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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 RULISON FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 139
ORDER NO. 139-52 |
This cause came on for hearing before the Commission at 9:00 a.m. on December 6, 2005, Suite 801, in The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to vacate certain lands in Township 6 South, Range 94 West, 6th P.M. from the provisions of Order Nos. 139-14, 139-28 and 139-40 for the production of gas from the Mesaverde Group and place the lands under the Rules and Regulations of the Commission, including Rule 318.
The Commission finds as follows:
1. Williams Production RMT Company (“Williams”), 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 February 20, 1990, the Commission issued Order No. 139-14, which among other things, established 320-acre drilling and spacing units for the production of gas from the Mesaverde Formation, including the below-listed lands. Subsequent orders allowed additional wells to be optionally drilled on these lands and modified the permitted well location setbacks. On August 18, 2004, the Commission issued Order No. 139-40, which among other things, allowed the equivalent of one (1) well per 10 acres for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, with the permitted well to be located no closer than 100 feet from the boundaries of the unit and no closer than 200 feet from the boundaries of the unit for which 10-acre density has not been granted, including a portion of the below-listed lands.
Township 6 South, Range 94 West, 6th P.M.
Section 1: Lots 3, 4, 5, 6, S˝ N˝, S˝ (All)
Section 2: 1, 2, 3, 4, S˝ N˝, S˝ (All)
Section 3: 1, 2, 3, 4, S˝ N˝, S˝ (All)
Section 12: 1, 2, 3, 4, 5, 6, 7, 8 (N˝)
5. On October 4, 2005, Williams, by its attorney, filed with the Commission a verified application for an order to vacate the below-described lands from the provisions of Order Nos. 139-14, 139-28 and 139-40 for the production of gas from the Mesaverde Group and place the lands under the Rules and Regulations of the Commission, including Rule 318.
Township 6 South, Range 94 West, 6th P. M.
Section 1: Lots 3, 4, 5, 6, S/2N/2, S/2 (All)
Section 2: Lots 1, 2, 3, 4, S/2N/2, S/2 (All)
Section 3: Lots 1, 2, 3, 4, S/2N/2, S/2 (All)
Section 12: Lots 1, 2, 3, 4, 5, 6, 7, 8 (N˝)
6. Testimony and exhibits presented at the administrative hearing showed that the lands within the application area that are not leased by Williams are lands with either BLM mineral ownership or lands within the Naval Oil Shale Reserve. Additional testimony showed that the unleased lands are likely to remain unleased for some time in the future. Further testimony showed that Williams wishes to vacate the existing spacing order so that wells may be drilled in the application lands without diluting Williams’ drilling interest with unleased acreage contained in drilling and spacing units.
7. Williams Production RMT Company agreed to be bound by oral order of the Commission.
8. 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 enter an order to vacate the lands described in Finding No. 5 above from the provisions of Order Nos. 139-14, 139-28 and 139-40 for the production of gas from the Mesaverde Group and place the lands under the Rules and Regulations of the Commission, including Rule 318.
NOW, THEREFORE, IT IS ORDERED, that the below-described lands are hereby removed from the provisions of Order Nos. 139-14, 139-28 and 139-40 for the production of gas from the Mesaverde Group and placed under the provisions of the Rules and Regulations of the Commission, including Rule 318.
Township 6 South, Range 94 West, 6th P. M.
Section 1: Lots 3, 4, 5, 6, S/2N/2, S/2 (All)
Section 2: Lots 1, 2, 3, 4, S/2N/2, S/2 (All)
Section 3: Lots 1, 2, 3, 4, S/2N/2, S/2 (All)
Section 12: Lots 1, 2, 3, 4, 5, 6, 7, 8 (N˝)
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.
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