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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 PEORIA FIELD, ARAPAHOE COUNTY, COLORADO |
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CAUSE NO. 226
ORDER NO. 226-22 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on May 24, 2004 at 1:00 p.m. in the Community Room at City Hall, 1000 10th Street, Greeley, Colorado on the application of Tyler Rockies Exploration, Ltd. for an order to remove the W½ of Section 10, Township 5 South, Range 60 West, 6th P.M. from the provisions of Order No. 226-8 and to place the lands under Rule 318., providing there will be a tolerance of 200 feet in the location of each well on a forty-acre tract.
FINDINGS
The Commission finds as follows:
1. Tyler Rockies Exploration, Ltd. (“Tyler Rockies”), 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. On February 16, 1971, the Commission issued Order No. 226-8, which established 80-acre drilling and spacing units for the production of oil from the Muddy “J” Sand Formation. Subsequent orders removed certain lands from the provisions of the Orders in Cause No. 226 with the below-listed lands remaining subject to the Orders.
Township 4 South, Range 60 West, 6th P.M.
Section 13: All
Section 23: All
Township 4 South, Range 61 West, 6th P.M.
Sections 24 and 25: All
Section 36: All
Township 5 South, Range 60 West, 6th P.M.
Sections 3 through 6: All
Sections 8 through 10: All
Township 5 South, Range 61 West, 6th P.M.
Section 1: All
5. On April 5, 2004, Tyler Rockies, by its attorney filed with the Commission a verified Application for an order to remove the W½ of Section 10, Township 5 South, Range 60 West, 6th P.M. from the provisions of Order No. 226-8 and place the lands under the provisions of Rule 318., providing there will be a tolerance of 200 feet in the location of each well on a 40-acre tract to accommodate surface features and to provide sufficient flexibility to allow one (1) well for approximately every 40 acres.
6. Testimony and exhibits presented at the administrative hearing showed that there are three (3) wells producing in the Peoria Unit and the original wells were drilled on 80-acre drilling and spacing units.
7. Testimony and exhibits presented at the administrative hearing showed that the W½ W½ of Section 10 is located in Bijou Creek which is often filled with water. Additional testimony indicated that farm buildings and roads are located in the NW¼ of the W½ of Section 10, and that the 200 foot tolerance for locating wells is needed for flexibility to avoid these conditions.
8. Testimony and exhibits presented at the administrative hearing indicated that Peoria Field has produced 12.8 million barrels of oil and now under secondary recovery is producing less than 10 barrels per day from three (3) wells. Additional testimony indicated that the field was originally spaced on 320-acre units for production of gas, and later the spacing was changed to 80-acre spacing for the production of oil. Further testimony indicated that Section 10 is likely to not be connected to the Peoria Field complex.
9. That Tyler Rockies Exploration, Ltd. 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 having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to remove the W½ of Section 10, Township 5 South, Range 60 West, 6th P.M. from the provisions of Order No. 226-8 and place the lands under Rule 318., allowing a tolerance of 200 feet in the location of each well on a forty-acre tract to accommodate surface features and to provide sufficient flexibility to allow one (1) well for approximately every 40 acres.
ORDER
NOW, THEREFORE IT IS ORDERED, that Order No. 226-8 is hereby amended to remove the W½ of Section 10, Township 5 South, Range 60 West, 6th P.M. and place the lands under the Rules and Regulations of the Commission.
IT IS FURTHER ORDERED, that wells shall be located in accordance with Rule 318, allowing a tolerance of 200 feet in the location of each well on a forty-acre tract to accommodate surface features and to provide sufficient flexibility to allow one (1) well for approximately every 40 acres.
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 day of June, as of May 24, 2004
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
June 9, 2004