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 CODELL AND NIOBRARA FORMATIONS, WATTENBERG FIELD, ADAMS COUNTY, COLORADO
|
) ) ) ) ) ) )
|
CAUSE NO. 407
DOCKET NO. 151200755
TYPE: SPACING
ORDER NO. 407-1611 |
REPORT OF THE COMMISSION
The Commission heard this matter on January 26, 2016, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver, Colorado, upon application for an order to establish an approximate 400-acre drilling and spacing unit for portions of Sections 3 and 10, Township 1 South, Range 67 West, 6th P.M., and approve up to 7 horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
FINDINGS
The Commission finds as follows:
1. PetroShare Corporation (Operator No. 10454) ("PetroShare" 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 October 8, 2015, PetroShare, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to establish an approximate 400-acre drilling and spacing unit for the below-described lands (“Application Lands”) and to approve up to 7 horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations, with the productive interval of the wellbore to be no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in such unit, unless an exception is granted by the Director:
Township 1 South, Range 67 West, 6th P.M.
Section 3: S½SE¼
Section 10: E½
6. On January 4, 2016, PetroShare, 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 Frederick Witsell, President of PetroShare, showed that PetroShare holds oil and gas leasehold interests and has a right to drill in the Application Lands.
8. Geologic testimony and exhibits submitted in support of the Application by Frederick Witsell, President of PetroShare, showed that the Niobrara and Codell Formations are present throughout the Application Lands, the Niobrara Formation is approximately 50 feet thick, and the Codell Formation is approximately 22 feet thick, and both are generally of uniform thickness throughout the Application Lands.
9. Engineering testimony and exhibits submitted in support of the Application by Barry Voigt, contract Reservoir Engineer for PetroShare, showed that the drainage area for analog horizontal Niobrara Formation wells are estimated at 56 acres and analog horizontal Codell Formation wells are estimated at 105 acres, and an approximate 400-acre drilling and spacing unit is therefore not less than the maximum area than can be efficiently, economically and effectively drained by 7 horizontal wells producing oil, gas and associated hydrocarbons from the Niobrara and Codell Formations.
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. PetroShare 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 to establish an approximate 400-acre drilling and spacing unit for portions of Sections 3 and 10, Township 1 South, Range 67 West, 6th P.M., and approve up to 7 horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 400-acre drilling and spacing unit for the below-described lands, is hereby established, and a total of up to 7 wells within the unit are hereby approved, for the production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations:
Township 1 South, Range 67 West, 6th P.M.
Section 3: S½SE¼
Section 10: E½
2. The productive interval of the wellbore will be no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in such unit, unless an exception is granted by the Director.
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, 2016, as of January 26, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By__________________________________
Julie Murphy, Secretary