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 AND NIOBRARA FORMATIONS, WATTENBERG FIELD, ADAMS COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 1412-AW-31
ORDER NO. 407-1159 |
REPORT OF THE COMMISSION
The Commission heard this matter on December 15, 2014, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to approve an additional 11 horizontal wells, for a total of up to 12 horizontal wells, within an approximate 640-acre drilling and spacing unit established by Order No. 407-997 for Section 19, Township 1 South, Range 66 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. Ward Petroleum Corporation (“Ward” 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 April 27, 1988, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. Section 19, Township 1 South, Range 66 West, 6th P.M. is subject to this Rule for the Codell and Niobrara Formations.
5. On April 28, 2014, the Commission entered Order 407-996 which established an approximate 640-acre drilling and spacing unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations and approved one horizontal well in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
6. On October 16, 2014, Ward, by its attorneys, filed with the Commission pursuant to §34-60-116, C.R.S., a verified application (“Application”) for an order to approve an additional 11 horizontal wells, for a total of up to 12 horizontal wells within an approximate 640-acre drilling and spacing unit established by Order No. 407-996 for the below-described lands (“Application Lands”) for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the productive interval of the wellbore to be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located within the unit, without exception granted by the Director:
Township 1 South, Range 66 West, 6th P.M.
Section 19: All
7. Applicant stated that the proposed wells shall be located on no more than two wellpads within the drilling and spacing unit, subject to Rule 318A.
8. On November 24, 2014, Ward, 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 Ben Schuessler, Contract Landman for Ward, showed that the Applicant is an owner with the right to drill wells in the Application Lands.
10. Applicant requests that the Commission take administrative notice of the geologic testimony and exhibits submitted in support of the Application by Paul Fears, Geologist for Carrizo, submitted in support of Order No. 407-996 which showed that the Codell and Niobrara Formations to be uniform in thickness and underlying the Application Lands.
11. Engineering testimony and exhibits submitted in support of the Application by Mark Jopling, Vice-President of Operations of Ward, showed that the drainage area for analogous horizontal Codell and Niobrara wells are estimated at 90 acres and 20 acres respectively, and up to 12 horizontal wells within an approximate 640-acre drilling and spacing unit are therefore necessary to effectively drain the Codell and Niobrara Formations in the Application Lands.
12. 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.
13. Ward agreed to be bound by oral order of the Commission.
14. 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 to approve an additional 11 horizontal wells, for a total of up to 12 horizontal wells, within an approximate 640-acre drilling and spacing unit established by Order No. 407-996 for Section 19, Township 1 South, Range 66 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. An additional 11 horizontal wells, for a total of up to 12 horizontal wells, within an approximate 640-acre drilling and spacing unit established by Order No. 407-996 for the below-described lands, are hereby approved, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations:
Township 1 South, Range 66 West, 6th P.M.
Section 19: All
2. The productive interval of the wellbore shall be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located within the unit, without exception granted by the Director.
3. The proposed wells shall be located on no more than two wellpads within the drilling and spacing unit, subject to Rule 318A.
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 8th day of January, 2015, as of December 15, 2014.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By__________________________________
Jill Dorancy, Acting Secretary