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, WELD COUNTY, COLORADO |
) ) ) ) ) ) )
|
CAUSE NO. 407
DOCKET NO. 161000447
TYPE: SPACING
ORDER NO. 407-1824 |
REPORT OF THE COMMISSION
The Commission heard this matter on October 24, 2016, at the Northeastern Junior College, Hayes Student Center Ballroom, 100 College Avenue, Sterling, Colorado, upon application for an order to establish an approximate 1,120-acre drilling and spacing unit for portions of Sections 25 and 26, Township 6 North, Range 67 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. 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 April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule.
5. On February 19, 1992 (amended August 20, 1993), the Commission entered Order No. 407-87 which, among other things, 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.
Township 6 North, Range 67 West, 6th P.M.
Section 25: All
Section 26: E˝; E˝W˝
Applicant states that the wells will be drilled from no more than two pads within the drilling and spacing unit, unless an exception is granted by the Director.
8. On October 3, 2016 (Supplemented October 11, 2016), 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 Hal Writer, Land Manager for Great Western, showed that both the mineral and surface interests in the Application Lands are owned in fee, and that Great Western owns a partial undivided leasehold ownership interest in the Application Lands.
10. Geoscience testimony and exhibits submitted in support of the Application by Willis Wilcoxon, Geologist for Great Western, showed the Codell Formation is present throughout the Application Lands and is approximately 20 to 22.5 feet thick, and the Niobrara Formation is present throughout the Application Lands and is approximately 309 to 312 feet thick.
11. Engineering testimony and exhibits submitted in support of the Application by Lewis S. Wandke, Senior Engineer at Petrotek Engineering Corporation, demonstrated that the hydrocarbons under the Application Lands would not be fully recovered without the application of horizontal well technology, that the estimated drainage for a 8,320’ horizontal Niobrara well is approximately 43 acres and for a 8,320’ horizontal Codell well is approximately 144 acres, and that the proposed 1,120-acre drilling and spacing unit, with the requested setbacks, and with the requested number of horizontal wells in the Codell and Niobrara Formations in the Application Lands, will promote efficient drainage, protect correlative rights, and prevent waste.
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. Great Western agreed to be bound by oral order of the Commission.
15. 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 1,120-acre drilling and spacing unit for portions of Sections 25 and 26, Township 6 North, Range 67 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 approximate 1,120-acre drilling and spacing unit for the below-described lands is hereby established, and up to 21 horizontal wells are hereby approved, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations:
Township 6 North, Range 67 West, 6th P.M.
Section 25: All
Section 26: E˝; E˝ W˝
2. The productive interval of the wellbore of each well shall 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 within the unit, unless an exception is granted by the Director.
3. The wells shall be drilled from no more than two well pads, 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 7th day of November 2016, as of October 24, 2016.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By: ____________________________________
Julie Murphy, Secretary