BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE MAMM CREEK FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 191 ORDER NO. 191-53 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:00 a.m. on October 2, 2007, in the Public Hearing Room, Old Court House, 544 Rood Avenue, 2nd Floor, Grand Junction, Colorado for an order to establish an approximate 48.55-acre drilling and spacing unit consisting of Lot 1, Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations and allow the equivalent of one well per 10 acres.
FINDINGS
The Commission finds as follows:
1. Antero Resources Piceance Corporation (“Antero”), 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 January 10, 2005, the Commission issued Order No. 191-8, which among other things, allowed the equivalent of one well per 10 acres for certain lands including Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
5. On April 25, 2006, amended June 16, 2006 and corrected June 24, 2006, the Commission issued Order No. 191-10, which among other things, allowed the equivalent of one well per 10 acres for certain lands including Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Iles Formation of the Mesaverde Group.
6. On July 27, 2007, Antero, by its attorney, filed with the Commission a verified application for an order to establish an approximate 48.55-acre drilling and spacing unit consisting of Lot 1 of Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations of the Mesaverde Group, and to continue to allow the equivalent of one well per 10 acres to be drilled on said lands.
7. On September 18, 2007, Antero, by its attorney, filed with the Commission a written request to approve the application based on the merits of the verified application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the application.
8. Testimony and exhibits submitted in support of the application showed that a drilling and spacing unit was necessary due to the numerous leases and unleased mineral ownership within the application lands and that establishing the unit would allow downhole well locations to be more efficiently placed thus assuring the greatest ultimate recovery of gas and associated hydrocarbon substances. Prior orders of the Commission show that the 10-acre well density previously approved by the Commission is necessary to allow more efficient reservoir drainage, prevent waste, assure a greater ultimate recovery of gas, and not violate correlative rights.
9. Antero Resources Piceance Corporation agreed to be bound by oral order of the Commission.
10. Based on the facts stated in the verified application, having received no protests, and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to establish an approximate 48.55-acre drilling and spacing unit consisting of Lot 1, Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
ORDER
NOW, THEREFORE IT IS ORDERED, that an approximate 48.55-acre drilling and spacing unit consisting of Lot 1, Section 19, Township 6 South, Range 92 West, 6th P.M. is hereby established for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, allowing the equivalent of one well per 10 acres to be drilled on the unit.
IT IS FURTHER ORDERED, that as to all future Williams Fork Formation and Iles Formation wells to be drilled upon the application lands within such drilling and spacing unit, the well shall be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission. It is provided however that in cases where the application lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Williams Fork Formation wells, the well shall be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission. In cases where the application lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Iles Formation wells, the well shall be located downhole no closer than 400 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission.
IT IS FURTHER ORDERED, that, except as previously authorized by order of the Commission, wells to be drilled under this application shall be drilled from the surface either vertically or directionally from no more than one pad located on the application lands unless exception is granted by the Colorado Oil and Gas Conservation Commission pursuant to application made for such exception.
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.
ENTERED this__________day of October, 2007, as of October 2, 2007.
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
October 16, 2007