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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 DIVIDE CREEK FIELD, GARFIELD COUNTY, COLORADO
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CAUSE NO. 143
ORDER NO. 143-5 |
This cause came on for hearing before the Commission at 10:00 a.m. on June 5, 2006, in the Council Chamber Room of the Ambulance Building, 304 West 3rd Street, Wray, Colorado, for an order to delete certain lands in Township 7 South, Range 91 West, 6th P.M. from the provisions of Order Nos. 143-1 and 143-2 (Corrected) and place the lands under the provisions of Rule 318. of the Rules and Regulations of the Oil and Gas Conservation Commission.
The Commission finds as follows:
1. Windsor Energy LLC. (“Windsor”), 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 April 26, 1960, the Commission entered Order No. 143-1 which, among other things, established 640-acre drilling and spacing units for the production of gas from the Mesaverde Formation in the Divide Creek Field for certain lands, including Townships 7 through 9 South, Ranges 90 through 91 West, 6th P.M., with the permitted well to be located no closer than 900 feet to the boundaries of the drilling unit upon which it is located and no closer than 3750 feet to the nearest well drilling to or capable of production from the Mesaverde Formation. Subsequently, the Commission entered Order Nos. 143-2 (Corrected), 143-3, and 143-4 which deleted certain lands from those lands established by Order No.143-1.
5. On April 25, 2006, Windsor, by its attorney, filed with the Commission a verified application for an order to delete the below-listed lands from the provisions of Order Nos. 143-1, 143-2 (Corrected), and 143-3 and place the lands under the provisions of the Rules and Regulations of the Oil and Gas Conservation Commission:
Township 7 South, Range 91 West, 6th P.M.
Sections 16 through 18: All
6. The verified application states that the application should be approved to prevent waste, to protect correlative rights, to ensure the proper and efficient development of the Mesaverde Formation, and to ensure the greatest recovery of gas and associated hydrocarbons from the Mesaverde Formation.
7. Testimony and exhibits presented at the administrative hearing showed that Windsor has a 100% leasehold and that the Bureau of Land Management (“BLM”) is the mineral and surface owner within the application lands, with the exception of unleased fee mineral ownership and fee surface ownership in the SW¼ NW¼, NW¼ SW¼, SW¼ SW¼, and the SE¼ SW¼ of Section 18. Additional testimony showed that there is one well producing from a bottomhole location within the application lands, and that the well is producing from the Williams Fork Formation of the Mesaverde Group. Further testimony indicated that Windsor currently has lease holdings on unspaced lands just north of the application.
8. Windsor Energy LLC. agreed to be bound by oral order of the Commission.
9. 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 delete certain lands in Township 7 South, Range 91 West, 6th P.M. from the provisions of Order Nos. 143-1 and 143-2 (Corrected) and place the lands under the provisions of Rule 318. of the Rules and Regulations of the Oil and Gas Conservation Commission.
NOW, THEREFORE, IT IS ORDERED, that the below-listed lands are hereby deleted from the provisions of Order No. 143-1 and Order No. 143-2 (Corrected) and placed under the provisions of Rule 318. of the Rules and Regulations of the Oil and Gas Conservation Commission.
Township 7 South, Range 91 West, 6th P.M.
Sections 16 through 18: All
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