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Lease Award Nominations

Date    :           April 20, 2011

To        :           All Active Operators

Re       :           Outstanding Field & Lease Facility Maintenance Award

The Department of Conservation, Division of Oil, Gas, and Geothermal Resources (DOGGR) is pleased to offer its annual Outstanding Lease Maintenance Award under the new name - Outstanding Field and Lease Facility Maintenance Award.  Since 1981, DOGGR lease awards have recognized exemplary oilfield, gas field, geothermal, and gas storage operations.  The award program will continue to recognize lease maintenance operations that protect public safety and the environment above and beyond what is required by law. 

Starting in 2011, the criteria and procedure for selecting a lease award will change.   DOGGR will issue awards for only the best leases statewide based on a review of lease nominations submitted to DOGGR headquarters.  In addition, for the first time, operators may nominate leases they feel are worthy of statewide recognition.

This website contains new guidelines for submitting nominations and an online nomination template. 

Operator Eligibility Criteria

The revised award program will consider both the quality of nominated leases and the overall management practices of their operators.   Prior to being considered for any award, an operator must demonstrably comply with all applicable DOGGR laws and regulations.  

DOGGR will reject nominations where the operator has received a notice of violation in the previous two years, or has received notice of the most serious of deficiencies.  In making this determination, DOGGR shall consider the entirety of an operator’s business and not simply the lease being nominated.  This consideration shall include, but is not necessarily limited to, the following:

·         Timely payment of the annual assessment.

·         Consistent and timely submittal or monthly production and injection reports and other required records.

·         Filing of all bonds required by law or by order of the Supervisor.

·         Compliance with Idle Well Program mandates, including timely payment of fees.

·         Compliance with Underground Injection Control (UIC) Program requirements, including timely submittal of requested documents.

·         Compliance with Pipeline Management Program regulations, including the performance of all required pipeline tests.

·         Compliance with production facility regulations, including the performance of all required tests and inspections.

Lease Award Considerations

After verification that an operator has no violations or serious deficiencies as described above, DOGGR headquarters will review nominated leases for features that indicate exceptional management practices.  This review will look for the following:

·         Overall cleanliness of lease operations

·         Maintenance of “good neighbor” practices and features where the lease is located adjacent to a residential area or other environmentally sensitive area.

·         Making exceptional aesthetic improvements on the lease, such as landscaping .

·         Responsiveness to stakeholder interest in the lease, including effective emergency response.

·         Maintenance of safety practices and features above the minimum standards set by law.

·         Successful management of unique health and safety challenges affecting a particular lease, which may include demonstrated improvement in lease conditions over time. 

·         Consistency in excellent lease maintenance over time.

·         Innovation in lease management practices.

Selection Procedure

Operators may nominate up to five leases every year, including their own leases.  DOGGR district office staff may also submit nominations.

A committee of DOGGR staff will make the final selection of leases to receive awards.   In selecting awards, the selection committee will consult with DOGGR district office staff and may order lease inspections as needed.  

The committee will judge nominations separately based on operator size and operator type. There are four award categories: oil, gas, geothermal, and gas storage. There will be one lease winner per category by size of operator.  An operator may only win an award once every three years.  The selection committee will endeavor to give equitable consideration to all operators that meet basic eligibility criteria.    

Nominations must include photos of the nominated lease and a statement of justification for the award. 

The nomination form is available online HERE. The deadline for submitting an application for the award cycle is October 1, of the year of the award.