20: All Section 29: All Township 11 North, Range 63 West, 6th P.M. – DSU #4 Section 21: All Section 28: All

The motion was seconded by Commissioner Alward. Approved unanimously. Commissioner Benton inquired of Southwestern’s counsel since the proposed drilling and spacing unit is close to the URUs, will drilling these wells give the company information on drilling the adjacent unconventional resource units (URUs). Michael Jewell, counsel for Southwestern stated: We are taking a hard look at the URUs and are in consultation with royalty owners, and do have plans to drill five to six wells this year. Commissioner Benton moved to approve group H on the Consent Agenda as recommended by staff,

as follows:

Group H-

Docket No. 150100002, Unnamed Field, Moffat County Applicant: Southwestern Energy Production Company (Operator No. 10396) Attorneys: Michael T. Jewell

Subject: Request for an order to among other things: 1) Establish an approximate 644.35-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Approve up to 24 horizontal and four vertical wells within the unit.


All The motion was seconded by Commissioner Spielman. Approved unanimously.

Presentations to the Commission: Bill Barrett Corporation (BBC) Crude Oil Flammability Study Staff: Peter Gowen, Enforcement Officer Presenters: Rusty Frishmuth, BBC Environmental Manager Jeff Citrone, BBC Health and Safety Manager On April 28, 2014, the Commission approved an AOC (Order No. 1V-459) with BBC for a violation of Rule 324A arising from a fire at the BBC Merritt Pad. The AOC provided for a $17,000 penalty and a $10,000 public project. The public project involved: a) Collection and analysis of the flammability potential (flash point and boiling point) of representative crude oil samples; b) Coordination through the


of 41

Weld County Office of Emergency Management to communicate flammability and hazard information to Weld County emergency responders; c) Communication of the incident investigation findings and lessons learned, including the flammability data, to other operators in the DJ Basin; and d) Discussions regarding best practices for industry to set-up, manage and operate flowback operations to reduce emission and flammability potential in order to have a safe and “healthy” work environment. Jeff Citrone presented lessons learned and DJ Basin Crude Flammability Study. Vapors ignited and flashed back to ignite tanks in March 2014. Identified causes included: lack of hazard recognition, lack of adequate job planning, poor equipment selection, poor contractor selection, lack of grounding and bonding, lack of safety requirements passed on to contractors. BBC has responded by implementing contractor revisions, and requiring production facilities to be available during flowback, and requiring that all tanks are grounded and bonded. OSHA investigated all 4 operators, cited RPS and Aaron’s Water Services for failure to maintain exclusion zones, and failure to bond and ground. COGCC issued an NOAV to BBC. Rusty Frishmuth presented the Flammability Study, which included Great Western and PDC in addition to BBC. Study areas were across the DJ Basin, from Adams County into Wyoming. Niobrara and Codell horizontals were collected. Analysis included boiling point, flash point, and VOC content. All flash points were below 70 degrees F. Boiling point ranged from 151 to 295 degrees F. VOC concentrations exceeded OSHA PELs inside the tanks (benzene) but did not exceed IDLH. No correlations were found based on formation, geography or age of the well. Overall results indicated that crude is a flammable liquid, and should be labeled and stored under NFPA and API procedures. NORM (Naturally Occurring Radioactive Material) Policy Presenters: Bob Chesson John Axelson Bob Chesson, Environmental Protection Specialist, explained the use of drill cuttings as a beneficial agricultural land amendment. These cuttings do not include any oily wastes. The project analyzed the radioactivity of these drill cuttings, with help from the CDPHE, which regulates radioactive materials. No samples exceeded CDPHE standards. We will continue to analyze wastes for NORM. Enforcement Matters: Commissioner Alward moved to approve the Enforcement Group A Matters as recommended by staff, as follows: Enforcement Group A

Docket No. 1410-OV-67 Foundation Energy Management (Foundation) Staff: Jeremy Ferrin, Enforcement Officer Britta Beckstead, Assistant Attorney General

Subject: Staff requests approval of an AOC with Foundation imposing a $110,000 penalty for violations of Rule 906.b., Rule 906.c.; and Rule 1101.e. at three Sooner Unit wells in Weld County, with $86,000 due 30 days after the Order, and $24,000 suspended provided that Foundation complies with required corrective actions. If Foundation does not comply, the suspended penalty will be due upon


of 41

demand by the Director without further action by the Commission.

Docket No. 1410-OV-71 Halcyon Exploration Company (Halcyon) Staff: Jeremy Ferrin, Enforcement Officer Subject: Staff requests approval of an AOC with Halcyon which

provides for a $30,000 penalty, and staff authorization to: 1) revoke Halcyon’s financial assurance instrument in the event that the penalty is not paid on time; 2) plug and reclaim the wells using proceeds from the financial assurance instruments and the Environmental Response Fund (ERF) as necessary; 3) revoke Halcyon’s authorization to operate in the state; 4) claim reimbursement from Halcyon for any funds used from the ERF in case Halcyon obtains resources to do so; and 5) deny future permits or other approvals to this operator, its officers or shareholders, or other related operator with common officers or shareholders.

Commissioner Benton seconded the motion. The motion was passed unanimously. Enforcement Guidance and Penalty Policy Presenter: Matt Lepore, Director Director Lepore explained the posture of the hearing: to get Commissioner guidance/blessing on the final draft version of our enforcement guidance and penalty policy. It has been adjusted to reflect Commissioner input. The area ripe for input is the rule classification document at the back of the policy, which outlines whether a rule violation is a Class 1, 2, or 3 violation. Commissioner Benton: Loss of well control is a mandatory fine—how do you deal with a case that might be force majeure? Enforcement Officer Peter Gowen explained the rule classification system. Director Lepore: There were no penalties issued as a result of the flood as a force majeure—most of the operators also responded promptly. There are mandatory rules, where we assume that the issue can’t be resolved as a corrective action, but in the case of a force majeure we do have discretion to reduce a penalty to a de minimus amount. Commissioner Compton: Even in case of a class 3 category, there is room for discussion? Director Lepore: Absolutely. Commissioner Craig: Why is violation of hydrogen sulfide rules a class 2, not class 3? Peter Gowen: That was a recommendation from the engineering group—they wanted to see it be mandatory, but it is class 2.


of 41

Commissioner Alward: I am comfortable with the statement of Basis and Purpose, and I can see where there is a rational argument for how staff put this together. Commissioner Alward made a motion to endorse the Enforcement and Penalty Policy. Seconded by Commissioner Wolk. Director Lepore: We did think through this policy over the span of a year. Its importance is a written document that helps anyone understand how the process works and with regards to the penalties, what arena we are operating in. Endorsed Unanimously. Commissioner Alward: I’d like to take a moment to make a motion regarding establishing a rulemaking for reclamation rules—with the objective of presenting draft rules by some date, and report to us by the March 2 hearing a timeline for amending reclamation rules—I request that the Commission vote in support of this. I’m aware there are stakeholders who have expressed concern that I may have a conflict of interest. I think my record has shown over the last seven plus years, I’ve made decisions that have financially harmed me. Money is not my motivation. Moving forward in reclamation is in the best interests of the people of Colorado. Commissioner Spielman: Please repeat the motion. Commissioner Alward: Commission directs the staff to develop rulemaking goals and a stakeholder process and report to us by March 2 a timeline for approving new reclamation rules. Commissioner Benton: Second. Commissioner Compton: Commissioner Alward and I are occasionally at odds on reclamation. I am biased to protect the surface owner and the agricultural producer. Commissioner King: In light of priorities that we face, I think the crux of the conflict is where industry interfaces with communities. I don’t support this, and I will be a no vote. Commissioner Wolk: I’m concerned about competing priorities, especially recommendations from the task force. It’s not the right time, I won’t be able to support it. Commissioner Benton: Would Commissioner Alward explain his sense of a timeline? Commissioner Alward: Beginning in the first quarter of 2009. Seriously, this has been on the backburner every time I’ve brought it up. There is no appreciation for the seriousness of reclamation or the laws that require it. I’m not sure what the take home message is to environmental communities, or operators who tell us they don’t know what to do while we have increased fines. Commissioner Spielman: I have a concern with the motion as a mandate and how it would interface with not just the other priorities of the Commission but with the resources of our staff, operators and community. There is a lot of important work, but I can’t support this motion because we all need some time to adapt to what we’ve already adopted. I do believe reclamation is an incredibly important piece of oil and gas operations.


of 41

Commissioner Benton: I’m still left with there never will be the right time, this does concern me. I’m not sure which way to go. Commissioner Craig: I am also troubled that this keeps getting pushed forward, but at the same time, we don’t know what’s coming down the pike from the task force. I’d like to wait to hear what will happen as a result of the task force. I agree there is no guidance to operators for what to do with reclamation. I’d like to wait and see. Commissioner Compton: There are significant penalties associated with reclamation without a clear picture for industry of what is expected. So I’m going to support this motion. Call the question. In favor: Commissioner Alward, Commissioner Benton, Commissioner Compton. Opposed: Commissioner King, Commissioner Spielman, Commissioner Wolk, Commissioner Craig, and Commissioner Hawkins. Motion fails. Commissioner Compton: Where does this leave the petition from Colorado Prairie Initiative? Director Lepore: I’ll ask Dr. Alward to analyze this petition and then I will ask staff to develop a proposed rulemaking. This bumps up against being in the category of a big lift for a rulemaking. These rules by their nature are somewhat subjective, but I can say that we are not being heavy-handed at the moment with reclamation penalties. Commissioner King: I propose a process for the petitioner to give us a 10 minute presentation at our next meeting, then staff can make a recommendation whether to move this petition forward. The petition is entitled to a yes or no vote as to whether to move forward. Commissioner Compton: I think this is a good idea, the Commission is asking to hear from the Petitioners. Assistant Attorney Jake Matter informed the Commission that the Maralex enforcement action is being appealed in Denver District Court. The complaint was just filed around the New Year, Julie Murphy is representing the Commission. He will give the Commission a report on other cases in Executive Session. The Commission recessed for lunch and executive session at 12:03 p.m. The Commission reconvened at 1 p.m. Enforcement Hearing Matters: Docket No. 1406-OV-45 Redwine Resources, Inc. Staff: Britta Beckstead, Assistant Attorney General Jeremy Ferrin, Enforcement Officer Operator: Richard Kaufman, Attorney


of 41

On June 17, 2014, the Commission approved an Order Finding Violation (OFV) against Redwine Resources for violations of Rules 309, 319, 326, 902.d, 1002, and 1003 at its South Nucla Unit #1-32 Well located in Montrose County. At the conclusion of the hearing, Commissioners directed staff to return prepared to seek an Order amendment to include a provision that the principals will not be allowed to operate oil and gas companies in Colorado until the penalty is satisfied. Redwine is now represented by counsel. This will be a hearing contesting the merits of the proposed amendment.

Acting Secretary Jill Dorancy noted that Commissioner King is gone for the afternoon. Richard Kaufman, Attorney for Redwine Resources, noted that Mr. Redwine is on the phone from Dallas. Assistant Attorney General Britta Beckstead summarized the case: Staff’s investigation revealed that Mr. Redwine is the President and sole shareholder of Redwine Resources. The assets of the company were sold during bankruptcy, but the well was reserved from the bankruptcy proceeding. Redwine Resources is still an active registered corporation in Texas. The corrective actions have not been conducted. Staff has claimed the bonds and is working to reclaim the site, but the cost is expected to be more than $87,000, exceeding the bonds by nearly $60,000. Exhibit A is the proposed amendment to the Commission’s Order. The proposed amendment requires a hearing before the Commission for any certificate of clearance. Under the proposed order, Mr. Redwine and Redwine Resources will have a higher burden to meet in order to operate in Colorado. Staff believes the order strikes a fair balance under the circumstances of the case. In the alternative, the Commission can require a higher bond amount in order to operate. Richard Kaufman, Attorney for Mr. Redwine presented its response: Redwine Resources operated until 2010. The corporation is still on the books, but has no assets and no employees. Problems began in 2007, when gas prices began to crash. The well at issue was spud in 2008, and was a dry hole. The company could no longer operate after the recession, so in June 2010, the company entered chapter 11 bankruptcy in Texas district court. The well at issue was excluded, and remained with Redwine. Redwine Resources will never operate again. Redwine asks the Commission to consider that this was not a conscious act or a bad faith act by Mr. Redwine—he was caught up short in a bad economic situation. Redwine asks the Commission to not enter this Order, Mr. Redwine complied with environmental laws for 30 years, but was caught up in an economic situation. Commissioner Benton: So the bankruptcy court excluded the well? What about other wells? Kaufman: Most were sold, a couple in other states were retained. Commissioner Benton: What happened to those wells? Kaufman: I do not know. Director Lepore: When was the Nucla well drilled? Kaufman: 2008, and it was a dry hole. Commissioner Craig made a motion to accept staff’s recommendation. The motion was seconded by Commissioner Wolk.


of 41

Commissioners and staff discussed when Mr. Redwine and/or a company he might join would need to come before the Commission in order to operate again in the state. Motion approved unanimously. The Commission Adjourned at 1:38 p.m. The Secretary was therefore authorized to issue the following orders: Order No. 535-630, Docket No. 150100070, Unnamed Field, Weld County Approves Carrizo Oil and Gas, Inc.’s request for an order to among other things: Approve an additional 12 horizontal wells, for a total of up to 16 horizontal wells within an approximate 960-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Order No. 535-632, Docket No. 150100074, Unnamed Field, Weld County Approves Carrizo Oil and Gas, Inc.’s request for an order to among other things: Approve an additional 10 horizontal wells, for a total of up to 16 horizontal wells within an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Order No. 535-631, Docket No. 150100071, Unnamed Field, Weld County Approves Carrizo Oil and Gas, Inc.’s request for an order to among other things: Establish an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation and approve up to 16 horizontal wells within the unit. Order No. 407-1210, Docket No. 150100033, Wattenberg Field, Weld County Approves Verdad Oil & Gas Corporation’s request for an order to among other things: Pool all interests in an approximate 320-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation. Order No. 407-1211, Docket No. 150100034, Wattenberg Field, Weld County Approves Verdad Oil & Gas Corporation’s request for an order to among other things: Pool all interests in an approximate 320-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation. Order No. 407-1201, Docket No. 150100001, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 720-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1202, Docket No. 150100004, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 400-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1203, Docket No. 150100005, Wattenberg Field, Weld County


of 41

Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 200-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Codell Formation.

Order No. 407-1205, Docket No. 150100025, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in three approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1204, Docket No. 150100024, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 311-acre designated horizontal wellbore spacing spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1206, Docket No. 150100026, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in three approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1207, Docket No. 150100027, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation. Order No. 407-1208, Docket No. 150100028, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 392-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Order No. 407-1214, Docket No. 150100041, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 640-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Codell Formation.

Order No. 407-1220, Docket No. 150100050, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 640-acre designated horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation.

Order No. 407-1221, Docket No. 150100051, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 640-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1222, Docket No. 150100052, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 480-acre designated horizontal wellbore spacing unit established for the


of 41

Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation.

Order No. 407-1223, Docket No. 150100053, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in four approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1224, Docket No. 150100054, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1225, Docket No. 150100055, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Order No. 407-1226, Docket No. 150100056, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 480-acre designated horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell Formation.

Order No. 407-1227, Docket No. 150100057, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in nine approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Order No. 407-1228, Docket No. 150100058, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in four approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1229, Docket No. 150100059, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in three approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Order No. 407-1230, Docket No. 150100060, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in five approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.


of 41

Order No. 407-1231, Docket No. 150100061, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in two approximate 240-acre to 480-acre designated horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1232, Docket No. 150100062, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in six approximate 240-acre to 480-acre horizontal wellbore spacing units established for the Application Lands, effective as of the date of the Application, for the development and operation of the Codell and Niobrara Formations.

Order No. 407-1233, Docket No. 150100063, Wattenberg Field, Weld County Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in an approximate 480-acre horizontal wellbore spacing unit established for the Application Lands, effective as of the date of the Application, for the development and operation of the Niobrara Formation

Order No. 407-1213, Docket No. 150100038, Wattenberg Field, Weld County Approves Apollo Operating, LLC’s request for an order to among other things: 1) Vacate Order No. 407-536 which established an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Order No. 407-1209, Docket No. 150100029, Wattenberg Field, Weld County Approves DJ Resources, Inc.’s request for an order to among other things: 1) Establish an approximate 320-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 2) Approve up to eight horizontal wells within the unit.

Order No. 407-1215, Docket No. 150100043, Wattenberg Field, Weld County Approves Bill Barrett Corporation’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Approve up to 16 horizontal wells within the unit.

Order No. 407-1216, Docket No. 150100044, Wattenberg Field, Weld County Approves Bill Barrett Corporation’s request for an order to among other things: 1) Maintain two approximate 640-acre drilling and spacing units established by Order Nos. 407-779 and 535-4 for Sections 27 and 34, Township 5 North, Range 62 West, 6th P.M., for the production of existing oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and approve up to 16 horizontal wells for the Niobrara Formation within the unit; 3) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation and approve up to four horizontal wells for the Codell Formation within the unit.

Order No. 407-1219, Docket No. 150100048, Wattenberg Field, Weld County Approves Bill Barrett Corporation’s request for an order to among other things: 1) Maintain an approximate 640-acre drilling and spacing unit established by Order Nos. 407-779 and 535-4 for


of 41

Section 3, Township 6 North, Range 62 West, 6th P.M., for the production of existing oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Vacate Order No. 407-878; 3) Vacate an approximate 1280-acre drilling and spacing unit established by Order No. 407-900 for Sections 1 and 2, Township 6 North, Range 62 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 4) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and approve up to 16 horizontal wells for the Niobrara Formation within the unit; 5) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation and approve up to four horizontal wells for the Codell Formation within the unit.

Order No. 535-617, Docket No. 150100006, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit. Order No. 535-618, Docket No. 150100007, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1246.3-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.

Order No. 535-619, Docket No. 150100008, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit. Order No. 535-620, Docket No. 150100009, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit. Order No. 535-621, Docket No. 150100010, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.

Order No. 535-622, Docket No. 150100014, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.

Order No. 535-623, Docket No. 1501000017, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas


of 41

and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.




Order No. 535-627, Docket No. 150100022, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre horizontal well unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit. Order No. 535-628, Docket No. 150100023, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.

Order No. 535-629, Docket No. 150100036, Unnamed Field, Weld County Approves Extraction Oil & Gas, LLC’s request for an order to among other things: 1) Establish an approximate 1244.37-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve up to four horizontal wells within the unit.

Order No. 407-1212, Docket No. 150100037, Wattenberg Field, Weld County Approves Noble Energy, Inc.’s request for an order to among other things: 1) Establish an approximate 1120-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 2) Approve up to nine horizontal wells within the unit.

Order No. 407-1217, Docket No. 150100045, Wattenberg Field, Weld County Approves Bonanza Creek Energy Operating Company’s request for an order to among other things: 1) Maintain an approximate 640-acre drilling and spacing unit established by Order No. 535-12 for Section 9, Township 6 North, Range 62 West, 6th P.M., for the existing production of gas and associated hydrocarbons from the Niobrara Formation. 2) Vacate an approximate 640-acre drilling and spacing


of 41

unit established by Order No. 535-37 for Section 4, Township 6 North, Range 62 West, 6th P.M., for the production of gas and associated hydrocarbons from the Niobrara Formation. 3) Vacate Order No. 535-67, which pooled all non-consenting interests in an approximate 640-acre drilling and spacing unit established for Section 4, Township 6 North, Range 62 West, 6th P.M., for the development and operation of the Niobrara Formation. 4) Establish an approximate 1280-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 5) Approve up to eight horizontal wells within the unit.

Order No. 407-1218, Docket No. 150100047, Wattenberg Field, Weld County Approves Bonanza Creek Energy Operating Company’s request for an order to among other things: 1) Pool all interests in an approximate 1280-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Order No. 252-14, Docket No. 1412-UP-323, Unnamed Field, Weld County Approves Bayhorse Petroleum, LLC’s request for an order to, among other things: 1) Establish an approximate 80-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Shawnee, Lansing-Kansas City, Marmaton, Cherokee, Morrow, Keyes and Mississippian System (St. Genevieve Formation to Warsaw Formation); 2) Approve one well within the unit. Order No. 407-1196, Docket No. 1412-UP-359, Wattenberg Field, Weld County Approves Great Western Operating Company, LLC’s request for an order to among other things: Pool all interests in two approximate 320-acre designated horizontal well spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1197, Docket No. 1412-UP-363, Wattenberg Field, Weld County Approves PDC Energy, Inc.’s request for an order to among other things: Pool all interests in an approximate 160-acre wellbore spacing unit established for the Application Lands, for the development and operation of the Codell-Niobrara Formation.

Order No. 407-1198, Docket No. 1412-UP-364, Wattenberg Field, Weld County Approves PDC Energy, Inc.’s request for an order to among other things: Pool all interests in an approximate 80-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Codell-Niobrara Formation.

Order No. 407-1193, Docket No. 1412-UP-336, Wattenberg Field, Weld County Approves Noble Energy, Inc.’s request for an order to among other things: Pool all interests in an approximate 567.26-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1194, Docket No. 1412-UP-338, Wattenberg Field, Weld County Approves Noble Energy, Inc.’s request for an order to among other things: Pool all interests in an approximate 404.19-acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1195, Docket No. 1412-UP-339, Wattenberg Field, Weld County Approves Noble Energy, Inc.’s request for an order to among other things: Pool all interests in an approximate 485.40-acre designated horizontal well spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.


of 41

Order No. 407-1199, Docket No. 1412-UP-366, Wattenberg Field, Weld County Approves K.P. Kauffman Company, Inc.’s request for an order to among other things: Pool all interests in two approximate 320-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara Formation.

Order No. 407-1200, Docket No. 1412-UP-367, Wattenberg Field, Weld County Approves K.P. Kauffman Company, Inc.’s request for an order to among other things: Pool all interests in three approximate 160-acre and three approximate 320-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Order No. 112-247, Docket No. 1412-AW-26, Ignacio-Blanco Field, La Plata County Approves Four Star Oil & Gas Company’s request for an order to among other things: Approve an additional two wells, for a total of four wells, within an approximate 320-acre drilling and spacing unit established for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Fruitland Coal Formation. Order No. 421-56, Docket No. 150100039, Hereford Field, Weld County Approves EOG Resources, Inc.’s request for an order to among other things: 1) Establish four approximate 1280-acre drilling and spacing units for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation; 2) Approve one horizontal well within each unit.

Order No. 540-50, Docket No. 150100002, Unnamed Field, Moffat County Approves Southwestern Energy Production Company’s request for an order to among other things: 1) Establish an approximate 644.35-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) Approve up to 24 horizontal and four vertical wells within the unit. Enforcement Orders

Order No. 1V-491, Docket No. 1410-OV-67 Foundation Energy Management (Foundation) Approves an AOC with Foundation imposing a $110,000 penalty for violations of Rule 906.b., Rule 906.c.; and Rule 1101.e. at three Sooner Unit wells in Weld County, with $86,000 due 30 days after the Order, and $24,000 suspended provided that Foundation complies with required corrective actions. If Foundation does not comply, the suspended penalty will be due upon demand by the Director without further action by the Commission. Order No. 1V-492, Docket No. 1410-OV-71 Halcyon Exploration Company (Halcyon) Approves an AOC with Halcyon which provides for a $30,000 penalty, and staff authorization to: 1) revoke Halcyon’s financial assurance instrument in the event that the penalty is not paid on time; 2) plug and reclaim the wells using proceeds from the financial assurance instruments and the Environmental Response Fund (ERF) as necessary; 3) revoke Halcyon’s authorization to operate in the state; 4) claim reimbursement from Halcyon for any funds used from the ERF in case Halcyon obtains resources to do so; and 5) deny future permits or other approvals to this operator, its officers or shareholders, or other related operator with common officers or shareholders. Order No. 1V-470, Docket No. 1406-OV-45 Redwine Resources, Inc. Approves an Order amendment to include a provision that the principals will not be allowed to operate oil and gas companies in Colorado until the penalty is satisfied.

record of proceedings · kudos to margaret ash and her staff for this important work. questions for...

Documents