Wellbore Integrity 12-9-12

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    ConservationCommission

    DOWN-HOLE AQUIFER PROTECTION &

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    Rule 207b: Bradenhead monitoring

    Rule 317: Well casing and cementing; Cement bond logs, Pressure

    Controls

    Rule 341: Monitor pressures during stimulation

    Rule 603: Drilling and well servicing operations and high density

    area rules

    Rule 608e: Bradenhead testing

    2

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    CURRENT COGCCPOLICIES:

    .

    Area,datedMay29,2012

    2. PracticesandProcedures,UICMechanicalIntegrityTests,datedMarch17,2011

    3. NoticetoOperatorsDrillingWilliamsForkFormationWellsinGarfieldCounty,SurfaceCasingDepthand

    o ca ono ea o es equ remen s,rev se June23,2006

    4. Noticeto

    Operators

    Drilling

    Mesaverde

    Group

    or

    Deeper

    Wells

    in

    the

    Mamm

    Creek

    Field

    Area

    in

    Garfield

    County,WellCementingProcedureandReportingRequirements,revisedFebruary9,2007

    5. NoticetoOperatorsDrillingWellsintheBuzzard,MammCreek,andRulisonFields,GarfieldCountyandMesa

    County,ProceduresandSubmittalRequirementsforCompliancewithCOGCCOrderNos.1107,13956,19122,

    and3692,datedJuly10,2010

    6. NoticetoAllOilandGasOperatorsActiveintheDenverBasin,ColoradoOilandGasConservationCommission

    ApprovedWattenberg

    Bradenhead

    Testing

    and

    Staff

    Policy,

    datedDecember16,2009

    7. DrillingCompletionReportCementDocumentationPolicy,February17,2009

    8. ClarificationonProceduresforFilingChangestoApplicationsforPermittoDrill,revisedJanuary18,2011

    9. ConductorPipeSettingPolicy,April6,2006

    .

    11. NorthwestColoradoNotificationPolicy,EffectiveforNoticesReceivedOnorAfterJanuary1,2010,RevisionNo.

    3,May10,2012

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    317: GENERALDRILLINGRULES a.Blowoutpreventionequipment(BOPE).

    b.Bottomholelocation.

    c.Requirementtopostpermitattherigandprovidespudnotice.

    . .

    e.Surface

    casing

    where

    subsurface

    conditions

    are

    unknown.

    f.Surfacecasingwheresubsurfaceconditionsareknown.

    g.Alternateaquiferprotectionbystagecementing.

    h.Surfaceandintermediatecasingcementing.

    i.Productioncasingcementing.

    j.Production

    casing

    pressure

    testing.

    k.Protectionofaquifersandproductionstratumandsuspensionofdrilling

    operationsbeforerunningproductioncasing.

    l.Flaringofgasduringdrillingandnoticetolocalemergencydispatch.

    m.Protectionofproductivestrataduringdeepeningoperations.

    n.Requirementtoevaluatedisposalzonesforhydrocarbonpotential.

    o.Requirementtologwell.

    p.Remedialcementingduringrecompletion.

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    COGCC

    POLICIES

    TO

    PREVENT

    GAS/OIL

    MIGRATION(FORNEWWELLS)

    1. ENSURESURFACE

    CASING

    IN

    ALL

    WELLS

    IS

    SET

    AT

    LEAST 50 FEET BELOW THE DEPTH OF THE DEEPEST

    WATERWELLORAQUIFERS

    2. ENSUREPRODUCTIONCASINGISCEMENTED

    ABOVEALLPRODUCTIONZONES

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    DRILLINGPROCESS

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    WELL BORE DIAGRAM

    DRILL OUT FOR SURFACE CASING

    With fresh water to protect the aquifers

    Surface Casing Hole

    GROUND SURFACE

    CEMENTED CONDUCTORCEMENTED CONDUCTOR

    AQUIFER SAQUIFER S

    SURFACE CASING HOLE

    DRILLING FLUID (FRESH WATER)

    HYDROCARBON FORMATIONS

    Figure 1

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    WELL BORE DIAGRAM

    PLACE & CEMENT SURFACE CASING

    To Protect Aquifers

    Surface Casing

    Per COGCC Rules 317.e, f, g, & h

    GROUND SURFACE

    CEMENTED CONDUCTOR

    AQUIFER SAQUIFER S

    cemented steel casing

    below the aquifer

    CEMENT

    SURFACE CASING

    HYDROCARBON FORMATIONS

    Figure 2

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    WELL BORE DIAGRAM

    PLACE & CEMENT PRODUCTION

    CASINGFluid inflow prevented by cement

    WELLHEAD

    Production Casing:

    Hole with cemented steel

    Per COGCC Rules 317.i, j, & k andverified per Rule 308A

    GROUND SURFACE

    CEMENTED CONDUCTOR

    AQUIFER SAQUIFER S

    CEMENT

    SURFACE CASING

    CEMENT

    PRODUCTION CASING

    HYDROCARBON FORMATIONS

    Figure 4

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    317.o. Re uirement to lo well. For all new drillin o erations, the o erator shall berequired to run a minimum of a resistivity log with gamma-ray or other petrophysical

    log(s) approved by the Director that adequately describe the stratigraphy of the

    wellbore.A cement bond log shall be run on all

    production casing or, in the case of a production

    liner, the intermediate casing, when these casings r ngs are run. These logs and all other logs run shall be submitted withthe Well Completion or Recompletion Report and Log, Form 5. Open hole logs shall

    be run at depths that adequately verify the setting depth of surface casing and any

    .

    completion intervals, or to wells in which no open hole logs are run.

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    Cement Bond Logs toverify placement ofcement

    Per COGCC Rule 317.o requirescement bond logs for all wells.

    Top of Cement

    Figure 5

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    341.BRADENHEADMONITORINGDURINGWELL

    Theplacementofallstimulationfluidsshallbeconfinedtotheobjectiveformations duringtreatmenttotheextentpracticable.

    Duringstimulationoperations,bradenhead

    annulus

    pressure

    shall

    be

    continuously

    monitoredandrecordedonallwellsbeingstimulated.

    than200psigtheoperatorshallverballynotifytheDirectorassoonaspracticable,butnolaterthantwentyfour(24)hoursfollowingtheincident.Withinfifteen(15)daysaftertheoccurrence,theoperatorshallsubmitaSundryNotice,Form4,givingalldetails,includingcorrectiveactionstaken.

    Ifintermediatecasinghasbeensetonthewellbeingstimulated,thepressureintheannulusbetweentheintermediatecasingandtheproductioncasingshallalsobemonitoredandrecorded.

    Theoperatorshallkeepallwellstimulationrecordsandpressurechartsonfileandavailable

    forinspection

    by

    the

    Commission

    for

    aperiod

    of

    at

    least

    five

    (5)

    years.

    Under

    Rule

    502.b.(1),

    an

    operatormayseekavariancefromthesebradenheadmonitoring,recording,andreportingrequirementsunderappropriatecircumstances.

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    WELL BORE DIAGRAM

    STIMULATION Hydraulic Fracture

    WELLHEAD

    Bradenhead valve monitoring

    during stimulation treatment

    Per COGCC Rule 341

    GROUND SURFACE

    CEMENTED CONDUCTOR

    AQUIFER SAQUIFER S

    per Rule 341

    CEMENT

    SURFACE CASING

    CEMENT

    PRODUCTION CASING

    PERFORATIONS

    HYDROCARBON FORMATIONS

    Figure 7