De?nitions Zones Exceptions Operator Training August 2, 20 13 08/20/20 3 2013 “Setback” Rules 500 feet 1,000 feet 1,000 feet 350 feet 1,000 feet 2 Well or Production Facility 08/20/2013 Also Can Be Called “Rule of Threes” Communication, Mitigation, Setback Zones Things required of Operators: 1) Notification 2) Meetings with neighbors 3) Mitigation measures Determining factors: 1) Distance 2) Type of building use 3) Density of buildings and/or number of occupants Other groups specific rights and opportunities: 1) Surface Owners 2) Adjacent Building Owners 3) Local Governments Special conditions: 1) Waiver 2) Exception 3) Variance OF CULTURAL TAB IS CULTURAL DISTANCE INSTRUCTIUNs: All measurements shall be provided from center of nearest 1Ii'llell or edge of nearest Production Facility to nearest of each cultural feature as described in Rule 303.b.f3}A. Distance to nearest: Building: Feet 3* Enter 5280 for distance greater than 1 mile. ?mt: 0 Feet 3* Building?nearest building of any type. If nearest Building is a Building Unit, enter same distance for both. High Occupancy Building Unit: 0 Feet 3* Building Unit, High Occupancy Building Unit, and Designated Outside Activit Area?as de?ned in IOO?Sen'es Rules. Designated Outside Activity Area: 0 Feet Public Road: 0 Feet Above Ground Utility: Feet Railroad: 0 Feet Property Line: 0 Feet DESIGNATED SETBACK LDCATIDN Check all that apply. This location is within a: Li Buffer Zone 3* Burr? Zane 35 describe?j RUIE 5043(2)? Within Law. ?31: a Building Unit. 1 Exception zone Exception Zone as described in Rule within Still1 of a Building Unit. Urban Mitigation Area Urban Mitigation Area as de?ned in IOU?Series Rules. Pre-application Notifications [required if location is within LOUD feet of a building unit): Date of Rule 305.a.[1) Urban Mitigation Area Noti?cation to Local Govemment: Date of Rule Buffer Eone Noti?cation to Building Unit Owners: I 4 08/20/20 3 - STATE 0? COLORADO 3? EXCEPTIONS TAB - THIS IS A NEW DESIGNATED SETBACK LDCATIDN EXCEPTIDNS Check all that applv: Rule Exception zone {within 500' of Building Unit} Rule Exception {existing or approved Oil Gas Location now within a Designated Setback as a result of Rule Rule Exception Location (existing or approved Oil 8: Gas Location is within a Designated Setback clue to Building Unit construction after location approval) Rule 6G4.b.[2} Exception Location or site?speci?c development plan executed on or before August 1, 2D13) Rule 6G4.b.[3} Exception Location {Euilding Units constructed after August 1r 2U13 within setback per an SUA or site-speci?c development plan} GREATER WATTENBERG AREA LDCATION EXCEPTIONS Check all that applv: Rule 31833.3. Exception Location Windows]. Rule 318A.c. Exception Location Twinning}. RULE 502$ VARIANCE REQUEST Rule 5G2.b. variance Request from Rule or Spacing Order Number I CITHER LUCATIDN EXCEPTIDNS Check all that applv: Rule 318.c. Exception Location from Rule or Spacing Order Number Rule 6G3.a.(2] Exception Location {Propertvr Line Setback). 5 08/20/20 3 Introducing New Concepts Definitions and Terms    Building types Ownership Introduction to Zones and Areas    Descriptions, definitions Exceptions and Waivers Other exceptions and variances  6 08/20/2013 Rules That Changed August 1, 2013 100 - Definitions 300 – Permitting      Requirements for Form 2 and Form 2A (303) Application Procedures, Notification Requirements (305) Consultation and Meeting Procedures (306) 600 – Safety      General (602) Statewide Location Requirements (603) Setback and Mitigation Measures (604) Oil and Gas Facilities (605) 800 – Aesthetic and Noise Control   7 Noise (802), Lighting (803),Visual Impact (804), Odors and Dust (805) 08/20/2013 Definitions and Terms Related to Building Types 8 08/20/20 3 100 Series Definition of Building Units Building Unit (revised definition)     Residential Building Unit 5,000 sq ft commercial 15,000 sq ft warehouse Residential Building Unit   Designed for use as place of residency by     9 Person Family Families Includes manufactured, mobile, modular homes UNLESS intended for temporary occupancy or for business (construction trailers are one example) 08/20/2013 100 Series: Definition of High Occupancy Building Unit  High Occupancy Building Unit – serves 50 or more persons  Public School Nonpublic school Nursing Facility Hospital Life Care Institution Correctional Facility  OR an operating Child Care Center (5 or more children)  *all are defined in different CRS statutes      10 08/20/2013 100 Series: Definition of Designated Outside Activity Area  Outdoor venue or recreation area        11 Playground Permanent sports field Amphitheater Similar place of public assembly owned or operated by local government OR An outdoor venue or recreation area where ingress/egress could be impeded in the event of an emergency at an oil and gas location 350’ away due to configuration of venue or number of persons simultaneously occupying the area. Approved by Commission after Hearing. Specific mitigation measures and distances will also be determined at that Hearing 08/20/2013 Terms used in Rule 603 Safety Setback  Building (examples)       12 Barns Garages Sheds Public roads Above ground utility lines Railroads 08/20/2013 Definitions and Terms Related to Ownership 3 08/20/20 3 100 Series: Definition of Surface Owner  Owns all or part of the surface of land    14 Upon which oil and gas operations are conducted Or under contract to purchase such land As recorded in county tax records 08/20/2013 100 Series: Definition of Surface Use Agreement  Any contract or document binding on the Operator       Which governs operator’s activities on surface related to location of      15 lease damage agreement waiver local government approval or permit or other form of agreement Well Multi-well Site Production Facility pipeline Any other Oil and Gas Facility that supports oil and gas development located on Surface Owner property 08/20/2013 Tenants Agents  Building Unit owner, Surface Owner Agent 305.c(3), 306.a, 306.g     May be a tenant Can receive notice, can participate in consultation or meetings Must be designated in writing by owner to the Operator Tenant farmer, lessee, other parties with interest in crops 305.c(4), 306a, 306.g Notification is Owner’s responsibility May be designated as Agent  16 08/20/2013 Others With Designated Opportunities  Building Unit Owners, see Rules 305, 306, 604  Owners of Surface Property within 500 feet (not in 318A or 318B) Rule 305.c(1)A(iii) 17 08/20/2013 Zones and Areas Descriptions, definitions Exceptions and Waivers 8 08/20/20 3 100 Series: Definition of Designated Setback Location  Any Oil and Gas Location within specified distance of Building Unit:     Buffer Zone Setback (1,000 feet) Exception Zone Setback (500 feet) High Occupancy Building Unit (1,000 feet) Designated Outside Activity Area (350 feet)  Measured from the center of the well or production facility to nearest wall or corner of nearest Building Unit  Zones further defined in 604.c(2) Urban Mitigation Area (1,000 ft measured from edge of disturbance, plus density criteria) does not appear in Designated Setback Location definition but must be considered in notification and meeting planning.  19 08/20/2013 Key Distances 100 Series Definitions and Rule 604  >1,000 feet Statewide mitigation measures remain the requirements for oil and gas locations more than 1,000 feet from a Building Unit. As before, notification is only required for Surface Owner.  <1,000 feet, Requires notification and additional mitigation measures  Buffer Zone Setback  Urban Mitigation Area (includes density component)  Designated Outside Activity Area (Commission Hearing requirements)  High Occupancy Building (Commission Hearing requirements)   < 500 feet     < 350 feet    Exception Zone Setback Requires documented delivery notification and stringent mitigation measures Also applies to certain mitigation measures (605) A minimum setback distance for a Designated Outside Activity Area < 200 feet - Minimum setback from any building, utility etc. < 150 feet – Minimum setback from property line 20 08/20/2013 Statewide >1,000 feet from Building Unit  The Setback Rules do not require notification or enhanced mitigation measures for locations that are more than 1,000 feet from a Building Unit.  Statewide mitigation measures from the 800 series rules do apply. 21 08/20/2013 Buffer Zone - Building Unit <1,000 feet from planned Oil and Gas Location 22  Buffer Zone requirements are the minimum for Oil and Gas Locations where Building Units are within 1,000 feet.  A “Designated Setback Location” in the 100 series  Oil and Gas Location further defined as Well or Production Facility in Rule 605.a(2)  Building Unit Owners may waive meeting requirements in writing to Operator and Director per Rule 306.e(3). No other variances to notification and mitigation measures are allowed. 08/20/2013 Urban Mitigation Area – Building Unit Density <1,000 feet  23 Density is evaluated differently than in past rules  “High Density” is not a term used in the new Rules  Defined in the 100 series rules  Urban Mitigation Area is defined by two criteria  22 Building Units in 1,000 ft. radius  11 Building Units in semi-circle with 1,000 ft. radius  Rule 604.a(3) specifies requirements for High Occupancy Buildings that exceed those of Urban Mitigation Area  Urban Mitigation Area defines actions required for Exception Zone locations.  Measurement is from edge of disturbance 08/20/2013 If a Building Unit is <500 feet of planned oil and gas activity Exception Zone A “Designated Setback Location” in the 100 series Definitions Further described in Rule 604.a(1) - Requirements vary based on Urban Mitigation Area or Non-Urban Mitigation Area 24 08/20/2013 Exception Zone  Building Unit – Urban Mitigation Area 605.a(1)A     Building Unit – not in Urban Mitigation Area 604.a(1)B   25 Location may be allowed by Director only with signed waiver from all Building Unit Owners within 500 feet. OR 502.b variance Mitigation measures more stringent than Exception Zone. Waivers are not required, Location may be allowed by Director. Exception Zone mitigation measures and notification requirements apply within 500 feet if the location is allowed by Director. 08/20/2013 Designated Outside Activity Area      A “Designated Setback Location” in 100 series rules Application for designation must be submitted to the Commission, And approved at Commission Hearing where appropriate boundaries will be determined. At a minimum, no Oil and Gas Location will be allowed within 350 feet. 604.a(4) Buffer Zone Setback rules apply within 1,000 feet, 603.a.(1), 604.a(4) 26 08/20/2013 High Occupancy Building Units Rule 604.a(3)   27 A well or Production facility may not be located within 1,000 feet without Commission approval following Application and Hearing for a Well Exception Zone mitigation measures (604.c) will be required unless Commission determines otherwise 08/20/2013 Statewide Location Requirements – Rule 603  200 feet from       Buildings Public roads Major above ground utility lines Railroads 200 feet replaces “rig height” calculation 150 feet from   28 Surface property line Unchanged from old rules 08/20/2013 Statewide Setbacks – Not new, few changes    29  Safety setback 200 feet from buildings, roads, utilities, railroads. 603.a(1)  Replaces previous rule of “150 feet or 1.5 times rig height” Property line setback 150 feet. 603.a(2) A waiver must be obtained from the offsetting land owner, filed in county clerk and recorders office and with the Director Requires a letter explaining why it is not feasible to meet this distance. 08/20/2013 OF Exceptions Spreadsheet: One of Many Helpful Tools to be Posted on Website Exceptions to Setback Rules Requirements for Exception Approyal Setback . . . . Compliance . Comment CDPHE RULE Cultural Features Setback Zone Exceptions Mitigation* Request Letter WEIWEF Distance Certification? on Form Consult 603.a.l1] Bu'ld'ng' 2oo nfa 502.b possible YES no YES YES YES Ground Utility. Railroad 603.a.l2] Property Line 150 nfa YES possible YES ND YES YES ND 604.3.fllA 500' -Urban . YES YES YES YES YES YES NO . . . I Exception zone 604.3.f1]B Budding Unit 500 - Non-Urban YES YES YES YES NO YES NO 604.3.f2] Bufferzone nfa YES NO YES NO YES NO 60433] High Occupancy Building Unit 1000 Exception zone HEARING YES ND ND ND YES lcite order] ND 604.a.l4] Designated Dutside Actiyity Area 350 1000 Bufferzone nfa YES ND ND ND YES ND 604345] Maximum AchiEyable Setback 500-1000 nfa 502.b possible YES *Mitigation - see Rule 6043 ?Compliance Certification - see Rules and 30o.e.l5] Exceptions by Setback Rule 604.0: add a well or production facility to an existing or opproyed' location if no technically or economically practicable alternatiye location exists Requirements for Exception Approyal - . . . . Comment RULE Scenario Exceptions Mitigation Request Letter SUA Attached on Form 604.b.i:1] A Gil a Gas Location is within a Designated Setback as a result of Rule 6043. YES lmay] YES nfa YES [am-him Gil Gas Location is Wl?ll'llr'l a Designated Setback due to Budding Unit construction after YES may] YES WES: ?fa YES approyal 604.b.i:2] SUA or site-specific dEyelopment plan executed on or before August 1. 2013 YES lshall] YES YES YES Building Units constructed afterAugust 1. 20131.I.rithin setback per an SUA or site-specific ?fa YES YES: YES YES dEyelopment plan Exception Location Request Letterfor Rule ?04.b exception must explain why alternatiye locations are technically or economically impracticable 30 08/20/20 3 Other Exceptions and Variances 3 08/20/20 3 Exceptions by Setback Rule 604.b Exceptions may be approved by the Director to add a well or production facility to an existing or approved location. RULE 32 Scenario Exceptions 604.b.(1) A Oil & Gas Location is within a Designated Setback as a result of Rule 604.a. YES (may) 604.b.(1) B Oil & Gas Location is within a Designated Setback due to Building Unit construction after approval YES (may) 604.b.(2) SUA or site-specific development plan executed on or before August 1, 2013 YES (shall) 604.b.(3) Building Units constructed after August 1, 2013 within setback per an SUA or sitespecific development plan 08/20/2013 n/a Additional Well at Existing Location 604.b(1)   IF A. The existing location is within a “Designated Setback Location” because of this rule change. OR B. Building Units were constructed after the location was approved by the Director. Requirements for Director approval:  Other locations technically or economically impracticable  Mitigation measures will address nuisance to extent reasonably achievable  Location complies with other safety requirements 33 08/20/2013 Existing Surface Use Agreement Or Site Specific Development Plan – 604.b(2) In this example, Operator could request exception to “Exception Zone in Urban Mitigation Area” notification and mitigation requirements based on existing Agreement or Plan. Director shall grant exception to notification and mitigation requirements if:  Document executed on or before August 1, 2013 – “vested property right”  Agreement or Plan expressly governs the location of Wells or Production Facilities  Mitigation measures manage nuisance to extent reasonably achievable  Location complies with other safety regulations 34 08/20/2013 Future Surface Development 604.b(3)      Parties: Surface Owner or Building Unit Owner and Mineral Owner or Mineral Lessee Surface Use Agreement or Site Specific Development Plan must expressly govern the oil and gas location May agree to locate future Building Units closer than allowed by 604a. To existing or proposed oil and gas location Notice required to Building Unit Owners who are not party to the Surface Use Agreement or Site Specific Development Plan 35 08/20/2013 Maximum Achievable Setback Variance Request to the Director  36 604.a(5) If applicable setback would extend beyond area on which Operator has legal right to locate, Operator may seek a 502.b variance from the Director 08/20/2013 502.b Variance Remains Unchanged   b. Variances. (1) Variances to any Commission rules, regulations, or orders may be granted in writing by the Director without a hearing upon written request by an operator to the Director, or by the Commission after hearing upon application. The operator or the applicant requesting the variance shall make a showing that it has made a good faith effort to comply, or is unable to comply with the specific requirements contained in the rules, regulations, or orders, from which it seeks a variance, including, without limitation, securing a waiver or an exception, if any, and that the requested variance will not violate the basic intent of the Oil and Gas Conservation Act. 37 08/20/2013 Questions? 38 08/20/20 3