ECMC approves Anschutz Leghorn Fed OGDP and grants interim-reclamation variance with three COAs

The Energy and Carbon Management Commission on Oct. 29 approved Anschutz Exploration Corporation's Leghorn Fed oil-and-gas development plan (OGDP 0497-34) and granted a temporary variance to the commission's interim-reclamation timing rules.

Anschutz attorney Joe Pershalla introduced the application for a development area of about 2,560 acres in Moffat County that would be developed within the existing Wylie Federal Unit. The company requested approval of a Form 2A for a pad and eight horizontal wells (two-mile laterals were discussed), and told the commission that any wells deemed "paying" would be subject to the Bureau of Land Management unit determination; if not, Anschutz said it would seek any necessary state spacing orders.

Environmental and siting considerations: presenters said the pad would disturb about 9.65 acres of surface and is located in overlapping mapped high-priority habitat (HPH) for elk migration, pronghorn winter concentration, and greater sage-grouse priority habitat. CPW (Colorado Parks and Wildlife) and ECMC staff reviewed three alternative sites and concluded the Leghorn pad best avoided and minimized impacts. Holly Hill, regulatory consultant for Anschutz, told the commission the company will avoid construction, drilling and completion within the CPW timing stipulation window (Dec. 1—July 15) and will pipe produced gas and produced water off location to limit truck traffic where possible.

Mitigation and bonds: Anschutz said it would provide compensatory mitigation to CPW totaling $253,816.80 for direct and indirect impacts identified in consultation and agreed to post an interim-reclamation bond of $130,066 to support the requested variance. The company asked the commission to allow delayed interim reclamation so the pad would not be repeatedly disturbed and reclaimed within the restricted seasonal construction window; staff and CPW supported the variance request.

Commission questions and discussion: commissioners asked about the exploratory nature of the proposed wells near a mapped fault, where existing development had occurred within the unit, and midstream constraints. Anschutz representatives said the northern faulted area had little prior penetration and that exploratory pilot holes and staged wells would be needed to appraise the formation. The company also explained there is limited midstream takeaway in the area (one trunk line and a single main compressor station), which affects whether oil would be transported by pipeline or truck. Commissioner Messner repeatedly raised concerns about projected truck traffic and cumulative impacts to county roads and wildlife habitat and urged the company to explore interim takeaway points or pipeline options as development proceeds.

Conditions of approval and variance: Office of the Attorney General counsel (AAG Poudreaux) summarized three recommended COAs if the commission granted the Rule 1003(b) variance: (1) receipt of interim-reclamation bonding to ECMC in the amount of $130,066, (2) adherence to the topsoil-salvage plan and additional salvage where more topsoil is found during construction, and (3) release of the interim-reclamation bond contingent on a passing interim-reclamation inspection per the 1,000-series rules. Commissioner Cross moved for approval of the OGDP and the variance with the three COAs; the motion was seconded and carried on a voice vote.

Outcome and next steps: The commission approved the Leghorn Fed OGDP and the Rule 1003(b) variance. ECMC staff will track bond posting, topsoil-salvage activities and compliance with timing stipulations; any future requests for pipeline construction or midstream infrastructure were not before the commission and would require separate review.