a. Prior to the commencement of its operations, all producers, operators, transporters, refiners, gasoline or other extraction plant operators, and initial purchasers who are conducting operations subject to this Act in the State of Colorado, shall, for purposes of the Act, file a Registration For Oil and Gas Operations, Form 1, with the Director in the manner and form approved by the Commission. Any producer, operator, transporter, refiner, gasoline or other extraction plant operator, and initial purchaser conducting operations subject to the Act who has not previously filed a Registration For Oil and Gas Operations, Form 1 shall do so. Any person providing financial assurance for oil and gas operators in Colorado shall file a Form 1 with the Director. All changes of address of the parties required to file a Form 1 shall be immediately reported by submitting a new Form 1.

b. Any party may act on or for the behalf of the owner/operator provided the owner/operator has filed a Designation of Agent, Form 1A. This agent shall remain in effect until it is terminated in writing by the owner/operator. All changes of address of the agent shall be immediately reported by submitting a new Form 1A.

b. A request to recomplete or deepen a well to a different reservoir shall be filed on an Application for Permit-to-Drill, Form 2, with a filing and service fee established by the Commission (see Appendix III), along with a Sundry Notice, Form 4, detailing the work, and a wellbore diagram.

c. Attached to and part of the Permit-to-Drill, Form 2, as filed shall be a current 8 1/2" by 11" scaled drawing of the entire section(s) containing the proposed well location with the following minimum information:

e. Well sites and access roads in wetlands. In the event that an operator acquires an Army Corps of Engineers permit pursuant to 33 U.S.C.A. §1342 and 1344 of the Water Pollution and Control Act (Section 404 of the federal Clean Water Act) for construction of a wellsite, access road, or production facility, the operator shall so indicate on the Form 2A.

f. Revisions to Form 2/2A. Prior to approval of the Form 2/2A, minor revisions or requested information may be provided by contacting the COGCC staff. After approval, any substantive changes shall be submitted for approval on a Form 2/2A. A Sundry Notice, Form 4, shall be submitted when non-substantive revisions are made after approval, and no additional fee shall be imposed.

g. Incomplete applications. Applications for Permit-to-Drill which are submitted without the necessary attachments, the proper signature or the required information shall be considered incomplete and shall not be approved. The COGCC staff shall notify the applicant in not more than thirty (30) days of permit application receipt of such inadequacies. The applicant shall then have thirty (30) days from the date which they were contacted to correct and/or provide requested information for that well, otherwise the permit application shall be considered withdrawn and the fee shall not be refunded.

h. Permit expiration. If operations are not commenced on the permitted well within one (1) year after date of approval, the permit shall become null and void. The Director shall not approve extensions to applications for Permit-to-Drill, Form 2.

i. Permits in areas pending Commission hearing. The Director may withhold the issuance of a permit and the granting of approval of any Permit-to-Drill, Form 2, for any well or proposed well that is located in an area for which an application has been filed, or which the Commission has sought, by its own motion, to establish drilling units or to designate any tract of land as a high density area, in which case the hearing thereon shall be held at the next meeting of the Commission at which time the matter can be legally heard.

j. Special circumstances for permit issuance without notice or consultation. The Director may issue a permit at any time in the event that an operator files a sworn statement and demonstrates therein to the Director's satisfaction that:

In the event the Director issues a permit under this rule, the operator shall not be required to meet obligations to surface owners and local governmental designees under Rules 303.d., 305.b.(1) & (3), and 306.a. The Director shall report permits granted in such manner to the Commission at regularly scheduled monthly hearings.

k. Withholding approval of application for Permit-to-Drill, Form 2.

l. Suspending approved Permit-To-Drill, Form 2. Prior to the spudding of the well, the Director shall suspend an approved Permit-to-Drill, Form 2, if the Director has reasonable cause to believe that information submitted on the Permit-to-Drill, Form 2 was materially incorrect. Under the circumstances described in Rule 303.j.(1) or (2), an operator may ask the Commission to issue an emergency order rescinding the Director’s decision.

m. Reclassification of stratigraphic well. If a test for productivity is made in a stratigraphic well, the well must be reclassified as a well drilled for oil or gas and is subject to all of the rules and regulations for a well drilled for oil or gas, including filing of reports and mechanical logs.

n. 9; Provisions for avoiding mine sites. Any person holding, or who has applied for, a permit issued or to be issued under §34-33-101 to 137, C.R.S., may at their election, notify the Director of such permit or application. Such notice shall include the name, mailing address and facsimile number of such person and designate by legal description the life-of-mine area permitted, or applied for, with the Division of Minerals and Geology. As soon as practicable after receiving such notice and designation, the Director shall inform the party designated therein each time that a Permit-to-Drill, Form 2, is filed with the Director which pertains to a well or wells located or to be located within said life-of-mine area as designated. The provisions of Rule 303.j. (1) and (2) will not be applicable to this rule.

a. The provisions of this Rule 305. shall not be applicable on federal or Indian owned surface lands.

b. Notices.

c. Notice requirements. As to notices to be given pursuant to this Rule 305., included with each such notice shall be the following:

d. Identifying surface owner. In determining the identity and address of a surface owner for the purpose of giving all notices under this Rule 305., the records of the assessor for the county in which the lands are situated may be relied upon.

e. Tenants. With respect to notices given under this Rule 305., it shall be the responsibility of the notified surface owner to give notice of the proposed operation to the tenant farmer, lessee or other party that may

own or have an interest in any crops or surface improvements that could be affected by such proposed operation.

f. Waiver. Any and all of the surface owner notice requirements set forth in this Rule 305. may be waived by the affected surface owner at any time. Any and all local governmental designee notice requirements set forth in this Rule 305. may be waived by the affected local governmental designee(s) at any time.

a. Drilling consultation. The good faith effort to consult shall occur at a time mutually agreed to by the parties prior to the commencement of operations with heavy equipment upon the lands of the surface owner. The operator shall confirm that the surface owner consultation requirements of this Rule 306. have been completed or waived before the Director approves an Application for Permit-to-Drill, Form 2.

b. Final reclamation consultation. In preparing for final reclamation and plugging and abandonment, the operator shall use its best efforts to consult in good faith with the affected surface owner (or the tenant when the surface owner has requested that such consultation be made with the tenant). Such good faith consultation shall allow the surface owner (or appointed tenant) the opportunity to provide comments concerning preference for timing of such operations and all aspects of final reclamation.

c. Tenants. Operators shall have no obligation to consult with tenant farmers, lessees, or any other party ("tenant") that may own or have an interest in any crops or surface improvements that could be affected by the proposed operation unless the surface owner appoints such tenant for such purposes. Nothing shall prevent the surface owner from including the tenant during the consultation.

d. Waiver. The requirement to consult with the surface owner under this Rule 306. may be waived by the affected surface owner or the surface owner's appointed tenant at any time.

a. #9; Each operator of any oil or gas well completed after April 30, 1956, shall file with the Director, within thirty (30) days after initial sale of oil or gas a Certificate of Clearance and/or Change of Operator, Form 10, in accordance with the instructions appearing on such form, for each well producing oil or gas or both oil and gas. A Certificate of Clearance shall be filed for any well from which oil, gas or other hydrocarbon is being produced.

A Certificate of Clearance shall be filed within thirty (30) days should the oil transporter (first purchaser) and/or the gas gatherer (first purchaser) change. In addition, within fifteen (15) days of an operator change for any well, a Change of Operator, Form 10, shall be filed with a filing and service fee as set by the Commission. (See Appendix III)

b. Each operator of a Class II injection well shall file a new Certificate of Clearance and/or Change of Operator, Form 10 with the Director within fifteen (15) days of the transfer of ownership.

c. Whenever there shall occur a change in the producer or operator filing the certificate under Rule 312.a. hereof, or whenever there shall occur a change of transporter from any well within the state, a new Certificate of Clearance and/or Change of Operator, Form 10 shall be executed and filed within fifteen (15) days in accordance with the instructions appearing on such form. In the case of temporary use of oil for well treating or stimulating purposes, no new form need be executed. In the case of other temporary change in transporter involving the production of less than one (1) month, the producer or operator may, in lieu of filing a new certificate, notify the Commission and the transporter authorized by the certificate on file with the Commission by letter of the estimated amount to be moved by the temporary transporter and the name of such temporary transporter. A copy of such notice shall also be furnished such temporary transporter.

d. In no instance shall the temporary transporter move any quantity greater than the estimated amount shown in said notice.

e. The certificate, when properly executed and approved by the Commission, shall constitute authorization to the pipeline or other transporter to transport the authorized volume from the well named therein; provided that this section shall not prevent the production or transportation in order to prevent waste, pending execution and approval of said certificate. Permission for the transportation of such production shall be granted in writing to the producer and transporter.

f. The certificate shall remain in force and effect until:

g. It is the operator's responsibility to mail approved copies of the Certificate of Clearance and/or Change of Operator, Form 10, to the transporter and/or gatherer for each well listed.

a. Blowout preventer equipment ("BOPE"). The operator shall take all necessary precautions for keeping a well under control while being drilled or deepened. BOPE, if any, shall be indicated on the Application for Permit-to- Drill, Form 2, as well as any known subsurface conditions (e.g. under or over-pressured formations). The working pressure of any BOPE shall exceed the anticipated surface pressure to which it may be subjected, assuming a partially evacuated hole with a pressure gradient of 0.22 psi/ft. (For BOPE requirements in high density areas see Rule 603.b(4)B. For statewide BOPE specification, inspection, operation and testing requirements see Rule 603.f.)

b. Bottom hole location. Unless authorized by the provisions of Rule 321., all wells shall be so drilled that the horizontal distance between the bottom of the hole and the location at the top of the hole shall be at all times a practical minimum.

c. Requirement to post permit at the rig and provide spud notice. A copy of the approved Application for Permit-to-Drill, Deepen, Re-enter, or Recomplete and Operate, Form 2, shall be posted in a conspicuous place on the drilling rig or workover rig. A notice shall be provided to the Director on a Sundry Notice, Form 4, no later than five (5) days following the spudding of a well. The Director may apply a condition of approval for Application for Permit-to-Drill, Deepen, Re-enter, or Recomplete and Operate, Form 2 requiring not less than twenty-four (24) hours nor more than seventy-two (72) hours verbal or written notice prior to spud.

d. Casing program to protect hydrocarbon horizons and ground water. The casing program adopted for each well must be so planned and maintained as to protect any potential oil or gas bearing horizons penetrated during drilling from infiltration of injurious waters from other sources, and to prevent the migration of oil, gas or water from one (1) horizon to another, that may result in the degradation of ground water. A Sundry Notice, Form 4, including a detailed work plan and a wellbore diagram, shall be submitted and approved by the Director prior to any routine or planned casing repair operations. During well operations, prior verbal approval for unforseen casing repairs followed by the filing of a Sundry Notice, Form 4, after completion of operations shall be acceptable.

e. Surface casing where subsurface conditions are unknown. In areas where pressure and formations are unknown, sufficient surface casing shall be run to reach a depth below all known or reasonably estimated utilizable domestic fresh water levels and to prevent blowouts or uncontrolled flows and shall be of sufficient size to permit the use of an intermediate string or strings of casings. Surface casing shall be set in or through an impervious formation and shall be cemented by pump and plug or displacement or other approved method with sufficient cement to fill the annulus to the top of the hole, all in accordance with reasonable requirements of the Director. In the D-J Basin Fox Hills Protection Area surface casing will be set in accordance with Rule 317A. (See also subparagraph g.).

f. Surface casing where subsurface conditions are known. In wells drilled in areas where subsurface conditions have been established by drilling experience, surface casing size, at the owner's option, shall be set and cemented to the surface by the pump and plug or displacement or other approved method at a depth and in a manner sufficient to protect all fresh water and to ensure against blowouts or uncontrolled flows. In the D-J Basin Fox Hills Protection Area surface casing will be set in accordance with Rule 317A. (See also subparagraph g.).

g. Alternate aquifer protection by stage cementing. In areas where fresh water aquifers are of such depth as to make it impractical or uneconomical to set the full amount of surface casing necessary to comply fully with the requirement to cover or isolate all fresh water aquifers as required in subparagraph e. and f., the owner may, at its option, comply with this requirement by stage cementing the intermediate and/or production string so as to accomplish the required result. If unanticipated fresh water aquifers are encountered after setting the surface pipe they shall be protected or isolated by stage cementing the intermediate and/or production string with a solid cement plug extending from fifty (50) feet below each fresh water aquifer to fifty (50) feet above said fresh water aquifer or by other methods approved by the Director in each case. In the D-J Basin Fox Hills Protection Area any stage cementing shall occur only in accordance with Rule 317A. If the stage cement is not circulated to surface, a temperature log or cement bond log shall be run to determine the top of the stage cement to ensure aquifers are protected.

h. Surface and intermediate casing cementing. The operator shall ensure that all surface and intermediate casing cement required under this rule shall be of adequate quality to achieve a minimum compressive strength of three hundred (300) psi after twenty-four (24) hours and eight hundred (800) psi after seventy-two (72) hours measured at ninety-five degrees fahrenheit (95°F) and at eight hundred (800) psi. All surface casing shall be cemented with a continuous column from the bottom of the casing to the surface. After thorough circulation of the wellbore, cement shall be pumped behind the intermediate casing to at least two hundred (200) feet above the top of the shallowest known production horizon and as required in 317.g. Cement placed behind the surface and intermediate casing shall be allowed to set a minimum of eight (8) hours, or until three hundred (300) psi calculated compressive strength is developed, whichever occurs first, prior to commencing drilling operations. If the surface casing cement level falls below the surface, to the extent safety or aquifer protection is compromised, remedial cementing operations shall be performed.

i. Production casing cementing. The operator shall ensure that all cement required under this rule placed behind production casing shall be of adequate quality to achieve a minimum compressive strength of at least three hundred (300) psi after twenty-four (24) hours and eight hundred (800) psi after seventy-two (72) hours measured at ninety-five degrees fahrenheit (95°F) and at eight hundred (800) psi. After thorough circulation of a wellbore, cement shall be pumped behind the production casing two hundred (200) feet above the top of the shallowest known producing horizon. All fresh water aquifers which are exposed below the surface casing shall be cemented behind the production casing. All such cementing around an aquifer shall consist of a continuous cement column extending from at least fifty (50) feet below the bottom of the fresh water aquifer which is being protected to at least fifty (50) feet above the top of said fresh water aquifer. Cement placed behind the production casing shall be allowed to set seventy-two (72) hours, or until eight hundred (800) psi calculated compressive strength is developed, whichever occurs first, prior to the undertaking of any completion operation.

j. Production casing pressure testing. The installed production casing shall be adequately pressure tested for the conditions anticipated to be encountered during completion and production operations.

k. Protection of aquifers and production stratum and suspension of drilling operations before running production casing. In the event drilling operations are suspended before production string is run, the Commission shall be notified immediately and the owner shall take adequate and proper precautions to assure that no alien water enters oil or gas strata, nor potential fresh water aquifers during such suspension period or periods. If alien water is found to be entering the production stratum or to be causing significant adverse environmental impact to fresh water aquifers during completion testing or after the well has been put on production, the condition shall be promptly remedied.

l. Flaring of gas during drilling and notice to local emergency dispatch. Any gas escaping from the well during drilling operations shall be, so far as practicable, conducted to a safe distance from the well site and burned. The operator shall notify the local emergency dispatch as provided by the local governmental designee of any such flaring. Such notice shall be given prior to the flaring if the flaring can be reasonably anticipated, and in all other cases as soon as possible but in no event more than two (2) hours after the flaring occurs.

m. Protection of productive strata during deepening operations. If a well is deepened for the purpose of producing oil and gas from a lower stratum, such deepening to and completion in the lower stratum shall be conducted in such a manner as to protect all upper productive strata.

n. Requirement to evaluate disposal zones for hydrocarbon potential. If a well is drilled as a disposal well then the disposal zone shall be evaluated for hydrocarbon potential. The proposed hydrocarbon evaluation method shall be submitted in writing and approved by the Director prior to implementation. The productivity results shall be submitted to the Director upon completion of the well.

o. Requirement to log well. For all new drilling operations, the operator shall be required 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. This log and all other logs run shall be submitted with the Well Completion or Recompletion Report and Log, Form 5. Open hole logs shall be run to adequately verify setting depth of surface casing and aquifer coverage. These requirements shall not apply to the unlogged open hole completion intervals, or to wells in which no open hole logs are run.

p. Remedial cementing during recompletion. The Director may apply a condition of approval for Application for Permit-to-Drill, Deepen, Re-enter, or Recomplete and Operate, Form 2, to require remedial cementing during recompletion operations consistent with the provisions for protecting aquifers and hydrocarbon bearing zones in this Rule 317.

a. Surface Casing - Minimum Requirements for Well Control. In all wells drilled within the D-J Basin Fox Hills Protection Area, surface casing shall be run to a minimum depth of five percent (5%) of the projected total depth to which the well is to be drilled, provided that in no event shall the surface casing be run to a depth less than two hundred (200) feet. The Director may, on a case-by-case basis, grant variances in this five percent (5%) requirement where the Director finds that the well is a development well in which pressures

can be accurately predicted and finds that, based upon those predictions, the five percent (5%) requirement should be varied to achieve effective well control. In all cases, however, the actual depth at which the surface casing is set shall be calculated to position the casing seat to a depth within a competent formation (preferably shale) which will contain the maximum pressure to which the casing will be exposed during normal drilling operations.

b. Surface Casing - Aquifer Protection. For purposes of aquifer protection, surface casing must be set as follows in wells which are not exploratory wells:

c. Exploratory Wells. For purposes of the D-J Basin Fox Hills Protection Area only, the term exploratory well means any well:

a. Wells deeper than 2,500 feet in depth. A well to be drilled in excess of two thousand five hundred (2,500) feet in depth shall be located not less than six hundred (600) feet from any lease line, and shall be located not less than one thousand two hundred (1,200) feet from any other producible or drilling oil or gas well when drilling to the same common source of supply, unless authorized by order of the Commission upon hearing.

b. Wells less than 2,500 feet in depth. A well to be drilled to less than a depth of two thousand five hundred (2,500) feet below the surface shall be located not less than two hundred (200) feet from any lease line, and not less than three hundred (300) feet from any other producible oil or gas well, or drilling well, in said source of supply, except that only one producible oil or gas well in each such source of supply shall be allowed in each governmental quarter-quarter section unless an exception under Rule 318.c. is obtained.

c. Exception locations. The Director may grant an operator’s request for a well location exception to the requirements of this rule or any order because of geologic, environmental, topographic or archaeologic conditions, irregular sections, a surface owner request, or for other good cause shown, provided that a waiver or consent signed by the lease owner toward whom the well location is proposed to be moved, agreeing that said well may be located at the point at which the operator proposes to drill the well and where correlative rights are protected. If the operator of the proposed well is also the operator of the drilling unit or unspaced offset lease toward which the well is proposed to be moved, waivers shall be obtained from the mineral interest owners under

such lands. If waivers cannot be obtained from all parties and no party objects to the location, the operator may apply for a variance under Rule 502.b. If a party or parties object to a location and cannot reach an agreement, the operator may apply for a Commission hearing on the exception location.

d. Exemptions to Rule 318.

e. Wells located near a mine. No well drilled for oil or gas shall be located within two hundred (200) feet of a shaft or entrance to a coal mine not definitely abandoned or sealed, nor shall such well be located within one hundred (100) feet of any mine shaft house, mine boiler house, mine engine house, or mine fan; and the location of any proposed well shall insure that when drilled it will be at least fifteen (15) feet from any mine haulage or airway.

a. The Greater Wattenberg Area ("GWA") is defined to include those lands from and including Townships 2 South to 7 North and Ranges 61 West to 69 West, 6^th P.M. In GWA, operators may utilize the following described drilling locations to drill or twin a well, deepen a well, or recomplete a well and to commingle any or all of the Cretaceous Age formations from the base of the Dakota to the surface ("GWA wells"):

b. Any GWA well in existence prior to the effective date of this rule, which is not located as described above, may also be utilized for deepening to or recompletion in any Cretaceous Age formation, and for the commingling of production therefrom.

c. Where an existing well cannot be utilized for deepening or recompletion, for reasons including, but not limited to, differing ownership or wellbore limitations, any new, twinned well shall be located as close to such existing well as is practicable, consistent with sound engineering practice.

d. This rule does not alter the size or configuration of drilling units for GWA wells in existence prior to its effective date. Where deemed necessary an operator for purposes of allocating production, such operator may allocate production to an expanded drilling unit with respect to a particular Cretaceous Age formation consistent with the provisions of this rule.

e. This rule shall not serve to bar the granting of relief to owners who file an application alleging abuse of their correlative rights to the extent that such owners can demonstrate that their opportunity to produce the Cretaceous Age formations from the drilling locations herein authorized does not provide an equal opportunity to obtain their just and equitable share of oil and gas from such formations.

f. Subject to paragraph d. above, this rule supersedes all prior Commission drilling and spacing orders affecting the GWA wells. Well location exceptions to this rule shall be subject to the provisions of Rule 318.c.

a. Plugging

b. Shut-in and Temporary Abandonment.

a. The operator shall take precautions to prevent significant adverse environmental impacts to air, water, soil, or biological resources to the extent necessary to protect public health, safety and welfare, by using cost-effective and technically feasible measures to protect environmental quality and to prevent the unauthorized discharge or disposal of oil, gas, E&P waste, chemical substances, trash, discarded equipment or other oil field waste.

b. No operator, in the conduct of any oil or gas operation shall perform any act or practice which shall constitute a violation of water quality standards or classifications established by the Water Quality Control Commission for waters of the state, or any point of compliance established by the Director pursuant to Rule 324D. The Director may establish one (1) or more points of compliance for any event of pollution, which shall be complied with by all parties determined to be a responsible party for such pollution.

c. No owner, in the conduct of any oil or gas operation, shall perform any act or practice which shall constitute a violation of any comprehensive plan adopted by the Air Quality Control Commission for the prevention, control and abatement of pollution of the air of the state.

d. No injection shall be authorized pursuant to Rule 325. or Rule 401. unless the person applying for authorization to conduct the injection activities demonstrates that those activities will not result in the presence in an underground source of drinking water of any physical, chemical, biological or radiological substance or matter which may cause a violation of any primary drinking water regulation in effect as of July 12, 1982 and found at 40 C.F.R. Part 142, as amended, or may otherwise adversely affect the health of persons. An underground source of drinking water is an aquifer or its portion:

e. No person shall accept water produced from oil and gas operations, or other oil field waste for disposal in a commercial disposal facility, without first obtaining a Certificate of Designation from the County in which such facility is located, in accord with the regulations pertaining to solid waste disposal sites and facilities as promulgated by the Colorado Department of Public Health and Environment.

a. Criteria for aquifer exemption. An aquifer or a portion thereof may be designated by the Director or the Commission as an exempted aquifer, in connection with the filing of an application pursuant to Rule 325. or Rule 401. if it meets the following criteria:

b. Aquifer exemption public notice. If an aquifer exemption is required as part of an injection permit process, the injection well applicant shall apply for an aquifer exemption. This application shall contain data and information which show that applicable aquifer exemption criteria set forth in Rule 324B.a. are met. After evaluation of the application and prior to designating an aquifer or a portion thereof as an exempted aquifer, the Director shall publish a notice of proposed designation in a newspaper of general circulation serving the area where the aquifer is located. The notice shall identify such aquifer or portion thereof which the Director proposes to designate as exempted, and shall state that any person who can make a showing to the Director that the requested designation does not meet the critera set forth in Rule 324B.a.

c. Evaluation of written requests for public hearing. Written requests for a public hearing before the Commission shall be reviewed and evaluated by the Director in consultation with the applicant to determine if the criteria set forth in Rule 324B.a. have been met. If, within thirty (30) days after publication of the notice, the Commission receives a hearing request for which the Director determines the criteria set forth in Rule 324B.a. have not been met, the Commission shall hold such a hearing in accordance with the provisions of §34-60-108, C.R.S., 1973, as amended, and shall make a final determination regarding designation.

d. Aquifer exemption designation. If, within thirty (30) days after publication of the notice described in subparagraph b. above, the Commission does not receive a hearing request or receives a hearing request for which the Director determines the criteria set forth in Rule 324B.a. have been met, said aquifer or portion thereof shall be considered exempted thirty (30) days after publication of the notice.

a. The classified use established by the Water Quality Control Commission, for any ground water or surface water which will be impacted by contamination. If not so classified, the Director shall consider the quality, quantity, potential economic use and accessibility of such water;

b. The geologic and hydrologic characteristics of the site, such as depth to ground water, ground water flow, direction and velocity, soil types, surface water impacts, and climate;

c. The toxicity, mobility, and persistence in the environment of contaminants released or discharged from the site;

d. Established wellhead protection areas;

e. The potential of the site as an aquifer recharge area; and

f. The distance to the nearest permitted domestic water well or public water supply well completed in the same aquifer affected by the event.

g. The distance to the nearest permitted livestock or irrigation water well completed in the same aquifer affected by the event.

c. The application for a dedicated injection well shall include the following information:

d. The application for a simultaneous injection well shall include the following:

The following rules shall apply to both dedicated injection well and simultaneous injection well applications.

e. Mechanical integrity testing requirement. Prior to application approval, the proposed disposal well must satisfactorily pass a mechanical integrity test in accordance with Rule 326.

f. Centralized and commercial disposal well requirements. Prior to application approval, the appurtenant centralized and commercial disposal well operations shall comply with the requirements of Rules 704. and 908.

g. Multiple well applications. Application may be made to include the use of more than one (1) disposal well on the same lease, or on more than one (1) lease. Wherever feasible and applicable, the application shall contemplate a coordinated plan for the entire field.

h. The designated operator of a unitized or cooperative project shall execute the application.

i. Notice of the application for a dedicated injection well shall be given by the applicant by registered or certified mail or by personal delivery, to each surface owner and owner as defined in §34-60-103(7), C.R.S., within one-quarter (1/4) mile of the proposed well or wells and to owners and operators of oil and gas wells producing from the injection zone within one-half (1/2) mile of the disposal well or to owners of cornering and contiguous units where injection will occur into the producing zones, whichever is the greater distance.

j. Notice of the application for a simultaneous injection well shall be given by the applicant by registered or certified mail or by personal delivery, to each owner as defined in §34-60-103(7), C.R.S., within one-quarter (1/4) mile of the proposed well or wells and to owners and operators of oil and gas wells producing from the injection zone within one-half (1/2) mile of the disposal well or to owners of cornering and contiguous units where injection will occur into the producing zones, whichever is the greater distance.

k. A copy of the notice of application shall be included with the disposal application filed with the Commission, and the applicant shall certify that notice by registered or certified mail or by personal delivery, to each of the owners specified in subparagraphs i. and j., has been accomplished.

l. Notice of application requirements. The notice shall describe the proposed operation and shall state that any person who would be directly and adversely affected or aggrieved by the authorization of the underground disposal into the proposed injection zone may file, within fifteen (15) days of notification, a written request for a public hearing before the Commission, provided such request meets the protest requirements specified in subparagraph m. of this rule. The notice shall also state that additional information on the operation of the proposed disposal well may be obtained at the Commission office.

m. Evaluation of written requests for public hearing. Written requests for public hearing before the Commission by a person, notified in accordance with subparagraphs i. and j. of this rule, who may be directly and adversely affected or aggrieved by the authorization of the underground disposal into the proposed injection zone, shall be reviewed and evaluated by the Director in consultation with the applicant. Written protests shall specifically provide information on:

n. Dedicated injection well public notice. The Director shall publish a notice of the proposed disposal permit for dedicated injection wells in a newspaper of general circulation serving the area where the well(s) is (are) located. The notice shall briefly describe the disposal application and include legal location, proposed injection zone, depth of injection and other relevant information. Comment period on the proposed disposal application shall end thirty (30) days after date of publication. If any data, information, or arguments submitted during the public comment period appear to raise substantial questions concerning potential impacts to the environment, public health, safety and welfare raised by the proposed disposal well permit the Director may request that the Commission hold a hearing.

o. Injection application deadlines. If all of the data or information necessary to approve the disposal application has not been received within six (6) months of the date of receipt, the application will be withdrawn from consideration. However, for good cause shown, a ninety (90) day extension may be granted, if requested prior to the date of expiration.

b. Shut-in Wells - All shut-in wells shall pass a mechanical integrity test.

c. Not less than ten (10) days prior to the performance of any mechanical integrity test required by this rule, any person required to perform the test shall notify the Director, in writing, of the scheduled date on which the test will be performed.

d. All wells shall maintain mechanical integrity. All wells which lack mechanical integrity shall be repaired or plugged and abandoned within six (6) months of failing a mechanical integrity test or of a determination through any other means that the well lacks mechanical integrity, and the well site reclaimed in accordance with Rule 1004.a. All injection wells which fail a mechanical integrity test, or which are determined through any other means to lack mechanical integrity, shall be shut-in immediately.

a. Correction for Impurities. The percentage of impurities (water, sand and other foreign substances not constituting a natural component part of the oil) shall be determined to the satisfaction of the Director, and the observed gross volume of oil shall be corrected to exclude the entire volume of such impurities.

b. Temperature Correction. The observed volume of oil corrected for impurities shall be further corrected to the standard volume of sixty degrees fahrenheit (60°F). in accordance with A.S.T.M. D-1250 Table 7, or any revisions thereof and any supplements thereto or any close approximation thereof approved by the Director.

c. Gravity Determination. The gravity of oil at sixty degrees fahrenheit (60°F) shall be determined in accordance with A.S.T.M. D-1250 Table 5, or any revisions thereof and any supplements thereto or any close approximation thereof approved by the Director.

a. The volume of produced water shall be computed and reported in terms of barrels on the basis of properly calibrated meter measurements or tank measurements of water-level differences, made and recorded to the nearest one-quarter (1/4) inch of one hundred percent (100%) capacity tables. If measurements are based on oil/water ratios, the oil/water ratio must be based on a production test performed during the last calendar year. Other equivalent methods for measurement of produced water may be approved by the Director.

b. The volume of water injected into a Class II dedicated injection well shall be computed and reported in terms of barrels on the basis of properly calibrated meter measurements or tank measurements of water-level

differences, made and recorded to the nearest one-quarter (1/4) inch of one hundred percent (100%) capacity tables. If water is transported to an injection facility by means other than direct pipeline, measurement of water is required by a properly calibrated meter.

c. The volume of water injected and produced in simultaneous injection wells shall be computed and reported in terms of barrels on the basis of calculated pump volumes, on the basis of properly calibrated meter measurements, or on the basis of a produced gas to water ratio based on an annual production test.

a. COGCC Form 20, Notice of Intent to Conduct Seismic Operations. Seismic operations require an approved Form 20 which shall be submitted to the Director prior to commencement of shothole drilling or recording operations. An informational copy of the Form 20 shall be filed by the operator with the local governmental designee at or before the time of filing with the Director. Any change of plans or line locations may be implemented without Director approval provided that after such change is performed, the Director shall receive written notice of the change within five (5) days.

A map shall be included with the notice. This map shall be at a scale of at least 1:48,000 showing sections, townships and ranges and providing the location of the proposed seismic lines, including source and receiver line locations.

The Notice of Intent to Conduct Seismic Operations, Form 20, shall be in effect for six (6) months from the date of approval. An extension of time may be granted upon written request submitted prior to the expiration date.

b. Surface owner consultation. Prior to the commencement of any seismic operations, a good faith effort shall be made to consult with all surface owners of the lands included in the seismic project area.

c. Exploration requiring the drilling of shotholes:

d. COGCC Form 20A, Completion Report for Seismic Operations. A Form 20A shall be submitted to the Director within sixty (60) days after completion of the project. The report shall include: maps (with a scale not less than 1:48,000) showing the location of all receiver lines, energy source lines and any shotholes. Shotholes encountering artesian flow shall be indicated on the map.

If the program included any shotholes, then the completion report shall be accompanied by the following:

(1) a certification by the party responsible for plugging the holes that all shotholes are plugged as prescribed by these rules and approved by the Director, and

(2) the latitude and longitude of each shothole location. Latitude and longitude values shall be referenced to the NAD 1927 and reported in decimal degrees to an accuracy of at least five (5) decimal places (e.g.; latitude 37.12345 N, longitude 104.45632 W), or reported in other form as approved by the Director. If GPS technology is utilized to determine the latitude and longitude, all GPS data shall meet the requirements set forth in Rule 303.c.(4)a. through d.

e. Bonding Requirements. The company submitting the Notice of Intent to Conduct Seismic Operations, Form 20, shall file financial assurance in accordance with Rule 705. prior to the commencement of operations. The bond shall remain in effect until a request is made by the company to release the bond for the following reasons:

f. Reclamation requirements. Upon completion of seismic operations the surface of the land shall be restored as nearly as practicable to its original condition at the commencement of seismic operations. Appropriate reclamation of disturbed areas will vary depending upon site specific conditions and may include compaction alleviation and revegetation. All flagging, stakes, cables, cement, mud sacks or other materials associated with seismic operations shall be removed.