2 Colo. Code Regs. § 404-1-301

Current through Register Vol. 47, No. 24, December 25, 2024

Section 2 CCR 404-1-301 - GENERAL REQUIREMENTS FOR APPROVAL, CHANGES TO OPERATIONS, AND FILING FEES FOR OIL AND GAS OPERATIONS

a.Approval. All operations governed by any regulation in this Series require written approval of the Commission, or Director where applicable. The Commission or Director, where applicable, will approve operations only if they protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources, and protect against adverse environmental impacts on any air, water, soil, or Biological Resource resulting from Oil and Gas Operations. Operators will obtain the Commission's or Director's, where applicable, approval through the procedures provided in this and such other applicable Commission Rules. The Commission, or Director, where applicable, may require any conditions of approval that are determined to be necessary and reasonable to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources, or to protect against adverse environmental impacts on any air, water, soil, or biological resource resulting from Oil and Gas Operations.

b.Denial. The Commission may deny an Oil and Gas Development Plan, and the Commission or Director may deny Oil and Gas Operations if it does not comply with the Commission's Rules or the Act.

c.Changes to Approved Oil and Gas Development Plans.

(1) Operators will file any proposed change to an approved Oil and Gas Development Plan with the Director in writing through a Form 4, Sundry Notice. The Form 4 will be posted to the Commission's website at least 14 days prior to approval or denial of the requested change.

(2) The Director will determine what applications, forms, and information are required for the review and approval of the proposed change, and whether:

A. The proposed change is significant and requires Commission approval;

B. The proposed change requires consultation with the Colorado Department of Public Health and Environment ("CDPHE") or Colorado Division of Parks and Wildlife ("CPW"); or

C. The proposed change will not alter the basis upon which the Oil and Gas Development Plan is approved and can be administratively approved by the Director.

(3) The Operator will not begin work until the Director or Commission provides written approval.

(4) The Director or Commission will only approve changes that comply with the Commission's Rules.

(5) Notice of a Director-approved change to an Oil and Gas Development Plan will be posted to the Commission's website.

d.Filing Fees. Operators will pay filing fees at the time of applying for a Form 2A, Oil and Gas Location Assessment; Form 2, Application for Permit-to-Drill; Drilling and Spacing Unit; Oil and Gas Development Plan; or Comprehensive Area Plan ("CAP") (see Appendix III). Wells drilled for stratigraphic information only will be exempt from paying the filing fee.

e. The Director or Commission may request any information necessary and reasonable to make a final determination of approval or denial on any permit application before the Commission. In such information requests, the Director or Commission will provide the reasoning for the request and a reasonable timeframe for the applicant to provide the information.

f.Coordination with Local Governments and Federal Agencies.

(1)Purpose. The Commission, Local Governments, and federal surface management agencies all share authority to require permits for the surface impacts of Oil and Gas Operations. Recognizing that each permitting authority brings its own, unique expertise in reviewing a permit, the Commission supports creating coordinated, efficient processes among the permitting authorities.

(2)Concurrent Permitting. Where possible, the Commission prefers Operators to follow the concurrent permit review process pursuant to Rule 303.a.(6).A to allow each permitting authority to coordinate sharing its unique expertise and standards.

(3)Local Government or Federal Agency Pre-Application Meeting. Prior to an Operator submitting an Oil and Gas Development Plan or CAP application to the Commission, at the request of the Relevant Local Government or federal agency, the Director will participate in a pre-application meeting, which is a Formal Consultation Process with the Relevant Local Government or federal agency and the Operator to discuss Oil and Gas Location siting, alternative location analysis, Cumulative Impacts including Area of Evaluation, Best Management Practices, conditions of approval, anticipated milestones and events in the state and federal or local permitting processes, opportunities for collaboration, and other related topics regarding the Operator's planned development within the Relevant Local Government's or federal agency's jurisdiction.

A. If the Relevant Local Government or federal agency does not request a pre-application meeting pursuant to this Rule 301.f.(3), the Director will host a pre-application meeting pursuant to Rule 301.g.

B. If the pre-application meeting held pursuant to this Rule 301.f.(3) does not meet the requirements of Rule 301.g, the Director will host a pre-application meeting pursuant to Rule 301.g.

(4)Sequential Permitting. An Operator may pursue a permit from the federal government or a Relevant Local Government before applying for an Oil and Gas Development Plan pursuant to Rule 303. A Relevant Local Government or federal agency may request that the Director participate as a referral agency in a Formal Consultation Process about a proposed local or federal permit. If the Director receives such a request, the Operator will provide the Director with the local or federal permit application or its materials prior to the Formal Consultation. If the Director receives such a request, the Director will consult and will use best efforts to identify any potential conflicts, differences, or concerns that may exist regarding the proposed location(s) and the Commission's Rules.

g.Pre-Application Meeting Requirements.

(1)Director's Pre-Application Meeting. Except as provided in Rule 301.f.(3), an Operator will submit a written request for, and participate in, at least one pre-application meeting with the Director prior to the Operator submitting an Oil and Gas Development Plan or CAP application to the Commission.

A.Purpose and Content of the Director's Pre-Application Meeting. The Director will participate in at least one pre-application meeting with the Operator and all persons identified pursuant to Rule 301.g.(2).B. The purpose of the Director's pre-application meeting is for the Director, Operator, and the invited participants in Rule 301.g.(2).B to engage in a collaborative discussion regarding the processes, standards, and submittal requirements for a proposed Oil and Gas Development Plan or CAP application. During the Director's pre-application meeting, the Director, Operator, and participants may discuss some or all of the following items:

i. Oil and Gas Location siting, including whether a proposed Location may be located within a Disproportionately Impacted Community; may have a Working Pad Surface proposed within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center; may be within High Priority Habitat; or may be in proximity to other sensitive receptors that may require consideration;

ii. Alternative location analysis;

iii. Cumulative Impacts issues, including but not limited to:

aa. The Operator's NOx and Greenhouse Gas Intensity Target statuses, as demonstrated by the Operator's most recent annual report submitted pursuant to AQCC Regulation No. 7, Part B.V.B;

bb. The default Area of Evaluation;

cc. Past, present, and Reasonably Foreseeable Future Development in the Area of Evaluation; and

dd. Best Management Practices and Enhanced Systems and Practices;

iv. Lesser impact area exemption requests;

v. Anticipated milestones and events in the state and federal or local permitting processes;

vi. Refile or amended permit status;

vii. Local land use plans, including topics related to surrounding compatibility, comprehensive area plans, subarea plans, and future land use designations; and

viii. Any other related topics regarding the Operator's planned development within the jurisdiction of the Relevant or Proximate Local Government or federal agency.

B.Participants. The Director's pre-application meeting will include, at minimum, the Operator and the Director. The Operator will also invite following persons to attend:

i. All Local Governments within 1 mile of the proposed Oil and Gas Location(s);

ii. Any federal or state agency with land use jurisdiction over the application lands or minerals;

iii. CDPHE;

iv. CPW; and

vi. A Community Liaison, if the proposed Oil and Gas Location is within a Disproportionately Impacted Community.

C.Timing of the Director's Pre-Application Meeting. The Director will hold at least one pre-application meeting within 30 days of receiving an Operator's written request and such meeting may be in-person, virtual, or hybrid.

D.Waiver. Any person identified pursuant to Rule 301.g.(1).B may waive their right to participate in the Director's pre-application meeting upon written notice to the Director or through lack of attendance in such consultation. Such waiver will be documented in the Operator's Oil and Gas Development Plan or CAP application. Any person may reinstate their right to participate upon notice to the Director.

E.Results of the Director's Pre-Application Meeting.

i. The Operator will:

aa. Provide a written summary of the Director's pre-application meeting(s) to the Director and all persons in attendance at the meeting, to be sent electronically within 10 days of such meeting; and

bb. Include the written summary as part of the Oil and Gas Development Plan application as an attachment to the Form 2A(s) or within the CAP application.

ii. The Director may include a discussion of the written summary of the Director's pre-application meeting in the Director's Recommendation.

(2)Pre-Application Community Meeting.

A.Applicability. This Rule 301.g.(2) applies to any Oil and Gas Development Plan or CAP application where an Oil and Gas Location may be proposed:

i. Within 1/2 mile of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center; or

ii. Within 4,000 feet of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center in a Disproportionately Impacted Community.

B. An Operator will hold a pre-application community meeting no less than 30 days prior to submitting an Oil and Gas Development Plan or CAP application that meets the criteria of Rule 301.g.(2).A.

i.Purpose. The purpose of the pre-application community meeting is to facilitate an opportunity for the Operator to provide an overview of its proposal and solicit feedback and input from local community members that will be considered by the Operator prior to submitting an Oil and Gas Development Plan or CAP application that meets the criteria in Rule 301.g.(2).A.

ii.Participants. The Operator will host the pre-application community meeting and invite the following persons to attend, at minimum:

aa. The Director;

bb. The Community Liaison, if the Oil and Gas Development Plan or CAP application involves an Oil and Gas Location that may be proposed within 4,000 feet of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center in a Disproportionately Impacted Community;

cc. All Relevant and Proximate Local Governments; and

dd. All residents (including owners, agents, or tenants) of a Residential Building Unit or High Occupancy Building Unit, and administrators of School Facilities and Child Care Centers, if the Oil and Gas Development Plan or CAP application may involve an Oil and Gas Location that is:

1. Within 1/2 mile of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center; or

2. Within 4,000 feet of a Residential Building Unit, High Occupancy Building Unit, School Facility, or Child Care Center in a Disproportionately Impacted Community.

iii. The Operator will determine the date, time, type, and location of the meeting with input from the Director or Community Liaison, and the meeting will be held within, or in close proximity to, the residents as described in Rules 301.g.(2).A.i and ii. The pre-application community meeting will be open to the general public. The pre-application community meeting will include an opportunity for attendees to provide an electronic mail address in order to receive written correspondence from the Operator, Community Liaison, or Commission regarding the proposed Oil and Gas Location(s).

iv.Notice.

aa. The Operator will provide notice of the pre-application community meeting to all Surface Owners, Building Unit and High Occupancy Building Unit owners and tenants, and residents, including tenants of both residential and commercial properties, within 1/2 mile of a proposed Oil and Gas Location, and within 4,000 feet of a proposed Oil and Gas Location for any Building Units or High Occupancy Building Units within a Disproportionately Impacted Community.

bb. Notice of the pre-application community meeting will comply with the procedural and substantive requirements of Rules 303.e.(2) & (3). Notice may be accomplished by sending the notice addressed to "Current Resident." The Operator may also post information about the meeting on its website or social media accounts.

v.Written Summary. The Operator will provide a written summary of the pre-application community meeting as part of the Oil and Gas Development Plan application as an attachment to the Form 2A(s), or with the CAP application. The Director may include a discussion of the written summary of the pre-application community meeting in the Director's Recommendation.

h.Incorporation by Reference. Pursuant to § 24-4-103 (12.5), C.R.S., the Commission incorporates by reference into these 300 Series Rules Colorado Department of Public Health and Environment, Air Quality Control Commission ("AQCC"), Regulation No. 7, Control of Emissions from Oil and Gas Emissions Operations, 5 C.C.R. § 1001-9, et seq. (hereinafter "AQCC Regulation No. 7"). Only the version of AQCC Regulation No. 7 in effect as of December 15, 2024 applies; later amendments do not apply. AQCC Regulation No. 7 may be examined at the Colorado Department of Public Health and Environment, 4300 Cherry Creek Drive South, Denver, CO 80246, and is available online at https://cdphe.colorado.gov/aqcc-regulations.

2 CCR 404-1-301

37 CR 16, August 25, 2014, effective 9/30/2014

38 CR 01, January 10, 2015, effective 2/14/2015

38 CR 03, February 10, 2015, effective 3/2/2015

38 CR 07, April 10, 2015, effective 4/30/2015

38 CR 16, August 25, 2015, effective 9/14/2015

39 CR 04, February 25, 2016, effective 3/16/2016

41 CR 05, March 10, 2018, effective 4/1/2018

41 CR 06, March 25, 2018, effective 5/1/2018

41 CR 23, December 10, 2018, effective 12/30/2018

42 CR 02, January 25, 2019, effective 2/14/2019

42 CR 17, September 10, 2019, effective 9/30/2019

42 CR 24, December 25, 2019, effective 1/14/2020

43 CR 17, September 10, 2020, effective 9/30/2020

43 CR 13, July 10, 2020, effective 11/2/2020

43 CR 24, December 25, 2020, effective 1/15/2021

45 CR 07, April 10, 2022, effective 4/30/2022

45 CR 09, May 10, 2022, effective 5/30/2022

45 CR 13, July 10, 2022, effective 7/30/2022

47 CR 22, November 25, 2024, effective 12/15/2024