Thom KerrNovember 17, 2015 Colorado’s Continuous Adjustment to Unconventional Resource Development

Colorado’s Ignacio Blanco Field

Colorado’s Purgatoire River Field

Coalbed Methane Regulations Production Casing cemented to surface – 1988 Bradenhead monitoring – 1990 Pit Permits – 1990 Water well testing – 2000 P&A well evaluations – 2000 Pressure buildup tests – 2000 Mitigation for surface owner and wildlife impacts – 2000

CBM Regulations Cont. Outcrop monitoring – 2000 Soil gas monitoring near P&A wells – 2006 Codified all requirements statewide – 2008

Tight Sands and Shales

Comprehensive Regulation Change Comprehensive rules for surveying, surface and local govt. notification, financial assurance, pits, soil contamination and reclamation – 1997 Shared well locations – 1998 Comprehensive rule update for notification and consultation, oil and gas location environmental evaluation, bradenhead monitoring during frac, cement bond logs, green completions, production measurement, etc. – 2008

Horizontal Drilling

Multi-Well Facility

Well Site and Subdivision

Latest Regulation Chemical disclosure of fluids, surface owner notice, COGCC 48 hour notice of frac – 2011 Statewide water well testing – 2013 Setback to buildings requiring additional notice, meetings, mitigation, and reporting – 2013 Monitoring of offset wells during frac – 2013 Spill Reporting setting new thresholds for reporting, notification, and root cause analysis -2013

Latest Regulation Cont. Enforcement rules to implement higher and mandatory penalty assessments – 2014 Floodplain rules requiring remote shut-in equipment, steel or hardened berms with attached synthetic liner, equipment anchors, equipment inventory, special approval of pits

Issues Still Abound Health, Safety, Water and Land Use Complaint processes, enforcement The right of Local Govt and Citizens to refuse installation of well or production equipment Ongoing dialogs with: Local Government, Surface Owners, Public, Non- Governmental Organizations, Industry

“Our thanks to the hundreds of people, who have spent countless hours, over the years, in meetings having the discussion of effective regulation.” Colorado Oil and Gas Conservation Commission

Questions Thom Kerr