2003-02-05_REVISION - M1998013 (2)

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McGee is ]egalIy entitled to drill and construct in the E/2SE4 of Section 2 or for an additional well in the SW/4NW4 of Section 1. The oil and gas resources owned by Kerr-McGee in the Application Lands have substantial value. Kerr-McGee is concerned about any surface use of plan that would preclude or materially restrict the use and enjoyment of those rights by Kerr-McGee." (Ann Lana, December 31, 2002) DMG Response- The applicant is required by law to protect any structures located within 200 feet of the affected land (Rule 6.4.19). The statute does not protect structures that have yet to be constructed, such as future oil and gas wells. The Division does not have the authority to determine or enforce rights granted under lease agreements. III, OTHER ISSUES OF CONCERN TO THE DIVISION OF MINERALS AND GEOLOGY A. At the time of the Pre-hearing meeting the Division discussed the Legal Right of Entry situation with the applicant. The current document in the Permit Package is an agreement for a development and option agreement between the Hall Family LLC and the Booth Land and Livestock Company. The Division does not have any record as to the exercise of this option, and does not have any evidence that if the option was exercised, that it has been changed from the Hall Family name to the current permit holder- Hall-Irwin Corporation. Therefore, the Division is recommending that the Boazd require a Stipulation that the Applicant Provide an updated proof of Legal Right of Entry, to the satisfaction of the Division, prior to the Applicant implementing the modifications requested in the Amendment Application. B. If the Operator intends at some point to request the 20 percent bonding option for slurry wall installation, the following minor changes must be incorporated into the slurry wall specifications. (The numbering system is taken from the "Draft Technical Specifications for the Construction of the Shores Resource Slurry Wall," dated January 2003). 1. Item 1.01 of section 01010 of division 1 of the specifications should be changed to include units (lineaz feet) for the "20,000 of slurry wall" to be installed. 2. Item 1.02 of section 01300 of division 1 of the specifications should be changed to include units (centimeters per second) for the maximum permeability of the soil- bentonite backfill. 3. In Table 1 included with the specifications, change the specified value for sand content in the slurry to state "sand content less than 20 percent by volume." PROPOSED STIPULATIONS: 1. A reportable spill is a spill of any toxic or hazardous substance (including spills of petroleum products) within the mined land permit area reportable to any Division of the Colorado Department of Public Health and the Environment, the National Response Center, the Colorado Emergency Planning Commission, any local Emergency Planning Commission, local Emergency Planning Committee, or the State Oil Inspector. The Mine Operator shall notify the Division of Minerals and Geology (DMG) of a reportable spill within the mined land permit area using the same timeframe required by the permit, license, notice, statute, rule or regulation governing the reporting of the spill to the other appropriate agency. Notice of a reportable spill 4