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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 133
ORDER NO. 133-20 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 10:00 a.m. on April 21, 2003, in the Council Chambers, Arvada City Hall, 8101 Ralston Road, Arvada, Colorado for an order to allow up to five (5) wells to be drilled on certain 320-acre drilling and spacing units in the Hiawatha West Field, for production of gas and associated hydrocarbons from the Wasatch, Fort Union/Lance/Lewis, and Mesaverde Formations, and to eliminate the minimum setbacks from the common boundaries between the drilling and spacing units in the four (4) drilling and spacing units.
FINDINGS
The Commission finds as follows:
1. Wexpro Company (“Wexpro”), 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 June 23, 1959, the Commission issued Order No. 133-1 establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union/Lance/Lewis and Mesaverde Formations for the below-listed lands, with the permitted well to be located no closer than 660 feet from the boundaries of the drilling unit and the wells previously drilled and capable of producing shall be the permitted wells for the units on which they are located.
Township 12 North, Range 100 West, 6th P.M.
Section 17: Lots 3 through 6
Section 18: Lots 5 through 12
Section 19: All
Section 20: W½
Section 29: NW¼
Section 30: All
Township 12 North, Range 101 West, 6th P.M.
Sections 13 and 14: Lots 1 through 8
Section 15: Lots 1, 2, 7, and 8
Section 22: E½
Sections 23 through 26: All
Section 27: E½
Section 34: NE¼
Sections 35 and 36: N½
5. Subsequent orders issued by the Commission allowed additional wells, including up to four (4) wells to be drilled on certain 320-acre units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union/Lance/Lewis, and Mesaverde Formations.
6. On March 4, 2003, Wexpro Company, on behalf of Questar Exploration and Production Company (“Questar”), by its attorney, filed with the Commission a verified application for an order to allow up to five (5) wells to be drilled on the 320-acre drilling and spacing units for the below-listed lands, for production of gas and associated hydrocarbons from the Wasatch, Fort Union/Lance/Lewis, and Mesaverde Formations, and to eliminate the minimum setbacks from the common boundaries between the drilling and spacing units as Questar owns all of the working interest in the four (4) drilling and spacing units.
Township 12 North, Range 100 West, 6th P.M.
Section 30: N½ and S½
Township 12 North, Range 101 West, 6th P.M.
Section 25: N½ and S½
7. Testimony and exhibits presented at the administrative hearing showed that the mineral ownership of the application lands is 100% federal.
8. Testimony and exhibits presented at the administrative hearing showed the discontinuity of the Wastach, Fort Union/Lance/Lewis, and Mesaverde Formations in the application lands, the approximate thicknesses of productive and potentially productive sands underlying the application lands, and the initial potential of wells in and around the application lands.
9. Testimony and exhibits presented at the administrative hearing showed the difficulty in locating wells in the current drilling windows due to the rough topography in the application lands and why the elimination of the minimum setbacks from the common boundaries between the drilling and spacing units is necessary to have the maximum amount of flexibility in locating wells.
10. Testimony and exhibits presented at the administrative hearing showed the average drainage area for the shallow formations is 69 acres and the average drainage area for the deep formations is 374 acres.
11. Additional wells are necessary to efficiently and economically drain the 320-acre drilling and spacing units in the application area while preventing waste and protecting correlative rights.
12. At the time of the administrative hearing, Wexpro Company agreed to be bound by oral order of the Commission.
13. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order to allow up to five (5) wells to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations, on the 320-acre drilling and spacing units described above in Finding No. 6.
ORDER
NOW, THEREFORE IT IS ORDERED, that an order shall be approved to allow up to five (5) wells to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations, on the 320-acre drilling and spacing units described below:
Township 12 North, Range 100 West, 6th P.M.
Section 30: N½ and S½
Township 12 North, Range 101 West, 6th P.M.
Section 25: N½ and S½
IT IS FURTHER ORDERED, that the minimum setbacks from the common boundaries between the drilling and spacing units are hereby eliminated on the above described lands.
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 April 2003, as of April 21, 2003.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Patricia C. Beaver, Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203