HomeMy WebLinkAbout02 Project DescriptionPROJECT DESCRIPTION
O\OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company and Battlement Mesa Land Investments 016-3531
Table of Contents
Section 4-203.6.5 Project Description 1
Facility Operations 1
Construction• 2
Drilling Phase. 2
Completion Phase: 3
Production Phase: 3
Additional Drilling Events: 4
Final Reclamation: 5
Development Timeline and Employee Numbers 5
Hours of Operation 5
Parking Lot and Access Road 6
Alternatives Analysis 6
List of Tables
Table 1. Development Timeline 5
Table 2. Summary of Required Permits 7
May 19, 2017, revised July 14, 2017
O\OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company 016-3531
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May 19, 2017, revised July 14, 2017 ii
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ASSOCIATES
Battlement Mesa PUD Phase II — BMC A
Ursa Operating Company and Battlement Mesa Land Investments 016-3531
Article 4.203.6.5 — PROJECT DESCRIPTION
SECTION 4-203.B.5 PROJECT DESCRIPTION
Ursa Operating Company, LLC (Ursa) and Battlement Mesa Land Investments LLC (BMLI)
request a Garfield County (GarCo) Special Use Permit (SUP) and approval for construction of a
natural gas well pad (BMC A) within the Battlement Mesa PUD (PUD). Ursa is asking for this SUP
as directed in GarCo Resolution 82-121 recorded October 20, 1982 creating the PUD which
specifies that extraction and processing natural resources is an allowed special use. The
proposed facility will allow for the drilling of up to 24 wells to extract natural gas within the PUD
on Ursa owned natural gas leases. A small injection well is planned for the well pad, bringing the
total number of wells drilled to 25. The injection well will be permitted in a separate application.
Ursa will transport gas from the well pad to a consolidated sales point outside the PUD through
gas pipelines. Produced water pipelines will be trenched in the same right-of-way with the gas
pipelines to transport water away from the well pad for disposal at Ursa's permitted water disposal
facilities. The 12 -inch gas pipeline will be approximately 1,963 feet long. The 10 -inch pipeline will
be approximately 2,469 feet long.
This application is written using the Garfield County 2013 Land Use and Development Code with
references to the 1979 Zoning Code. The submittals, standards, and public noticing for a Major
Impact Review are being followed for this Special Use Permit. To provide for a thorough disclosure
of the project's potential impacts and mitigations, Ursa has taken into consideration the Garfield
County Colorado Health Impact Assessment (HIA) for Battlement Mesa. A matrix addressing
Ursa's response to the HIA is included with this submittal.
The proposed well pad will be a Colorado Oil and Gas Conservation Commission (COGCC)
permitted well pad. Ursa's surface disturbances including interim and final reclamation
requirements are covered under a statewide blanket surface bond held by COGCC (see
Reclamation Section).
The site for the proposed Ursa BMC A well pad is located within the Battlement Mesa PUD zone
district Public, Semi -Public, Recreational, and Injection Well (PSRI) adjacent to the Battlement
Mesa PUD Water Treatment Plant. The proposed well pad is off River Bluff Road (CR 307) in the
NE 1/4 of the SE 1/4 of Section 13, Township 7 South, Range 96 West and the NW 1/4 of the SW 1/4
of Section 18, Township 7 South, Range 95 West of the 6t" P.M. on Garfield County parcel number
2407-081-00-152. The parcel is approximately 1248.873 acres. Battlement Mesa Land
Investments own the surface. Ursa and Battlement Mesa Land Investments, have a Surface Use
Agreement allowing Ursa to develop the natural gas resources within the PUD. The proposed well
pad will be operated exclusively by Ursa. The surface area of the proposed project is
approximately 2.74 acres.
Facility Operations
Ursa conducts its natural gas operations in five sequential stages; Construction, Drilling,
Completion, Production, and Final Reclamation.
May 19, 2017, revised July 14, 2017 1
O\OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company 016-3531
Construction: Prior to beginning any surface -disturbing activity, Ursa will install erosion and
sediment control measures to prevent any site degradation or impacts to surface waters during
the construction process. The BMC A site will be cut and graded as required to construct the
proposed 225 ft by 575 ft pad surface. Topsoil will be stripped prior to the major earthmoving
activity. It will be re -used to achieve stormwater control objectives. An access road will be
constructed, and stormwater and drainage control structures will be installed per COGCC and
CDPHE regulations and permit requirements. The pad surface will be graveled to a depth of
approximately 1 foot to prevent damage to the surface of the pad from vehicle use and equipment
installation. Ursa will implement best practices which have been considered acceptable to Garfield
County to mitigate dust during all construction phases. Dust control is typically accomplished via
the application of fresh water and/or saline solutions (often using magnesium chloride). To
mitigate potential noise impacts to residents and prior to the initiation of the Drilling Phase, Ursa
may install an appropriately sized sound wall and conduct sound output monitoring during the
activities detailed below.
Drilling Phase: After construction of the pad is complete, conductor casings will be set for the
wells on the pad. Conductor casing is set and cemented at approximately 60 feet and helps
prevent collapse of shallow dirt and unconsolidated material. Ursa will comply the COGCC Rule
317 regarding casings and cementing. Next, the drilling rig is moved onto location in multiple truck
loads and rigged up. Surface casing is set and cemented into place at approximately 1,700 feet.
Surface casing serves to protect shallow groundwater and allows for drilling of the deeper section
by supporting unstable shallow formations and anchoring well control equipment. A rotating drill
string and drill bit are used to create the borehole. A water-based drilling fluid (drilling mud) is
used to cool and lubricate the drill bit and circulate drill cuttings out of the hole. Production casing
is set and cemented in place after the well is drilled to total depth. The drilling process typically
takes five days for each well.
Because the pad size has been minimized to limit the overall surface impacts, the proposed 24
wells will be drilled and brought into production over the course of up to three drilling events. Each
drilling event consists of drill rig delivery, installation, and drilling of up to eleven wells. The rig will
then be moved to another location while these wells are completed. This is necessary, because
the size of the pad is restricted by the SUA. The pad is not sized to accommodate simultaneous
drilling and completion operations activities.
Cuttings Sampling and Stabilization: Both surface and production hole drill cuttings will be
generated at each well pad. Raw cuttings (not stabilized) will be sampled and profiled at the
location of generation per Ursa's Waste Management Plan. Once the raw cuttings are sampled,
they will be stabilized (absorption/removing liquids) in a temporary area on the well pad. The
cuttings will be stabilized using either native soils (preferable) or a commercially available inert
adsorbent (sawdust, Stabil EZ, etc.). In some cases, relocation of cuttings to another location
during drilling would be required due to the smaller pad sizes. If the volume of cuttings on the well
pad during drilling exceeds the capacity of the on-site temporary area, it can cause limitations to
operational capabilities to complete drilling, or creates safety concerns, a Colorado Oil and Gas
Conservation Commission (COGCC) Sundry Notice (Form 4) will be submitted for approval to
move the cuttings to another location pending the results of sampling analytical results.
May 19, 2017, Revised July 14, 2017 2
OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company 016-3531
Cuttings Management and Disposal: If sampling results for either surface or production hole
cuttings meet COGCC Table 910-1 standards, they will be treated as non -waste (essentially soil
material) and will be managed under one or more of the following options: 1) remain on site for
pad stabilization/reclamation; 2) be relocated to another location for beneficial reuse; 3) made
available as fill material to the general public; 4) be relocated to a COGCC approved cuttings
management facility; or 5) disposed of at an approved waste facility. Options 2 — 4 would be in
accordance with a COGCC approved Sundry Notice (Form 4). Disposal at an approved waste
facility would be managed for Item 5 under an approved waste manifest per CDPHE regulations.
If cuttings don't meet standards, then Ursa will implement one of two options: continued mixing to
meet Table 910-1 standards for beneficial reuse/relocation or transport to an authorized waste
facility following Federal and State (COGCC/CDPHE) regulations, including manifesting. Final
decisions will be based on site-specific operations logistics.
Drilling mud is stored in tanks on the well pad. The mud tankage capacity will be approximately
1,200 barrels (Bbls). Approximately 1,200 Bbls of fresh water will be stored on site during drilling.
Completion Phase: Completions is the process of treating the wellbore to allow the extraction of
economic quantities of hydrocarbon. In the case of the BMC A pad, the primary well completion
process is hydraulic fracturing as is typical of wells in Garfield County. After drilling is completed
and production casing has been run and cemented in the well bore, the well is logged to determine
which geologic zones (formations) will need to be accessed. These subject zones are then
perforated and a combination of water with chemical additives is pumped into the hole under high
pressure. The pressure of the water is sufficient to propagate small fractures through the target
formation, creating a path for hydrocarbons to flow from the formation and into the wellbore (and
ultimately to the surface equipment and pipelines for sales). The hydraulic fracturing process
requires a large volume of water, and to handle this water, it is necessary to temporarily install
mobile tanks on the pad surface. As a best management technique, Ursa uses closed-loop
completion techniques on the BMC A pad, in which all fluids (both those initially pumped into the
wellbore and those which ultimately flow back out) are recaptured in these mobile tanks and
removed from the location for treatment and reuse per applicable regulations.
The completions phase needs approximately 20,000 Bbls of storage and working tank capacity
on the well pad.
Production Phase: Once 20-50 percent of fluids from the completion phase have been recovered
from the wellbore, the well can enter the production phase. In Production Phase, a mixture of
natural gas, liquid hydrocarbons, and water flows from the wellbore to the surface. The mixture
will be separated into its components by unmanned, automated separator equipment. The liquid
hydrocarbon component is referred to as condensate and will be stored in tanks on the pad until
removed by truck and transported to a point of sale. Ursa expects that the site will be visited
approximately once every one or two weeks to collect the separated hydrocarbons. The water is
referred to as produced water and will be stored in tanks on the pad until pumped via water line
to a point of disposal. Produced water will be trucked off the pad only if an upset condition on the
pad or along the pipeline, or in the event that the injection is not approved. The natural gas will
enter Ursa's pipeline infrastructure and will be transported offsite to a point of sale, where it will
eventually enter the market. Starting when the BMC A pad enters the production phase, it will be
May 19, 2017, Revised July 14, 2017 3
OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company 016-3531
an unmanned facility except for daily visits by Ursa staff and contractors to conduct regular
inspections, pump tanks and perform needed maintenance. Once the facility enters production,
all surface disturbance not needed for production activities will be reclaimed, and the pad surface
will be reduced to the minimum extent needed to service the wells and associated equipment.
The reclaimed area will be graded and recontoured, covered with topsoil, and seeded with an
appropriate seed mix. The BMC A pad site is projected to occupy approximately two acres once
interim reclamation has been completed. Throughout the life of the wells, smaller workover rigs
may be brought in to clean-out and maintain the wells.
During the Production phase, the well pad will house storage capacity for approximately 1,800
Bbls of production water. There will be six 300 Bbl tanks for produced water and condensate and
six 300 Bbl tanks for injection well storage, 15 ft 6 in in diameter, 9 feet high. There will be six
separators, 12 ft W x 22 ft L x 15 ft H. All production equipment will be adequately grounded to
prevent lightning strike hazards. Additionally, there will be a solar powered communication
antenna for transmitting telemetry data for remote monitoring and operations of the well pad.
There will be an enclosed combustion unit. The combustor is a self-contained unit averaging 4 ft
x 4 ft x 10 ft that combusts potential volatile organic compound (VOCs) emissions generated from
the produced water or condensate tanks. These are authorized by the Colorado Department of
Public Health and Environment (CDPHE) as an effective emissions control device. VOCs are
piped to the combustor from the production tanks. Once they reach the combustor, they are
burned off with a destruction efficiency of 95+ percent per CDPHE regulations. Combustors are
equipped with an auto ignition device to keep the pilot light burning. The combustor to be used
on this site has an internal flame so there is no visible flare when it is in use.
The use of a temporary vapor recovery unit (VRU) will be determined on a case-by-case basis
due to the dry nature of the gas in the Battlement Mesa Field. A temporary VRU may be used for
newly completed wells during the peak flow back period. The VRU will allow for the capture of
additional vapors instead of burning them. This allows Ursa to use lower tank pressures.
Other appurtenant equipment may include electric pumps, pipeline meters and valves, and
launchers. The pumps will be housed in a pump house sized appropriately for the number and
size of pumps used on the well pad.
Additional Drilling Events: In locations such as the BMC A where a large number of wells are
planned, Ursa typically completes development of the gas resources via a series of drilling events.
During each event, eight or more wells will be drilled to a target depth, at which point the rig will
be removed from the pad. The recently drilled wells will then be completed and connected to
production equipment, and the rig will then return to the location to drill additional wells. This
series of drilling events is necessary because Ursa limits the size of its well pads to the smallest
practical dimensions, as a best management practice to minimize surface disturbance. With a
proposed pad surface area of 225 ft by 575 ft, there is not enough space on the BMC A pad to
accommodate the drill rig and completions facilities simultaneously. Therefore, Ursa will use a
series of drilling events, as described above, to allow for the initial wells to be completed and
placed into production without delay. This will allow Ursa to evaluate the effectiveness of its drilling
and completions procedures under the conditions found at BMC A, and to make any necessary
adjustments to the wells drilled in later events.
May 19, 2017, Revised July 14, 2017 4
OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11- BMC A
Ursa Operating Company 016-3531
Final Reclamation: Natural gas wells of the type proposed for the BMC A typically have a
productive life span of approximately 20 to 30 years. When the amount of gas produced by a well
declines to the point that it is no longer economical to continue operations, the well is plugged
and abandoned. The plugging process involves the installation of permanent, impermeable
concrete in the well bore, sufficient to prevent any movement of water, oil, or gas in accordance
with applicable COGCC and CDPHE Rules. The abandonment process involves the removal of
all surface equipment and the backfilling of all excavation, per applicable COGCC and CDPHE
Rules. When all the wells at BMC A have reached uneconomic levels of production and have
been plugged and abandoned, the site will enter Final Reclamation, following applicable COGCC
and CDPHE Rules. All equipment will be removed, and the pad and associated infrastructure
(roads and pipeline rights-of-way) will be closed, graded, recontoured, and seeded with
appropriate seed mix. The Final Reclamation process is considered complete when vegetative
cover over the entire site reaches 80% of pre -disturbance levels. This determination is made by
the COGCC and includes only desirable vegetation, not weed species.
Development Timeline and Employee Numbers
The typical timeline for the development and production of the well pad is:
Table 1. Development Timeline
Phase
Duration
No. of Employees
Pad Construction
30 days
6 contractors per day
Drilling
125 days (5 days per well)
20 contractors per day
Completions
250 days (10 days per well)
35 contractors per day
Production
30 years
1 employee per day
Final Reclamation
14 days
6 contractors per day
The anticipated construction schedule will be approximately one month beginning in the fourth
quarter of 2017, with drilling starting the first quarter of 2018. Construction start is dependent upon
weather conditions. Grading and/or construction sequence, including the installation and removal
of erosion and sediment control measures, and the estimated duration of exposure of each area
prior to the completion of temporary erosion and sediment control measures will follow Ursa's
CDPHE approved Stormwater Management Plan and Permit and COGCC Rules for interim and
final reclamation and the SUA. The cost of the soil erosion control measures is anticipated to be
$5,000 to $15,000 for the pad.
Hours of Operation
Preliminary construction of the well pad generally takes place during daylight hours. These hours
are restricted by the SUA to between 7:00 am and 8:00 pm. Drilling will take place 24 hours a day
as allowed in the SUA. Ursa will limit completion activities to between 7:00 am and 7:00 pm. Once
the pad enters the Production phase, it will be an unmanned facility with periodic visits by Ursa
personnel and contractors for routine inspections and maintenance between the hours of 7:00 am
and 7:00 pm as an added BMP.
May 19, 2017, Revised July 14, 2017 5
O‘OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company 016-3531
Parking Lot and Access Road
No formalized parking lot will be developed as part of the BMC A well pad. Only authorized
personnel will be on the site during any part of the operation of the well pad. No public access will
be allowed. Employees and contractors will be directed to park in specific areas based on safety
needs during each phase of the pad's operation.
The access road is approximately 785 feet from Road to the proposed well pad site. The road will
be graveled to control mud tracking off the site onto public roads. The access is designed to
channel stormwater off the road and around the well pad site, while controlling erosion and
sedimentation.
Alternatives Analysis
Ursa performed an alternatives analysis for this location to make sure that it is the most
appropriate place for this set of wells. Consideration was given to the location most likely available
to reach all bottom holes from a single well pad vs multiple pads to reach all bottom holes. The
proposed oil and gas location is planned to accommodate 24 bottom holes in addition to an
injection well to help manage water and lessen community impact through reduction in truck
traffic. The farthest reach to a bottom hole from this location is approximately 2,463 feet.
Based on the bottom hole locations in relationship to the location of the well pad, Ursa has
determined that it is economically and technically feasible using proven existing technologies to
reach all bottom holes, and that the maximum drilling reach of 2,463 feet is reasonable and
practical.
Alternative locations were considered and evaluated over the past several years to meet lease
commitments, without requiring two locations or more to reach bottom holes. Phase I pads (BMC
B & BMC D) were maxed out for the number of bottom hole locations able to be drilled from the
pads due to pad size constraints pursuant to the SUA. The BMC L pad as expanded through a
recent SUA amendment to allow for a larger pad size to accommodate additional bottom hole
locations. However, the BMC L pad is located at the opposite end of the PUD and would not allow
for reaches to the planned BMC A bottom holes. Two pads within the PUD (BMC M and Parks &
Rec) are anticipated to be eliminated from Ursa's development plan completely. All existing pads
in the Battlement Mesa Field located outside of the PUD (Speakman A, Monument Ridge,
Monument Ridge B, Watson Ranch, Watson Ranch B, Yater, Tompkins and B&V) have been
drilled out. Whether from a surface constraint perspective or a bottom hole reach perspective,
these pads are not able to accommodate additional wells. Future proposed pad locations
Speakman B and Lacy Park were also considered. Speakman B is located outside of the PUD
but is located too far south to access the BMC A bottom holes. The Lacy Park pad was initially
planned to accommodate up to 21 wells. However, upon initiation of the LUMA process, Ursa
decided to shuffle the Lacy Park bottom hole locations and re -plan them from the BMC B, D and
A pads due to proximity to Grand Valley High School, nearby residences, the Colorado River, pad
size limitations and community concern.
Ursa has evaluated the proposed location and potential alternative locations to assess
compliance with Federal, state and local regulations and land use codes, and the landowner's
May 19, 2017, Revised July 14, 2017 6
O‘OLSSON
ASSOCIATES
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company
016-3531
preference as documented in the SUA. In conducting the siting analysis, potential conflicting land
uses and concerns were identified. The analysis included mineral lease obligations, SUA
contractual obligations, existing and reasonably foreseeable land development uses, regulatory
setbacks, community concerns, and potential impacts to natural resources, the environment, and
wildlife. Based on the information provided in this siting rationale, alternative sites to the east,
north, northwest, south, and west are not considered feasible for the location for reasons provided
herein, and still have the ability to reach bottom holes. Ursa already has a location to the east and
northeast approved by COGCC and Garfield County. Therefore, Ursa believes that the proposed
location is the best option to locate the proposed well pad with appropriate BMPs and permit
COAs.
The full alternatives analysis is included in this submittal.
Table 2. Summary of Required Permits
Permit Required
Responsible
Regulatory Agency
Status
Land Use Change Permit —Special
Use Permit and Major Impact Review
Garfield County
Application submitted May 2017
Stormwater Permit
CDPHE
Permit COR03K66 issued 5/21/2013, and
administratively continued 5/21/2013,
included in this permit.
Air Quality
CDPHE
Air Permit Application will be submitted no
later than ninety days following the date of
first production
Form 2 — Application for Permit to Drill
COGCC
Permit Applications submitted May 2017
Form 2A — Location Assessment
COGCC
Permit Application submitted May 2017
Access/Driveway Permit
Garfield County
Ursa will obtain any required access permits
within 30 days prior to construction
Pipeline Special Use Permit and
Pipeline Development Plan
Garfield County
Applications submitted May 2017
Building Permits
Garfield County
Ursa will obtain when necessary for the
pump house
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
William Swanson
COGCC
Waiver executed 5/23/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
Seledonio De La Cruz
COGCC
Waiver executed 4/3/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
Josh Archuleta
COGCC
Waiver executed 5/5/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
Albert & Nobia Story
COGCC
Waiver executed 4/3/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
May 19, 2017, Revised July 14, 2017
O'\OLSSON
ASSOCIATES
7
Battlement Mesa PUD Phase 11— BMC A
Ursa Operating Company
016-3531
Permit Required
Responsible
Regulatory Agency
Status
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
Gary & Darlene Burris
COGCC
Waiver executed 4/3/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
COGCC Rule 604.a.(1)A.i.
Exception Zone Waiver
(production facility proposed within
500' of Building Unit)
Mobile Home Owner:
Tyler & Amanda
Hampton
COGCC
Waiver executed 4/3/2017
Approval of COGCC Form 2A will constitute
approval of the exception location
May 19, 2017, Revised July 14, 2017 8
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