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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 MAMM CREEK FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 191
ORDER NO. 191-58 CORRECTED |
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.
Township 6 South, Range 93 West, 6th P.M.
All that part of Section 12, Township 6 South, Range 93 West, 6th P.M., lying in the N½ of said Section more particularly described as follows:
Commencing at a point which bears north 89° 08 35 west a distance of 1525.88 feet from the northeast corner of Section 12, the point of beginning; thence north 88° 47 46 west a distance of 3710.54 feet; thence south 01° 24 28 west a distance of 2311.22 feet; thence north 70° 28 03 east a distance of 763.97 feet; thence north 75° 57 40 east a distance of 813.12 feet; thence north 78° 30 55 east a distance of 2160.49 feet; thence north 77° 41 31 east a distance of 381.56 feet; thence north 00° 30 04 west a distance of 599.27 feet; thence north 88° 31 17 west a distance of 229.48 feet; thence north 00° 11 49 east a distance of 663.22 to the point of beginning.
Containing 154.377 acres more or less.
Township 6 South, Range 93 West, 6th P.M.
All that part of Section 12, Township 6 South, Range 93 West, 6th P.M., lying in the NEΌ of said Section more particularly described as follows:
Commencing at a point on the northeast corner of Section 12, the point of beginning; thence South 00° 32 18 west a distance of 938.55 feet; thence south 78° 27 55 west a distance of 1310.58 feet; thence north 00° 30 04 west a distance of 599.27 feet; thence north 88° 31 17 west a distance of 229.48 feet; thence north 00° 11 49 east a distance of 663.22 feet; thence south 89° 08 35 east a distance of 1525.88 feet to the point of beginning.
Containing 36.845 acres more or less.
All future Williams Fork Formation and Iles Formation wells to be drilled upon the application lands should be located downhole anywhere within a given drilling unit but no closer than 100 feet from the boundary or 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 a drilling and spacing unit of the application lands abuts or corners 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 and Iles Formation wells, the well should be located downhole no closer than 200 feet from the boundary or boundaries of the unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission.
6. On November 24, 2008, James R. Carnahan and Colleen Carnahan (the Protestants), by their attorney, filed with the Commission a protest to the application.
7. On November 25, 2008, a prehearing conference was convened to address the merits of the protest filed by the Protestants. During the course of the prehearing conference, Protestants argued that the division of the existing 186.3-acre drilling and spacing unit into two separate and distinct drilling and spacing units would constitute waste and would violate the Protestants correlative rights. Antero stated that the application was made due to a contractual provision with a lessor which required the division of the existing 186.3 drilling and spacing unit into the two requested drilling and spacing units, and that the request would promote the efficient development of the application lands. Further, Antero stated that separating the existing 186.3 drilling and spacing unit into the two proposed units would allow development of the mineral interests underlying the proposed 154.377-acre drilling and spacing unit as presently leased; whereas, the mineral interests underlying the proposed 36.845-acre drilling and spacing unit contain both unleased mineral interests and leases owned by a third party operator that alleged to be insolvent. Antero argued that there was no merit to the protest, and requested that the protest be dismissed. After considering statements by parties, the Hearing Officers found that the granting of the application would not promote waste and would not violate the Protestants correlative rights and, consequently, the protest was dismissed.
8. On November 26, 2008, 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.
9. Testimony and exhibits submitted in support of the application showed that Antero is the majority leasehold owner of mineral interests underlying the application lands. Additional testimony indicated that the Williams Fork and Iles Formations underlying application lands have been approved for 10-acre well density by prior order of the Commission. Further testimony showed that a contractual provision with a lessor required the division of the existing 186.3 drilling and spacing unit into the two requested drilling and spacing units, and that the granting of the application would promote the efficient development of the application lands.
10. The above-referenced testimony and exhibits show that granting the application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.
11. Antero Resources Piceance Corporation agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified application, having received one protest which was dismissed at the prehearing conference, and based on the Hearing Officers review of the application under Rule 511.b., the Commission should enter an order to vacate the approximate 186.3-acre drilling and spacing unit and establish an approximate 154.377-acre and an approximate 36.845-acre drilling and spacing unit, and allow the equivalent of one well per 10 acres for certain lands in the N½ of Section 12, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
13. On December 9, 2008, the protestants, by their attorney, and Antero, by its attorney, appeared before the Commission and argued their respective positions regarding the recommendations of the Hearing Officers and dismissal of the protest, which are found in Finding No. 7 above. Subsequently, the Commission voted unanimously to accept the recommendation of the Hearing Officers and approved the application, and granted the relief requested therein, under Rule 511.b.
ORDER
Township 6 South, Range 93 West, 6th P.M.
All that part of Section 12, Township 6 South, Range 93 West, 6th P.M., lying in the N½ of said Section more particularly described as follows:
Commencing at a point which bears north 89° 08 35 west a distance of 1525.88 feet from the northeast corner of Section 12, the point of beginning; thence north 88° 47 46 west a distance of 3710.54 feet; thence south 01° 24 28 west a distance of 2311.22 feet; thence north 70° 28 03 east a distance of 763.97 feet; thence north 75° 57 40 east a distance of 813.12 feet; thence north 78° 30 55 east a distance of 2160.49 feet; thence north 77° 41 31 east a distance of 381.56 feet; thence north 00° 30 04 west a distance of 599.27 feet; thence north 88° 31 17 west a distance of 229.48 feet; thence north 00° 11 49 east a distance of 663.22 to the point of beginning.
Containing 154.377 acres more or less.
Township 6 South, Range 93 West, 6th P.M.
All that part of Section 12, Township 6 South, Range 93 West, 6th P.M., lying in the NEΌ of said Section more particularly described as follows:
Commencing at a point on the northeast corner of Section 12, the point of beginning; thence South 00° 32 18 west a distance of 938.55 feet; thence south 78° 27 55 west a distance of 1310.58 feet; thence north 00° 30 04 west a distance of 599.27 feet; thence north 88° 31 17 west a distance of 229.48 feet; thence north 00° 11 49 east a distance of 663.22 feet; thence south 89° 08 35 east a distance of 1525.88 feet to the point of beginning.
Containing 36.845 acres more or less.
IT IS FURTHER ORDERED, that all future Williams Fork Formation and Iles Formation wells to be drilled upon the application lands shall be located downhole anywhere within a given drilling unit but no closer than 100 feet from the boundary or 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 a drilling and spacing unit of the application lands abuts or corners 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 and Iles Formation wells, the well shall be located downhole no closer than 200 feet from the boundary or boundaries of the 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 a given quarter quarter section (or lots or parcels approximately equivalent thereto) unless exception is granted by the Director of the Oil and Gas Conservation Commission pursuant to application made for such exception.
IT IS FURTHER ORDERED, that all wells drilled to the Iles Formation shall be drilled only in connection with the drilling of Williams Fork Formation wells.
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.
ENTERED this 19th day of December, 2008, as of December 9, 2008.
CORRECTED this ________ day of December, 2008, as of December 9, 2008.
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
December 30, 2008