BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 407

 

DOCKET NO. 150100038

 

ORDER NO. 407-1213

 

REPORT OF THE COMMISSION

 

            The Commission heard this matter on January 26, 2015 at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to vacate Order No. 407-536 which established an approximate 640-acre drilling and spacing unit for Section 14, Township 5 North, Range 62 West, 6th P.M., and approved one horizontal well within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.         Apollo Operating, LLC  (Operator No. 10051) (“Apollo” or “Applicant”) 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, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule.

 

5.         On January 23, 2012, the Commission entered Order No. 407-536 which established an approximate 640-acre drilling and spacing unit, and approved one horizontal well within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.

 

6.         On November 17, 2014, Apollo, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116 C.R.S. for an order to vacate Order No. 407-536 which established an approximate 640-acre drilling and spacing unit for the below-described lands (“Application Lands”) and approved one  horizontal well within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and make the below-described lands (“Application Lands”) subject to Rule 318A:

 

Township 5 North, Range 62 West, 6th P.M.

Section 14:      All

 

7.         On January 5, 2015, Apollo, 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.

 

            8.         Land testimony and exhibits submitted in support of the Application by Jesse White, Manager for Apollo, showed that Apollo holds oil and gas leasehold interests and has a right to drill in the Application Lands.      The testimony further showed that no producing wells have been drilled on the Application Lands, that there are no pending or issued Applications for Permit to Drill covering the Application Lands, and that vacating Order No. 407-536 will facilitate the drilling of new horizontal wells on the Application Lands, will promote conservation, and ensure accurate accounting and efficient operation of the wells.   

 

9.         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.

 

10.       Apollo agreed to be bound by oral order of the Commission.

 

11.       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 vacate Order No. 407-536 which established an approximate 640-acre drilling and spacing unit for Section 14, Township 5 North, Range 62 West, 6th P.M., and approved one horizontal well within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         One approximate 640-acre drilling and spacing unit established by Order No. 407-536 for Section 14, Township 5 North, Range 62 West, 6th P.M., is hereby vacated, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:

 

Township 5 North, Range 62 West, 6th P.M.

Section 14:      All

 

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 _____ day of February, 2015, as of January 26, 2015.      

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By__________________________________

Jill Dorancy, Acting Secretary