BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF
IN THE MATTER
THE PROMULGATION AND ) CAUSE NO. 351
ESTABLISHMENT
OF FIELD RULES TO GOVERN )
OPERATIONS IN
THE ROCK CREEK FIELD, ) ORDER NO. 351-4
This cause came on for hearing
before the Commission on June 3, 2003 at 10:00 a.m. in the Conference Center,
Holiday Inn Express, 2121 E. 2nd
Ave, Cortez, Colorado for an order to allow up to two
(2) additional wells to be drilled on the 160-acre drilling and spacing units
for certain lands in the Rock Creek Field, for production of gas and associated
hydrocarbons from the Niobrara Formation, with the additional well or wells to
be located on any undrilled quarter-quarter section
within the spacing unit and any wells drilled subsequent to the issuance of the
order to be located no closer than 600 feet from the outer boundaries of the
spacing unit.
FINDINGS
The Commission finds as follows:
1.
J-W Operating Company, 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 5 North,
Range 46 West, 6th P.M.
Sections 19 and
20: All
Sections 29
through 31: All
Township 5 North,
Range 47 West, 6th P.M.
Section 25: All
Section 36: All
5.
On
Township 5 North, Range 46 West, 6th
P.M.
Sections 17 and 18: All
Sections 32 and 33: All
Township 5 North, Range 47 West, 6th
P.M.
Sections 23 and 24: All
Section 26: All
6. On April 11, 2003, J-W Operating
Company, by its attorney, filed with the Commission a verified application for
an order to allow up to two (2) additional wells to be drilled on the 160-acre
drilling and spacing units for the below-listed lands, for production of gas
and associated hydrocarbons from the Niobrara Formation, with the additional
well or wells to be located on any undrilled
quarter-quarter section within the spacing unit and any wells drilled
subsequent to the issuance of the order to be located no closer than 600 feet
from the outer boundaries of the spacing unit.
Township 5 North, Range 46 West, 6th
P.M.
Sections 17 through 20: All
Sections 29 through 33: All
Township 5 North, Range 47 West, 6th
P.M.
Sections 23 through 26: All
Section 36: All
7.
Testimony and exhibits presented at the administrative hearing indicated
that J-W Operating has most of the application lands under lease and that the
notice requirement in Rule 507 has been met.
8.
Testimony and exhibits show the
9.
Testimony indicated that additional wells are necessary to recover
remaining reserves and to prevent waste while protecting correlative rights of
mineral owners.
10. At the time of the administrative hearing, J-W
Operating 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 allow up to two
(2) additional wells to be drilled on the 160-acre drilling and spacing units
for the lands described in Finding No. 6, for production of gas and associated
hydrocarbons from the Niobrara Formation, with the additional well or wells to
be located on any undrilled quarter-quarter section
within the spacing unit and any wells drilled subsequent to the issuance of the
order to be located no closer than 600 feet from the outer boundaries of the
spacing unit.
NOW, THEREFORE IT IS
ORDERED, that Order No. 351-3 shall be amended to allow up to two (2)
additional wells to be drilled on the 160-acre drilling and spacing units for
the below-listed lands for production of gas and associated hydrocarbons from
the Niobrara Formation, with the additional well or wells to be located on any undrilled quarter-quarter section within the spacing unit
and any wells drilled subsequent to the issuance of the order to be located no
closer than 600 feet from the outer boundaries of the spacing unit:
Township 5 North,
Range 46 West, 6th P.M.
Sections 17
through 20: All
Sections 29
through 33: All
Township 5 North,
Range 47 West, 6th P.M.
Sections 23
through 26: All
Section 36: All
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 June 2003, as of
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
_______________________
Patricia
C. Beaver, Secretary
Dated at