January 21, 2011
STATE OF NEW YORK
DEPARTMENT OF ENVIRONMENTAL CONSERVATION
NOTICE OF PUBLIC LEGISLATIVE HEARING AND ISSUES
CONFERENCE, AND DEADLINE FOR THE FILING OF
NOTICES OF APPEARANCE AND PETITIONS FOR
The Department of Environmental Conservation (Department) hereby gives notice, pursuant to Environmental Conservation Law (ECL) § 23-0901(3)(d), that a public hearing will be held at the times and places stated below to address compulsory integration of interests in the following well:
|Well Name||Town||County||API Number|
Well Operator: MegaEnergy Operating, Inc., 7374 S. Alton Way, Suite 201, Centennial, CO 80112 (Contact: Scott J. Hornafius)
Project Description and Departmental Action Proposed: The Department proposes to issue a compulsory integration order pursuant to ECL 23-0901 integrating mineral interests within the Black River natural gas formation for the well listed above. Objections to the draft order for the well were raised at a compulsory integration hearing, which resulted in the referral to the Department's Office of Hearings and Mediation Services for adjudicatory proceedings.
Among the potential issues raised for adjudication at the compulsory integration hearing is whether mineral interest owners electing to participate as integrated participating owners must tender their proportionate share of well costs at the compulsory integration hearing when the proceeding is referred for adjudication. Additional issues may be identified at an issues conference described below.
SEQRA Status: Department staff published a Final Generic Environmental Impact Statement on the Oil, Gas and Solution Mining Regulatory Program in July 1992 (GEIS). On September 1, 1992, Department staff issued a SEQRA (ECL article 8) findings statement concluding that the conduct of compulsory integration hearings pursuant to ECL article 23 would have no significant impact on the environment. Department staff, on behalf of the Department as lead agency, determined that this proceeding is being carried out in conformance with the conditions and thresholds established for compulsory integration hearings in the GEIS and the findings statement. Accordingly, no further action is required under SEQRA (see 6 NYCRR 617.10[d]).
Public Hearing: A legislative hearing to receive unsworn comments about the proposed integration order will be held at 1:00 P.M. on Tuesday, February 22, 2011, in the Hearing Room at the Department's Region 7 Office, 615 Erie Boulevard West, Syracuse, New York.
Written comments on the order may also be submitted to the Office of Hearings and Mediation Services, at the address below, in advance of the legislative hearing. All persons, organizations, corporations, or government agencies that may be affected by the outcome are invited to attend the hearing and to submit oral or written comments. Interpreter services will be made available to deaf persons, at no charge, upon written request to the administrative law judge (ALJ) at least five business days prior to the date of the hearing. The hearing location is reasonably accessible to persons with a mobility impairment.
Please note that the Pimpinella 1-B well targets the Black River natural gas formation. The well does not target the Marcellus Shale, nor is the Marcellus Shale proposed for development by the well. At the legislative hearings, the ALJ will limit public comment to the listed well.
Issues Conference: A pre-adjudicatory hearing issues conference will be conducted at 10:00 A.M. on Thursday, February 24, 2011, in Conference Room 326 at the Department's Central Office, 625 Broadway, 3rd Floor, Albany, New York. The purpose of the issues conference will be to hear oral argument on the well cost issue described above. Any persons filing notices of appearance or requesting party status, as described below, must appear or be represented at the issues conference in order that the issue may be fully discussed. Additional issues conferences may be scheduled depending upon the issues raised in the notices of appearance and petitions for party status, and the outcome of the well cost issue.
Party Status: Pursuant to a ruling of the ALJ (see Matter of Dzybon 1, et al., ALJ Ruling on Procedural Issues, June 6, 2007 [available online at www.dec.ny.gov/hearings/34993.html]), the well operator and all uncontrolled mineral rights owners in the spacing unit are automatic full parties to the adjudicatory hearing with the status of an applicant (see 6 NYCRR 624.5[a]). Uncontrolled owners are mineral interest owners in a spacing unit who have not entered into a voluntary lease or participation agreement with the well operator, including potential participating owners, non-participating owners, and royalty owners (see ECL 23-0901[a]).
All automatic full parties wishing to participate in the issues conference and any subsequent adjudicatory hearing that might be required for the well listed above must file a written notice of appearance. The notice of appearance must fully identify the party together with the name(s) of the person(s) who will act as the party's representative(s), the issues the party seeks to address (whether in support of or in opposition to the proposed integration order), the scope of the issue raised, and the nature of the factual proof, if any, the party intends to present. Please see 6 NYCRR 624.4(c)(1)(i) and (ii) and 624.5(a) for further information on automatic full party status and identification of issues.
All other persons wishing to participate in the issues conference and any adjudicatory hearing that might be required for the well listed above must file a written petition requesting party status, pursuant to 6 NYCRR 624.5(b) (also see 6 NYCRR 624.4[c]). The petition must fully identify the proposed party together with the name(s) of the person(s) who will act as the proposed party's representative(s), the proposed party's interest in the proceeding, any interest relating to the statutes administered by the Department relevant to the proposed action, whether the request is for full party status or amicus status, and the precise grounds for opposing or supporting the proposed integration order. Mere opposition to the proposed integration order is not a sufficient basis to be granted party status. Please see 6 NYCRR 624.4 and 624.5 for further information on party status and identification of issues.
Petitions for full party status must demonstrate that substantive and significant issues exist concerning the proposed integration order. Please see 6 NYCRR 624.4 and 624.5 for further information about requesting full party status and identifying issues for adjudication.
All notices of appearance and all petitions requesting full party or amicus status to participate in the issues conference and any subsequent adjudicatory hearing for the well listed above must be received at the Office of Hearings and Mediation Services at the following address no later than 4:00 P.M. on Thursday, February 17, 2011. Telefaxed or emailed copies will be accepted, provided a hard copy is sent by first class mail and postmarked no later than Thursday, February 17, 2011. Notices of appearance and petitions must be submitted to: James T. McClymonds, Chief Administrative Law Judge, New York State Department of Environmental Conservation, Office of Hearings and Mediation Services, 625 Broadway, Albany, New York 12233-1550 (Telephone: 518-402-9003).
All persons filing notices of appearance or petitions for party status must also send a copy of their notice or petition at the same time and in the same manner to: Jennifer Maglienti, Esq., Associate Attorney, New York State Department of Environmental Conservation, Office of the General Counsel, 625 Broadway, 14th Floor, Albany, New York 12233-1500 (Telephone: 518-402-9507). A copy of the notice of appearance or petition must also be sent to all persons on the service list for the well. A copy of the service lists are available from the ALJ or Department staff, or at the location listed under "Document Availability" below.
Document Availability: All filed documents, including the draft integration order for the spacing unit, are available for inspection during normal business hours at New York State Department of Environmental Conservation, Elmira Suboffice, 100 N. Main Street, Suite 104, Elmira, New York 14901 (Telephone: 607-732-2214, Attn: Joy Brewer [appointment recommended]), and at the Office of Hearings and Mediation Services at the Albany address above. A copy of 6 NYCRR part 624 may be obtained from the Office of Hearings and Mediation Services at the address above, or online at www.dec.ny.gov/permits/6234.html.
Statutory and Regulatory Provisions: ECL article 1 (General Provisions); article 3, title 3 (General Functions); article 8 (State Environmental Quality Review); article 23 (Mineral Resources); and 6 NYCRR part 550 (Mineral Resources); part 617 (State Environmental Quality Review); and part 624 (Permit Hearing Procedures).
James T. McClymonds
Chief Administrative Law Judge
Albany, New York
January 21, 2011