2 Colo. Code Regs. § 404-1-306

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

Section 2 CCR 404-1-306 - DIRECTOR'S RECOMMENDATION ON THE OIL AND GAS DEVELOPMENT PLAN

a.When the Director May Issue a Recommendation. The Director will not make a Recommendation to the Commission about whether to approve or deny any Oil and Gas Development Plan until:

(1) The Director has fully reviewed the Oil and Gas Development Plan and all supporting application materials and has obtained all information necessary to evaluate the proposed operation and its potential impacts on public health, safety, welfare, the environment, and wildlife resources;

(2) The Director has reviewed and commented on the Drilling and Spacing Unit application, if submitted with the Oil and Gas Development Plan;

(3) The public comment period has ended and the Director has considered all substantive public comments received, including comments from the Relevant Local Government(s) or Proximate Local Government(s);

(4) If applicable, CPW, CDPHE, and Public Water System consultations have been completed and submitted to the Director; and

(5) The Director determines that the Operator has provided adequate Financial Assurance as required by the Commission's 700 Series Rules for both the proposed Oil and Gas Development Plan and all existing facilities owned by the Operator, and that the Operator is in compliance with the Annual Registration and fee requirements for the current year pursuant to Rule 205.c.

b.Director's Recommendation.

(1)Approval. The Director may Recommend that the Commission approve an Oil and Gas Development Plan that:

A. Complies with all requirements of the Commission's Rules; and

B. In the Director's judgment, protects and minimizes adverse impacts to public health, safety, welfare, the environment, and wildlife resources, and shows that the Operator has demonstrated an ability to comply with its NOx Intensity and Greenhouse Gas Intensity Targets, where applicable.

(2)Conditions of Approval.

A. The Director may Recommend that the Commission add conditions to the approval that are necessary and reasonable to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources.

B.Conditions of Approval Specific to NOx and Greenhouse Gas Intensity Targets.

i.NOx Intensity Target.

aa. For Operators subject to the NOx Intensity Target, the Director may Recommend the Commission add conditions of approval that are based on the Operator's demonstration of its ability to comply with its NOx Intensity Target.

bb. For Operators not subject to the NOx Intensity Target for the preceding May 1 through September 30 period, the Director may Recommend the Commission add a condition of approval that the Operator will either remain exempt from or comply with the associated NOx Intensity Target pursuant to AQCC Regulation No. 7, as incorporated in Rule 301.h.

ii.Greenhouse Gas Intensity Targets. For Operators who are new to market pursuant to AQCC Regulation No. 7, as incorporated in Rule 301.h, the Director may Recommend the Commission add conditions of approval that the Operator meet its Greenhouse Gas Intensity Targets as demonstrated in its next annual report pursuant to AQCC Regulation No. 7, Part B.V.B.

C. For any proposed Oil and Gas Development Plan that includes proposed Oil and Gas Locations that have already been approved by the federal agency or agencies, the Director will consider environmental analyses and federal stipulations and conditions of approval before Recommending any additional conditions of approval.

(3)Denial. If the Director determines that an application does not provide necessary and reasonable protections for, or minimize adverse impacts to, public health, safety, welfare, the environment, and wildlife resources, or the Operator has not demonstrated an ability to comply with its NOx Intensity or Greenhouse Gas Intensity Targets, where applicable, or fails to meet the requirements of the Commission's Rules, the Director may Recommend that the Commission deny the Oil and Gas Development Plan.

c.Notice of Recommended Decision. Upon making a Recommendation that the Commission approve or deny an Oil and Gas Development Plan, the Director will post the written basis for the Director's Recommendation on the Commission's website, file its Recommendation with the Hearings Unit, and notify the following persons electronically in a manner determined by the Director:

(1) The Surface Owner(s) whose contact information was provided pursuant to Rule 304.b.(12).A;

(2) The Operator;

(3) The Relevant Local Government(s);

(4) All Proximate Local Governments;

(5) CDPHE, if consultation occurred subject to Rule 309.f;

(6) CPW, if consultation occurred subject to Rule 309.e;

(7) Public Water System(s), if consultation occurred pursuant to Rule 309.g;

(8) The Colorado State Land Board (if a mineral owner);

(9) The appropriate federal agency (if any federal entity is mineral owner);

(10) Any person or entity that has provided a comment electronically pursuant to Rule 303.d.(1); and

(11) Any person or entity that provided an electronic mail address to the Director and requested to be notified about the proposed Oil and Gas Operations during a pre-application community meeting pursuant to Rule 301.g or post-completeness community meeting pursuant to Rule 309.c.

d.Timing of Notice of Recommended Decision.

(1) The Director's Recommended Decision will be noticed pursuant to Rule 306.c at least 14 days prior to the hearing on the Oil and Gas Development Plan application, including Oil and Gas Development Plans within an approved CAP.

(2)Exception. If, as set forth in Rule 604.b.(2), an Oil and Gas Development Plan includes an Oil and Gas Location that is within an approved CAP that includes preliminary siting approval pursuant to Rule 314.b.(4) or within an approved Comprehensive Drilling Plan, Director's Recommended Decision will be noticed pursuant to Rule 306.c at least 30 days prior to the hearing on the Oil and Gas Development Plan application.

e. If the Director does not issue a Recommendation within 120 days of a completeness determination, the Operator may move for a hearing before the Commission, Administrative Law Judge, or Hearing Officer. At such hearing, the Director will provide an explanation of the status of the Director's review of the Oil and Gas Development Plan and any reasons for delay. For an Oil and Gas Development Plan within an approved CAP, the Operator may move for a hearing if the Director does not issue a Recommendation within 90 days of a completeness determination.

2 CCR 404-1-306

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