COLORADO OIL AND GAS CONSERVATION COMMISSION STATE REGULATION OF OIL & GAS OVERVIEW LONGMONT CITY COUNCIL November

1. COLORADO OIL AND GAS CONSERVATION COMMISSION STATE REGULATION OF OIL & GASOVERVIEWLONGMONT CITY COUNCILNovember 15, 2011 Debbie Baldwin – Environmental Manager

2. COGCC Public Websitewww.colorado.gov/cogcc • Denver Office Phone Number: (303) 894-2100 • Statewide Complaint Line: (888) 235-1101

3. Under the Oil and Gas Conservation Act, the Commission’s mission is to: Foster the responsible, balanced development, production, and utilization of oil and gas in a manner consistent with protection of public health, safety, and welfare, including protection of the environment and wildlife resources. C.R.S. 34-60-102(1)(a)(I). Mission Statement

5. RECENT COLORADO OIL AND GAS WELL PERMITS11-07-11

10. Engineering Staff Primary Functions • Areas of responsibility - Based on drilling activity • - Geologic Basins • Task List - Engineering Review • Permits to Drill (Form 2 – Application for Permit to Drill) • Cement Design • Casing Design • Aquifer/Ground Water Isolation • Hydrocarbon Isolation • Well Completion Reports • Cement Bond Log Evaluation • Geophysical Log Review • Intent to Abandon Well Review • Subsequent Abandon Well Review • Orphan Well Program • Under Ground Injection Permitting • Bradenhead Programs

12. Over 17,000 inspections in 2010 Complaint Response Housekeeping, spills, trash, debris Location and emergency contact signs Equipment inventory Well status Interim and final reclamation Stormwater BMPs Permit COAs Field Inspection Group - Overview

14. COGCC ENVIRONMENTAL GROUP • Implement CDPHE-WQCC GW Standards & Classifications. • Permit & oversee the management of E&P Wastes. • Approve & oversee Site Investigation and Remediation • Respond to complaints alleging impacts to public health safety and welfare and the environment (water & soil). • Conduct studies to establish baseline and current conditions prior to or during O&G development and monitor to detect changes • Environmental review of O&G locations – Form 2A.

16. 900 SERIES RULES - Management of E&P Waste • Rule 901 - General • Rule 902 to 905 – Pits: permitting (Form 15 & Form 2A), lining, O&M, closing • Rule 906 – Spills/releases: reporting, cleanup, surface owner notification • Rule 907 – Management reuse/recycling plans, tracking, disposal methods, produced water, drilling fluids, oily wastes, frac fluid, etc • Rule 908 – Centralized E&P Waste Management Facilities • Rule 909 – Site Investigation, Remediation, Closure • Rule 910 – Cleanup Concentrations

17. MANAGEMENT OF E & P WASTE • DRILLING FLUIDS, FLOWBACK (FRAC) & OILY WASTES • PRODUCED WATER • SPILLS AND RELEASES

18. MANAGEMENT OF E & P WASTE (continued) • SPILLS AND RELEASES • Control and contain immediately • Report to the COGCC (Form 19), the land owner, CDPHE – WQCD • Remediate (Form 19 and/or Form 27) • Prevent • Table 910-1 Concentration Levels

19. GROUND WATER PROTECTIONINVESTIGATIONS & MONITORING • Analytical results from >6,000 water wells & >6,500 oil and gas wells. • Collected by the COGCC, Operators, other agencies • Studies by COGCC to establish Baseline and Current Conditions • Collected in response to complaints and requests • Required by Orders of the Commission (Cause 112) • Required by Rules (317B, 318A.e.4., 608, 908) • Required as part of Site Investigation and Remediation activities.

20. Blue – water samples • Green – oil/gas well samples

21. WHERE TO FIND THE COGCC BASELINE WATER QUALITY REPORTS Piceance Basin 5 studies – approx 300 water wells Raton Basin 2 major studies – 110 water wells San Juan Basin - approx 2,000 water wells DJ Basin Ogallala – 75 water wells Upper Crow Creek – 25 water wells Adams Co. Arapahoe Aquifer – 20 water wells Greater Wattenberg – 77 gas & 9 water wells Sand Wash Moffat Co. – 28 water wells

22. GROUND WATER PROTECTION • Properly drilling, completing, operating, and P&A to ensure and maintain isolation of productive zones from GW & SW. • Properly storing, treating, reusing/recycling, transporting, and disposing of wastes. • Properly installing and maintaining associated equipment & E&P waste management facilities. • Rapid response to and thorough remediation of impacts from spills and releases.

23. COMPLAINT RESPONSE • Collect samples from water wells, soil or other media for field and laboratory analyses. • Collect samples of gas, oil, condensate, produced water, flow back, or other wastes from nearby oil and gas wells. • Compare analytical results to background and water regional water quality. • Compare stable isotopic signatures and composition of gas samples to determine source. • If we verify a complaint: • Operator must remediate impacts to meet standards. • Operator must mitigate impacts.

27. COGCC Public Websitewww.colorado.gov/cogcc • Denver Office Phone Number: (303) 894-2100 • Statewide Complaint Line: (888) 235-1101

29. 1951 - Established by legislature Colorado Oil and Gas Conservation Act Provides for orderly development of oil and gas 1984 – EPA delegation of Class II UIC program. 1989 – Implementing Agency for CDPHE – WQCC ground water standards and classifications. 1995 – Jurisdiction over E&P waste, except for commercial disposal. 2000 – MOA with CDPHE – WQCD re: spills/releases to surface water. 2007 – Legislation and resulting rule amendments Evolution of Environmental Responsibility

30. COGCC Hydraulic Fracturing Rules • Rule 205 inventory chemicals • Rule 317 Well casing and cementing; Cement bond logs. • Rule 317B setbacks and precautions near surface waters and tributaries that are sources of public drinking water. • Rule 341 monitor pressures during stimulation. • Rule 608 Special requirements for CBM wells. • Rules 903 & 904 pit permitting, lining, monitoring, & secondary containment • Rule 906 reporting spills/releases to Commission and the landowner and in certain situations CDPHE – WQCD of any spill that threatens to impact any water of the state.