IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 316
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE SHOUT FIELD,
ORDER NO. 316-7
YUMA COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Hearing Officers at 10:00 a.m. on
January 7, 2002 in Room 201, Greeley Recreation Center, 651 10th Avenue,
Greeley, Colorado on the application of Williams Production RMT Company for an
order to amend Order Nos. 316-3 and 316-5 to allow any well drilled as the
initial well in a 160-acre drilling and spacing unit to be located no closer
than 560 feet from the outer boundaries of the 160-acre drilling and spacing
unit for certain lands in the Shout Field.
FINDINGS
The Commission finds as follows:
1. Williams Production RMT 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 January 17, 1977, the Commission issued Order No. 316-1, which established
640-acre drilling and spacing units for the production of gas and associated
hydrocarbons from the Niobrara Formation with the permitted well to be located
no closer than 990 feet from the unit boundary underlying certain lands in the
Shout Field. The spaced area was extended by Order No. 316-2 issued December 15,
1977. By Order No. 316-3, dated August 22, 1978 and upheld by Order No. 316-4
dated August 17, 1981, the size of the drilling and spacing units within the
spaced area was reduced to 160-acres with the permitted well to be located no
closer than 900 feet from the unit boundaries for the below-listed lands:
Township 2 North, Range 46 West, 6th P.M.
Sections 6, 7 and 18: All
Township 2 North, Range 47 West, 6th P.M.
Sections 1 thru 5: All
Sections 8 thru 14: All
Township 3 North, Range 47 West, 6th P.M.
Sections 25 thru 28: All
Sections 33 thru 36: All
5. On June 4, 1999, the Commission issued Order No. 316-5 which allowed an
additional well to be drilled and completed in Sections 33 and 34, Township 3
North, Range 47 West, 6th P.M. On October 29, 2001, the Commission issued Order
No. 316-6 which allowed additional wells to be drilled and completed in the
below-listed lands and allowed any well drilled as the initial well in a
160-acre drilling and spacing unit to be located no closer than 560 feet from
the outer boundaries of the 160-acre drilling and spacing unit:
Township 2 North, Range 46 West, 6th P.M.
Section 7: All
Township 2 North, Range 47 West, 6th P.M.
Sections 3 and 4: All
Section 12: All
Township 3 North, Range 47 West, 6th P.M.
Sections 27 and 28: All
Section 35: All
6. On November 19, 2001, Williams Production RMT Company, by its attorney filed
with the Commission a verified Application for an order to amend Order Nos.
316-3 and 316-5 to allow any well drilled as the initial well in a 160-acre
drilling and spacing unit to be located no closer than 560 feet from the outer
boundaries of the 160-acre drilling and spacing unit for the below-listed lands,
and to allow the Director authority to grant an exception location to the
permitted well location without prior notice or hearing upon an adequate showing
by the operator that topography makes it unreasonable to drill a well within a
560 feet setback, but no closer than 380 feet from the boundary of the drilling
and spacing unit.
Township 2 North, Range 46 West, 6th P.M.
Sections 6 and 18: All
Township 2 North, Range 47 West, 6th P.M.
Sections 1 and 2: All
Section 5: All
Sections 8 thru 11: All
Sections 13 and 14: All
Township 3 North, Range 47 West, 6th P.M.
Sections 25 and 26: All
Sections 33 and 34: All
Section 36: All
7. No protests were filed on the Application and an administrative hearing was
held. At the time of the administrative hearing Williams withdrew from the
application the request to allow the Director authority to grant an exception
location no closer than 380 feet from the boundary of the drilling and spacing
unit without prior notice and hearing.
8. Testimony presented at the administrative hearing indicated that a change in
well location setbacks is necessary to allow flexibility in locating wells and
optimizing drainage.
9. At the time of the administrative hearing, Williams Production RMT Company
agreed to be bound by oral order of the Commission.
10. The Commission should enter an order to allow any well drilled as the
initial well in the 160-acre drilling and spacing units described above in
Finding No. 6 to be located no closer than 560 feet from the outer boundaries of
the 160-acre drilling and spacing unit.
ORDER
NOW, THEREFORE IT IS ORDERED, that Order Nos. 316-3 and 316-5 are hereby amended
to allow any well drilled as the initial well in a 160-acre drilling and spacing
unit to be located no closer than 560 feet from the outer boundaries of the
160-acre drilling and spacing unit for the below-listed lands:
Township 2 North, Range 46 West, 6th P.M.
Sections 6 and 18: All
Township 2 North, Range 47 West, 6th P.M.
Sections 1 and 2: All
Section 5: All
Sections 8 thru 11: All
Sections 13 and 14: All
Township 3 North, Range 47 West, 6th P.M.
Sections 25 and 26: All
Sections 33 and 34: All
Section 36: All
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 10th day of January, 2002, as of January 7, 2002.
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 January 10, 2002
(316-7)