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BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE EXPENDITURES OF THE ) CAUSE NO. 1E
ENVIRONMENTAL RESPONSE FUND FOR THE )
COLORADO OIL AND GAS CONSERVATION COMMISSION ) ORDER NO. 1E-3
REPORT OF THE COMMISSION
This
cause came on for an emergency hearing before the Commission at 1:30 p.m. on
February 25, 2005, in Suite 801, 1120 Lincoln Street, Denver, Colorado for an
order to allow the expenditure of additional funds from the Environmental
Response Fund. The Commission held this emergency hearing pursuant to its
authority under §34-60-108(3), C.R.S. (2004).
FINDINGS
1. On February 12, 2005 an explosion occurred
in a double-wide trailer located in the SW¼ SW¼ of Section 31, Township 33
North, Range 9 West, N.M.P.M. The resident of the trailer was transported to
the burn unit of Mercy Medical Center in Denver, Colorado. La Plata County
emergency response and Durango Fire & Rescue Authority began an
investigation of the cause of the explosion.
2. On
February 14, 2005 Mr. Butch Knowlton, La Plata County, contacted Mr. Mark
Weems, Colorado Oil and Gas Conservation Commission (COGCC) Field Inspector,
and on that day they and representatives of various gas well and pipeline
operators met at the site of the explosion to continue the investigation of the
cause. It was determined that the site of the explosion is located in an area
known to have thermogenic methane gas in the shallow ground water, and is
approximately 150 feet south-southeast of the location of the Nick
Spatter-Bryce Farm #1 Well (API 05-067-05211) and approximately 150 feet west
of a pipeline operated by Red Cedar Gathering Company (Red Cedar). The Nick
Spatter-Bryce Farm #1 Well (API 05-067-05211) was drilled in the late 1930’s.
This well was known to have leaked gas and a memo in the well file indicates
that in 1966 the well was flaring through the well marker. This memo also notes
that bubbling water was observed to the west of the flaring well. Although
COGCC records indicate one well at this location, records obtained from the
Southern Ute Indian Tribe on February 18, 2005 show that there may have been
another well (Bryce Farm #1X) at this location also. During 1994 the COGCC,
using Environmental Response Fund (ERF) money, plugged what was thought to be
the Nick Spatter-Bryce Farm #1 Well.
3. On
February 15, 2005 COGCC’s third party contractor was onsite and collected gas
samples from a place under the trailer/explosion site where gas was venting
from the ground and from the headspace of the associated water well. These
samples were submitted to a laboratory for compositional analysis. COGCC’s
third party contractor also used a gas meter to survey the area around the Nick
Spatter-Bryce Farm #1 Well, the trailer/explosion site, and the associated
water well. Elevated levels of flammable gas were detected in these areas. Red
Cedar personnel pressure tested its pipeline, which is located east of the
explosion site. The pipeline passed this test. In addition, Red Cedar personnel
conducted a preliminary gas survey of the area around the Nick Spatter-Bryce
Farm #1 Well, the trailer/explosion site, the pipeline right-of-way, and land
to the west of the explosion site and found a number of areas of high flammable
gas concentration.
4. On
February 16 and 17, 2005 the analytical results from the gas samples were
received and evaluated by COGCC staff. The gas from the vent in the soil under
the trailer was approximately 92 percent methane, 6 percent carbon dioxide,
with trace amounts of C2 through C6 compounds, which clearly showed the gas was
not propane fuel, nor processed gas, but most likely gas from the Fruitland
Formation. The sample from the headspace of the water well contained too much
air to achieve reliable analytical results.
5. On
February 21 through 23, 2005, COGCC’s third party contractor with support from
La Plata County conducted a detailed soil gas survey of the impacted area,
surveyed four nearby residents, and the nearby Animas Fire District station.
The soil gas survey showed that every high concentration of flammable gas occur
in the vicinity of the Nick Spatter-Bryce Farm #1 Well and in the vicinity of
the site of the explosion. High concentrations of flammable gas were detected
in the Animas Fire District station. Flammable gas was not detected in the four
houses that were surveyed; however previous samples collected from the water
wells associated with the four houses and the fire station all contained high
concentrations of methane.
6. The
results of the soil gas survey and the previous water quality sampling
indicated that to ensure the safety of the occupants of the four houses and the
fire station it was necessary to install monitors that would be capable of
detecting flammable gas in the dwellings and in the crawl spaces or basements
of these structures. COGCC’s third party contractor was tasked to identify,
purchase, and install the most appropriate equipment. The soil gas survey and
the installation of the flammable gas detectors are estimated to cost
approximately Fifty Thousand Dollars ($50,000)
7. COGCC
hired another third party contractor to collect water samples from the water
wells associated with the nearby structures and any others identified as having
potential for impact for analysis of methane, stable isotopes of methane and
carbon dioxide, and inorganic constituents. Sample collection was initiated on
February 28, 2005 and is estimated to cost approximately Twenty Thousand
Dollars ($20,000).
8. In
addition, it was determined that a complete investigation of the entire
affected area was necessary to determine the cause of the methane seepage, to
identify mitigation measures, and to develop a detailed mitigation plan.
Estimated costs for this work includes Thirty Thousand Dollars ($30,000) for
geophysical surveys necessary to attempt to identify the exact locations of the
two known wellbores and any others, abandoned pipelines, utility corridors, or
other conduits for gas and fluid migration; Ten Thousand Dollars ($10,000) for
detailed geologic mapping of the approximately 160 acres surrounding and
including the trailer/explosion site; and Ninety Thousand Dollars ($90,000) for
excavation and reclamation activities that will require heavy equipment to
remove the approximately ten feet of Quaternary gravel terrace deposits that
cover the area, obscure the bedrock, and make identification of the exact
locations of the existing wellbores impossible.
9. The
facts set forth in the foregoing paragraphs No. 1 through No. 8 are the reasons
that the Commission finds the immediate issuance of this emergency order is
imperatively necessary for the preservation of public health and safety;
observance of the requirements for notice and hearing pursuant to §§24-4-105 or
34-60-108(2), C.R.S. (2004) would be contrary to the public interest.
10.
During the fiscal year, which is from July 1st through June 30th, COGCC staff
spends One Hundred Eighty Thousand Dollars ($180,000) of the ERF to
investigate, prevent, monitor, and/or mitigate conditions that threaten to
cause, or actually cause a significant adverse impact on public health, safety,
or welfare, or adverse environmental impact on any air, water, soil, or
biological resource. The COGCC attempts to spend the ERF budget in a
systematic, efficient manner on appropriate projects throughout the fiscal
year. As a result, there are sufficient funds remaining to cover ongoing work
to which COGCC staff and budget are already committed, but there are not
sufficient funds to cover the expenses already incurred in responding to this
emergency situation nor future anticipated activities.
11. In
accordance with §34-60-124(7), C.R.S., the Commission should authorize the
expenditure of an additional Two Hundred Thousand Dollars ($200,000) from the
ERF balance for the investigation and mitigation of significant adverse impacts
to public health, safety, and welfare, and to the environment as the result of
the conduct of oil and gas operations.
12.
Because the likely source of the flammable gas causing this emergency situation
is an orphaned gas well(s) a responsible party may not be identified;
therefore, the ERF expenditures will not be reimbursed to the COGCC.
| Wellbore Completed |
| Completion Date: | 1/1/1938 |
| Measured TD: | 2240 |
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Data Compiled By: Shane Davis
Source: COGCC
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