BEFORE THE OIL
OF THE STATE OF
IN
THE MATTER OF THE PROMULGATION ) CAUSE
NO. 315
AND
ESTABLISHMENT OF FIELD RULES )
TO
GOVERN OPERATIONS IN THE
FIELD,
REPORT OF THE COMMISSION
This cause came on for
hearing before the Commission at 8:00 a.m. on October 2, 2007, in the Public
Hearing Room, Old Court House, 544 Rood Avenue, 2nd Floor, Grand Junction,
Colorado, for an order to allow the Allison 23-8 Well to be drilled at an
exception location 1975 feet FNL and 660 feet FEL in the SEĽ NEĽ of Section 23,
Township 1 South, Range 44 West, 6th P.M., for the production of gas and
associated hydrocarbons from the Niobrara Formation.
FINDINGS
The Commission finds as follows:
1. Rosetta Resources, Inc. (“Rosetta”), 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 pursuant to the
Oil and Gas Conservation Act.
4.
On August 22, 1978, corrected November 20, 1978, the Commission issued
Order No. 315-3, which among other things, established 160-acre drilling and
spacing units for certain lands including Section 23, Township 1 South, Range
44 West 6th P.M., for the production of gas and associated hydrocarbons from
the Niobrara Formation, with the permitted well to be located no closer than
900 feet from the boundaries of the quarter section upon which it is located.
5. On August 10, 2007, Rosetta, by its
attorneys, filed with the Commission a verified application for an order to
allow the Allison 23-8 Well to be drilled at an exception location 1975 feet
FNL and 660 feet FEL in the SEĽ NEĽ of Section 23, Township 1 South, Range 44
West, 6th P.M., for the production of gas and associated hydrocarbons from the Niobrara
Formation.
6. On
7. Testimony and exhibits submitted in support
of the application showed that the applicant proposes to drill the Allison 23-8
Well at the proposed exception location to optimize recovery of reserves from
the Niobrara Formation based upon geologic considerations.
8. Testimony and exhibits submitted in support
of the application showed that in order to prevent waste and protect
correlative rights of all owners in the area surrounding the proposed location,
it is reasonable and equitable to permit an exception location to allow the
drilling of a well in the described location.
Applicant also asserts that Rule 318.c. of the Rules and Regulations of
the Colorado Oil and Gas Conservation Commission provides for exception
locations when geologic, topographical or environmental conditions warrant a
variance from field rules.
9. Testimony and exhibits showed that waivers
were requested from all contiguous and cornering owners in lands toward whom
the well is proposed to be moved who are affected by the exception location. Waivers have not been obtained but no party
from whom a waiver is sought expressed an objection to the request.
10. The testimony and exhibits submitted indicate
that Rosetta has complied with the requirements of 318.c. and, in fact, the applicant
is also entitled to a variance under Rule 502.b. since waivers were requested,
but not obtained, by all parties. Additional
testimony indicated that nearly four (4) months has elapsed since sending the
request for waivers, without any objection from the parties to whom the
requests were sent.
11. The above-referenced testimony and exhibits
show that the proposed exception location will allow more efficient reservoir
drainage, will prevent waste, will assure a greater ultimate recovery of gas,
and will not violate correlative rights.
12. Rosetta Resources, Inc. agreed to be bound by
oral order of the Commission.
ORDER
NOW, THEREFORE IT IS
ORDERED, that the Allison 23-8 Well is hereby approved to be drilled at an
exception location 1975 feet FNL and 660 feet FEL in the SEĽ NEĽ of Section 23,
Township 1 South, Range 44 West, 6th P.M., for the production of gas and
associated hydrocarbons from the Niobrara 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.
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 October, 2007, as of
October 2, 2007.
OIL
AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
By____________________________________
Patricia
C. Beaver, Secretary
Dated
at
October
16, 2007