BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND AND [sic] ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE PARACHUTE FIELD, GRAND VALLEY FIELD, AND RULISON FIELD, GARFIELD COUNTY, COLORADO

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CAUSE NOS. 440, 479 and 139

 

ORDER NOS.      440-15, 479-4 and

                        139-27

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 18, 1994 at 8:30 a.m., in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Barrett Resources Corporation, for an order to change the permitted well location for wells drilled in each 640-acre, 320-acre, and 160-acre drilling and spacing unit under Order Nos. 440-14, 479-3, and 139-26, for production from the Williams Fork Formation of the Mesaverde Group.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Barrett Resources 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.      On February 22, 1994, the Commission issued Order Nos. 440-14, 479-3, and 139-26 which allowed an increase in the number of wells that could be optionally drilled into and produced from the Williams Fork Formation of the Mesaverde Group.  For the 640-acre drilling and spacing units established for the below-listed lands, eight (8) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 600 feet from the lease line nor 1,200 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

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For the 320-acre drilling and spacing units established for the below-listed lands, four (4) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 600 feet from the lease line nor 1,200 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

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For the 160-acre drilling and spacing units established for the below-listed lands, two (2) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 600 feet from the lease line nor 1,200 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

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5.      Testimony presented at the administrative hearing indicated that extremely difficult topographic conditions are present in the above-described lands and that a thirty (30%) larger window in which a well could be located would reduce the amount of exception location requests by approximately forty (40%) percent.  The permitted well should be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from an existing Williams Fork Formation well.  In addition, upon adequate showing by an applicant, the Director should be allowed to grant exceptions to the permitted well locations for topographical reasons.  Further, testimony was recounted from the February 22, 1994 hearing to show that correlative rights would not be harmed by a change in permitted well locations due to production typically not extending beyond the limited vertical and lateral natural fracture pattern and lithologic boundaries.

 

6.      Based on the facts stated in the application, having received no protests, and having been heard by the Hearing Officers on March 16, 1994 and recommended for approval, the Commission should approve the application to change the permitted well location.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well or wells drilled, completed or recompleted in the Williams Fork Formation of the Mesaverde Group described herein below, in addition to other applicable rules and regulations and policies and orders of the Commission, if any, heretofore adopted and not in conflict herein:

 

Rule 1.    That for the 640-acre drilling and spacing units established for the below-listed lands, eight (8) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.

 

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Rule 2.    That for the 320-acre drilling and spacing units established for the below-listed lands, four (4) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.

 

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Rule 3.    That for the 160-acre drilling and spacing units established for the below-listed lands, two (2) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.

 

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IT IS FURTHER ORDERED, that upon adequate showing by an applicant, the Director shall be allowed to grant exceptions to the permitted well locations for topographical reasons.

 

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 5th day of April, 1994, as of March 18, 1994.

 

CORRECTED this 21st day of March, 2000 as of March 18, 1994.

 

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

March 21, 2000