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Microsoft Office Outlook - Memo Style - Montana Board of Oil and Gas

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Richmond, Tom<br />

From: Scot Donato [sdonato@billbarrettcorp.com]<br />

Sent: Monday, June 20, 2011 10:09 AM<br />

To: DNR FracComments<br />

Subject: Comments RE: New Frac Rule<br />

Please accept these comments from Bill Barrett Corporation (BBC) to your proposed Rules I through V regarding oil <strong>and</strong><br />

gas well stimulation.<br />

NEW RULE I WELL STIMULATION ACTIVITIES COVERED BY DRILLING PERMIT (1)<br />

Well completions which include hydraulic fracturing, acidizing, or other chemical stimulation<br />

done to complete a well are considered permitted activities under the drilling permit for that well<br />

only if the processes, anticipated volumes, <strong>and</strong> types <strong>of</strong> materials planned for use are expressly<br />

described in the permit application for that well.<br />

(2) For wildcat or exploratory wells or when the operator is unable to determine that hydraulic<br />

fracturing, acidizing, or other chemical treatment will be done to complete the well, the operator must<br />

obtain prior written approval <strong>of</strong> such activities from the board's staff at any time prior to commencing<br />

such activities<br />

BBC Comment:<br />

This can be very difficult in an ‘exploratory’ program as frac programs can change quickly depending on recent results<br />

from other wells or operators. Frac crews are is short suppy in general, <strong>and</strong> especially in exploratory areas where crews<br />

may not be readily in the area, thus, scheduling is very difficult <strong>and</strong> cannot be changed on short notice.<br />

NEW RULE II DISCLOSURE OF WELL STIMULATION FLUIDS<br />

(4) The administrator may waive all or a portion <strong>of</strong> (2) or (3) <strong>of</strong> this rule if:<br />

(a) the owner or operator demonstrates that it has provided information to the Interstate<br />

<strong>Oil</strong> <strong>and</strong> <strong>Gas</strong> Compact Commission/Groundwater Protection Council hydraulic fracturing web site;<br />

or<br />

(b) other Internet information repositories that can be accessed by the public.<br />

BBC Comment:<br />

Many companies, including hydraulic frac companies, have invested significant time <strong>and</strong> money into the ‘Frac Focus’<br />

program which provides easily accessible, appropriate, <strong>and</strong> uniform chemical disclosure information for the public. We<br />

believe strongly that this meets or exceeds the intent <strong>of</strong> the proposed Rule for post frac reporting <strong>and</strong> it should be<br />

clearly stated that this is an acceptable alternative to the requirement for this rule.<br />

In addition, BBC supports <strong>and</strong> concurs with the comments to be submitted by the <strong>Montana</strong> Petroleum Association.<br />

Thank you.<br />

Scot A. Donato<br />

Scot A. Donato, P.G.<br />

Manager, Governmental Affairs<br />

Bill Barrett Corporation<br />

1099 18 th Street, Suite 2300, Denver, CO 80202<br />

303‐312‐8191 – sdonato@billbarrettcorp.com<br />

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