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 NIOBRARA AND CODELL FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 150900468
ORDER NO. 407-1423
TYPE: POOLING CORRECTED |
REPORT OF THE COMMISSION
The Commission heard this matter on September 14, 2015, at the Western State Colorado University, Gunnison, Colorado, upon application for an order to pool all interests in three approximate 640-acre designated horizontal wellbore spacing units established for portions of Section 33, Township 6 North, Range 67 West, 6th P.M., for the development and operation of the Niobrara and Codell Formations.
FINDINGS
The Commission finds as follows:
1. Extraction Oil & Gas LLC (Operator No. 10459) (“Extraction” 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, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule.
5. On June 2, 2015, Extraction, by its attorneys, filed a verified Application (“Application”) pursuant to §34-60-116, C.R.S., for an order to pool all interests in three approximate 640-acre designated horizontal wellbore spacing units established for the below-described lands (“Application Lands”), for the development and operation of the Niobrara and Codell Formations, and to subject any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Frye Farms #9 Well (API No. 05-123-38128), the Frye Farms #10 Well (API No. 05-123-38132), and the Frye Farms #13 Well (API No. 05-123-34960) (“Subject Wells”):
Township 6 North, Range 67 West, 6th P.M.
Section 33: All
Wellbore Spacing Unit (“WSU”) Nos. 1-3
640 acres, more or less, Weld County, Colorado
6. On August 18, 2015, Applicant, 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.
7. Land testimony and exhibits submitted in support of the Application by Allyson Vistica, Land Manager for Extraction, showed that all mineral interest owners were notified of the Application.
8. Applicant confirmed that Commission Rule 530.b. and c. do not apply as there are no nonparticipating working interest owners or unleased mineral interest owners subject to the Application, and Applicant is not seeking cost recovery pursuant to §34-60-116(7), C.R.S., for the Subject 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. Extraction 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 enter an order to pool all interests in three approximate 640-acre designated horizontal wellbore spacing units established for Section 33, Township 6 North, Range 67 West, 6th P.M. for the development and operation of the Niobrara and Codell Formations.
ORDER
IT IS HEREBY ORDERED:
1. Pursuant
to the provisions of §34-60-116, C.R.S., as amended, of the Oil and Gas
Conservation Act, all interests in four three
approximate 400 to 480 640-acre designated horizontal wellbore
spacing units established for the
below-described lands are hereby pooled, for the development and operation of
the Niobrara Formation, effective as of the earlier of the date of the
Application, for the drilling of the Frye Farms #9 Well (API No. 05-123-38128), the
Frye Farms #10 Well (API No. 05-123-38132), and the Frye Farms #13 Well (API
No. 05-123-34960):
Township 6 North, Range 67 West, 6th P.M.
Section 33: All
Wellbore Spacing Unit (“WSU”) Nos. 1-3
640 acres, more or less, Weld County, Colorado
2. The production obtained from each designated horizontal wellbore spacing unit shall be allocated to each owner in the unit on the basis of the proportion that the number of acres in such tract bears to the total number of mineral acres within the designated horizontal wellbore spacing unit; each owner of an interest in the designated horizontal wellbore spacing unit shall be entitled to receive its share of the production of the Well located on the designated horizontal wellbore spacing unit applicable to its interest in the designated horizontal wellbore spacing unit.
3. Nothing in this order is intended to conflict with §34-60-116, C.R.S., as amended. Any conflict that may arise shall be resolved in favor of the statute.
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 September, 2015, as of September 14, 2015.
CORRECTED this 6th day of April, 2016, as of September 14, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Julie Murphy, Secretary