COLORADO OIL AND GAS CONSERVATION COMMISSION

STATE REGULATION OF OIL & GASOVERVIEW

LONGMONT CITY COUNCIL

November 15, 2011

Debbie Baldwin – Environmental Manager

COGCC Public Website

www.colorado.gov/cogcc

• Denver Office Phone Number: (303) 894-2100• Statewide Complaint Line: (888) 235-1101

Mission Statement• Under the Oil and Gas Conservation Act, the

Commission’s mission is to:

Foster the responsible, balanced development, production, and utilization of oil and gas in a manner consistent with protection of public health, safety, and welfare, including protection of the environment and wildlife resources.

• C.R.S. 34-60-102(1)(a)(I).

46,426

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COLORADO MONTHLY ACTIVE WELL COUNT11-07-11

RECENT COLORADO OIL AND GAS WELL PERMITS 11-07-11

Weld 50.0%(2010)

Garfield 28.0% (1135)

Las Animas 2.0% (70)

Yuma 2.0%(694

La Plata 2.0%(79)

Rio Blanco 2%(91)

Mesa 3.0%(121)

All Others 9.0%(360)

COLORADO OIL AND GAS 2011DRILLING PERMITS BY COUNTY

as of 11-07-11

1529

22732007

2245

2917

4323

5904

6368

8027

5159

5996

4019

125 242 312560

890

1762

2773

3649

5007

3585

4194

2428

1 7 12 8 57 53 86 95 171462

761

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Num

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rill

Number of Oil and Gas Well Permits For Wells Drilled Directionally & Horizontally From Common Well Pads in

Colorado11-07-11

Total APDS APDs For Directional Wells From Common Well Pads Horizontal

Engineering Staff Primary Functions• Areas of responsibility - Based on drilling activity

- Geologic Basins• Task List - Engineering Review

– Permits to Drill (Form 2 – Application for Permit to Drill)– Cement Design– Casing Design– Aquifer/Ground Water Isolation– Hydrocarbon Isolation– Well Completion Reports– Cement Bond Log Evaluation– Geophysical Log Review – Intent to Abandon Well Review– Subsequent Abandon Well Review– Orphan Well Program– Under Ground Injection Permitting– Bradenhead Programs

Field Inspection Group - Overview

• Over 17,000 inspections in 2010• Complaint Response• Housekeeping, spills, trash, debris• Location and emergency contact signs• Equipment inventory• Well status• Interim and final reclamation• Stormwater BMPs• Permit COAs

· Implement CDPHE-WQCC GW Standards & Classifications.

· Permit & oversee the management of E&P Wastes.

· Approve & oversee Site Investigation and Remediation

· Respond to complaints alleging impacts to public health safety and welfare and the environment (water & soil).

· Conduct studies to establish baseline and current conditions prior to or during O&G development and monitor to detect changes

· Environmental review of O&G locations – Form 2A.

COGCC ENVIRONMENTAL GROUP

900 SERIES RULES - Management of E&P Waste• Rule 901 - General

• Rule 902 to 905 – Pits: permitting (Form 15 & Form 2A), lining, O&M, closing

• Rule 906 – Spills/releases: reporting, cleanup, surface owner notification

• Rule 907 – Managementreuse/recycling plans, tracking, disposal methods,

produced water, drilling fluids, oily wastes, frac fluid, etc

• Rule 908 – Centralized E&P Waste Management Facilities

• Rule 909 – Site Investigation, Remediation, Closure

• Rule 910 – Cleanup Concentrations

MANAGEMENT OF E & P WASTE

DRILLING FLUIDS, FLOWBACK (FRAC) & OILY WASTES

PRODUCED WATER

SPILLS AND RELEASES

MANAGEMENT OF E & P WASTE (continued)

•SPILLS AND RELEASES

• Control and contain immediately

• Report to the COGCC (Form 19), the land owner, CDPHE – WQCD

• Remediate (Form 19 and/or Form 27)

• Prevent

• Table 910-1 Concentration Levels

· Analytical results from >6,000 water wells & >6,500 oil and gas wells.

· Collected by the COGCC, Operators, other agencies

· Studies by COGCC to establish Baseline and Current Conditions

· Collected in response to complaints and requests

· Required by Orders of the Commission (Cause 112)

· Required by Rules (317B, 318A.e.4., 608, 908)

· Required as part of Site Investigation and Remediation activities.

GROUND WATER PROTECTIONINVESTIGATIONS & MONITORING

North Park Basin

North Park Basin

North Park Basin

North Park Basin

North Park Basin

South Park Basin

South Park Basin

South Park Basin

South Park Basin

South Park Basin

Canon City EmbaymentCanon City EmbaymentCanon City EmbaymentCanon City EmbaymentCanon City Embayment

San Luis Basin

San Luis Basin

San Luis Basin

San Luis Basin

San Luis Basin

Piceance BasinPiceance BasinPiceance BasinPiceance BasinPiceance Basin

HugotonHugotonHugotonHugotonHugoton

Raton BasinRaton BasinRaton BasinRaton BasinRaton BasinSan Juan Basin

San Juan Basin

San Juan Basin

San Juan Basin

San Juan Basin

Paradox Basin

Paradox Basin

Paradox Basin

Paradox Basin

Paradox Basin

Uintah Basin

Uintah BasinUintah Basin

Uintah Basin

Uintah Basin

Sand Wash BasinSand Wash BasinSand Wash BasinSand Wash BasinSand Wash Basin

Denver Julesburg BasinDenver Julesburg BasinDenver Julesburg BasinDenver Julesburg BasinDenver Julesburg Basin

• Blue – water samples• Green – oil/gas well samples

WHERE TO FIND THE COGCC BASELINE WATER QUALITY REPORTS

Piceance Basin 5 studies – approx 300 water wellsRaton Basin 2 major studies – 110 water wellsSan Juan Basin - approx 2,000 water wellsDJ Basin

Ogallala – 75 water wellsUpper Crow Creek – 25 water wellsAdams Co. Arapahoe Aquifer – 20 water wellsGreater Wattenberg – 77 gas & 9 water wells

Sand Wash Moffat Co. – 28 water wells

· Properly drilling, completing, operating, and P&A to ensure and maintain isolation of productive zones from GW & SW.

· Properly storing, treating, reusing/recycling, transporting, and disposing of wastes.

· Properly installing and maintaining associated equipment & E&P waste management facilities.

· Rapid response to and thorough remediation of impacts from spills and releases.

GROUND WATER PROTECTION

· Collect samples from water wells, soil or other media for field and laboratory analyses.

· Collect samples of gas, oil, condensate, produced water, flow back, or other wastes from nearby oil and gas wells.

· Compare analytical results to background and water regional water quality.

· Compare stable isotopic signatures and composition of gas samples to determine source.

· If we verify a complaint:

· Operator must remediate impacts to meet standards.

· Operator must mitigate impacts.

COMPLAINT RESPONSE

COGCC Public Website

www.colorado.gov/cogcc

• Denver Office Phone Number: (303) 894-2100• Statewide Complaint Line: (888) 235-1101

PREPARE FOR PRODUCTIONPerforate and run tubing

GROUND SURFACE

WELLHEAD

29

CEMENTSURFACE CASING

CEMENTPRODUCTION CASING

PERFORATIONS

PRODUCING FORMATIONS

CEMENTED CONDUCTOR

AQUIFER(S)

Bradenhead valve monitoring during frac’ing per Rule 341

Evolution of Environmental Responsibility

• 1951 - Established by legislature• Colorado Oil and Gas Conservation Act• Provides for orderly development of oil and gas

• 1984 – EPA delegation of Class II UIC program.• 1989 – Implementing Agency for CDPHE – WQCC ground water

standards and classifications.• 1995 – Jurisdiction over E&P waste, except for commercial

disposal.• 2000 – MOA with CDPHE – WQCD re: spills/releases to surface

water.• 2007 – Legislation and resulting rule amendments

• Rule 205 inventory chemicals

• Rule 317 Well casing and cementing; Cement bond logs.

• Rule 317B setbacks and precautions near surface waters and tributaries that are sources of public drinking water.

• Rule 341 monitor pressures during stimulation.

• Rule 608 Special requirements for CBM wells.

• Rules 903 & 904 pit permitting, lining, monitoring, & secondary containment

• Rule 906 reporting spills/releases to Commission and the landowner and in certain situations CDPHE – WQCD of any spill that threatens to impact any water of the state.

COGCC Hydraulic Fracturing Rules