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 GAS

SPACED AREA, ADAMS COUNTY, COLORADO

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CAUSE NO.  232

 

ORDER NO. 232-177

 

REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on November 25, 1997, at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Timberline Energy Inc. for an order allowing a well to be drilled at an exception location 2,310 feet FSL and 1,650 feet FWL in the NE¼ SW¼ of Section 20, Township 2 South, Range 64 West, 6th  P.M., for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.

 

FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Timberline Energy Inc., 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.  In Cause No. 232, the Commission established 320-acre drilling and spacing units with said units to consist of the N½ and S½ or the E½ and W½ of a governmental section for production from the "J" Sand Formation and with the authorized well to be located in the NE¼ and the SW¼ of each section no closer than 990 feet from the boundaries of the quarter section.  By Order No. 232-20, the Commission authorized the drilling of a second well for each 320-acre drilling and spacing unit with the additional well to be located no closer than 990 feet from the boundaries of the quarter section upon which it is located, including Section 20, Township 2 South, Range 64 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 an exception to the permitted well location is necessary to prevent waste and recover additional reserves from the "J" Sand Formation in the W½ of Section 20, Township 2 South, Range 64 West, 6th P.M..

 

                        6. At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.

 

                        7  An order of the Commission should be entered allowing the Kalcevic No. 20-11A Well  to be drilled at an exception location 2,310 feet FSL and 1,650 feet FWL in the NE¼ SW¼ of Section 20, Township 2 South, Range 64 West, 6th  P.M., for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.

 

ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that the Kalcevic No. 20-11A Well shall be allowed to be drilled at an exception location 2,310 feet FSL and 1,650 feet FWL in the NE¼ SW¼ of Section 20, Township 2 South, Range 64 West, 6th  P.M., for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.

 

                        IT IS FURTHER ORDERED, that should a commercial well be completed at any 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                          day of December, 1997, as of November 25, 1997.

 

                                                                        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

August 1, 2018