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 AND WELD COUNTIES, COLORADO

)

)

)

)

CAUSE NO. 232

 

ORDER NO. 232-20

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 21, 2979 at 9:00 a.m., in Room 318-A, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company for an order authorizing the drilling of an additional well on each 320-acre drilling and spacing unit in a portion of the Wattenberg Gas Spaced Area.

 

FINDINGS

 

The Commission finds as follows:

 

1.         Amoco Production Company, 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 November 17, 1970, the Commission issued Order No. 232-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying the Wattenberg Field. The units consist of the E½ and W½ or the N½ and S½ of each section with the permitted well located in the NE¼ and SW¼ of each section and no closer than 90 feet to the boundaries of the quarter section upon which it is located. Subsequent orders 232-2 and 232-3 added lands to the spaced area and allowed for exceptions to the permitted well locations under certain conditions and the spaced area became known as the Wattenberg Gas Spaced Area.

 

5.         Evidence presented at the hearing indicates that the "J" Sand reservoir is not uniform over the entire Wattenberg Spaced Area and the formation consists of sands of low permeability and porosity which does not allow complete drainage with the present pattern of that portion of the reservoir underlying the established drilling and spacing units in the following described area in Adams and Weld Counties, to-wit:

 

Weld County

 

 

Township 1 North, Range 65 West, 6th P.M.

 

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

 

 

Township 1 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 1 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 1 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 64 West, 6th P.M.

 

Sections

4

thru

9:

All

 

 

Sections

16

thru

21:

All

 

 

Sections

28

thru

33:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 65 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 64 West, 6th P.M.

 

Sections

4

thru

9:

All

 

 

Sections

16

thru

21:

All

 

 

Sections

28

thru

33:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 65 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 65 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 66 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 67 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

 

Adams County

 

 

 

 

 

 

Township 1 South, Range 67 West, 6th P.M.

 

Sections

1

thru

18:

All

 

 

6.         One well is insufficient to adequately drain the gas from that part of the "J" Sand reservoir underlying the drilling and spacing units as established by the orders in Cause No. 232 in the area described herein, and the drilling of an additional well on each unit is necessary to effectively and efficiently drain that part of the reservoir underlying said units and will result in a greater ultimate recovery of gas reserves.

 

7.         An additional well should be permitted, on each existing 320-acre drilling and spacing unit for the production of gas from the "J" Sand underlying the area described herein.  Said additional well should be located in the undrilled quarter section no closer than 990 feet to the boundaries of the quarter section upon which it is located.

 

8.         Since reservoir conditions are not uniform over the area described herein, the option to drill additional wells in each drilling and spacing unit should remain with the operator for each 320-acre unit as established by the orders in Cause No. 232, and the drilling of such additional wells will afford each operator the opportunity to produce, without waste, his just and equitable share from the reservoir and protect correlative rights.

 

9.         The other provisions of the orders in Cause No. 232 should remain in effect.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the provisions of the orders in Cause No. 2,32 pertaining to the permitted well locations for each 320-acre drilling and spacing unit for the production of gas from the "J" Sand, are hereby amended and the following shall apply hereafter to wells drilled, completed or re-completed in said "J" Sand underlying the lands herein described in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    A second well, in addition to the permitted well as provided for by the orders in Cause No. 232, is hereby authorized to be drilled on each 320-acre drilling, and spacing unit for the production of gas from the "J" Sand underlying the following described lands in a portion of the Wattenberg Gas Spaced Area, Adams and Weld Counties, Colorado, to-wit:

 

Weld County

 

Township 1 North, Range 65 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 1 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 1 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 1 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

 

Township 2 North, Range 64 West, 6th P.M.

 

Sections

4

thru

9:

All

 

 

Sections

16

thru

21:

All

 

 

Sections

28

thru

33:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 65 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 2 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 64 West, 6th P.M.

 

Sections

4

thru

9:

All

 

 

Sections

16

thru

21:

All

 

 

Sections

28

thru

33:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 65 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 66 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 67 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 3 North, Range 68 West, 6th P.M.

 

Sections

1

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 65 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 66 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

 

Township 4 North, Range 67 West, 6th P.M.

 

Sections

19

thru

36:

All

 

 

 

 

 

 

 

 

Adams County

 

 

 

 

 

 

Township 1 South, Range 67 West, 6th P.M.

 

Sections

1

thru

18:

All

 

 

Rule 2.    Said additional well shall be located in the undrilled quarter section of the unit and shall be no closer than 990 feet to the boundaries of the quarter section upon which it is located.  Exceptions to well location shall continue to apply as provided for in the orders in Cause No. 232.  Any well location already approved, and not in conformance with the spacing pattern shall be considered the permitted well for the quarter section upon which it is located.

IT IS FURTHER ORDERED, that the other provisions of the orders in Cause No. 232 shall remain in effect.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its rights after notice and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

 

ORDERED this 21st day of August, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary