DJ/Niobrara News Pulse August 2021

Posted: September 22, 2021

The DJ/Niobrara Basin| August 2021

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- 12
Total Rigs in Colorado- 11
Total Rigs in United States- 497
Total U.S. Rigs up 94% YTD

State Permitting Data
Permits Approved – 75

State Top Producers

Top Producer By BOE – OXY

Basin Highlights

K.P. Kauffman Receives Hefty Fine

The COGCC determined that K.P. Kauffman violated COGCC rules by failing to report spills and the status of flowlines, as well as failing to inform the agency of what it was doing to correct problems. The commissioners agreed with the staff’s allegations that the company failed to meet filing deadlines for cleanup plans. The Denver oil and gas company faces approximately $1.8 million in penalties and the loss of its ability to operate in Colorado. The hearing to determine whether to prohibit the company from receiving any new permits will take place on Sept. 20-21.

Article Link

Larimer County Tightens Oil and Gas Rules

In an extension of the commissioners’ July 26 meeting, Larimer County commissioners approved new, stricter gas and oil regulations. According to the new regulations, oil and gas facilities must be at least 2,000 feet away from many major structures, such as schools, hospitals, and senior living facilities. Oil and gas facilities in Larimer County are prohibited from being built within 500 feet of river and stream highwater marks, a greater setback requirement than the Colorado Oil and Gas Conservation Commission’s requirement of 100 feet. The modifications also redefine air quality monitoring requirements, including particular criteria for declared Air Quality Advisory days; require leak detection at oil and gas sites to be performed at least annually; and require new oil and gas pipelines to go through the county’s administrative special review process.

Article Link

Colorado Gas Prices Remain High as Supply Drops Below Demand

Colorado’s average gas price is nearly 50 cents higher than the national average. According to AAA, gas prices in the state average $3.64 per gallon, with some areas reaching nearly $5 per gallon. The national average for gasoline is $3.18 per gallon. Colorado has only seen a 13-cent per gallon increase in the last month, according to AAA’s gas price map. Prices, however, remain nearly $1.30 per gallon higher than this time last year. Rural counties in eastern Colorado have outperformed more densely populated counties. According to AAA, Prowers County has the lowest gas prices in Colorado at $2.89 per gallon, while Pitkin County has the highest at $4.86 per gallon.

Article Link

Top CO Permitting By Operator

RankCompanyPermits Approved
1GMT Exploration40
3Upland Exploration10

Top Producers BOE

RankCompanyOil Production (mmbbls) (6/21)
2 Chevron12.2
3 PDC Energy11.0
4Extraction Oil and Gas6.4
5Crestone Peak Resources5.0
Hyperlinks to available Q2 2021 Reports

Rig Count

Colorado Production

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