BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WATTENBERG FIELD, AND THE WATTENBERG GAS SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NOS. 499 and 232

 

ORDER NOS.   499-22 and 232-167

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 16, 1996, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Amoco Production Company for an order to allow the Cullen C. Odenbaugh No. 1 Well, originally drilled for production of gas from the "J" Sand Formation and deepened to the Dakota Formation, to be produced from the Dakota Formation as an additional well for the 320-acre drilling and spacing unit consisting of the S1/2 of Section 12, Township 3 North, Range 67 West, 6th P.M.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Amoco Production Company. as applicant herein, is an interested parties 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.      In Order No. 499-1, the Commission established 320-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Dakota Formation in certain lands, with the 320-acre drilling and spacing units to be identical to those previously established for the "J" Sand Formation under Cause No. 232, with the permitted wells to be located in the NW1/4 and the SE1/4 of the section and no closer than 990 feet from the boundaries of the quarter section, including Section 12, Township 3 North, Range 67 West, 6th P.M.

 

5.      This matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at the administrative hearing that 320-acres is not less than the area that could be efficiently and economically drained by one well and that waste would occur if an additional well was not allowed to be produced on the 320-acre unit.

 

6.      Based on the facts stated in the application, having received no protests to the application and having been heard by the Hearing officer who recommends approval, the Commission should enter an order allowing the Cullen C. Odenbaugh No. 1 Well, originally drilled for production of gas from the "J" Sand Formation and deepened to the Dakota Formation, to be produced from the Dakota Formation as an additional well for the 320-acre drilling and spacing unit consisting of the S1/2 of Section 12, Township 3 North, Range 67 West, 6th P.M.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the Cullen C. Odenbaugh No. 1 Well, originally drilled for production of gas from the "J" Sand Formation and deepened to the Dakota Formation, shall be approved for production from the Dakota Formation as an additional well for the 320-acre drilling and spacing unit consisting of the S1/2 of Section 12, Township 3 North, Range 67 West, 6th P.M.

 

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

 

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.

 

ENTERED this 4th day of November, 1996, as of October 16, 1996.

 

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

November 4, 1996