BEFORE THE OIL AND GAS
CONSERVATION COMMISSION
OF THE STATE OF
IN THE MATTER OF THE
PROMULGATION ) CAUSE
NO. 191
AND ESTABLISHMENT OF FIELD
RULES TO )
GOVERN OPERATIONS IN THE
MAM CREEK FIELD, ) ORDER NO. 191-6
MESAVERDE FORMATION,
This cause came on for
hearing before the Commission at 10:00 a.m. on December 2, 2002, in Suite 801,
1120 Lincoln Street, Denver, Colorado for an order to remove Section 23,
Township 6 South, Range 92 West, 6th P.M. from the provisions of
Order Nos. 191-3 and 191-4 and to place the lands under the Rules and
Regulations of the Commission.
FINDINGS
The Commission finds as follows:
1. Calpine Natural Gas Company (“Calpine”), as
applicant herein, is an interested party in the subject matter of the
above-referenced hearing.
2. Due notice of the time, place and purpose of
the hearing has been given in all respects as required by law.
3. The Commission has jurisdiction over the
subject matter embraced in said Notice, and of the parties interested therein,
and jurisdiction to promulgate the hereinafter prescribed order.
4. On
Township 6 South, Range 92
West, 6th P.M.
Sections 22 through
27: All
Sections 35 and 36: All
5. On October 21, 1997, the Commission issued
Order No. 191-5 which allowed additional wells, not to exceed a total of
sixteen (16) wells to be drilled on the 640-acre drilling and spacing unit
consisting of Section 25, Township 6 South, Range 92 West, 6th P.M.,
and decreased the 640-acre drilling and spacing unit consisting of Section 36,
Township 6 South, Range 92 West, 6th P.M. to 40-acre drilling and
spacing units, for the production of oil, gas and associated hydrocarbons from
the Mesaverde Formation.
6. On
7. Geologic testimony and exhibits presented at
the administrative hearing described the entire Mesaverde Formation with pay
sections typical of the wells in the area.
Additional testimony indicated that the sands are 10 to 30 feet thick,
fluvial and point bar in origin, discontinuous and difficult to correlate.
8. Engineering testimony and exhibits presented
at the administrative hearing showed that there is a low recovery rate for nearby
wells, that the current spacing and well density is not adequate to efficiently
and economically drain Section 23, and that the drilling of additional wells
would be economical.
9. The approval of the application would allow
additional reserves to be recovered, prevent waste and protect correlative
rights.
10. At the time of the administrative hearing, Calpine
Natural Gas Company agreed to be bound by an oral order of the Commission.
11. Based on the facts stated in the verified
application, having received no protests and having been heard by the Hearing Officer
who recommended approval, the Commission should approve an order to remove
Section 23, Township 6 South, Range 92 West, 6th P.M. from the
provisions of Order Nos. 191-3 and 191-4 and place the lands under the Rules
and Regulations of the Commission, including Rule 318 for well locations.
NOW, THEREFORE IT IS ORDERED, that Section
23, Township 6 South, Range 92 West, 6th P.M. is hereby removed from
the provisions of Order Nos. 191-3 and 191-4 and that the lands shall be placed
under the provisions of the Rules and Regulations of the Commission.
IT IS FURTHER ORDERED, that
the provisions contained in the above order shall become effective forthwith.
IT IS
FURTHER ORDERED, that the Commission expressly reserves its right, after notice
and hearing, to alter, amend or repeal any and/or all of the above orders.
ENTERED this day of December, 2002, as of
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
_______________________
Patricia
C. Beaver, Secretary
Dated
at