BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE CODELL-NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 1409-SP-2108
ORDER NO. 407-1104 |
REPORT OF THE COMMISSION
The Commission heard this matter on September 15, 2014, at the offices of the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, CO, upon application for an order to: 1) vacate an approximate 320-acre drilling and spacing unit (“DSU #1”) established by Order No. 407-472 for Section 30, Township 6 North, Range 67 West, 6th P.M.; 2) modify Order No. 407-742 to reflect a corrected acreage of 450 acres for the drilling and spacing unit (“DSU #2”) established for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M.; 3) vacate Order No. 407-851 in its entirety; and 4) modify DSU #2 to allow only one horizontal well, the Raindance FD 19-21HN Well, within the approximate 450-acre drilling and spacing unit, for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation.
FINDINGS
The Commission finds as follows:
1. Great Western Operating Company, LLC (“Great Western” or “Applicant”), 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 February 19, 1992 (amended August 20, 1993), the Commission entered Order No. 407-87 which established 80-acre drilling and spacing units, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M. are subject to this Order for the Codell-Niobrara Formation
5. On January 7, 2013 (corrected June 27, 2013), Order No. 407-742 vacated the 80-acre drilling and spacing units established by Order No. 407-87, established two approximate 320-acre and 480-acre drilling and spacing units for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M. respectively, and approved up to four horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation. Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M. are subject to this Order for the Codell-Niobrara Formation.
6. On September 16, 2013, Order No. 407-851 approved up to 12 horizontal wells within the approximate 480-acre drilling and spacing unit established for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation. Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M. are subject to this Order for the Codell-Niobrara Formation.
7. On July 17, 2014, Great Western, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116 C.R.S. for an order to: 1) vacate an approximate 320-acre drilling and spacing unit (“DSU #1”) established by Order No. 407-472 for Section 30, Township 6 North, Range 67 West, 6th P.M.; 2) modify Order No. 407-742 to reflect a corrected acreage of 450 acres for the drilling and spacing unit (“DSU #2”) established for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M.; 3) vacate Order No. 407-851 in its entirety; and 4) modify DSU #2 to allow only one horizontal well, the Raindance FD 19-21HN Well (API No. 05-123-37633), within the approximate 450-acre drilling and spacing unit, for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation:
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Township 6 North, Range 67
West, 6th P.M. (“DSU #1” - Vacate) Township 6 North, Range 67
West, 6th P.M. (“DSU #2” - Modify) |
8. On September 2, 2014, Great Western, by its attorneys, filed with the Commission a written request to approve the Application based on the merits of the verified Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
9. Land testimony and exhibits submitted in support of the Application by Michael L. Tucker, Landman for Great Western, showed that Great Western holds oil and gas leasehold interests and has a right to drill in the Application Lands. Further testimony showed that Great Western’s development plans have changed such that development on a 320-acre basis is no longer appropriate for DSU #1 and no more than one well is necessary for the efficient of DSU #2.
10. The above-referenced testimony and exhibits show that granting the Application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of hydrocarbons, and will not violate correlative rights.
11. Great Western agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Officer review of the Application under Rule 511, the Commission should enter an order: 1) vacate an approximate 320-acre drilling and spacing unit (“DSU #1”) established by Order No. 407-472 for Section 30, Township 6 North, Range 67 West, 6th P.M.; 2) modify Order No. 407-742 to reflect a corrected acreage of 450 acres for the drilling and spacing unit (“DSU #2”) established for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M.; 3) vacate Order No. 407-851 in its entirety; and 4) modify DSU #2 to allow only one horizontal well, the Raindance FD 19-21HN Well, within the approximate 450-acre drilling and spacing unit, for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 320-acre drilling and spacing unit (“DSU #1”) established by Order No. 407-472 for Section 30, Township 6 North, Range 67 West, 6th P.M. is hereby vacated.
2. Order No. 407-851 is hereby vacated in its entirety.
3. Order No. 407-742 is hereby modified to reflect a corrected acreage of 450 acres for the drilling and spacing unit (“DSU #2”) established for Sections 19 and 30, Township 6 North, Range 67 West, 6th P.M.
4. The approximate 450-acre drilling and spacing unit (“DSU #2”) established for the below-described lands is hereby modified to allow only one horizontal well, the Raindance FD 19-21HN Well, within the unit, for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation.
Township 6
North, Range 67 West, 6th P.M. (“DSU #1” - Vacate)
Section 30: W½
Township 6
North, Range 67 West, 6th P.M. (“DSU #2” - Modify)
Section 19: SE¼
Section 30: E½
IT IS FURTHER ORDERED:
1. The provisions contained in the above order shall become effective immediately.
2. The Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
3. Under the State Administrative Procedure Act, the Commission considers this Order to be final agency action for purposes of judicial review within 35 days after the date this Order is mailed by the Commission.
4. An application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.
ENTERED this 22nd day of September, 2014, as of September 15, 2014.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary