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 RULISON  FIELD, GARFIELD COUNTY, COLORADO

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CAUSE NO. 139

 

ORDER NO. 139-21 

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on June 14, 1991 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Liedtke Operating Corporation for an order to amend Order No. 139-8 to extend the limits of the spaced area of the Rulison Field for 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Liedtke Operating Corporation 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.      The application was originally filed under the name of Liedtke Development Corporation and at the time of administrative hearing it was shown that via the terms of an Operating Agreement, Liedtke Operating Corporation was the entity designated to present all matters for hearing on behalf of Liedtke Development Corporation.

 

5.      On July 16, 1979, the Commission authorized Order No. 139-8 to be issued, which among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying certain lands in Garfield County, Colorado.  The drilling units consist of the E1/2 and W1/2 or the N1/2 and the S1/2 of a section, according to the governmental survey thereof, with the unit to be designated by the operator of the first well drilled in the section.  The permitted well shall be located in the NE1/4 and SW1/4 of each section and no closer than 600 feet to the boundaries of the quarter section upon which it is located and no closer than 1200 feet from another producing or producible well in the same formation.

 

6.      The interval of the Mesaverde formation to be spaced is defined from 5142 feet to 9950 feet, as found on the Dual Induction Log for the R.H. Ranch No. 1 Well located in the SW1/4 SW1/4 of Section 34, Township 6 South, Range 93 West, 6th P.M.

 

7.      Testimony was heard by the Hearing Officer that indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 139-8, the following described lands in Garfield County, Colorado, to-wit:

 

Township 6 South, Range 93 West, 6th P.M.

Sections 21, 22, 27, 28, 33 and 34:  All

 

Township 7 South, Range 93 West, 6th P.M.

Sections 3 and 4:  All

 

8.      Liedtke Operating Corporation has drilled and completed its Grass Mesa No. 1-33 Well to the Mesaverde formation in the SW1/4 SW1/4 of Section 28, Township 6 South, Range 93 West, 6th P.M. and this well should be considered the permitted well for the 320-acre drilling and spacing unit consisting of the E1/2 of said Section 33.

 

9.      That additional rules be established for the protection of ground waters, production test, reporting of production data, and procedures to process confidentiality requests.

 

10.      No objections to the application were received and the Hearing Officer recommends the application be approved based upon the geological and engineering testimony presented at the administrative hearing.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that

 

Rule 1:    The area set forth in Finding 7 herein shall be subject to the provisions of Order No. 139-8 and the spaced area of the Rulison Field shall henceforth include the following described lands in Garfield County, Colorado, to-wit:

 

Township 6 South, Range 93 West, 6th P.M.

Sections 21, 22, 27, 28, 33 and 34:  All

 

Township 7 South, Range 93 West, 6th P.M.

Sections 3 and 4:  All

 

Rule 2:    Said drilling units shall consist of 320-acres, more or less, and consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section.  The permitted well shall be located in the NE1/4 and SW1/4 of each governmental section in which the well is located, and no closer than 600 feet from the boundaries of the quarter section in which the well is located, and no closer than 1200 feet from any other producing or producible well.

 

Rule 3:    The Mesaverde formation shall be defined as the interval occurring from 5142 feet to 9950 feet, as found on the Dual Induction Log for the R.H. Ranch No. 1 Well located in the SW1/4 SW1/4 of Section 34, Township 6 South, Range 93 West, 6th P.M.

 

Rule 4:    The Grass Mesa Ranch No. 1-33 Well located in the NE1/4 NE1/4 of Section 33, Township 6 South, Range 93 West, 6th P.M. shall be designated the permitted well for the unit consisting of the E1/2 of Section 33, Township 6 South, Range 93 West, 6th P.M.

 

Rule 5:    All wells drilled shall have a minimum of 300 feet of surface casing installed and cemented from setting depth to the surface by circulation methods.  Blow-out preventors [sic] and kill line or lines shall be installed prior to drilling out from the surface pipe and be in good working order.

 

Rule 6:    An initial completion report, Form 5, and basic logs shall be submitted within thirty (30) days of reaching total depth and the setting of production casing.  The Form 5 shall contain all information including geologic data except perforated interval, treatments, production test data, and any special experimental data.  This initial Form 5 shall be released upon processing by the Commission and shall not be granted "Confidential" status in accord with Rule 306.  A complete Form 5 containing the data omitted on the initial report shall be submitted within one year from the setting of production casing or within six months from the date of first production, whichever comes first.  The complete Form 5 shall be released upon processing by the Commission.

 

Rule 7:    All fluid production, including any and all water, shall be reported on a monthly basis, as required by Rule 307, and a Certificate of Clearance, Form 10, shall be submitted as required by Rule 310 of the Rules and Regulations of the Commission.

 

Rule 8: Any cathodic protection borehole shall be permitted and constructed as per State Division of Water Resources requirements. In addition, a Sundry Notice, Form 4, shall be submitted to the Commission indicating the location, total depth, aquifers penetrated, water quality, and borehole construction.

 

IT IS FURTHER ORDERED, that the provisions in the above order shall become effective forthwith.

 

Entered this day 25th day of July, 1991, as of July 16, 1991.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

July 25, 1991