BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF CHANGES TO THE ) CAUSE NO. 1
RULES AND REGULATIONS OF THE OIL )
AND GAS CONSERVATION COMMISSION ) ORDER NO. 1R-84
OF THE STATE OF COLORADO )
Pursuant to a hearing before the Oil and Gas Conservation Commission on April 29, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, the Oil and Gas Conservation Commission promulgated amendments to its Rules and Regulations to amend Rule 318A., as shown below:
Rule 318A. Greater Wattenberg Area Special well location rule.
a. The Greater Wattenberg Area ("GWA") is defined to include those lands from and including Townships 2 South to 7 North and Ranges 61 West to 69 West, 6th P.M. In GWA, operators may utilize the following described drilling locations to drill or twin a well, deepen a well, or recomplete a well and to commingle any or all of the Cretaceous Age formations from the base of the Dakota to the surface ("GWA wells"):
(1) a square with sides four hundred (400) feet in length, the center of which is the center of any quarter/quarter section; and,
(2) a square with sides eight hundred (800) feet in length, the center of which is the center of any quarter section.
b. Any GWA well in existence prior to the effective date of this rule, which is not located as described above, may also be utilized for deepening to or recompletion in any Cretaceous Age formation, and for the commingling of production therefrom.
c. Where an existing well cannot be utilized for deepening or recompletion, for reasons including, but not limited to, differing ownership or wellbore limitations, any new, twinned well shall be located as close to such existing well as is practicable, consistent with sound engineering practice.
d. This rule does not alter the size or configuration of drilling units for GWA wells in existence prior to its effective date. Where deemed necessary an operator for purposes of allocating production, such operator may allocate production to an expanded drilling unit with respect to a particular Cretaceous Age formation consistent with the provisions of this rule.
e. This rule shall not serve to bar the granting of relief to owners who file an application alleging abuse of their correlative rights to the extent that such owners can demonstrate that their opportunity to produce the Cretaceous Age formations from the drilling locations herein authorized does not provide an equal opportunity to obtain their just and equitable share of oil and gas from such formations.
f. Subject to Paragraph d. above, this rule supersedes all prior Commission drilling and spacing orders affecting the GWA wells. Well location exceptions to this rule shall be subject to the provisions of Rule 318.c.
Attached, as Exhibit A, is a statement giving the basis and purpose of the revisions and additions, and such statements are incorporated herein by reference.
IT IS FURTHER ORDERED, that the Commission, on its own motion, shall review the provisions and application of this rule within six (6) months, and thereafter within twelve (12) months of the effective date of this rule.
DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this 29th day of April , 1998.
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
April 29, 1998