Current Events at the COGCC
Jake Matter
Assistant Attorney General
jake.matter@state.co.us
720.508.6289
1. New COGCC Water Sampling Rule
2. New COGCC Setbacks Rule
3. CDPHE Oil and Gas Stakeholder Group
NEW WATER SAMPLING RULES
Different rules for GWA
• Greater Wattenberg Area, or “GWA”
• GWA is an oil and gas field northeast of
Denver encompassing 2,916 square miles
• GWA accounts for 60% of oil produced in state
• GWA has nearly 20,000 producing wells
• Long history of production
• Different treatment in rules
Historic Water Sampling Requirements
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2000 – CBM wells in the San Juan Basin
2005 – GWA wells (infill wells only)
2009 – CBM wells statewide
2009 – Water sampling as a COA
2011 – GWA wells, not just infill wells
Old GWA Water Sampling Rule
• Baseline sample required where the first well was
proposed in a governmental section
• Hundreds previously collected
• Domestic well in Laramie/Fox Hills Aquifer was
highest priority
• If no water well within ½ mile, no testing required
• Sampling and reporting requirements
• COGCC Rule 318A.e(4)
New GWA Water Sampling Rule
1 source, 2 samples
• Baseline sample required where the first well
is proposed in a governmental quarter section
• One follow-up sample (6-12 months post
completion)
• Amended COGCC Rule 318A.e(4)
New Statewide Water Sampling Rule
Up to 4 sources, 3 samples
• Sample all sources within ½ mile of well, up to
four
• Baseline (within 12 months prior to drilling)
• First follow-up sample (6-12 months postcompletion)
• Second follow-up sample (5-6 years postcompletion)
• New COGCC Rule 609
Similarities
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Apply to wells, multi-well sites and injection wells
“Available” water sources
No requirement to drill monitoring well
“Piggybacking”
No presumption of liability
“Recommended” Sampling and Analysis Plan
Not a limit on COGCC Director authority; COAs
Notify well owner of thermogenic gas, or where
methane levels increase or exceed thresholds
NEW SETBACK RULES
Purposes
• Advance notice to impacted parties
• Advise affected parties of how to participate in
permitting process
• Increase engagement among operator, surface
owners and Local Governmental Designees (LGD)
• Increase distances from homes and nuisances
Old Setbacks Rules – The Numbers
• Minimum – 150’ or 1.5 times height of derrick
• High Occupancy Area (HOA) – 350’
New Setback Rules – The Numbers
• Urban Mitigation Area – 500’
• Non Urban Mitigation Area – 500’
• Schools, hospitals, daycares etc. – 1,000’
New Setback Rules – The Effect
• Heightened mitigation if well / facility would be
within 1,000’ of a home. Rule 604.c.
– Drilling noise limitation reduced from industrial
(80/75 db) to light industrial (70/65 db)
– Closed loop drilling systems
– Green completions
– Traffic plans
– Use existing facilities and well bores
– Berm construction
– Fencing
“Designated Setback Locations” (DSL)
• If a proposed well falls within one of many
enumerated DSLs, additional notification,
consultation and operational requirements
are triggered
DSLs include:
• High Occupancy Building Unit DSL. Is a
hospital or school within 1,000’ of the
proposed well?
• Buffer Zone DSL. Is a home within 1,000’ of
the proposed well?
• Exception Zone DSL. Is a home within 500’ of
the proposed well?
High Occupancy Building Unit DSL
• Full Commission must approve well within
1,000’ of a High Occupancy Building Unit
• No staff-level approval
• If Commission approves such a well,
mitigation measures required for “Exception
Zone DSLs” apply, including noise restrictions,
closed loop drilling, green completions, steel
rimmed containment berms
Buffer Zone DSL
• Homeowners within 1,000’ receive “Notice of
Intent to Conduct Oil and Gas Operations”
from operator 30 days prior to operator
submitting application materials to COGCC
– Operator and LGD contact information
– Location, description, timing
– Governor’s task force recommendation
Buffer Zone DSL, continued
• Homeowners within 1,000’ receive “Notice of
Comment Period”
• Sent after COGCC staff deems APD is complete
• COGCC staff consider public comments in final
approval of application
• Operators must invite meetings with notified
parties and hold such meetings if public or LGD
requests
• Public meetings to address security, nuisance
impacts and mitigation measures
Buffer Zone DSL, continued
• No well will be approved if within 1,000’ of a
home unless the COGCC permit contains sitespecific COAs “as necessary to eliminate,
minimize or mitigate potential adverse
impacts to public health, safety, welfare, the
environment, and wildlife.” Rule 604(a)(2).
• Rules are a floor and do not limit the
Director’s ability to impose site-specific COAs
Exception Zone DSL
• Exception Zone DSL applies where the
planned well is within 500’ of a home
• All mitigation measures required under Buffer
Zone DSL are required, plus other berm
construction requirements, including steel
rimmed containment berms and liners. Rule
604.c.(3).
• Requires an exception from the COGCC
Exception Zone DSL
• Homeowners within 500’ receive “Notice of
Intent to Conduct Oil and Gas Operations”
from operator 30 days prior to operator
submitting application materials to COGCC
– Operator and LGD contact information
– Location, description, timing
– Governor’s task force recommendation
Exception Zone DSL
• Homeowners within 500’ receive OGLA notice
upon completeness determination by COGCC
– List of equipment to be used at site
– Engineering drawings
– Access map
– Instructions on how to contact LGD and meet with
operator
– Invitation to provide written comments to COGCC
– OGLA notice not required in GWA
Exceptions to the 500’Setback
• Exceptions may be granted by the Director
• Director must report all exceptions to
Commission monthly
• Criteria for granting an exception differs
depending on whether location is in a Urban
Mitigation Area, or not
UMA
• Urban Mitigation Area (UMA) is a new term of
art, but is a similar concept to the old High
Occupancy Area (HOA)
UMA is a lower threshold than HOA
UMA
HOA
22 homes / 1000’ Radius
36 homes / 1000’ Radius
11 homes / semicircle
18 homes / semicircle
1 home every 2 acres
1 home every 3.2 acres
1 school, hospital, nursing
home etc.
1 school, hospital, nursing
home etc.
Waiver required if w/in 500’ of
a home
Waiver required if w/in 350’ of
a home
Exceptions inside / outside UMA
• If inside UMA, waivers must be received from all
property owners within Exception Zone / 500’
• If outside UMA, no waivers needed
• If outside UMA, Director must insure that the
COGCC permit contains site-specific COAs
“sufficient to eliminate, minimize or mitigate
potential adverse impacts to public health, safety,
welfare, the environment, and wildlife to the
maximum extent technically feasible and
economically practicable.” Rule 604.a.(1).B.
CDPHE APCD Oil and Gas
Stakeholder Group
Purposes
• Discuss revisions to the Air Quality Control
Commission’s Regulations Numbers 3, 6, 7,
and Common Provisions.
• Discuss full adoption of 40 CFR Part 60,
Subpart OOOO (“NSPS OOOO”)
• Discuss additional control measures for oil and
gas operations and equipment.
Timeline
• December 27, 2012 – APCD announces
stakeholder process
• January 28, 2013
• February 28, 2013
• March 28, 2013
• April 25, 2013
• May 22, 2013
• All meetings at CDPHE Campus, Building A, Sabin
Cleere Rooms
March 28, 2013 Agenda
• APCD will discuss comments received and any
revisions made concerning the potential
revisions to Regulations Numbers 3, 6, and 7.
• APCD will discuss further potential revisions to
Regulation Number 7 and the Common
Provisions.
Rulemaking Process Goal
• August 2013 Request for Hearing
• November 2013 Hearing
Rules under consideration would:
• Go “well beyond existing federal and state
requirements”
• Reduce VOCs, methane and other pollutants.
• Focus on reducing fugitive emissions and leaks
from large emissions sources, i.e., condensate
tanks
• Find and fix leaks via infrared cameras or other
technologies
– Denver Post Guest Commentary, March 13, 2013, Dr.
Chris Urbina and William C. Allison of CDPHE.
Questions?
Jake Matter
303.866.5041
Jake.matter@state.co.us