HomeMy WebLinkAbout20080882.tiff BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF )
ORR ENERGY, LLC, FOR APPLICATION
FOR PERMIT TO DRILL LAKE 31-43 WELL, ) Cause No. 1
TOWNSHIP 6 NORTH, RANGE 66 WEST, )
6TH P.M., SECTION 31, NE'/4 OF THE SE'/4 ) Docket No.0803-GA-02
WELD COUNTY, COLORADO, PURSUANT )
TO PERMIT APPLICATION 20077274 )
PROTEST
On Energy, LLC ("On"), by its undersigned counsel, protests the Verified Application of
the City of Greeley (the "City'), stating:
Background
1. On owns an oil and gas lease covering a 65-acre parcel encompassing the NE'/4
SEY4, Section 31, Township 6 North, Range 66 West, Weld County, Colorado (the "Property").
On December 26, 2007, On filed an application with the Commission to drill the Lake 31-43
well (the "Proposed Well") on the Property.
2. Only one building and two small amphitheaters have been constructed on the
Property. The 2007 online reference map published by the City does not designate the Property
as either a school or a park.
3. The City did not consult with On regarding well or facilities locations before
building what now exists, or drafting its plan for use of the remaining surface of the Property.
4. Three existing wells operated by On are located approximately 225 feet south of
the Property; their associated tank battery is located approximately 150 feet south of the
Property. An active aggregate plant borders the Property to the north, across the Poudre River.
5. The Proposed Well is at a surface location on the Property which was requested
and agreed to by the City. The location of the Proposed Well is approximately 587 feet from the
building and approximately 370 feet from the nearest of the two outdoor amphitheatres. A
diagram showing this relationship is attached as Exhibit A.
6. On has agreed with the City that the separator and tank battery associated with
the Proposed Well, will be located off the Property and adjacent to the existing tank battery
referenced in paragraph 3 above.
Commission Rules and Orders
7. Rule 603(c) provides that if an educational facility or assembly building is located
within 1,000 feet of a wellhead or production facility, high density area rules shall apply.
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8. Rule 100 defines "designated outside activity area" as a"well-defined outside
area (such as a playground, recreation area, outdoor theater, or other place of public assembly)
that is occupied by at least 20 persons on at least 40 days, or at least 500 persons on at least 3
days, during any 12-month period."
9. Rule 603.e.(3) provides that in high-density and designated outside activity areas,
if requested by the local governmental designee, production tanks shall be located at least 500
feet from an educational facility, assembly building, or designated outside activity area.
10. Rule 603.e.(2) provides that in high density and designated outside activity areas,
a wellhead shall be not less than 350 feet from any building unit, educational facility, or
assembly building.
11. Order No. 1-94, entered in 2001, appears to be the only instance in which the
Commission has designated an outside activity area. The City of Longmont applied for
designation of a 400-acre park. The Commission found that Longmont had developed baseball
fields, concession stands, parking lots, and associated facilities on a 40-acre portion of that park.
It designated only that portion of the park as an outside activity area, and permitted drilling in
that portion, so long as any well was located no less than 350 feet from the boundary of"any
constructed baseball/softball fields, concession stands, parking lots and associated facilities."
City Requests and Orr Responses
12. High Density Designation. The City seeks a determination that the Proposed
Well is located in a high density area. The Proposed Well is located 587 feet of the building
located on the Property. Orr therefore agrees to drill the Proposed Well in accordance with high
density requirements of Rule 603(c).
13. Designated Outside Activity Area. The City seeks (a) designation of the entire 65
acres of the Property is an "outside activity area," and (b) an order requiring that the Proposed
Well and its production facilities be located at least 350 feet from the boundary of the Property.
The City asserts that (a) the Property is a"well defined outside area" because it is bounded on
the north by the Poudre River, the east by 83rd Avenue, the south by Weld County Road 62, and
the west side by fencing, (b) at least 20 persons or more have visited some portion of the
Property at least 95 days in 2007, and therefore (c) the drilling permit for the Lake 31-43 Well
should be conditioned to require that its surface location, and that of its production facilities, be a
minimum of 350 feet away from the perimeter of the Property.
14. The Commission's definition of"designated outside activities areas" has never
before been applied, and was never intended to apply, to a largely undeveloped 65 acre parcel,
simply because it may contain one or more defined sites - such as amphitheatres in this case -
which may visited by the requisite number of persons. Under this interpretation, the entire
Roosevelt National Forest or the Pawnee National Grassland could qualify, since they are well
defined outside areas, and some portions of them are occupied by 20 or more persons on at least
40 days in any year. Such an interpretation would be illogical, be unnecessary to meet the needs
of public health and safety, and violate the basic intent of the Colorado Oil and Gas Conservation
Act.
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15. If the entire Property is designated as an outside activity area, as requested by the
City, then no well may be drilled and no production facilities may be placed on or within 350
feet of the Property. This would create an area in excess of 120 acres in which no well could be
drilled or tank battery placed, regardless of their distance from a building, amphitheaters, parking
lot or other well-defined facility. A diagram showing the Property and a 500 foot setback around
it, is attached as Exhibit B. As shown on Exhibit B and noted in paragraph 3 above, this
proposed setback area already contains three wells and a tank battery, and such an order would
presumably prevent their twinning or expansion.
16. Designation of the entire Property as an outside activity area, would leave no
surface location on the 65-acre lease from which a well could be drilled. It would result in waste
of oil and gas, in derogation of the intent of the Colorado Oil and Gas Conservation Act, C.R.S.
§34-60-101 et seq.
WHEREFORE, On Energy, LLC respectfully requests that (a) the City's request for high
density designation with respect to the Lake 31-43 well be granted, (b)the City's request for
designation of outside activity areas be granted, but only with respect to the two amphitheaters
located on the Property, and only if the City shows the requisite volume of use for these
facilities, (c)the Commission order that any well drilled on the Property be located not less than
350 feet, and any production tanks be located not less than 500 feet, from the amphitheaters,
parking lot or building located on the Property, for which the City has shown the requisite
volume of use, and (d) in all other respects, the City's Application be denied.
RESPECTFULLY SUBMITTED this 13`h day of March, 2008.
LOHF SHAIMAN JACOBS HYMAN
& FEIGER PC
By:
Micha organ, #7679
A.
s u herry Street, Suite 900
//Denv , Colorado 80246
Telephone: (303) 753-9000
Facsimile: (303) 753-9997
Address of Protesting Party:
On Energy, LLC
826 9th Street
Greeley, CO 80631
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CERTIFICATE OF SERVICE
The undersigned hereby certifies that on the 13th day of March, 2008, she served a copy
of the foregoing via U.S. first-class mail, postage prepaid, upon the following:
Jeffrey C. Parins, Esq.
Greeley City Attorneys' Office
1100 10`h Street, Suite 401
Denver, CO 80631
Board of County Commissioners
Weld County, Colorado
915 10th Street
P.O. Box 758
Greeley, CO 80632
Weld County School District 6
1025 9th Avenue
Greeley, CO 80631
Hall-Irwin Construction Company
301 Centennial Drive
P.O. Box 309
Milliken, CO 80543
83`d Joint Venture LLC
2815 83 Avenue
Greeley, CO 80634
Poudre Learning Center, Inc.
8313 F Street
Greeley, CO 80634
Central Colorado Water Conservancy District
3209 W. 28 Street
Greeley, CO 80634
Poudre River Trail Education Board
1226 38 Avenue
Greeley, CO 80634
Rebecca Safarik
Director of Community Development
1100 10`h Street, Second Floor
Greeley, CO 80634
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On Resources, LLC
826 9th Street, Suite 200
Greeley, CO 80631
Mr. Ed On
826 9th Street, Suite 200
Greeley, CO 80631
To ja ,Hoisington, Paralegal
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PoudreCache River
ent\asoto3/4...... 3/4%-\
POND
POND E. 1/4 RNER
SEC. 31 6-6
350' Setback—� Lakes 1 -43
370'±
515'f
Bike Path
Existing Open
Structure Existing Open
Structure
587'± Existing
Gravel Building
Bike Path Trails �—
WOR 62- 1 /4/.--Existing Tank Battery
Existing Separator Existing Well Heads
\Jones Ditch
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