Conference on Best Practices for Community and Environmental Protection Comprehensive Drilling Plans Prepared by: Dave Neslin, Director, COGCC October.

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Presentation transcript:

Conference on Best Practices for Community and Environmental Protection Comprehensive Drilling Plans Prepared by: Dave Neslin, Director, COGCC October 14, 2009

RULE 216 COMPREHENSIVE DRILLING PLANS THE COMMISSION’S VIEW (SBP at 21) “[A] flexible planning and permitting tool, which operators can tailor to their needs and circumstances.” Intended “to encourage landscape level planning and regulatory review as contemplated by HB ” Anticipated “to better address cumulative effects, promote efficiency, and facilitate more win-win situations.” “[T]he opposite of a one-size-fits-all approach.”

RULE 216 COMPREHENSIVE DRILLING PLANS A PRIMER Voluntarily initiated by operator (Rule 216.a.) More then 1 location (Rule 216.b.) Information decided by operator in consultation with participants. Certain information suggested. (Rule 216.c.) Must invite CDPHE, CDOW, LGDs, and surface owners to participate (Rule 216.d. (2)) Shall consider proposed operations and effects and identify conditions to minimize adverse impacts (Rule 216.d. (3) & (5)) May incorporate variances (Rule 216.e. (1))

RULE 216 COMPREHENSIVE DRILLING PLANS A PRIMER (Cont’d) Must be accepted by Commission (Rule 216.d. (4)) CDP Conditions included in Form 2/2A approvals (Rule 216.e. (2)) Depending on information included, and procedures followed, may eliminate need for Form 2A or certain Form 2A requirements (Rule 216.f. (1) & (2)) Results in expedited processing of Form 2s and Form 2As (Rule 216.f. (3) & (4)) CDP conditions presumed to be sufficient in hearings on Form 2/Form 2A approvals (Rule 216.f. (5)) Good for 6 years (Rule 216.g.) Subject to modification (Rule 216.h.)

RULE 216 COMPREHENSIVE DRILLING PLANS COMPANIES PURSUING COMPREHENSIVE DRILLING PLANS (JANUARY 2009) Antero ResourcesLaramie Bill Barrett CorporationMarathon BP AmericaNoble ChevronOrion Conoco PhillipsOXY USA DeJour EnergyPetroleum Development Corporation Delta PetroleumPioneer Natural Resources EnCana Questar Energen Resources Corp.SGI Interests Exxon/MobilWilliams Gunnison Energy

RULE 216 COMPREHENSIVE DRILLING PLANS POTENTIAL BENEFITS FOR OPERATORS Eliminate all or part of Form 2A requirements Expedite COGCC processing and permitting Increase efficiency by “bundling” applications and consolidating regulatory reviews Increase predictability by defining mitigation requirements at the outset

RULE 216 COMPREHENSIVE DRILLING PLANS POTENTIAL BENEFITS FOR THE STATE Increase efficiency by “bundling” applications and consolidating regulatory reviews Better address cumulative effects Facilitate more win-win solutions that achieve both energy production and environmental/wildlife protection

OTHER PLANNING TOOLS Geographic Area Plans (Rule 513) Wildlife Mitigation Agreements (Rule 1202.d (2)) Pre-Application Consultation with CDPHE, CDOW, and Surface Owner