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ENB - Region 9 Notices 09/01/2010

Public Notice

Notice of Public Comment Period

Proposed Well Spacing Variance

Project Description and Location: U.S. Energy Development Corp. (U.S. Energy 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 Jazembak 1 (API 31-029-27692-00-00) Medina natural gas well on acreage to be designated as the Jazembak 1 Spacing Unit in the Town of North Collins, Erie 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 October 1, 2010. Written comments on the draft order should be submitted to: John K. Dahl, NYS DEC - 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 Jazembak 1 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, U.S. Energy 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, NY 12233-6500, Phone: (518) 402-8056, Contact: Thomas E. Noll; at the NYS DEC - Region 9 Sub-Office, 182 East Union Street, Allegany, NY 14706-1328, Phone: (716) 372-0645, Contact: Christopher Miller; and at the Town of North Collins Supervisor's office, 10583 Main Street, North Collins, NY 14111, Phone: (716) 337-3839, Contact: Thomas R. O'Boyle.

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

Cattaraugus County - The City of Olean, as lead agency, has determined that the proposed East Olean Sanitary Sewer Improvements Project will not have a significant adverse environmental impact. The action involves the plans to construct improvements to City of Olean sanitary sewage collection system in East Olean to correct problems including basement flooding and overflows within the system. The improvements include the following:

• Installation of 800 linear feet of gravity sewer and 1,900 linear feet of forcemain;
• Abandonment and backfill of existing sanitary sewer mains;
• Construction of a new pump station, including generator and controls building;
• Removal of a portion of a railroad embankment;
• Placement of fill from railroad embankment onto vacant land adjacent to the City's wastewater treatment plant;
• Acquisition and demolition of an adjacent property on the west side of Olean Creek; and
• Internal modifications to existing Shawmut pump station, including installation of new generator.

The new sanitary main will be installed across Forness Park, along the former railroad embankment, along East State Street (suspended under bridge) and across land west of Olean Creek to connect with the existing Shawmut Pump Station's forcemain. Construction of the improvements will not affect the bed or banks of Olean Creek nor the associated flood levies adjacent to the creek on either side. The project is located as follows:

Sanitary Sewer Improvements: Forness Park and area adjacent to Bradner Stadium, East State Street and Shawmut Pump Station in the City of Oleans, New York.
Fill Site: Adjacent to the City's Wastewater Treatment Plant, West Henley Street in the City of Oleans, New York.

Contact: Mary George, City of Olean, 101 East State Street, P.O. Box 668, Olean, NY 14760, Phone: (716) 376-5650, E-mail: mgeorge@cityofolean.org.

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