In February, the Colorado Department of Public Health and Environment (CDPHE) passed groundbreaking rules including a requirement that oil and gas companies control methane emissions.

The rules would attempt to capture 95% of all toxic pollutants and volatile organic compounds they emit. According to the state, the new rules would cut overall air pollution by 92,000 tons a year.

According to IHS Inc., the new rules, which cover the life cycle of oil and gas development (from drilling to production to maintenance), were supported by three major Colorado operators —Noble Energy, Anadarko Petroleum and Encana Corp.

Highlights of the rules include:

  • A first-in-the-nation requirement for leak detection from tanks, pipelines, and other drilling and production processes including volatile organic compounds and methane.
  • New, more stringent limits on emissions from dehydrator units located near where people live and play.
  • Instrument-based monthly inspections on large sources of emissions and timeline for repair of leaks found using either these instrument-based methods or leaks found through sight, smell or sound.

An industry study estimated the costs related to the new rules, assuming monthly inspections for leaks, could reach $80 million a year. A CDPHE study estimated costs at $30 million.

1 Condor Energy Technology LLC - 03/04/14

Houston-based Condor Energy Technology LLC has scheduled six horizontal Niobrara wildcats in the Morgan County, Colo. portion of the Denver-Julesburg Basin. The #4-2H Wickstrom, Section 4-6n-60w, will be drilled northward to 10,444 ft. with an estimated true vertical depth of 6,040 ft. The #4-3H Wickstrom, Section 4-6n-60w, will be drilled southward to 10,464 ft. and will bottom in Section 9-6n-60w with an estimated true vertical depth of 6,040 ft. The #4-4H Wickstrom, Section 4-6n-60w, will be drilled north-northeastward to 10,441 ft. with an estimated true vertical depth of 6,040 ft. The #4-5H Wickstrom, Section 4-6n-60w, will be drilled south-southeastward to a 10,467 ft. at a bottomhole in Section 9-6n-60w. The estimated true vertical depth is 6,040 ft. The #17-4H Wickstrom, Section 17-6n-60w, will be drilled south-southwestward to 10,509 ft. at a bottomhole location in Section 20-6n-60w. The estimated true vertical depth is 6,030 ft. The #18-9H Wickstrom, Section 18-6n-60w, will be drilled northward to 15,785 ft. at a bottomhole in Section 6-6n-60w. The estimated true vertical depth is 6,100 ft.

2 ConocoPhillips - 02/21/14

ConocoPhillips is planning to drill two horizontal Niobrara wildcats from a common drillpad in a non-producing Denver-Julesburg Basin township within the city limits of Aurora, Colo. The Arapahoe County ventures, #1H Sunset 4-65-21-22 and #1H Grimm Motocross 4-65-23-24, are in Section 22-4s-65w. The #1H Sunset 4-65-21-22 will be horizontally drilled westward to 17,341 ft. and will bottom in Section 21-4s-65w with a true vertical depth of 7,892 ft. The #1H Grimm Motocross 4-65-23-24 will be horizontally drilled eastward to 17,776 ft. and will bottom in Section 24-4s-65w. The estimated true vertical depth is 7,733 ft. The drillpad is about four miles west-northwest of a 2012 Niobrara discovery by the Houston-based company at #29-1H Tebo: September output at #29-1H Tebo averaged about 32 bbl of oil, 44,533 cu. ft. of gas and 7 bbl. of water per day.

3 EE3 LLC - 02/11/14

EE3 LLC completed #02-06H Damfino that had average daily production of approximately 685 bbl. of oil equivalent per day. According to the Boulder, Colo.-based company, the peak daily rate exceeded 1,000 bbl. of oil equivalent per day during the 30-day test. The average flowing casing pressure was 727 psi from 5.5 inch casing with no production tubing. The venture was drilled to 7,205 ft. before being completed with a 3,330 ft. lateral in the Niobrara D bench. The well was completed with 18 stages of plug and perf. The discovery is in Section 6-6n-80w in the North Park Basin in Jackson County, Colo. EE3 LLC holds a 100% working interest in the well. EE3 has also granted drilling permits for two additional horizontal Niobrara oil tests in the Eclipse/Coalmont Field area. The #3-32H Spicer is in Section 32-7n-80w. It will be drilled north-northeastward to 11,082 ft. and the true vertical depth is expected at 7,050 ft. The venture’s vertical pilot hole is projected to 7,900 ft. In Section 30-7n-80w, #4-30H Mutual will be drilled southwestward to 12,373 ft. and will bottom in Section 31-7n-80w.

4 EOG Resources Inc. - 01/27/14

A horizontal Niobrara exploratory by Houston-based EOG Resources Inc. on the northwestern flank of the Denver-Julesburg Basin initially flowed 318 bbl. of oil, 207,000 cu. ft. of gas and 304 bbl. of water per day. The #1-18H Windy is in Section 18-13n-64w of Laramie County, Wyo. Production is from a horizontal lateral extending northward to 12,152 ft., 8,345 ft. true vertical. It was tested on a 24/64-in. choke following 17-stage fracture stimulation between 8,715 and 12,116 ft. The casing pressure was 300 psi.

5 EOG Resources Inc. - 01/24/14

A horizontal Niobrara wildcat discovery was announced by Houston-based EOG Resources Inc. on the northern flank of the Denver-Julesburg Basin. The #7-33H Big Sandy is in Section 33-14n-65w of Laramie County, Wyo., and is the first producer in the township. It produced an average of 241 bbl. of oil, 115,000 cu. ft. of gas and 172 bbl. of water per day during its first two months online. It was horizontally drilled southward to 14,618 ft. and the true vertical depth is 10,315 ft. It was tested after 18-stage fracture stimulation between 10,522 and 14,495 ft. Further details are not yet available.

6 Chesapeake Operating Inc. - 01/23/14

In Converse County, Wyo., Chesapeake Operating Inc. completed a horizontal exploratory test in the Powder River Basin. The #32-34-68 A 1H Rankin flowed 742 bbl. of 46.2-degree-gravity oil, 1.85 million cu. ft. of gas and 720 bbl. of water per day from Niobrara. Production is from a Niobrara lateral that was drilled to the southwest to 14,932 ft. with a true vertical depth of 10,179 ft. Tested on a 28/64-in. choke following 12-stage fracture stimulation between 10,286 ft. and 14,689 ft., the flowing casing pressure was 1,300 psi. Chesapeake’s headquarters are in Oklahoma City.

7 WPX Energy Rocky Mountain LLC - 12/30/13

A Niobrara completion in the Piceance Basin by WPX Energy flowed 11.8 million cu. ft. of gas per day. The #702-23-HN1 Bosely SG is in Section 23-7s-96w of Garfield County, Colo. Production is from a 4,883-ft. horizontal lateral extending southward to 14,370 ft., 9,062 ft. true vertical, with a bottomhole in Section 26-7s-96w. The flowing casing pressure was 5,700 psi with no choke size reported. The venture was fracture stimulated in 19 stages. To optimize the performance of the reservoir, according to Tulsa-based WPX, the well has since been choked back to 8 million cu. ft. of gas per day at a flowing tubing pressure of 5,400 psi.