News & Alerts
January 15, 2021 “DID YOU KNOW” – JOST ENERGY LAW PRACTICAL TIPS FOR NEW COGCC RULES – DAY FIVE
All new COGCC Rules are IN EFFECT as of 12:00 a.m. this morning, January 15, 2021!
For our fifth and final day of Jost Energy Law’s “Did You Know?” Series, we wrap up our week of practical tips by cribbing the COGCC’s Permitting Scenarios discussion from the Operator Training session yesterday (Thank you Jane Stancyzk!). We found this discussion to be incredibly helpful on the permitting front and wanted to ensure everyone had a chance to review. The fifth and final set of tips are below:
~ New Requirements for a Form 2A
- Operators will submit a completed Form 2A, Oil and Gas Location Assessment as part of their Oil and Gas Development Plan applications, as required by Rule 303.a.(2). Operators will submit and obtain approval of a Form 2A prior to:
- Surface disturbance at a site previously undisturbed by Oil and Gas Operations;
- Surface disturbance for the purpose of expanding an existing Working Pad Surface or Oil and Gas Location; or
- Any significant change to the design and operation of an Oil and Gas Location, most notably the addition of a Well.
~ New Requirements for a Form 2
- If the Commission approves an Operator’s Oil and Gas Development Plan, or if the Operator’s Form 2A and Drilling and Spacing Unit, where applicable, were approved prior to the effective date of this Rule, then the Operator will submit and obtain the Director’s approval of a complete Form 2, Application for Permit to Drill, before taking any of the actions listed in Rules 308.a.(1)–(6) below. The Form 2 will detail the Operator’s plans to:
- Drill any Well;
- Deepen any existing Well;
- Re-enter, complete, and operate any plugged Well (except for re-entry to re-plug will require a Form 6);
- Recomplete and operate any existing Well;
- Drill a sidetrack from any well; or
- Convert a stratigraphic Well into a production Well.
- For a new Oil & Gas Location, all of these must be filed and approved before a Form 2 can be filed for a well on that location;
- Oil & Gas Development Plan hearing application;
- Form 2A;
- Form 2B; and
- Form 2C.
~ Oil & Gas Development Plan Requirements
- If a Form 2A is required, an OGDP is required, including;
- A Form 2A for a New Location
- A Form 2A two Amend an Existing Location
- A refile of a Form 2A for an Expired or Expiring Form 2A
- A Form 2B Cumulative Impacts Analysis
- A Form 2C Certification
- If spacing is required, an OGDP is required, even if no Form 2A is required.
- If an OGDP is required, a From 2B and a Form 2C are required.
~ Review of an approved Form 2A with a new or re-filed Form 2 filing:
- Under Rule 308.c.(1)B, the Director will review a Location during a Form 2 review to ensure COAs will be protective. The existing location review WILL BE THOROUGH.
- Considerations for Form 2 review include: whether the siting conforms to the adopted Rules, surface disturbance minimization, preference for existing locations, and consolidation of operations, and the new Rule 604 setbacks.
- COGCC Staff will also consider whether ALA criteria are met and whether the Location already went through Objective Criteria review. Note that an approved Objective Criteria Review Memo does NOT mean automatic approval.
- During OGLA review, the types of information that may be requested include: updated/enhanced BMPs, new BMPs, any information under 304.b, and any Plans required under 304.c.
- providing BMPs, Plans and information may not be enough for the Director to determine if the Location is protective, and a FULL OGDP Application may need to be submitted, or Director can DENY the Form 2.
- Rule 308.c.(2) covers Form 2 denial – if the Form 2 does not meet Rules or does not provide sufficient protections to be protective; the Director will put forth the reason for denial, and if Form 2 denied, the Operator has the right for a Hearing.