Top Banner
RECORD OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 1 of 30 September 11, 2017 The Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) met on September 11, 2017, at the Durango Public Library located at 1900 East Third Avenue, Durango, CO 80301. * Monday, September 11, 2017 Roll Call of Commissioners: Present: John Benton Acting Chair Ashley Ager Commissioner Howard Boigon Commissioner Bill Hawkins Commissioner Tommy Holton Commissioner (by telephone) Kent Jolley Commissioner Erin Overturf Commissioner Matt Lepore Director Kyle Davenport Assistant Attorney General James Rouse Acting Secretary Approval of Past Proceedings: Motion: Commissioner Hawkins moved to approve the Minutes from the July 24, 2017 hearing. Second: Commissioner Ager Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved. Director Lepore’s Report: 1) Discussed Governor Hickenlooper’s August 22, 2017 announcement of his seven recommendations regarding the Firestone incident and answered Commissioners questions regarding the recommendations. Director Lepore asked Commissioners to weigh in regarding a review of COGCC rules by the State Oil and Gas Regulatory Exchange (SOGRE) and the Flowline Rulemaking proceedings. Commissioners * Commission proceedings began at 9:02 am MDT on September 11, 2017. Time stamps provided throughout these minutes reflect the approximate time of day that the agenda item was addressed by the Commission. The audio recording of this Hearing can be found at https://www.youtube.com/channel/UC85gdSA3EWoxH1kzjE-USbw 9:02 am 9:03 am 9:03 am
30

RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

Jun 28, 2018

Download

Documents

vulien
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 1 of 30

September 11, 2017 The Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) met on September 11, 2017, at the Durango Public Library located at 1900 East Third Avenue, Durango, CO 80301.*

Monday, September 11, 2017 Roll Call of Commissioners:

Present:

John Benton Acting Chair Ashley Ager Commissioner Howard Boigon Commissioner Bill Hawkins Commissioner Tommy Holton Commissioner (by telephone) Kent Jolley Commissioner Erin Overturf Commissioner Matt Lepore Director Kyle Davenport Assistant Attorney General James Rouse Acting Secretary

Approval of Past Proceedings: Motion: Commissioner Hawkins moved to approve the Minutes from the July 24, 2017

hearing. Second: Commissioner Ager Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved.

Director Lepore’s Report:

1) Discussed Governor Hickenlooper’s August 22, 2017 announcement of his seven recommendations regarding the Firestone incident and answered Commissioners questions regarding the recommendations. Director Lepore asked Commissioners to weigh in regarding a review of COGCC rules by the State Oil and Gas Regulatory Exchange (SOGRE) and the Flowline Rulemaking proceedings. Commissioners

* Commission proceedings began at 9:02 am MDT on September 11, 2017. Time stamps provided throughout these minutes reflect the approximate time of day that the agenda item was addressed by the Commission. The audio recording of this Hearing can be found at https://www.youtube.com/channel/UC85gdSA3EWoxH1kzjE-USbw

9:02 am

9:03 am

9:03 am

Page 2: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 2 of 30

unanimously agreed that the Flowline Rulemaking and SOGRE review should proceed.

Commissioner Overturf: Expressed concerns over Flowline jurisdiction and the adequacy of safety training. Recommended coordination with the Public Utilities Commission (PUC).

Commissioner Boigon: Asked about Flowline mapping. Expressed that it is critical that the Flowline Rulemaking makes a strong effort to educate and satisfy the public that another tragedy like Firestone will not happen.

Director Lepore: Explained the ways in which Colorado 811 is a logical repository for mapping information.

Commissioner Ager: Expressed importance of not just finding leaks but also following up to address escaped hydrocarbons.

Commissioner Benton: Asked if it was possible to involve real estate developers in our rulemaking.

Director Lepore: Explained that COGCC does not have jurisdiction over developers.

All Commissioners: Unanimously agreed that the Flowline Rulemaking and SOGRE review should proceed.

2) Explained that the current list of topics to be addressed with SOGRE includes: 1) Interstate Oil and Gas Compact Commission (IOGCC) natural gas storage rules, 2) venting and flaring rules, 3) shut-in rules, and 4) wellbore integrity rules.

3) Introduced Julie Prine, the new Hearings and Regulatory Affairs Manager and Commission Secretary.

4) Thanked Acting Secretary Rouse for his service as Acting Hearings Manager.

5) Bid farewell to Hearing Officer Dorancy.

6) On August 24, 2017, the Broomfield Local Governmental Designee (LGD), Tami Yellico, submitted a request to the Commission for a Local Public Forum and Public Issues Hearing on Extraction’s spacing applications for mineral acreage underlying the City and County of Broomfield. Commission Staff responded to the request to explain why, pursuant to COGCC Rule 508, the spacing applications cannot trigger the Local Public Forum and Public Issues Hearing. However, Commission Staff suggested that Broomfield, and Ms. Yellico, bring this issue before the Commission by public comment and a discussion of this matter was scheduled for Executive Session.

Page 3: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 3 of 30

7) Director Lepore received an email from North Metro Neighbors for Safe Energy that stated 111 people have signed a petition requesting the Commission approve Thornton’s request for a Local Public Forum. Director Lepore is not aware of a request from Thornton for a Local Public Forum and asked that, if such a request exists, it be brought to his attention.

8) Distributed to the Commissioners an August 29, 2017 letter from the Anthem Ranch Homeowner’s Board of Directors in which they expressed deep concern about the process and possible outcomes of the Extraction applications for development in that area.

9) The 2018 proposed hearing dates have been posted on the COGCC calendar. Suggested that Commissioners keep Wednesday, December 13, 2017, free on their calendars in the event a third day is necessary for rulemaking.

10) Number of drilling applications being received by COGCC this calendar year is much higher than we have seen over the past couple of years. The same is true of the Form 2A’s and the last several hearing cycles have seen over 100 general applications each.

11) City of Thornton recently adopted regulations, some of which, Commission Staff and the Assistant Attorney Generals find to be in conflict with COGCC rules. There have been meetings between representatives of Thornton and their counsel and Commission Staff and the Assistant Attorney Generals.

12) Mentioned the meet and greet scheduled in Durango the evening of September 11, 2017 for Commissioners, Commission Staff, and local government officials.

13) Introduced the Pending Litigation Update from Assistant Attorney General Davenport.

Pending Litigation Update Assistant Attorney General Davenport: Discussed the dispositions of Maralex Resources v COGCC (2017CA000051); Martinez et al v COGCC (16CA0564); Neighbors Affected by Triple Creek v COGCC (2016CV34274); and Weld Air and Water, Sierra Club, NAACP Colorado State Conference, and Wall of Women v. COGCC (2017CV31315). Commissioner Comments: Acting Chair Benton: Acknowledges the presence of former Commission Chair Compton in the audience.

10:22 am

10:15 am

Page 4: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 4 of 30

Elections of Commissioner Chair and Vice Chair: Director Lepore: Commissioner Wolk is present on the phone to participate in the elections. Motion: Commissioner Hawkins nominated Acting Chair Benton for chair. Second: Commissioner Jolley Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved. Commissioner Benton is the official chair.

Commissioner Overturf: Nominates Commissioner Boigon for vice chair. Commissioner Boigon: Nominated Commissioner Holton for vice chair. Motion: Commissioner Overturf moved for the Commission two have dual vice

chairs. Second: Commissioner Jolley Yea: All, except Ager. Abstain: None Nay: Ager Recused: None Result: Approved.

Motion: Boigon and Holton were nominated by Overturf and Boigon, respectively. Second: Benton seconds Commissioner Boigon. No second for the Commissioner

Holton nomination. Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved. Commissioner Boigon and Commissioner

Holton are the vice chairs. Public Comment: Tami Yellico, City and County of Broomfield Local Government Designee; expressed her appreciation for the Local Government Liaison Program. Spoke about Broomfield’s Rule 508 request for a Local Public Forum and Public Issues Hearing and stated her believe that they are entitled to this relief so Broomfield can share and discuss its public health, safety, and welfare concerns. General Consent Agenda: Acting Secretary Rouse: For Group F, Docket No. 160400188, a Caerus spacing application originally docketed for consideration in April 2016, there was a protest filed by an individual invoking the Servicemembers Civil Relief Act requesting a stay of act until his return. Caerus withdrew their application but it was reinstated and stayed until

10:33 am

10:55 am

10:23 am

Page 5: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 5 of 30

90 days after the protestant returned to the United States, which happened on May 25, 2017. The protestant had apparently withdrawn his protest and the matter was placed on the Consent Agenda, but through a September 11, 2017 email to Commission Staff the protestant has attempted to renew this protest. Commissioner Boigon: Recused himself from the two Bison matters in Group N, because he represents one of the interested parties. Disclosed his past legal work for Extraction; work for Extraction did not involve matters on the Consent Agenda nor did they involve Commission work; concluded that he could be impartial and did not believe it was necessary for him to recuse himself for those matters. Chair Benton: Disclosed work involving Extraction, but the work was not regarding items on the Consent Agenda; concluded that he could be impartial and did not believe it was necessary for him to recuse himself. Motion: Commissioner Jolley moved to approve all items in Consent Agenda Groups

“A” through “N,” with the exception of Group F and the Bison matters in Group N. 1

Second: Commissioner Ager Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved.

Motion: Commissioner Hawkins moved to approve the Bison matters in Group “N.”2 Second: Commissioner Jolley Yea: All, except Commissioner

Boigon Abstain: None

Nay: None Recused: Commissioner Boigon Result: Approved.

Commissioners discussed the Caerus matter in Group F with counsel for Caerus, Dave Neslin, Acting Secretary Rouse, and Director Lepore. Motion: Commissioner Boigon moved to approve the Caerus application in Group

“F.”3 Second: Commissioner Hawkins Yea: All, except Commissioner

Overturf Abstain: None

Nay: Commissioner Overturf Recused: None Result: Approved.

1 Approved General Consent Orders set forth in Appendix A. 2 Approved General Consent Orders set forth in Appendix A. 3 Approved General Consent Orders set forth in Appendix A.

Page 6: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 6 of 30

Consent Enforcement Matter: Commissioner Ager: Recused herself from the Hunter Ridge matter in Group A of the Enforcement Consent Agenda. Assistant Attorney General Davenport: Stepped out as counsel for the Commission on this matter because he previously worked as a prosecutor on the Hunter Ridge matter. Assistant Attorney General Mimi Larsen was available for any Commissioner questions. Assistant Attorney General David Beckstrom and counsel for Hunter Ridge, Dave Neslin, answered Commission questions.

Motion: Commissioner Hawkins moved to approve Enforcement Consent Agenda Group “A.” 4

Second: Commissioner Boigon Yea: All, except Ager Abstain: None

Nay: None Recused: Commissioner Ager Result: Approved.

Presentation On BP’s Colorado Pipeline Integrity Program Bree Olson Steinke: Provided information on BP’s integrity program including their selection of materials, monitoring and inspections, mitigation and control, root cause failure analysis, and construction and repair. General Hearing Matters: Docket Nos. 170700421,170700422,170700423,170700424,170700425, Ignacio-Blanco Field, Archuleta County Applicant: S.D. Bryant, Michael J. Clark, Anne C.S. Finney Trust, Fosset

Gulch Pipeline and James W. Wallis Trust Attorneys: Darin Savage Hearing Officer: Jill Dorancy Subject: S.D. Bryant, Michael J. Clark, Anne C.S. Finney Trust, Fosset

Gulch Pipeline and James W. Wallis Trust (“Bryant” or “Payees”) filed an Application pursuant to Rule 503.b.(10) and §34-60-118.5, C.R.S., for an order awarding payment of proceeds, interest, costs,

4 Approved Enforcement Consent Orders set forth in Appendix B.

11:35 am

11:35 pm

12:08 pm

11:25 am

Page 7: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 7 of 30

and attorneys' fees due to Payee for production attributable to Lamke 33-5-29 # 1 Well, which is operated by Catamount Energy Partners, LLC in Archuleta County, Colorado.

Protested by: Catamount Energy Partners, LLC

Attorneys: Scott Campbell & Aaron Norris Catamount filed a protest to the application stating that the Oil and

Gas Conservation Act does not require consenting parties who agree to drill wells to shoulder the burdens of overriding royalty interests which encumber the working interest of non-consenting parties oil and gas lessees. Catamount argues that it would be unjust, unreasonable, inequitable, and a violation of Catamount’s correlative rights to require payment of a 45% non-cost bearing interest on two-thirds of the drilling and spacing unit, if the overriding royalty interests should ordinarily be paid during the cost-recovery period.

Issue: The sole issue to be heard at the September Commission

hearing is: should an overriding royalty interest be paid when the underlying working interest is nonconsenting in a pooled unit?

Hearing Officer Dorancy: Presented the procedural posture of the case. No Hearing Officer recommendation was provided in this case. Commissioner Ager: Disclosed that her subordinates occasionally do work for Petrox; concluded that she could be impartial and did not believe it was necessary for her to recuse herself. Parties presented their cases and answered Commissioner questions. Commissioners took a break to have lunch and enter Executive Session at approximately 1:08 pm and resumed the hearing for this matter at approximately 2:06 pm. Commissioners closed the record and completed their deliberations. Motion: Commissioner Holton moved to approve the application. Second: Commissioner Jolley Yea: Commissioner Holton Abstain: None Nay: All, except Commissioner Holton Recused: None Result: Motion fails.

Motion: Commissioner Overturf moved to deny the application.

3:32 pm

3:35 pm

Page 8: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 8 of 30

Executive Session: Senior Assistant Attorney General Kyle Davenport: In Executive Session pursuant to the Open Meetings Law, Section 24-6-402(3)(a)(II), CRS, the Commission will receive counsel concerning:

1) Neighbors Affected by Triple Creek v. COGCC 2016CV34274 - To receive legal advice, analysis, and status update, as authorized by 24-6-402(3)(a)(II), C.R.S., on the Court’s August 23, 2017 Order, and claims, defenses and scope of issues on appeal; and

2) City and County of Broomfield’s request for Rule 508 Local Public Forum – To receive legal advice and analysis, as authorized by 24-6-402(3)(a)(II), C.R.S., of the requirements of COGCC Rule 508 as applied to the request.

Motion: Commissioner Boigon moved to enter Executive Session. Second: Commissioner Hawkins Yea: All Abstain: None

Nay: None Recused: None Result: Commission entered Executive Session.

Mr. Davenport: Pursuant to the Open Meetings Law, Section 24-6-402(3)(a), CRS, during Executive Session, the Commission received legal counsel on:

1) Neighbors Affected by Triple Creek v. COGCC 2016CV34274 - To receive legal advice, analysis, and status update, as authorized by 24-6-402(3)(a)(II), C.R.S., on the Court’s August 23, 2017 Order, and claims, defenses and scope of issues on appeal.

2) City and County of Broomfield’s request for Rule 508 Local Public Forum – To receive legal advice and analysis, as authorized by 24-6-402(3)(a)(II), C.R.S., of the requirements of COGCC Rule 508 as applied to the request.

No decisions were made during this Executive Session and no votes were taken. No other subjects were discussed.

Second: Commissioner Holton Yea: All, except Commissioner Holton Abstain: None Nay: Commissioner Holton Recused: None Result: Application denied.

Motion: Commissioner Hawkins moved to exit Executive Session. Second: Commissioner Holton

1:10 pm

2:05 pm

1:08 pm

Page 9: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 9 of 30

Broomfield Matter: Chair Benton: During Executive Session we made no decisions, but the Commission did receive advice about their options regarding Broomfield’s request for a Local Public Forum and Public Issues Hearing. Those options are:

1) To find that Rule 508 does not apply and deny the request for a Local Public Forum and Public Issues Hearing;

2) To find that Rule 508 does not apply but hold some form of public forum or hearing anyway; or

3) To find that Rule 508 does apply and to grant the Local Public Forum and Public Issues Hearing.

Expressed support for a public forum. Commissioner Overturf: Explained why a public forum would be appropriate in this instance despite the fact that Rule 508 is not applicable in this instance.

Director Lepore: Confirmed the Commission’s wishes for this hearing to be held in advance of the October 30-31, 2017 Commission Hearing. General Hearing Matters (continued): Docket No. 161000415 & 161000416, Unnamed Field, Arapahoe County Applicant: Highlands Natural Resources Corporation (Operator No. 10625) Attorneys: James Parrot & Jillian Fulcher Hearing Officer: Jill Dorancy

Yea: All Abstain: None Nay: None Recused: None Result: Commission exited Executive Session.

Motion: Commissioner Overturf moved for the Commission to hold a public hearing in Broomfield, that is not a Rule 508 Local Public Forum and Public Issues Hearing, to obtain public comment on the Extraction applications.

Second: Commissioner Hawkins Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved.

3:49 pm

3:42 pm

Page 10: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 10 of 30

Subject: Highlands Natural Resources Corporation (“Highlands” or

“Applicant”) filed Applications (“Applications”) in Docket Nos. 161000415 and 161000416 to establish 2 approximate 1280-acre exploratory drilling and spacing units for Sections 31 and 32, Township 5 South, Range 64 West, 6th P.M. (DSU #1 in Docket No. 161000415) and Sections 33 and 34, Township 5 South, Range 64 West, 6th P.M. (DSU #2 in Docket No. 161000416). Renegade Oil & Gas Company, LLC (“Renegade”) protested the Applications.

Protested by: Renegade Oil & Gas Company, LLC Attorneys: Joseph Pierzchala & Geoffrey Storm Issue: Renegade has a farmout agreement with Highlands to drill one

well within each proposed unit and to establish, if necessary, the smallest units (320-acre) necessary to drill the one well. Renegade alleges that the 1280-acre units affects its correlative rights. Highlands has a separate farmout agreement with ConocoPhillips giving it the right to drill.

Docket No. 170500204 & 170500205, Unnamed Field, Arapahoe County Applicant: Highlands Natural Resources Corporation (Operator No. 10625) Attorneys: James Parrot & Jillian Fulcher Hearing Officer: Jill Dorancy Subject: Highlands Natural Resources Corporation (“Highlands” or

“Applicant”) filed Applications (“Applications”) in Docket Nos. 170500204 and 170500205 for an additional 15 wells within the 2 approximate 1280-acre exploratory drilling and spacing units proposed in Docket Nos. 161000415 and 161000416 for Sections 31 and 32, Township 5 South, Range 64 West, 6th P.M. (DSU #1 in Docket No. 170500204) and Sections 33 and 34, Township 5 South, Range 64 West, 6th P.M. (DSU #2 in Docket No.1 170500205). Renegade Oil & Gas Company, LLC (“Renegade”) protested the Applications.

Protested by: Renegade Oil & Gas Company, LLC Attorneys: Joseph Pierzchala & Geoffrey Storm Issue: Renegade has a farmout agreement with Highlands to drill one well

within each proposed unit and to establish, if necessary, the smallest units (320-acre) necessary to drill the one well. ConocoPhillips previously protested the Applications. However, Conoco withdrew its protest and reached a stipulation with

Page 11: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 11 of 30

Highlands for no more than 4 horizontal wells within each unit. Renegade filed a protest and withdrew the protest on August 16, 2017. However, Renegade refiled its protest on August 25, 2017 alleging that it was not a party to the Stipulation and drilling more than one well within the units violated its farmout agreement and affects its correlative rights. Renegade is also requesting a continuance to the October hearing. Highlands is requesting that the protest be dismissed as untimely and that the Applications trail the spacing applications as a general Hearing matter.

Hearing Officer Dorancy: Presented the procedural posture of the case. Proposed a verbal modification to the Hearing Officer Recommendation, noting the Recommendation should have recommended that, for Docket No. 161000416, the Commission should also vacate an approximately 1,280 acre spacing unit that had been previously established for different lands and establish a 1,280 acre spacing unit for 33 and 34. Parties presented their cases and answered Commissioner questions. Commissioners closed the record and completed their deliberations. Commissioner Holton was no longer present on the phone at the time a motion was made in this matter. Motion: Commissioner Ager moved to approve Docket Nos. 161000415, 161000416,

170500204, and 170500205 and adopt Hearing Officer Dorancy’s verbal modifications.

Second: Commissioner Boigon Yea: All Abstain: None Nay: None Recused: None Result: Unanimously approved.

The Commission adjourned. The Secretary was therefore authorized to issue the following orders: Order 1-202 Docket Nos. 170700421,170700422,170700423,170700424,170700425, Ignacio-Blanco Field, Archuleta County Subject: S.D. Bryant, Michael J. Clark, Anne C.S. Finney Trust, Fosset

Gulch Pipeline and James W. Wallis Trust (“Bryant” or “Payees”) filed an Application pursuant to Rule 503.b.(10) and §34-60-118.5, C.R.S., for an order awarding payment of proceeds, interest, costs, and attorneys' fees due to Payee for production attributable to

6:12 pm

6:13 pm

Page 12: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 12 of 30

Lamke 33-5-29 # 1 Well, which is operated by Catamount Energy Partners, LLC in Archuleta County, Colorado.

Orders 535-844 and 535-845 Docket No. 161000415 & 161000416, Unnamed Field, Arapahoe County Subject: Approves Highlands Natural Resources Corporation (“Highlands”

or “Applicant”) filed Applications (“Applications”) in Docket Nos. 161000415 and 161000416 to establish 2 approximate 1280-acre exploratory drilling and spacing units for Sections 31 and 32, Township 5 South, Range 64 West, 6th P.M. (DSU #1 in Docket No. 161000415) and Sections 33 and 34, Township 5 South, Range 64 West, 6th P.M. (DSU #2 in Docket No. 161000416).

Orders 535-846 and 535-847 Docket No. 170500204 & 170500205, Unnamed Field, Arapahoe County Subject: Approves Highlands Natural Resources Corporation (“Highlands” or

“Applicant”) filed Applications (“Applications”) in Docket Nos. 170500204 and 170500205 for an additional 15 wells within the 2 approximate 1280-acre exploratory drilling and spacing units proposed in Docket Nos. 161000415 and 161000416 for Sections 31 and 32, Township 5 South, Range 64 West, 6th P.M. (DSU #1 in Docket No. 170500204) and Sections 33 and 34, Township 5 South, Range 64 West, 6th P.M. (DSU #2 in Docket No.1 170500205).

Page 13: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including
Page 14: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 14 of 30

horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 8: SW¼SE¼,

SE¼SW¼ Section 17: E½W½, W½E½ Order 407-2196, Docket No. 170900615, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in an approximate 400-acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Codell Formation.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 8: SW¼SE¼,

SE¼SW¼ Section 17: E½W½, W½E½ Order 407-2197, Docket No. 170900616, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

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

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 8: SW¼SE¼

Section 17: W½E½ Order 407-2198, Docket No. 170900617, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in an approximate 240-acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 8: SE¼SE¼ Section

17: E½E½ Section 20: NE¼NE¼ Order 407-2199, Docket No. 170900618, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

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

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 11: SE¼SE¼

Section 14: E½E½ Order 407-2200, Docket No. 170900620, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in three approximate 400-acre horizontal wellbore spacing units, established for the Application Lands, for the development and operation of the Niobrara and Codell Formations.

Page 15: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 15 of 30

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 11: S½SE¼ Section 14: E½

Order 407-2201, Docket No. 170900621, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in an approximate 400-acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 11: SE¼SE¼

Section 12: SW¼SW¼ Section 13: W½W½ Section 14: E½E½ Order 407-2202, Docket No. 170900622, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in two approximate 400-acre horizontal wellbore spacing units, established for the Application Lands, for the development and operation of the Niobrara and Codell Formations.

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 11: SW¼SE¼,

SE¼SW¼ Section 14: E½W½, W½E½ Order 407-2203, Docket No. 170900623, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

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

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 11: SW¼SE¼

Section 14: W½E½

Group B Order 535-851, Docket No. 170700464, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: 1) Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. 2) Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. 3) Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 12 North, Range 66 West, 6th P.M. Section 27: All Section 34:

All Order 535-852, Docket No. 170700465, Unnamed Field, Weld County

Page 16: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 16 of 30

Subject: Approves Longs Peak Resources, LLC’s request for an order to among other things: 1) Establish an approximate 1,283-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. 2) Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. 3) Establish an approximate 1,283-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 12 North, Range 66 West, 6th P.M. Section 27: All Section 34:

All Order 535-853, Docket No. 170700466, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: Establishing a drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven (7) horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 11 North, Range 66 West, 6th P.M. Section 3: Lot 1 (79.80

acres), Lot 2 (79.92 acres), S½NE¼, S½NW¼, S½ [All] Section 10: All Order 535-854, Docket No. 170700467, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: Establishing an approximate 1280-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 11 North, Range 66 West, 6th P.M. Section 15: All Section 22:

All Group C Order 535-858, Docket No. 170900545, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: A. Establish an approximate 1,302-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. B. Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. C. Establishing an approximate 1,302-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Page 17: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 17 of 30

Application lands: Township 12 North, Range 66 West, 6th P.M. Section 30: Lot 1 (86.00 acres), Lot 2 (85.24 acres), E½W½, E½ [All] Section 31: Lot 1 (85.16 acres), Lot 2 (85.72 acres), E½W½, E½ [All]

Order 535-859, Docket No. 170900546, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: A. Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. B. Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. C. Establishing an approximate 1,280-acre a drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 12 North, Range 66 West, 6th P.M. Section 29: All Section 32:

All Order 535-860, Docket No. 170900547, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: A. Establish an approximate 1,297-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. B. Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. C. Establishing an approximate 1,297-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 11 North, Range 66 West, 6th P.M. Section 6: Lot 1 (83.40

acres), Lot 2 (40.86 acres), Lot 3 (85.61 acres), Lot 4 (83.96 acres), SE¼NW¼, S½NE¼, E½SW¼, SE¼ [All] Section 7: Lot 1 (82.56 acres), Lot 2 (81.08 acres), E½W½, E½ [All]

Order 535-861, Docket No. 170900548, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: A. Establish an approximate 1,288-acre drilling and spacing unit for the Application Lands for the production of oil, gas and associated hydrocarbons from the Carlile and Fort Hayes Formations. B. Authorize up to six horizontal wells for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes and Codell Formations. C. Establishing an approximate 1,288-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to seven horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 11 North, Range 66 West, 6th P.M. Section 5: Lot 1 (83.41

acres), Lot 2 (84.17 acres), S½N½, S½ [All] Section 8: All

Page 18: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 18 of 30

Group D Order 407-2167, Docket No. 170100037, Wattenberg Field, Weld County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in five (5) approximate 775.268-acre designated horizontal Wellbore Spacing Units on the Application Lands for the development of the Codell, Niobrara, Carlile and Greenhorn Formations.

Application lands: Township 6 North, Range 67 West, 6th P.M. Section 30: N½S½; S½N½

Township 6 North, Range 68 West, 6th P.M. Section 25: N½S½; S½N½ Section 26: S½NE¼; N½SE¼

Order 407-2168, Docket No. 170100038, Wattenberg Field, Weld County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in twelve (12) approximate 392.266-acre designated horizontal Wellbore Spacing Units on the Application Lands for the development of the Codell, Niobrara, Carlile and Greenhorn Formations.

Application lands: Township 6 North, Range 67 West, 6th P.M. Section 19: E½SE¼ Section

20: S½ Order 407-2175, Docket No. 170900534, Wattenberg Field, Weld County Subject: Approves Crestone Peak Resources Operating LLC’s request for an

order to among other things: Establish an approximate 320-acre drilling and spacing unit for Section 25: S½, Township 1 North, Range 68 West, 6th P.M., and approve up to nine horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 25: S½ Order 407-2177, Docket No. 170900540, Wattenberg Field, Adams County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in the Application Lands underlying an approximate 1,261.6-acre drilling and spacing unit comprising the Application Lands.

Application lands: Township 1 South, Range 67 West, 6th P.M. Section 19: All Section 20:

All Order 563-1, Docket No. 170900549, Unnamed Field, Arapahoe County Subject: Approves ConocoPhillips Company’s request for an order to among other

things: Establishing an approximate 640-acre exploratory drilling and spacing unit for Section 28, Township 4 South, Range 65 West, 6th P.M., and allowing one vertical well in the unit in order to efficiently and economically develop and recover the oil, gas and associated hydrocarbons from of the Greenhorn and Graneros Formations in the unit.

Page 19: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 19 of 30

Application lands: Township 4 South, Range 65 West, 6th P.M. Section 28: All Order 535-862, Docket No. 170900551, Unnamed Field, Arapahoe County Subject: Approves ConocoPhillips Company’s request for an order to among other

things: Pool all interests in the Application Lands underlying an approximate 1,600-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 5 South, Range 65 West, 6th P.M. Section 13: W½ Section 14:

All Section 15: All Order 535-863, Docket No. 170900561, Unnamed Field, Adams County Subject: Approves ConocoPhillips Company’s request for an order to among other

things: Pool all interests in the Application Lands underlying an approximate 1,304.08-acre drilling and spacing unit pending an Order in Docket No. 170700433 for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 3 South, Range 64 West, 6th P.M. Section 19: All Township 3

South, Range 65 West, 6th P.M. Section 24: All Group E Order 407-2189, Docket No. 170900590, Wattenberg Field, Weld County Subject: Approves Extraction Oil & Gas LLC’s request for an order to among other

things: Establish an approximate 640-acre drilling and spacing unit for the Application Lands, and authorizing the drilling of 10 horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation.

Application lands: Township 7 North, Range 67 West, 6th P.M. Section 9: N½ Section 10:

N½ Order 407-2190, Docket No. 170900592, Wattenberg Field, Weld County Subject: Approves Extraction Oil & Gas LLC’s request for an order to among other

things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands, and authorizing the drilling of 20 horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation, with the treated intervals of any horizontal well permitted under this Application located not less than 460 feet from unit boundaries and not less than 150 feet from any other well producing or drilling from the Codell-Niobrara Formation, without exception being granted by the Director.

Application lands: Township 7 North, Range 67 West, 6th P.M. Section 23: All Section 24:

All Order 407-2191, Docket No. 170900593, Wattenberg Field, Weld County

Page 20: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 20 of 30

Subject: Approves Extraction Oil & Gas LLC’s request for an order to among other things: Establish an approximate 480-acre drilling and spacing unit for the Application Lands, and authorizing the drilling of 10 horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation, with the treated intervals of any horizontal well permitted under this Application located not less than 460 feet from unit boundaries and not less than 150 feet from any other well producing or drilling from the Codell-Niobrara Formation, without exception being granted by the Director.

Application lands: Township 7 North, Range 67 West, 6th P.M. Section 29: SW¼ Section

30: S½ Order 407-2192, Docket No. 170900594, Wattenberg Field, Weld County Applicant: Extraction Oil & Gas LLC (Operator No. 10459) Attorneys: Robert A. Willis Subject: Approves Extraction Oil & Gas LLC’s request for an order to among other

things: Establish an approximate 640-acre drilling and spacing unit for the Application Lands, and authorizing the drilling of 10 horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation, with the treated intervals of any horizontal well permitted under this Application located not less than 460 feet from unit boundaries and not less than 150 feet from any other well producing or drilling from the Codell-Niobrara Formation, without exception being granted by the Director.

Application lands: Township 7 North, Range 67 West, 6th P.M. Section 29: N½ Section 30:

N½ Order 407-2204, Docket No. 170900630 Wattenberg Field, Weld County Subject: Approves Extraction Oil & Gas LLC’s request for an order to among other

things: Pool all interests in the approximate 400-acre horizontal wellbore spacing unit established by Rule for the Application Lands, for development and operation of the Codell-Niobrara Formation.

Application lands: Township 6 North, Range 65 West, 6th P.M. Section 29: W½ Township 6

North, Range 65 West, 6th P.M. Section 32: N½ NW¼

Group F Order 407-2206, Docket No. 160400188, Wattenberg Field, Weld County Subject: Approves Caerus WashCo LLC’s request for an order to among other

things: 1) Establish an approximate 1280-acre drilling and spacing unit; 2) Approve up to twenty-eight horizontal wells within the unit, with twenty-four horizontal wells to be drilled to the Niobrara Formation and four horizontal wells to be drilled to the Codell Formation.

Application lands: Township 7 North, Range 61 West, 6th P.M. Section 13: All Section 24:

All

Page 21: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 21 of 30

Group G Order 407-2205, Docket No. 170900570, Wattenberg Field, Weld County Subject: Approves PDC Energy, Inc., LLC’s request for an order to among other

things: Pool all interests in two approximate 560-acre horizontal wellbore spacing units established for the Application Lands for the drilling of the McGlothlin Farms 4W-234 well (API No. 05-123- 44003), and the McGlothlin Farms 4W-404 well (API No. 05-123-44004), for the development and operation of the Niobrara and Codell Formations.

Application lands: Township 5 North, Range 64 West, 6th P.M. Section 4: N½S½, S½N½

Section 5: S½NE¼, N½SE¼, SE¼NW¼, NE¼SW¼ Order 407-2178, Docket No. 170900572, Wattenberg Field, Weld County Subject: Approves PDC Energy, Inc., LLC’s request for an order to among other

things: Pool all interests in one approximate 280-acre horizontal wellbore spacing unit and one approximate 320-acre horizontal wellbore spacing unit established for the Application Lands for the drilling of the McGlothlin Farms 4W-334 well (API No. 05-123- 44006), and the Wacker 10G-314 well (API No. 05-123-43569), for the development and operation of the Niobrara Formation.

Application lands: Township 5 North, Range 64 West, 6th P.M. Section 4: N½S½ Section 5:

N½SE¼, NE¼SW¼ Wellbore Spacing Unit (“WSU”) No. 1 – 280-acres McGlothlin Farms 4W-334 well (Niobrara Formation) Township 5 North, Range 64 West, 6th P.M. Section 8: SE¼NW¼, S½NE¼ Section 9: S½N½ Section 10: SW¼NW¼ WSU No. 2 – 320-acres Wacker 10G-314 well (Niobrara Formation)

Order 407-2179, Docket No. 170900573, Wattenberg Field, Weld County Subject: Approves PDC Energy, Inc., LLC’s request for an order to among other

things: Pool all interests in four approximate 200-acre horizontal wellbore spacing units and three approximate 400-acre horizontal wellbore spacing units established for the Application Landsfor the drilling of various wells.

Application lands: Township 5 North, Range 64 West, 6th P.M. Section 9: NE¼NE¼ Section

10: N½N½ Wellbore Spacing Unit (“WSU”) Nos. 1 and 2 – 200-acres McGlothlin 9U-332 well (Niobrara Formation) McGlothlin 9V-212 well (Niobrara Formation) Township 5 North, Range 64 West, 6th P.M. Section 9: SE¼NE¼ Section 10: S½N½ WSU Nos. 3 and 4 – 200-acres Wacker 10F-232 well (Niobrara Formation) Wacker 10G-312 well (Niobrara Formation) Township 5 North, Range 64 West, 6th P.M. Section 9: E½NE¼ Section 10: N½ WSU Nos. 5 thru 7 – 400-acres Wacker 10F-302 well (Niobrara Formation) McGlothlin 9V-202 well (Niobrara Formation) McGlothlin 9V-312 well (Niobrara Formation)

Order 407-2180, Docket No. 170900574, Wattenberg Field, Weld County

Page 22: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 22 of 30

Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to among other things: Pool all interests in four approximate 200-acre horizontal wellbore spacing units and three approximate 400-acre horizontal wellbore spacing units established for the Application Landsfor the drilling of various wells.

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 10: SW¼SE¼,

SE¼SW¼ Section 15: W½E½, E½W½ Section 22: W½NE¼, E½NW¼ Wellbore Spacing Unit (“WSU”) Nos. 1 thru 3 – 560-acres: Wagner 28N-W10HZ well (Niobrara Formation) Wagner 28N-E10HZ well (Niobrara Formation) Marrs 28N-10HZ well (Niobrara Formation) Township 1 North, Range 67 West, 6th P.M. Section 10: SW¼SE¼ Section 15: W½E½ Section 22: W½NE¼ WSU No. 4 – 280-acres: Wagner 2C-10HZ well (Codell Formation) Township 1 North, Range 67 West, 6th P.M. Section 10: S½SE¼ Section 15: E½ Section 22: NE¼ WSU Nos. 5 thru 7 – 560-acres: Wagner 27C-10HZ well (Codell Formation) Wagner 2N-10HZ well (Niobrara Formation) Wagner 27N-10HZ well (Niobrara Formation) Township 1 North, Range 67 West, 6th P.M. Section 10: SE¼SE¼ Section 15: E½E½ Section 22: E½NE¼ WSU No. 8 – 280-acres: Wagner 1N-W10HZ well (Niobrara Formation) Township 1 North, Range 67 West, 6th P.M. Section 10: SE¼SE¼ Section 11: SW¼SW¼ Section 14: W½W½ Section 15: E½E½ Section 22: E½NE¼ Section 23: W½NW¼ WSU Nos. 9 thru 10 – 560-acres: Wagner 1N-E10HZ well (Niobrara Formation) Wagner 26C-10HZ well (Codell Formation)

Order 407-2181, Docket No. 170900575, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in pool all interests in three approximate 480-acre wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara and Codell Formations.

Application lands: Township 1 North, Range 67 West, 6th P.M. Section 21: SE¼NE¼,

NE¼SE¼ Section 22: S½N½, N½S½ Section 23: SW¼NW¼, NW¼SW¼ Wellbore Spacing Unit Nos. 1 thru 3 – 480-acres: Marrs 8C-22HZ well (Codell Formation) Marrs 8N-22HZ well (Niobrara Formation) Marrs 40N-22HZ well (Niobrara Formation)

Order 407-2182, Docket No. 170900576, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in pool all interests in three approximate 480-acre wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara and Codell Formations.

Application lands: Township 2 North, Range 68 West, 6th P.M. Section 3: NW¼NW¼

Section 4: NE¼NE¼ Township 3 North, Range 68 West, 6th P.M. Section 33: E½E½ Section 34: W½W½ Wellbore Spacing Unit Nos. 1 and 2 – 400-acres: Newby State 26N-33HZ well (Niobrara Formation) Newby State 30N-34HZ well (Niobrara Formation)

Page 23: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 23 of 30

Group H Order 407-2172, Docket No. 170700458, Wattenberg Field, Weld County Subject: Approves Extraction Oil & Gas, LLC’s request for an order to among other

things: Pool all interests in an approximate 560-acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Niobrara Formation.

Application lands: Township 6 North, Range 67 West, 6th P.M. Section 13: SW¼SW¼

Section 14: S½S½ Section 15: S½SE¼ Section 22: N½NE¼ Section 23: N½N½ Section 24: NW¼NW¼

Order 535-850, Docket No. 170700463, Unnamed Field, Weld County Subject: Approves Longs Peak Resources, LLC’s request for an order to among

other things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and approve the drilling of up to 13 horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Carlile, Fort Hayes, Codell and Niobrara Formations.

Application lands: Township 12 North, Range 66 West, 6th P.M. Section 28: All Section 33:

All Order 407-2173, Docket No. 170900521, Wattenberg Field, Weld County Subject: Approves Confluence DJ LLC’s request for an order to among other

things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and authorizing the drilling of up to five horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Codell Formation and up to 15 horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 1 North, Range 65 West, 6th P.M. Section 28: All Section 33:

All Order 531-49, Docket No. 170900640, Jackson County Subject: Approves SandRidge Exploration & Production LLC’s request for an order

to among other things: Authorize an additional five horizontal wells, for a total of 13 horizontal wells within the existing drilling and spacing unit established by Order No. 531-2 for production from the Niobrara Formation.

Application lands: Township 7 North, Range 81 West, 6th P.M. Section 13: All

Group I Order 407-2174, Docket No. 170900533, Wattenberg Field, Weld County Subject: Approves PDC Energy, Inc., LLC’s request for an order to among other

things: Pool all interests in an approximate 270.62-acre designated horizontal wellbore spacing unit, for the development and operation of the Niobrara Formation.

Page 24: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 24 of 30

Application lands: Township 5 North, Range 64 West, 6th P.M. Section 3: NW¼NW¼

Section 4: N½N½ Section 5: N½NE¼

Group J Order 371-15, Docket No. 170700515, Unnamed Field, Mesa County Subject: Approved Laramie Energy, LLC’s request for an order to among other

things: Pool all interests in the approximate 323.72-acre drilling and spacing unit established by Order No. 369-14 for the Application Lands, for the development and operation of oil, gas and associated hydrocarbons from the Williams Fork and Iles Formations.

Application lands: Township 9 South, Range 93 West, 6th P.M. Section 19: NE¼, NE¼

NW¼, Lot 1, Lot 2, Lot 3 Order 510-69, Docket No. 170900532, Grand Valley Field, Garfield County Subject: Approved Laramie Energy, LLC’s request for an order to among other

things: Establish an approximate 115.37-acre, more or less, drilling and spacing unit for the production of oil, gas and associated hydrocarbons from the Williams Fork and Iles Formations and approve the equivalent of one well per 10-acre density for all wells producing from the Williams Fork and Iles Formations.

Application lands: Township 6 South, Range 97 West, 6th P.M. Section 3: Lot 5, Lot 6

Group K Order 407-2170, Docket No. 170700450, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in three approximate 480-acre horizontal wellbore spacing units and one approximate 240-acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 8: S½SW¼ Section

17: W½ Section 20: N½NW¼ Wellbore Spacing Unit (“WSU”) Nos. 1-3 480 acres, more or less, Weld County, Colorado Township 1 North, Range 66 West, 6th P.M. Section 8: SE¼SW¼ Section 17: E½W½ Section 20: NE¼NW¼

Order 407-2171, Docket No. 170700452, Wattenberg Field, Weld County Subject: Approves Kerr-McGee Oil & Gas Onshore LP’s request for an order to

among other things: Pool all interests in two approximate 480-acre horizontal wellbore spacing units, established for the Application Lands, for the development and operation of the Codell and Niobrara Formation.

Application lands: Township 1 North, Range 66 West, 6th P.M. Section 7: SE¼SE¼ Section

8: SW¼SW¼ Section 17: W½W½ Section 18: E½E½ Section 19: NE¼NE¼ Section 20: NW¼NW¼

Page 25: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 25 of 30

Order 535-864, Docket No. 170900583, Unnamed Field, Weld County Subject: Approves Enerplus Resources (USA) Corporation’s request for an order

to among other things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and approve up to eight horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Fort Hays, Carlile, Codell and Niobrara Formations.

Application lands: Township 8 North, Range 66 West, 6th P.M. Section 30: All Section 31:

All

Order 407-2188, Docket No. 170900587, Wattenberg Field, Weld County Applicant: Enerplus Resources (USA) Corporation (Operator No. 10177) Attorneys: James Parrot, Jillian Fulcher & Joby Rittenhouse Subject: Approves Enerplus Resources (USA) Corporation’s request for an order

to among other things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and approve up to eight horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations.

Application lands: Township 7 North, Range 65 West, 6th P.M. Section 5: All Section 6: All Order 535-865, Docket No. 170900588, Wattenberg Field, Weld County Subject: Approves Enerplus Resources (USA) Corporation’s request for an order

to among other things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and approve up to eight horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Fort Hays, Carlile, Codell and Niobrara Formations.

Application lands: Township 8 North, Range 66 West, 6th P.M. Section 18: All Section 19:

All

Order 535-866, Docket No. 170900589, Wattenberg Field, Weld County Subject: Approves Enerplus Resources (USA) Corporation’s request for an order

to among other things: Establish an approximate 1,280-acre drilling and spacing unit for the Application Lands and approve up to eight horizontal wells within the proposed unit, for the production of oil, gas, and associated hydrocarbons from the Fort Hays, Carlile, Codell and Niobrara Formations.

Application lands: Township 8 North, Range 66 West, 6th P.M. Section 17: All Section 20:

All

Group L Order 407-2176, Docket No. 170900536, Wattenberg Field, Adams County

Page 26: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 26 of 30

Subject: Approves Great Western Operating Company, LLC’s request for an order to among other things: Establish an approximate 895.11-acre drilling and spacing unit for the Application Lands, and approve up to 24 horizontal wells in the unit for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.

Application lands: Township 1 South, Range 66 West, 6th P.M. Section 6: W½ Township 1

South, Range 67 West, 6th P.M. Section 1: All

Order 407-2183, Docket No. 170900578, Wattenberg Field, Adams County Subject: Approves Great Western Operating Company, LLC’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 Niobrara Formation.

Application lands: Township 1 South, Range 67 West, 6th P.M. Section 2: W½E½, E½W½

Section 11: W½E½, E½W½ Order 407-2184, Docket No. 170900579, Wattenberg Field, Adams County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in four approximate 640-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 1 South, Range 67 West, 6th P.M. Section 2: E½ Section 11:

E½ Order 407-2185, Docket No. 170900580, Wattenberg Field, Adams County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in three approximate 640-acre designated horizontal wellbore 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. Section 1: W½W½ Section

2: E½E½ Section 11: E½E½ Section 12: W½W½ Order 407-2186, Docket No. 170900581, Wattenberg Field, Adams County Subject: Approves Great Western Operating Company, LLC’s request for an order

to among other things: Pool all interests in three approximate 640-acre designated horizontal wellbore 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. Section 2: W½ Section 11:

W½ Order 407-2187, Docket No. 170900584, Wattenberg Field, Adams County

Page 27: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 27 of 30

Subject: Approves Great Western Operating Company, LLC’s request for an order to among other things: Pool all interests an approximate 640-acre designated horizontal wellbore spacing unit 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. Section 2: W½W½ Section

3: E½E½ Section 10: E½E½ Section 11: W½W½

Group M Order 407-2169, Docket No. 170600359, Wattenberg Field, Weld County Subject: Approves Noble Energy, Inc’s request for an order to among other things:

Establish an approximate 1,280-acre drilling and spacing unit, and approve up to 16 horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.

Application lands: Township 4 North, Range 66 West, 6th P.M. Section 18: All Section 19:

All Order 535-857, Docket No. 170900543, Unnamed Field, Arapahoe County Subject: Approves ConocoPhillips Company request for an order to among other

things: Allow up to five wells in order to efficiently and economically recover the oil, gas and associated hydrocarbons from the Niobrara Formation in an approximate 1,280-acre drilling and spacing unit established by Order No. 535-68.

Application lands: Township 4 South, Range 65 West, 6th P.M. Section 19: All Section 20:

All Order 421-91, Docket No. 170900553, Hereford Field, Weld County Subject: Approves Fifth Creek Energy Operating Company, LLC’s request for an

order to among other things: Approve an additional seven (7) horizontal wells, for a total of fifteen (15) horizontal wells, in four (4) approximate 1,280-acre drilling and spacing unit established for various lands.

Application lands: Township 12 North, Range 63 West, 6th P.M. Section 33: All Township

11 North, Range 63 West, 6th P.M. Section 4: All (“DSU #1”) Township 12 North, Range 63 West, 6th P.M. Section 34: All Township 11 North, Range 63 West, 6th P.M. Section 3: All (“DSU #2”) Township 12 North, Range 63 West, 6th P.M. Section 35: All Township 11 North, Range 63 West, 6th P.M. Section 2: All (“DSU #3”) Township 12 North, Range 63 West, 6th P.M. Section 36: All Township 11 North, Range 63 West, 6th P.M. Section 1: All (“DSU #4”)

Order 421-92, Docket No. 170900554, Hereford Field, Weld County Subject: Approves Fifth Creek Energy Operating Company, LLC’s request for an

order to among other things: Approve an additional seven (7) horizontal wells, for a total of fifteen (15) horizontal wells, in four (4) approximate 1,280-acre drilling and spacing unit established for various lands.

Page 28: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 28 of 30

Application lands: Township 12 North, Range 62 West, 6th P.M. Section 31: All Township 11 North, Range 62 West, 6th P.M. Section 6: All (“DSU #1”) Township 12 North, Range 62 West, 6th P.M. Section 32: All Township 11 North, Range 62 West, 6th P.M. Section 5: All (“DSU #2”) Township 11 North, Range 62 West, 6th P.M. Section 7: All Section 18: All (“DSU #3”) Township 11 North, Range 62 West, 6th P.M. Section 8: All Section 17: All (“DSU #4”) Township 11 North, Range 62 West, 6th P.M. Section 19: All Section 30: All (“DSU #5”) Township 11 North, Range 62 West, 6th P.M. Section 20: All Section 29: All (“DSU #6”)

Order 421-93, Docket No. 170900555, Hereford Field, Weld County Subject: Approves Fifth Creek Energy Operating Company, LLC’s request for an

order to among other things: Approve an additional seven (7) horizontal wells, for a total of fifteen (15) horizontal wells, in four (4) approximate 1,280-acre drilling and spacing unit established for various lands.

Application lands: Township 12 North, Range 62 West, 6th P.M. Section 19: All (All portions

of this section within the State of Colorado) Section 30: All (“DSU #1”) Township 12 North, Range 62 West, 6th P.M. Section 20: All (All portions of this section within the State of Colorado) Section 29: All (“DSU #2”) Township 12 North, Range 62 West, 6th P.M. Section 21: All (All portions of this section within the State of Colorado) Section 28: All (“DSU #3”) Township 12 North, Range 62 West, 6th P.M. Section 22: All (All portions of this section within the State of Colorado) Section 27: All (“DSU #4”) Township 12 North, Range 63 West, 6th P.M. Section 23: All (All portions of this section within the State of Colorado) Section 26: All (“DSU #5”) Township 12 North, Range 63 West, 6th P.M. Section 24: All (All portions of this section within the State of Colorado) Section 25: All (“DSU #6”)

Order 421-94, Docket No. 170900556, Hereford Field, Weld County Subject: Approves Fifth Creek Energy Operating Company, LLC’s request for an

order to among other things: Approve an additional seven (7) horizontal wells, for a total of fifteen (15) horizontal wells, in four (4) approximate 1,280-acre drilling and spacing unit established for various lands.

Application lands: Township 11 North, Range 63 West, 6th P.M. Section 7: All Section 18:

All (“DSU #1”) Township 11 North, Range 63 West, 6th P.M. Section 8: All Section 17: All (“DSU #2”) Township 11 North, Range 63 West, 6th P.M. Section 9: All Section 16: All (“DSU #3”) Township 11 North, Range 63 West, 6th P.M. Section 10: All Section 15: All (“DSU #4”) Township 11 North, Range 63 West, 6th P.M. Section 11: All Section 14: All (“DSU #5”) Township 11 North, Range 63 West, 6th P.M. Section 12: All Section 13: All (“DSU #6”)

Order 421-95, Docket No. 170900557, Hereford Field, Weld County Subject: Approves Fifth Creek Energy Operating Company, LLC’s request for an

order to among other things: Approve an additional seven (7) horizontal wells, for a total of fifteen (15) horizontal wells, in four (4) approximate 1,280-acre drilling and spacing unit established for various lands.

Page 29: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 29 of 30

Application lands: Township 11 North, Range 63 West, 6th P.M. Section 19: All Section 30: All (“DSU #1”) Township 11 North, Range 63 West, 6th P.M. Section 20: All Section 29: All (“DSU #2”) Township 11 North, Range 63 West, 6th P.M. Section 21: All Section 28: All (“DSU #3”) Township 11 North, Range 63 West, 6th P.M. Section 22: All Section 27: All (“DSU #4”) Township 11 North, Range 63 West, 6th P.M. Section 23: All Section 26: All (“DSU #5”) Township 11 North, Range 63 West, 6th P.M. Section 24: All Section 25: All (“DSU #6”)

Group N Order 535-848, Docket No. 170500296, Unnamed Field, Adams County Subject: Approved Bison Oil & Gas, LLC’s request for an order to among other

things: Establish one approximate 960-acre drilling and spacing unit for the Application Lands, and approve up to sixteen horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 3 South, Range 65 West, 6th P.M. Section 8: All Section 9: W½ Order 535-849, Docket No. 170500297, Unnamed Field, Adams County Subject: Approved Bison Oil & Gas, LLC’s request for an order to among other

things: Establish one approximate 640-acre drilling and spacing unit for the Application Lands, and approve up to eight horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

Application lands: Township 3 South, Range 65 West, 6th P.M. Section 4: SW¼ Section 5:

S½ Section 6: SE¼ Order 535-855, Docket No. 170900541, Unnamed Field, Weld County Subject: Approved Whiting Oil and Gas Corporation’s request for an order to

among other things: Pool all interests in one approximate 960-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Application lands: lands: Township 10 North, Range 57 West, 6th P.M. Section 6: All

Section 7: N½ Order 535-856, Docket No. 170700542, Unnamed Field, Weld County Subject: Approved Whiting Oil and Gas Corporation’s request for an order to

among other things: Pool all interests in one approximate 960-acre drilling and spacing unit established for the Application Lands, for the development and operation of the Codell and Niobrara Formations.

Application lands: Township 10 North, Range 57 West, 6th P.M. Section 20: All Section 29:

Appendix B

Page 30: RECORD OF PROCEEDINGS - COGCC Home OF PROCEEDINGS COGCC Minutes—September 11, 2017 Page 4 of 30 ... Bree Olson Steinke: Provided information on BP’s integrity program including

RECORD OF PROCEEDINGS

COGCC Minutes—September 11, 2017

Page 30 of 30

Approved Enforcement Consent Orders

Group A Order 1V-641, Docket No. 161200480, Hunter Ridge Energy Services, LLC (Operator No. 10442) Subject: Approved an AOC with Hunter Ridge Energy Services LLC

imposing a total penalty of $222,500 for one 60-day violation of Rule 907.a. (Management of E&P Waste – General Requirements) for failure to manage E&P waste in a manner protective of waters of the state resulting from a release of condensate from a pipeline operated by Hunter Ridge in Garfield County, Colorado.