CLAWSON, THOMAS W., VanCott, Bagley, Cornwall & McCarthy, Salt Lake City, UT

ABSTRACT: Pitfalls and Considerations in Obtaining State Commission Approval for Injection Projects

Attractive economics and technological advances have helped stimulate interest in enhanced-recovery projects. In most Rocky Mountain states, underground fluid-injection projects must be

approved by an oil and gas commission or board in accordance with statutes or administrative regulations. Frequently, petroleum geologists and reservoir engineers present the factual basis supporting the injection project by testifying as expert witnesses during administrative proceedings.

Many injection projects are operated by independents who may have limited experience in preparing for such hearings. Obtaining proper jurisdiction and establishing an adequate factual record is critical. Failure to do so may preclude obtaining approval from the commission or subject such approval to attack on appeal. Faulty legal compliance may jeopardize such projects. Accordingly, legal counsel should be consulted during the preparation of the application, testimony, and exhibits.

Formal rules often are replaced during administrative proceedings and improper objections to projects are relatively common. Whereas some objections may be raised by competitors, many improper objections to projects are raised by surface landowners who attempt to use their objections as a negotiating tactic to obtain favorable surface-access agreements from operators. Although oil and gas commissions typically lack legal authority to resolve surface-access disputes, nevertheless, in the interest of furthering the appearance of fairness, they commonly permit surface landowners to state their objections during hearings. Operators should be prepared to protect their interests on the record and not allow such objections to sidetrack their efforts to obtain approval of their injection proj cts.

AAPG Search and Discovery Article #90993©1993 AAPG Rocky Mountain Section Meeting, Salt Lake City, Utah, September 12-15, 1993.