|
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO |
) ) ) ) |
CAUSE NO. 133
ORDER NO. 133-26 |
report of the commission
This cause came on for hearing before the Commission at 9:00 a.m. on August 28, 2007, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to allow three (3) additional wells for a total of up to eight (8) wells in the 320-acre drilling and spacing units for certain lands in Township 12 North, Ranges 100 and 101 West 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations.
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 pursuant to the Oil and Gas Conservation Act.
4. On June 23, 1959, the Commission issued Order No. 133-1, which among other things, established 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 certain lands including the below-listed lands, with the permitted well to be located no closer that 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 30: N½ and S½
Township 12 North, Range 101 West, 6th P.M.
Section 25: N½ and S½
5. On April 21, 2003, the Commission issued Order No. 133-20, which among other things, allowed the optional drilling of up to five (5) wells on each of the 320-acre drilling and spacing units consisting of the above-described lands for the Wasatch, Fort Union/Lance/Lewis and Mesaverde Formations.
6. On July 5, 2007, Wexpro, by its attorney, filed with the Commission a verified application for an order to allow three (3) additional wells for a total of up to eight (8) wells in the 320-acre drilling and spacing units consisting of the below-described lands for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations:
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
8. Testimony and exhibits submitted in support of the application showed the location of the application lands, indicating that both the surface estate and the oil and gas mineral estate of these lands are owned by the United States of America. Additional information indicated that all of the application lands are under lease to Wexpro.
9. Testimony and exhibits submitted in support of the application showed that the productive sands of the Wasatch, Fort Union, Lance, Lewis and Mesaverde Formations are expected to be present underlying the application lands. Additional testimony and exhibits indicated that these formations are not necessarily productive from well to well and that the sands within these formations are discontinuous either because of depositional environment or because of significant changes in porosity and permeability.
10. Testimony and exhibits submitted in support of the application showed that average composite drainage per well in the area of the application lands is approximately 38 acres which means that as many as eight (8) wells may be needed in each 320-acre drilling and spacing unit to fully develop the resource. Further testimony indicated that additional wells would recover sufficient gas reserves so that the drilling of such wells would be economic.
11. The above-referenced testimony and exhibits show that the proposed density will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.
13. Based on the facts stated in the verified application, having received no protests, and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to allow three (3) additional wells for a total of up to eight (8) wells in the 320-acre drilling and spacing units for certain lands in Township 12 North, Ranges 100 and 101 West 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations.
ORDER
NOW, THEREFORE, IT IS ORDERED, that three (3) additional wells for a total of up to eight (8) wells are hereby approved to be optionally drilled into and produced in the 320-acre drilling and spacing units consisting of the below-described lands for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations:
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 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.
IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.
IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.
ENTERED this__________day of September, 2007, as of August 28, 2007.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Patricia C. Beaver, Secretary
Dated at Suite 801 Attorney for Applicant:
1120 Lincoln Street William A. Keefe
Denver, Colorado 80203 Poulson, Odell & Peterson, LLC
September 10, 2007 1775 Sherman Street, Suite 1400
Denver, CO 80203
(303) 861-4400