IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 232
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG GAS SPACED
ORDER NO. 232-223
AREA, WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on April 29,
1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver,
Colorado, after giving Notice of Hearing, as required by law on the verified
application of Bataa Oil, Inc., for an order to allow four (4) wells to be
drilled as third wells for production of gas and associated hydrocarbons from
the "J" Sand Formation, for certain 320-acre drilling and spacing units.
FINDINGS
The Commission finds as follows:
1. Bataa Oil, 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.
5. On April 23, 1998, Bataa Oil, Inc. filed with the Commission a partial
withdrawal of the application, requesting the removal of the wells located in
the NE¼ NW¼ of Section 18, Township 1 North, Range 67 West and in the NW¼ SE¼ of
Section 20, Township 1 North, Range 67 West from the application.
6. The Applicant proposes to drill the below-listed wells in the center of the
40-acre tract or quarter-quarter section with a tolerance of 200 feet in any
direction as third "J" Sand Formation wells for the 320-acre units as described.
Well Name Proposed Location 320-acre Drilling/Spacing Unit
Grant Brothers 32-11 SW¼ NE¼ Section 11-2N-68W N½
MDM 33-14 NW¼ SE¼ Section 14-2N-68W E½
7. Evidence submitted by the Applicant and reviewed by the Hearing Officer
indicates the original gas in place in the “J” Sand Formation in the NE¼ of
Section 11 is 2.3 BCF and the SE¼ of Section 14 is 2.8 BCF, and that the
estimated ultimate recovery from the existing “J” Sand Formation well in
Sections 11 and 14 will be 0.3 BCF which equates to a 16% recovery factor for
the NE¼ of Section 11 and a 14% recovery factor for the SE¼ of Section 14.
8. Bottom hole pressure tests for these two (2) wells will not be obtained.
9. The Applicant agrees to produce the "J" Sand Formation for six (6) months
prior to commingling with any other formation.
10. That in order to prevent waste, and protect the correlative rights,
additional wells are necessary to recover remaining "J" Sand Formation reserves.
11. The Applicant agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the application, having received no protests
and having been reviewed by the Hearing Officer who recommends approval of the
amended application, an order of the Commission should be entered amending Cause
No. 232, allowing the drilling and recompletion of an additional "J" Sand
Formation well for each of the 320-acre drilling and spacing units described in
Finding #6 to be located in the center of the 40-acre tract or quarter-quarter
section with a tolerance of 200 feet in any direction. Once drilled and
completed, these will be the third "J" Sand Formation wells for the 320-acre
drilling and spacing units.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Cause No. 232 is hereby amended to allow the
drilling of an additional "J" Sand Formation well for each of the 320-acre
drilling and spacing units in the below-listed lands to be located in the center
of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in
any direction.
Well Name Proposed Location 320-acre Drilling/Spacing Unit
Grant Brothers 32-11 SW¼ NE¼ Section 11-2N-68W N½
MDM 33-14 NW¼ SE¼ Section 14-2N-68W E½
IT IS FURTHER ORDERED, that the Applicant shall produce the "J" Sand Formation
for six (6) months prior to commingling with any other formation.
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 21st day of May, 1998, as of April 29, 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 May 21, 1998
(232-223)