DJ/Niobrara News Pulse February 2020

The DJ/Niobrara Basin| February 2020

Field Overview

Located mainly in the Northeast of Colorado, the Denver-Julesburg Basin consists of five main oil-producing formations: Niobrara sections A-C, Codell, and Greenhorn. These five plays produce over 90% of Colorado’s oil/gas.

State Drilling Statistics

Active Drilling Rigs in Basin- 20
Total Rigs in Colorado- 21
Total Rigs in United States- 793
Total U.S. Rigs down 23% YTD

State Top Producers

Top Gas Producer-
Top Oil Producer-


Financial & Economic Updates

Extraction Oil and Gas Reveal Layoffs

Denver’s Extraction Oil & Gas Inc. reported plans to lay off 20 percent of its workforce, which equates to approximately 60 workers from its headquarters and field operations in the D-J Basin, according to the Denver Business Journal. “We reorganized our workforce into a more streamlined structure that better matches our operational footprint here in Colorado,” Brian Cain, company spokesman told the Denver Business Journal. “Unfortunately, this resulted in difficult but necessary organizational changes … This was a difficult decision and one we did not take lightly.” Extraction Oil & Gas Inc. is an independent energy exploration and development company focused on exploring, developing and producing oil, gas and NGLs primarily in the Wattenberg Field in the D-J Basin of Colorado.

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State Highlights

Colorado drillers, enviros near accord on groundwater protection rules. The only rub: How much to protect?

The Colorado Oil and Gas Conservation Commission is set to rule at the end of February on a proposed overhaul of the regulations governing the integrity of wells, to make sure they do not leak or blow out, and protect groundwater. There is broad agreement on the rules – save for one point: how much groundwater the new regulation will protect. The draft rules would require enhanced safeguards when oil and gas wells are drilled through potable water aquifers to a depth of 3,000 feet. “We appreciate all the work that went into this rule,” said Mike Freeman, an Earthjustice attorney. “The problem is that the rule as written has a giant loophole and carve-out for a lot of the groundwater in the state.” While most drinking water wells in Colorado are within that 3,000-foot zone, Freeman said, “we need to protect not only the water we use today, but the water we will use in the future.” In the filing, the coalition, which also includes the League of Oil and Gas Impacted Communities and the Grand Valley Citizens Alliance, cited state Water Quality Control Commission data showing potable groundwater in some counties to depths of 7,400 feet. The filing also noted that the water quality commission standards for groundwater makes no distinction on depth.

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Boulder County to consider extending oil and gas moratorium

To allow county staff more time to research new oil and gas regulations, the Boulder County Commissioners announced on Wednesday they will consider extending the county’s oil and gas moratorium another four months.Originally approved June 28 to allow the county time to study Senate Bill 181 and the new powers it grants local governments for regulating oil and gas operations, the moratorium is currently scheduled to end March 28. However, due to the complex nature of the issue, county land use and legal staff said they need more time to ensure the regulations are as robust as possible while still avoiding possible litigation. If commissioners vote to approve an extension at their March 2 meeting, it would last until July 31.

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Refining

Colorado Production


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The information contained in this newsletter is provided by RARE
PETRO Engineering, PLLC via the following sources unless otherwise
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