Blue Star Helium Ltd (ASX:BNL, OTC:AZZEF) has received notification that its Form 2A application for the Enterprise 16 #1 well has passed completeness review with the Colorado Oil and Gas Conservation Commission (COGCC).
The helium stock believes this is a key achievement following the uncertainty created earlier this year by regulatory changes to the State permitting process and executive orders from the Biden Administration that while targeted at hydrocarbon drilling, caused additional complexity and delay across applications for other drilling activities.
Blue Star understands that it is the first helium operator in Colorado to pass completeness on an OGDP application since the January rule changes.
It is also the first drilling application of any type to achieve this in Las Animas County since January and only the sixth overall across Colorado.
Remainder of approval process
Speaking to the notification, managing director and CEO Trent Spry said: “While we have been frustrated with the elongated OGDP process through 2021, we fully appreciate the environment of uncertainty and challenge that the COGCC has had to navigate through this period.
“We are therefore very pleased to have now passed completeness review on our Enterprise 16#1 application, particularly given so few drilling applications across the entirety of Colorado have achieved that since early this year.
“We now look forward to undertaking the remainder of the approval process and, in the targeted event of an uncontested application, receiving the final drill permit for Enterprise 16#1 during mid-to-late November, if not potentially before.
"We expect to achieve completeness on future applications in a much shorter time frame because we now have a form of application that meets COGCC’s expectations.”
Final permit set for Q4
The process is now moving to the public review and hearing stage, with the deadline for an interested party to file a petition to the application being September 27.
In the absence of any petitions, this matter has been listed to be heard by the COGCC on October 27.
Subject to the application being approved at the hearing, Blue Star must submit the final permit to drill (Form 2) and understands that it is typically received within 30 days of submission.
In the event of an uncontested application (such as no petitions filed), the COGCC may elect to approve the application without a formal hearing.
Irrespective of whether a hearing is held or otherwise, in the event of an uncontested application Blue Star expects to receive the final permit to drill its Enterprise 16#1 well during the fourth quarter of 2021.
If a petition is filed, the current hearing date is vacated and a contested hearing process is undertaken.
Such a process involves a prehearing conference and then a Case Management Order being issued which sets the hearing, and any pre-hearing, deadlines for submissions.