1. OVERVIEW OF OIL & GAS EXPLORATION, DEVELOPMENT and STATE REGULATION OVERVIEW OF OIL & GAS EXPLORATION, DEVELOPMENT and STATE REGULATION February 18, 2012 Debbie Baldwin – Environmental Manager Colorado Oil and Gas Conservation Commission

2. 2 OIL AND GAS WELLS OF COLORADO COGCC, Oct 17,2008

5. Colorado Oil and Gas Conservation Commission Mission Statement Oil and Gas Conservation Act states that 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).

9. GREAT SOURCE OF INFORMATION COGCC Public Website www.cogcc.state.co.us www.cogcc.state.co.us Denver Office Phone Number: (303) 894-2100 Statewide Complaint Line: (888) 235-1101

10. Hydraulic Fracturing Information

12. Highlights of Disclosure Rule: Operators must complete the chemical disclosure registry form and post it within 60 days after the conclusion of a hydraulic fracturing treatment. Operators must include all chemicals, hazardous and non-hazardous, in the fracturing fluid. They must also include concentrations of each chemical. Location: www.FracFocus.org website (Ground Water Protection Council and the Interstate Oil and Gas Compact Commission).www.FracFocus.org

13. FracFocus website

14. FracFocus website: wells can be located by zooming in on map, clicking on markers

15. FracFocus website: well identifying information and frac fluid contents displayed by clicking icon

16. OIL & GAS WELLS DRILLING AND COMPLETION

17. Engineering Staff - Overview Areas - Based on drilling activity - Geologic Basins Responsibilities – Form 2 – Application for Permit to Drill – Casing and cement design – Ground water & hydrocarbon isolation – Well completion reports – Cement bond log evaluation – Geophysical log review – Workover operations, casing repairs, remedial cementing – Intent to plug and abandon well – Subsequent plugging and abandonment report – Under Ground Injection (UIC) Class II well permitting – Bradenhead and MIT Programs – Administer orphan well plugging and reclamation

18. Form 2 Application for Permit to Drill Casing and Cementing Plan

19. CEMENT PRODUCTION CASING To isolate hydrocarbons to producing formations by cement and steel casing. GROUND SURFACE WELLHEAD 19 CEMENT SURFACE CASING CEMENT PRODUCTION CASING PRODUCING FORMATIONS CEMENTED CONDUCTOR AQUIFER(S) Production Casing cemented steel

20. Denver Arapahoe

21. OIL AND GAS PRODUCTION

22. Field Inspection Group - Overview Over 12,000 inspections in 2011 Complaints ( housekeeping, spills, trash, debris, dust ) Drilling operations (noise, lighting, secondary containment) Cementing and Completion operations ( noise, lighting, containment, bradenhead monitoring, green completions ) Routine ( status, signs & tank labels, equipment inventory, spills ) Class II Underground Injection Control (UIC) wells Mechanical integrity tests (MIT) Interim and final reclamation Stormwater best management practices (BMP) Permit conditions of approval (COA)

23.  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. Environmental Group - Overview

24. 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

25.  Samples collected by the COGCC, Operators, other agencies  Studies by COGCC to establish Baseline and Current Conditions  Samples Collected in response to complaints and requests  Samples required by Orders of the Commission (Cause 112)  Samples required by Rules (317B, 318A.e.4., 608, 908)  Samples required for Site Investigation and Remediation activities  Analytical results from >6,000 water wells & >6,500 oil and gas wells.  COGA’s voluntary water well sampling program. GROUND WATER PROTECTION INVESTIGATIONS & MONITORING

26. Blue – water samples Green – oil/gas well samples

27.  Properly drilling, completing (including fracing), operating, and P&A oil & gas wells 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. GROUND WATER PROTECTION

28.  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.  Review operational information for oil & gas wells and waste management  If we verify a complaint:  Operator must remediate impacts to meet standards.  Operator must mitigate impacts. COMPLAINT RESPONSE