The Colorado Oil & Gas Conservation Commission is still forecasting a 38% decline from 2008 in applications for permits to drill (APD) for natural gas and oil, staff said in its monthly report for September.

The APD forecast for this year continues to mirror a prediction made by staff in August (see Daily GPI, Sept. 2).

As of Sept. 17 there were 3,718 APD approved state-wide, staff noted. About 5,000 APD now are expected to be approved this year, which would be down from the previous record high of 8,027 permits approved in 2008. In 2007 the commission approved 6,368 APD.

The drop in APD for 2009 “does not correlate with the 60% decline in the rig count since the peak of last year, but may be a reflection of the push to get permits in before the effective date of the amended rules,” said the commission staff. The state enacted revised drilling rules in April (see Daily GPI, April 24).

Gas-rich Garfield County leads the state in drilling application, capturing 37% of the permits with a total of 1,368 as of mid-September. At the same time in 2008 the commission had approved 2,888 permits in the county.

Weld County had the second highest number of drilling applications, capturing 26% of the total with 968 as of mid-September, compared with 2,340 at the same time a year ago. Mesa County’s permits, in third place as of the middle of last month, totaled 326 (9% of total APD), which is down from 501 a year earlier.

Close behind in the count for the year is Rio Blanco County, with 305 permit applications, down from 477 a year ago. La Plata County had 260 APD at mid-September, versus 328 at the same time in 2008.

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