2 Colo. Code Regs. § 404-1-303

Current through Register Vol. 47, No. 20, October 25, 2024

Section 2 CCR 404-1-303 - PROCEDURAL REQUIREMENTS FOR OIL AND GAS DEVELOPMENT PLANS

a.Components of an Oil and Gas Development Plan Application. Prior to commencing Oil and Gas Operations at an Oil and Gas Location that meets the criteria of Rule 304.a, an Operator will have an approved Oil and Gas Development Plan. An Operator will submit to the Commission the following:

(1) An application with the Hearings Unit for a hearing on the proposed Oil and Gas Development Plan, pursuant to Rule 503.g.(1). If the Oil and Gas Development Plan includes lands to be spaced, the Oil and Gas Development Plan application will include an application for and request for hearing on the proposed Drilling and Spacing Unit(s) pursuant to Rules 305 & 503.g.(2). For at least one portion of a mineral tract within the proposed Oil and Gas Development Plan, the applicant will provide documentation as described in Rule 305.a.(2).L, showing the applicant's status as an Owner.

(2) A Form 2A that meets all requirements of Rule 304 for each proposed Oil and Gas Location.

(3) Payment of the full filing fee required by Rule 301.d.

(4) Any other relevant information that the Director determines is necessary and reasonable to determine whether the proposed operation meets the Commission's Rules and protects and minimizes adverse impacts to public health, safety, welfare, the environment, and wildlife resources. The Director will provide the Operator with the reason for the request in writing.

(5)Cumulative Impacts Data Evaluation Repository.

A.Purpose. This Rule 303.a.(5) is intended to provide data for the Commission's cumulative impacts data evaluation repository. The Commission intends to use the data, in cooperation with CDPHE and other partners, to undertake basin-wide, statewide, and other studies to evaluate and address cumulative impacts to relevant resources at appropriate scales pursuant to Rules 304.c.(19) or 904.

B.Resource Impacts. The Operator will submit a Form 2B, Cumulative Impacts Data Identification that provides quantitative and qualitative data to evaluate incremental adverse and beneficial contributions to cumulative impacts caused by Oil and Gas Operations associated with the proposed Oil and Gas Development Plan, including any measures the Operator will take to avoid, minimize, or mitigate any adverse impacts:

i.Air Resources. A quantitative evaluation of the incremental increase in the pollutants listed below, estimated for the entire proposed Oil and Gas Development Plan. The emissions estimates will include both stationary and mobile sources of emissions during all pre-production activities, and both stationary and mobile sources of emissions for the first year of production based on all proposed wells and equipment.

aa. Oxides of nitrogen (NOx);

bb. Carbon monoxide (CO);

cc. Volatile Organic Compounds (VOCs);

dd. Methane (CH4);

ee. Ethane (C2H6);

ff. Carbon dioxide (CO2); and

gg. Nitrous oxide (N2O).

ii.Public Health. An evaluation of incremental adverse impacts to public health due to Oil and Gas Operations associated with the proposed Oil and Gas Development Plan, including:

aa. A quantitative evaluation of the incremental increase in total hazardous air pollutant emissions estimated for the entire proposed Oil and Gas Development Plan. The emissions estimates will include both stationary and mobile sources of emissions during all pre-production activities, and both stationary and mobile sources of emissions for the first year of production based on all proposed wells and equipment.

bb. A quantitative evaluation of the incremental increase in specific hazardous air pollutant emissions with known health impacts, estimated for the entire proposed Oil and Gas Development Plan. The emissions estimates will include both stationary and mobile sources of emissions during all pre-production activities, and both stationary and mobile sources of emissions for the first year of production based on all proposed wells and equipment:

1. Benzene;

2. Toluene;

3. Ethylbenzene;

4. Xylenes;

5. n-Hexane;

6. 2,2,4-Trimethylpentane (2,2,4-TMP);

7. Hydrogen sulfide (H2S);

8. Formaldehyde; and

9. Methanol

cc. A qualitative evaluation of any potential acute or chronic, short-or long-term incremental impacts to public health as a result of such emissions.

dd. Whether the proposed Oil and Gas Development Plan includes any proposed Oil and Gas Locations within a Disproportionately Impacted Community.

iii.Water Resources.

aa. For any proposed Oil and Gas Development Plan that includes proposed Oil and Gas Locations that will be listed as a sensitive area for water resources, or are within 2,640 feet of a surface Water of the State, the total planned on-location storage volume (measured in Barrels (bbls)) of:

1. Oil;

2. Condensate;

3. Produced water; and

4. Other volumes of stored hydrocarbons, Chemicals, or E&P Waste Fluids

bb. An evaluation and identification of potential contaminant migration pathways and likely distances from the proposed Oil and Gas Locations to the nearest downstream riparian corridors, wetlands, and surface Waters of the State. If the Operator identifies any such contaminant migration pathways, the Operator will provide a qualitative evaluation of the baseline conditions in the riparian corridor, wetland, or surface Water of the State.

cc. A qualitative evaluation of potential impact to any Public Water System intake.

dd. A qualitative evaluation of measures the Operator proposes to take to reduce water use, including reusing and recycling produced water.

ee. A quantitative evaluation of the anticipated volume of all surface water and Groundwater to be used, including the percentage of the total volume that is anticipated to be reused or recycled water, consistent with Rules 304.c.(18).A & C.

iv.Terrestrial and Aquatic Wildlife Resources and Ecosystems. A quantitative or, where quantitative information is not reasonably available, a qualitative evaluation of potential impacts to Wildlife Resources as a result of Oil and Gas Operations associated with the proposed Oil and Gas Development Plan, including:

aa. List of High Priority Habitats within 1 mile; and

bb. Total acreage of new or expanded surface disturbance associated with the proposed Oil and Gas Development Plan, including:

1. A breakdown (by acreage) of the types of current land use;

2. The number of acres of new or expanded surface disturbance within High Priority Habitat

v.Soil Resources.

aa. A quantitative evaluation of incremental adverse impacts to topsoil as a result of surface disturbance associated with the proposed Oil and Gas Development Plan; and

bb. A qualitative evaluation of incremental adverse impacts on ecosystems, including any vegetative communities, as a result of Oil and Gas Operations associated with the proposed Oil and Gas Development Plan.

vi.Public Welfare. A qualitative or quantitative evaluation of incremental adverse impacts to public welfare as a result of Oil and Gas Operations associated with the proposed Oil and Gas Development Plan, that addresses each of the following potential sources of impacts to public welfare, over both a short-term and long-term timeframe:

aa. Noise;

bb. Light;

cc. Odor;

dd. Dust; and

ee. Recreation and scenic values.

C.Surrounding Oil and Gas Impacts. On the Form 2B, the Operator will identify Oil and Gas Locations in proximity to each of the proposed Oil and Gas Locations associated with the proposed Oil and Gas Development Plan. Specifically, on the Form 2B, the Operator will identify:

i. The total number of active, permitted, and proposed Oil and Gas Locations within a 1 mile radius of each of the proposed Oil and Gas Locations, including those permitted by the Relevant Local Government, even if a permit application has not yet been submitted to the Commission for the same location.

ii. The cumulative total of the acreage that is currently disturbed or is planned to be disturbed to construct the active and proposed Oil and Gas Locations associated with the Oil and Gas Development Plan within a 1 mile radius of each of the proposed Oil and Gas Locations, and the source(s) used to calculate the total acreage, which may include:

aa. Any relevant field observation or measurements; or

bb. The Commission's electronic location files.

iii. The total number of oil and gas Wells within a 1 mile radius of each of the proposed Oil and Gas Locations that are:

aa. Active;

bb. Permitted but not drilled;

cc. Proposed; and

dd. Plugged and Abandoned.

iv. The total volume of produced hydrocarbon and produced water storage that exists and is proposed at the active and proposed Oil and Gas Locations associated with the Oil and Gas Development Plan within a 1 mile radius of each of the proposed Oil and Gas Locations, and the sources used to calculate the storage volumes.

D.Other Industrial Impacts. On the Form 2B, the Operator will identify existing industrial facilities within a 1 mile radius of each of the proposed Oil and Gas Locations associated with the proposed Oil and Gas Development Plan, including:

i. A map or aerial photo, if necessary, showing the proposed Oil and Gas Location(s) and the industrial facilities; and

ii. A general description of the use or operation of the industrial facilities.

(6)Permitting Coordination Notifications.

A. If an Operator is concurrently seeking a permit from the Commission and a federal agency or a Relevant Local Government for one or more locations within the proposed Oil and Gas Development Plan, the Operator may engage the Director in the federal agency or Relevant Local Government process. The Relevant Local Government or federal agency may also request that the Director engage in the Relevant Local Government process or federal agency process. If the Operator, Relevant Local Government, or federal agency requests the Director's engagement, the Operator will:

i. Notify the Director that it is concurrently seeking a permit from the Relevant Local Government or federal agency permitting process on the Form 2A at the time the Operator submits the proposed Oil and Gas Development Plan;

ii. Identify any potential conflicts or differences between agency standards for each of the respective permitting authorities on the Form 2A; and

iii. Promptly notify the Director in writing of subsequent milestones and events in the Local Government or federal agency permitting process, including but not limited to:

aa. Submission of documents;

bb. On-site inspections;

cc. Public comment deadlines;

dd. Hearings and public meetings; or

ee. Issuance of final decisions.

B. If an Operator has already obtained a permit from a federal agency or a Relevant Local Government for one or more locations within the proposed Oil and Gas Development Plan, the Operator will submit the federal agency's or Relevant Local Government's final decision documents approving the siting and any related surface disturbance as an attachment to the Form 2A for that location.

i. If a Relevant Local Government has already approved the siting of one or more Oil and Gas Locations proposed as part of an Oil and Gas Development Plan, and the Director determines that it will recommend that the Commission deny the proposed Oil and Gas Development Plan based on an alternative location analysis process pursuant to Rule 304.b.(2), the Director will notify the Relevant Local Government and the Operator prior to issuing a Recommendation pursuant to Rule 306.

ii. For a proposed Oil and Gas Location on federal surface or mineral estate for which the relevant federal agency has already approved one or more Application(s) for Permit to Drill, the Operator will submit any environmental analysis or analyses conducted for the Application(s) for Permit to Drill pursuant to the National Environmental Policy Act.

(7) A certification that all components of the Oil and Gas Development Plan have been submitted. The Operator will submit a Form 2C, Oil and Gas Development Plan Certification, to certify the submission of all components of the Oil and Gas Development Plan, and to identify all components of the application.

(8) If an Operator proposes multiple Oil and Gas Locations, and the Director determines that the number of proposed locations, geographic scope, or high number of adjacent or nearby Oil and Gas Development Plans submitted by the same Operator would be more appropriately considered as a CAP, the Director may request a meeting with the Operator to evaluate whether the proposed Oil and Gas Development Plan(s) should be re-submitted as a CAP application pursuant to Rule 314.

b.Completeness Determination. After the Operator certifies pursuant to Rule 303.a.(7) that all required components of the Oil and Gas Development Plan have been submitted, the Director will use best efforts to review the application materials within 30 days to determine if they are complete.

(1) If the proposed Oil and Gas Development Plan is complete, the Director will approve the Form 2C and issue a completeness determination to the Operator via electronic mail.

(2) A completeness determination does not constitute approval or denial of an Oil and Gas Development Plan, nor does it convey any rights to conduct any surface-disturbing activities.

(3) At any time, before or after the Director makes a completeness determination, the Director or the Commission may request any relevant information necessary and reasonable to make a final determination of approval or denial on an Oil and Gas Development Plan. The Operator will provide any requested information before the Commission makes a final decision to approve or deny the Oil and Gas Development Plan. The Director will provide the Operator with the reason for the request in writing.

(4) If the Director determines that an application is incomplete, the Director will notify the Operator in writing of any such inadequacies. The Operator will have 90 days from the date that it was contacted to correct or provide requested information, otherwise the Director will deny the Form 2C, and all components of the application will be considered withdrawn and the Oil and Gas Development Plan filing fee will not be refunded.

(5) The Director will submit the completeness determination to the Hearings Unit, where it will be part of the record before the Commission on the Oil and Gas Development Plan application.

c.Revisions to an Oil and Gas Development Plan Application.

(1) At any time prior to the Director making a completeness determination, the Operator may request changes to its Oil and Gas Development Plan or provide additional or different information by contacting the Director.

(2) After the Director makes a completeness determination, the Operator may only make material changes to its Oil and Gas Development Plan application with the Director's approval, which may require re-noticing the application pursuant to Rules 303.e and 503.g.(1), and reopening the public review and consultation period pursuant to Rule 303.d.

d.Public Review and Consultation.

(1)Public Comment Period. When the Director makes a completeness determination by approving a Form 2C, the Oil and Gas Development Plan application components, exemptions granted pursuant to Rule 304.d, and supporting materials will be posted to the Commission's website. The website posting will provide:

A. The date by which public comments must be received to be considered, which is:

i. 45 days from the date the Oil and Gas Development Plan was posted if the Oil and Gas Development Plan includes any proposed Oil and Gas Locations within 2,000 feet of a Residential Building Unit, High Occupancy Building Unit, or School Facility within a Disproportionately Impacted Community; and

ii. 30 days from the date the Oil and Gas Development Plan was posted for all other Oil and Gas Development Plans; and

B. The mechanism for the public to provide comments.

(2)Notification for Consultation. At the same time the Director posts materials to the Commission's website pursuant to Rule 303.d.(1), the Director will provide electronic notice of such posting to:

A. The Relevant Local Government(s);

B. All Proximate Local Government(s);

C. CPW;

D. CDPHE, if consultation will occur pursuant to Rule 309.f; and

E. Public Water System administrators, if consultation will occur pursuant to Rule 309.g.

(3)Confidentiality. If the Operator designates any portion of its Oil and Gas Development Plan application as "confidential" pursuant to Rule 223, then the Director will post only the redacted version when the Oil and Gas Development Plan application is posted.

e.Notice.

(1)Who Receives Notice. The Operator will provide notice of the completeness determination within 7 days to:

A. All Owners of minerals to be developed by the Oil and Gas Development Plan except that no notice is required for minerals already subject to a federal Unit Agreement pursuant to 43 C.F.R. § 3180.

B. All Surface Owners, Building Unit owners, and residents, including tenants of both residential and commercial properties, within 2,000 feet of any Working Pad Surface included in the Oil and Gas Development Plan. Notice to tenants may be accomplished by sending the notice to the residences addressed to "Current Resident."

C. The Colorado State Land Board (if a mineral owner).

D. The U.S. Bureau of Land Management (if any federal entity is mineral owner).

E. The Southern Ute Indian Tribe (for applications involving minerals within the exterior boundary of the Tribe's reservation that are subject to the Commission's jurisdiction pursuant to Rule 201.d.(2)).

F. All Schools, Child Care Centers, and School Governing Bodies pursuant to Rule 309.d.

G. Police, fire departments, emergency service agencies, and first responder agencies responsible for ensuring public safety in all areas within 2,000 feet of any Working Pad Surface included in the Oil and Gas Development Plan.

H. The administrator of any Public Water System that operates:

i. A surface water Public Water System intake that is 15 stream miles or less downstream from the proposed Working Pad Surface;

ii. A groundwater under the direct influence of surface water ("GUDI") Public Water System supply well within 2,640 feet of the proposed Working Pad Surface; and

iii. A Public Water System supply well completed in a Type III Aquifer within 2,640 feet of the proposed Working Pad Surface.

(2)Substance of Notice. Notice provided by the Operator pursuant to this section will include:

A. An introductory letter including:

i. The Operator's contact information including its electronic mail address, phone number, and physical address(es) to which the public may direct questions and comments;

ii. The contact information for the Relevant Local Government;

iii. The Commission's website address and main telephone number;

iv. The location of all proposed Oil and Gas Locations; and

v. The anticipated date that each phase of operations will commence (by month and year).

B. A description of the proposed Oil and Gas Development Plan, including:

i. How many Wells and Locations are proposed;

ii. The proposed construction schedule by quarter and year;

iii. A description of each operational phase of development and what to expect during each phase;

iv. Proposed haul routes and traffic volume associated with each phase of operations; and

v. A description of any variances requested pursuant to Rule 502.

C. The Commission's information sheet about the procedural steps involved with the Director's and Commission's review of Oil and Gas Development Plans;

D. The Commission's information sheet about the Commission's public comment process and the relevant deadlines;

E. The Commission's information sheet about Hydraulic Fracturing Treatments, unless Hydraulic Fracturing Treatments will not be utilized at any Well within the proposed Oil and Gas Development Plan;

F. Other information that the Director identifies in the completeness determination as necessary to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources;

G. The Commission's information sheet about how the public may view the status of the proposed Oil and Gas Development Plan application on the Commission's website; and

H. Information on how the public may learn more details about and ask questions about the Oil and Gas Development Plan prior to the closure of the public comment period.

I. All written information provided pursuant to Rule 303.e.(2) will also be provided in all languages spoken by 5% or more of the population in all census block groups within 2,000 feet of each proposed Oil and Gas Location within the Oil and Gas Development Plan.

(3)Procedure for Providing Notice. Notice will be delivered by one of the following mechanisms:

A. Hand delivery, with confirmation of receipt;

B. Certified mail, return-receipt requested;

C. Electronic mail, with electronic receipt confirmation; or

D. By other delivery service with receipt confirmation.

f.Publication of Comments. The Director will post public comments on the Commission's website according to applicable guidance.

g.Extension of Comment Period. The Director may extend or reopen the comment period for up to an additional 30 days for a proposed Oil and Gas Development Plan and 45 days for a proposed CAP if the Director determines an extension or reopening is reasonable in order to obtain public input.

h.Drilling and Spacing Unit Applications. When an Oil and Gas Development Plan includes an application for a new Drilling and Spacing Unit or to amend an existing Drilling and Spacing Unit, the Drilling and Spacing Unit application will be noticed and subject to the petition process set forth in Rules 504.b.(2) & 507.

2 CCR 404-1-303

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