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 DIVIDE CREEK FIELD, MESA AND GARFIELD COUNTIES, COLORADO

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CAUSE NO. 143

 

ORDER NO. 143-2         (Corrected)

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 20, 1989 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax , [sic] Denver, Colorado, on the verified application of Oryx Energy Company for an order to amend the orders in Cause No. 143 by deleting certain lands contained within the Federal Divide Creek Unit from the lands established as the Divide Creek Field for the production of gas from the Cretaceous Mesaverde formation from sections identified as the Upper, Middle and Lower Divide Creek pay zones underlying certain lands in Mesa and Garfield Counties , [sic] Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Oryx Energy Company, 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 Acting Director as Hearing Officer heard the application and recommends that it be approved by the Commission.  The lands are contained within the Divide Creek Federal Unit.

 

5.      That development of coalbed methane production from the Cameo Coals will occur in the year 1990 and it will be on conditions established by the Federal Government and currently appears to be with one well per 320 acre area.

 

6.      That no protests to the application have been received, and that Oryx Energy Company agreed to be bound by the verbal orders of the Commission.

 

7.      The below listed lands include those established by Order No. 143-1; those lands or partial sections preceded by an asterisk (*) should be deleted from the area established by Order No. 143-1 for the development and production of gas from the Mesaverde formation:

 

 

Township 7 South, Range 91 West, 6th P.M.

 

 

All of Sections 13 through 30;

 

*

Section 31:

All

 

*

Section 32:

All

 

*

Section 33:

All

 

*

Section 34:

(SW1/4)

 

 

Section 34:

(NE1/4, NW1/4, SE1/4)

 

 

Section 35:

All

 

 

Section 36:

All

 

 

 

 

 

 

Township 7 South, Range 92 West, 6th P.M.

 

 

Section 36:

All

Section 25:

All

 

 

Section 24:

All

Section 36:

All

 

 

 

 

 

 

 

 

Township 8 South, Range 90 West, 6th P.M.

 

 

Section 7:

All

 

Section 29:

All

 

 

Section 8

All

*

Section 30:

W1/2

 

 

Section 17:

W1/2

 

Section 30:

E1/2

 

 

Section 18:

All

*

Section 31:

All

 

 

Section 19:

All

 

Section 32:

W1/2

 

 

Section 20:

All

 

 

 

 

 

 

 

 

 

 

 

 

Township 8 South, Range 92 West, 6th P.M.

 

 

Section

1:

All

 

Section 13:

E1/2

 

 

Section

12:

All

 

 

 

 

 

 

 

 

 

 

 

 

Township 9 South, Range 90 West, 6th P.M.

 

 

Section 5:

All

*

Section 7:

All

 

*

Section 6:

All

 

Section 8:

All

 

 

 

 

 

 

 

 

 

Township 8 South, Range 91 West, 6th P.M.

 

 

Section 1:

All

 

Section 18:

All

 

*

Section 2:

SW1/4

 

Section 19:

All

 

 

Section 2:

NW1/4, E1/2

*

Section 20:

All

 

*

Section 3:

All

*

Section 21:

All

 

*

Section 4:

All

*

Section 22:

All

 

*

Section 5:

All

*

Section 23:

All

 

*

Section 6:

All

*

Section 24:

All

 

*

Section 7:

E1/2

*

Section 25:

All

 

 

Section 7:

W1/2

*

Section 26:

All

 

*

Section 8:

All

*

Section 27:

All

 

*

Section 9:

All

*

Section 28:

All

 

*

Section 10:

All

*

Section 29:

NE1/4

 

*

Section 11:

All

 

Section 29:

NW1/4, S1/2

*

Section 12:

SW1/4

 

Section 30:

All

 

 

Section 12:

E1/2, NW1/4

 

Section 31:

E1/2

 

*

Section 13:

W1/2, SE1/4

 

Section 32:

All

 

*

Section 13:

NE1/4

*

Section 33:

All

 

*

Section 14:

All

*

Section 34:

All

 

*

Section 15:

All

*

Section 35:

All

 

*

Section 16:

All

*

Section 36:

All

 

*

Section 17:

All

 

 

 

 

 

 

 

 

 

 

 

 

Township 9 South, Range 91 West, 6th P.M.

 

*

Section 1:

All

 

Section 7:

All

 

*

Section 2:

All

 

Section 8:

All

 

*

Section 3:

All

 

Section 9:

All

 

*

Section 4:

NE1/4

*

Section 10:

All

 

 

Section 4:

NW1/4, S1/2

*

Section 11:

All

 

 

Section 5:

All

*

Section 12:

All

 

 

Section 6:

All

 

 

 

 

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Mesaverde pool of the Divide Creek Field, as herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

 

Rule 1.    Six hundred Forty (640) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the Mesaverde formation, common source of supply underlying the following described lands in Mesa and Garfield Counties, Colorado.

 

Township 7 South, Range 91 West, 6th P.M.

 

Sections 13 through 30

Section 34:  N1/2, SE/14

 

Section 35

Section 36

 

 

 

 

Township 7 South, Range 92 West, 6th P.M.

 

Sections 13, 24, 25 and 36

 

 

 

 

 

Township 8 South, Range 90 West, 6th P.M.

 

Sections:  7, 8, 18, W1/2 of 17, 19, 20, 29, E1/2 of 30 and W/2 of 32

 

 

 

 

Township 8 South, Range 91 West, 6th P.M.

 

Section 1:  All

Section 19:  All

 

Section 2:  NW1/4, E1/2

Section 29:  NW1/4, S1/2

 

Section 7:  W1/2

Section 30:  All

 

Section 12:  E1/2, NW1/4

Section 31:  W1/2

 

Section 13:  NE1/4

Section 32:  All

 

Section 18:  All

 

 

 

 

 

Township 8 South, Range 92 West, 6th P.M.

 

Sections:  1, 12 and E1/2 of 13

 

 

 

 

Township 9 South, Range 90 West, 6th P.M.

 

Sections:  5 and 8

 

 

 

 

 

Township 9 South, Range 91 West, 6th P.M.

 

Sections:  S1/2 and NW1/4 of 4 and all of 5, 6, 7, 8, and 9

 

Rule 2.    No well shall be drilled or completed in the Divide Creek Field, and no notice of intention to drill shall be approved by the Commission, unless:

 

a.      Such well will be located on a designated drilling unit of not less than 640-acres of land, more or less, according to legal subdivisions of the United States Land Surveys in which unit all of the interests of owners are consolidated by a pooling agreement, or otherwise, and on which no other well is completed or approved for completion in the same pool.

 

b.      Such drilling unit will be a normal section, except for the following described units:

 

 

 

Township 8 South, Range 90 West, 6th P.M.

1.

Section 17:

W1/2

and

Section 18: 

E1/2

 

2.

Section 32:

W1/2

 

 

 

3.

Section 18:  W1/2, Township 8 South, Range 90 West and Section 13:  NE1/4, Township 8 South, Range 91 West.

4.

Deleted.

 

 

 

 

 

 

 

 

 

 

 

Township 8 South, Range 90 West, 6th P.M.

5.

Section 32:

E1/2

 

 

 

6.

Section 32:

W1/2

and

Section 31: 

E1/2

 

7.

W1/2, Township 8 South, Range 91 West and Section 13: E1/2, Township 8 South [sic] Range 92 West.

 

 

c.      Such well to be drilled not closer than 3750 feet to the nearest well drilling to or capable of production from the Mesaverde formation; and not closer than 900 feet to the boundaries of the drilling unit upon which it is located.

 

Rule 3.    The Commission may, without additional notice and hearing, grant exceptions to Rule 2c above, when, because of topographical reasons, it is necessary to locate such well at a location other than that required by said Rule 2c.

 

Rule 4.    The surface casing program of all wells hereafter drilled in the Divide Creek Field, Mesaverde Gas Pool, shall be in accordance with the following standards:

 

The surface pipe shall be set to a minimum depth of 250 feet, and where shallow potable water-bearing beds are present, the surface pipe shall be set through such shallow potable water-bearing beds and a sufficient amount of cement shall be used to circulate the cement behind the pipe to the bottom of the cellar.  This surface casing shall stand cemented for at least twelve (12) hours before drilling plug or initiating tests.  the [sic] surface casing shall be tested after drilling plug by bailing the hole dry.  The hole shall remain dry for one hour to constitute satisfactory proof of a water shut-off.  In lieu of the foregoing test, the cement job may be tested by building up a pressure of 500 psi, closing the valves and allowing to stand thirty (30) minutes.  If the pressure does not drop more than 100 pounds during that period, the test shall be considered satisfactory.  This test shall be made both before and after drilling the plug.

 

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to April 26, 1960, shall be the permitted wells or locations for the respective drilling units.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Mesaverde formation of the Divide Creek field, as defined herein, for the purpose of producing gas therefrom, at a location other than authorized by this order, is hereby prohibited.

 

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 11th day of December, 1989, as of November 20, 1989.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Dennis R. Bicknell, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203