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ENB - Region 9 Notices 05/26/2010

Public Notice

Notice of Public Comment Period

Proposed Well Spacing Variance

Project Description and Location: Cotton Well Drilling Co., Inc. (Cotton or Applicant) has applied for a well permit and variance to the well spacing requirements set forth in Title 6 of the Official Compilation of Codes, Rules and Regulations of the State of New York (6 NYCRR) Section 553.1(a) to drill the Duff 2 (API 31-013-27520-00-00) Medina natural gas well on acreage to be designated as the Duff 2 Spacing Unit in the Town of Sheridan, Chautauqua County, New York. The Applicant proposes to drill, complete and produce the well, but needs a variance from the well spacing provisions set forth under 6 NYCRR 553.1(a) which require that, in the absence of a New York State Department of Environmental Conservation (NYS DEC) order establishing spacing units, a well cannot be located less than 660 feet from any boundary line of the lease or unit. A permit to drill is also required by 6 NYCRR 552.1.

The NYS DEC has proposed an order regarding the granting of a well spacing variance. NYS DEC supports the granting of the requested variance and issuance of the drilling permit.

Public Comment Period: All persons, organizations, corporations or government agencies which may be affected by the draft order are invited to submit written comments. The public comment period will remain open until June 25, 2010. Written comments on the draft order should be submitted to: John K. Dahl, NYDEC - Division of Mineral Resources, Bureau of Oil and Gas Regulation, 625 Broadway, 3rd Floor, Albany, NY 12233-6500, Phone: (518) 402-8056).

If no substantive and significant issues are identified regarding the draft order at the end of the comment period, the order will become final and binding on the Applicant and its successors and assigns. Pursuant to the final order, NYS DEC will grant the variance and issue a permit to drill the Duff 2 well at the proposed location subject to site-specific conditions as warranted.

Issuance of the permit to drill will provide for recovery of the natural gas resource in accordance with the policy provisions of ECL §23-0301. If after order issuance, Cotton does not control 100% of the acreage within the spacing unit, an integration hearing will be scheduled pursuant to ECL §23-0901(3).

Document Availability: All filed documents (including the permit application, the variance request and the draft order) are available for inspection during normal business hours at the NYS DEC - Division of Mineral Resources, 625 Broadway, 3rd Floor, Albany, New York 12233-6500, Phone: (518) 402-8056, Contact: Thomas E. Noll; at the NYS DEC - Region 9 Sub-Office, 182 East Union Street, Allegany, New York 14706-1328, Phone: (716) 372-0645, Contact: Christopher Miller; and at the Town of Sheridan Supervisor's office, Town Hall, 2702 Route 20, Sheridan, NY 14135, Phone: (716) 672-4174, Contact: Louis Delmonte, II.

Statutory and Regulatory Provisions: This application was filed and is being processed pursuant to ECL Article 3, Title 3 (Department of Environmental Conservation, General Functions, Powers, Duties and Jurisdiction); Article 8 (Environmental Quality Review); Article 23 (Mineral Resources); and 6 NYCRR Part 550 et seq. (Mineral Resources); Part 617 (State Environmental Quality Review).

Negative Declaration

Erie County - The Town of Lancaster, as lead agency, has determined that the proposed Tool Ranch Addition will not have a significant adverse environmental impact. The action involves the construction of a 6,000 square foot addition to the Tool Ranch with associated site improvements. Site improvements include a parking lot addition and stormwater pump for loading dock. No other new utilities (sewer, water, etc.) are proposed. The project is located at 3857 Walden Avenue in the Town of Lancaster, New York.

Contact: John M. Dudziak, Town of Lancaster, 21 Central Avenue, Lancaster, NY 14086, Phone: (716) 684-3342.

Niagara County - The Town of Lockport Town Board, as lead agency, has determined that the proposed Amendment to the Zoning Code will not have a significant adverse environmental impact. The action involves the amendment of the Zoning Code of the Town of Lockport relating to soil removal by adoption of a Local Law. The project is located throughout the Town of Lockport, New York.

Contact: Daniel E. Seaman, 76 West Avenue, Lockport, NY 14094, Phone: (716) 434-5907.

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