Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 308 - FORM 2, APPLICATION TO DRILL, DEEPEN, RE-ENTER, OR RECOMPLETE, AND OPERATE

Universal Citation: 2 CO Code Regs 404-1 ยง 308

Current through Register Vol. 47, No. 17, September 10, 2024

a. Submitting 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:

(1) Drill any Well;

(2) Deepen any existing Well;

(3) Re-enter, complete, and operate any plugged Well (except for re-entry to re-plug will require a Form 6, Notice of Intent to Abandon pursuant to Rule 434);

(4) Recomplete and operate any existing Well;

(5) Drill a sidetrack from any Well; or

(6) Convert a stratigraphic Well into a production Well.

b. Information Requirements. All Form 2s require the following information.

(1) Every Form 2 will specify the distance between the Well and wall or corner of the nearest building, Building Unit, public road, above ground utility, railroad, and property line.

(2) Wellbore Diagram. A Form 2 to deepen, to re-enter, to recomplete to a different reservoir, or to drill a sidetrack of an existing Well will have a wellbore diagram attached.

(3) A Form 2 to deepen, to re-enter, to recomplete to a different reservoir, or to drill a sidetrack of an existing Well will include the details of the proposed work.

(4) Well Location Plat. A Form 2 to drill a new Well or a new wellbore will have a well location plat attached. The plat will be a current scaled drawing(s) of the entire section(s) penetrated by the proposed Well with the following minimum information:
A. Dimensions on adjacent exterior section lines sufficient to completely describe the quarter section(s) containing the proposed Well surface location, top of productive zone, wellbore, and bottom hole location will be indicated. If dimensions are not field measured, the plat will state how the dimensions were determined.

B. For irregular, partial, or truncated sections, dimensions will be furnished to completely describe the entire section(s) containing the proposed Well.

C. The field-measured distances from the nearer north/south and nearer east/west section lines will be measured at 90 degrees from said section lines to the Well surface location and referenced on the plat. For unsurveyed land grants and other areas where an official public land survey system does not exist, the Well locations will be spotted as footages on a protracted section plat using Global Positioning System ("GPS") technology and reported as latitude and longitude pursuant to Rule 216.

D. The latitude and longitude of the proposed surface location will be provided on the drawing with a minimum of 5 decimal places of accuracy and precision using the North American Datum ("NAD") of 1983 (e.g., latitude 37.12345 N, longitude 104.45632 W). If GPS technology is utilized to determine the latitude and longitude, all GPS data will meet the requirements set forth in Rule 216.

E. The Well location plat will include the proposed top of the productive zone and the bottom hole location. The plat will be in a suitable size and scale for the Director to conduct a review. If the wellbore penetrates multiple sections, the Well location plat will depict every section penetrated by the wellbore.

F. A map legend.

G. A north arrow.

H. A bar scale.

I. The ground elevation.

J. The basis of the elevation (how it was calculated or its source).

K. The basis of bearing or interior angles used.

L. Complete description of monuments and collateral evidence found; all aliquot corners used will be described.

M. The legal land description by section, township, range, principal meridian, baseline, and county.

N. Operator name.

O. Well name and Well number.

P. Date of completion of scaled drawing.

(5) Deviated Drilling Plan. A Form 2 to drill a deviated (directional, highly deviated, or horizontal) wellbore utilizing controlled directional drilling methods will have the deviated drilling plan attached. The deviated drilling plan will meet the requirements set forth in Rule 410.a.

(6) Casing and Cementing Plan. A Form 2 to drill a Well will include a casing and cementing plan that addresses anticipated Groundwater by demonstrating how it will be isolated, potential flow and hydrocarbon bearing zones, and subsurface hazards. The casing and cementing plan will describe the top and bottom depths and the concentration of total dissolved solids ("TDS") in milligrams per liter of all Groundwater from the surface to the depth of the bottom hole, and demonstrate compliance with the casing and cementing requirements of Rule 408.e. To identify top and bottom depths and TDS concentrations of Groundwater, the Operator will use all available sources of pertinent information, including but not limited to reports from the Water Quality Control Commission, the Division of Water Resources, the Colorado Geological Survey, the United States Geological Survey, the Colorado Groundwater Atlas, peer-reviewed publications, the Commission's Field Scout Cards, electric logs (e.g., resistivity logs), produced water samples, Groundwater samples collected to support aquifer exemptions, and samples collected from domestic, municipal, agricultural, and industrial water wells. If the top or bottom depth, or TDS concentration cannot be determined using these sources the Operator will comply with Rule 408.e.(5) to ensure isolation of all such Groundwater. The casing and cementing plan will also identify the distance between the objective formation to be hydraulically fractured and Groundwater with less than 10,000 milligrams per liter total dissolved solids, and indicate whether a confining layer exists in a separate stratigraphic layer between those zones.

(7) Statewide Offset Well Evaluation.
A. The Form 2 will include an offset Well evaluation. The Operator will evaluate the construction and integrity of all offset Wells within 1,500 feet of the proposed wellbore. The Operator will provide a plan to address all offset Wells within 1,500 feet that do not meet isolation and integrity requirements.

B. The Operator will attach any consents obtained pursuant to Rule 408.u.(1) to the Form 2.

C. The Operator will provide notice pursuant to Rule 408.v.

(8) Hydraulic Fracturing Treatment at Depths 2,000 Feet or Less. If an Operator proposes to drill a Well at a depth less than 2,000 feet true vertical depth ("TVD") below the surface that will be subject to Hydraulic Fracturing Treatment, the following requirements apply:
A. Geology and Hydrogeology Assessment. The Operator will characterize and assess the local geology and Groundwater resources within 2 miles of the proposed oil and gas Well.

B. Engineering Assessment. The Operator will describe the proposed drilling process, Well design, completion process, Hydraulic Fracturing Treatment process, production methods, and facilities. The assessment will identify any risks to geology and hydrogeology and explain how the Operator will prevent, minimize, or mitigate any identified risk.

(9) With their Form 2, Operators will state whether the proposed Well is subject to the requirements of § 24-65.1-108, C.R.S., because it is located in an area designated as one of state interest.

c. Administrative Approval or Denial of the Form 2.

(1) The Director may approve a Form 2 that complies with all requirements of the Commission's Rules, and protects and minimizes adverse impacts to public health, safety, welfare, the environment, and wildlife resources.
A. The Director may add any conditions of the approval to a Form 2 that are necessary and reasonable to ensure compliance with all requirements of the Commission's Rules or to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources.

B. The Director will review the Oil and Gas Location where the Well is located to ensure that necessary and reasonable conditions of approval are applied to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources.

(2) The Director may deny any Form 2 that does not meet all requirements of the Commission's Rules, or does not provide necessary and reasonable protections for, or minimize adverse impacts to, public health, safety, welfare, the environment, and wildlife resources. The Director will put forth the reason for the denial. If the Director denies a Form 2, the Operator has the right for a hearing in front of the Commission at an upcoming hearing.

(3) The Director may request, and an Operator will provide upon request, any relevant information necessary and reasonable to determine whether to approve or deny a Form 2. The Director will provide the Operator with the reason for the request.

(4) The Director will endeavor to review Form 2 applications in a timely and efficient manner. If the Director does not complete review within 90 days of an Operator submitting a Form 2, 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 Form 2 and any reasons for delay.

d. Changes to Form 2. Prior to approval of the Form 2, minor revisions or requested information may be provided by contacting the Director. After approval, any substantive changes will be submitted for approval on a Form 2. A Form 4 will be submitted, along with supplemental information requested by the Director, when non-substantive revisions are made after approval, and no additional fee will be imposed.

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