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. 161000450
TYPE: POOLING
ORDER NO. 407-1872 |
REPORT OF THE COMMISSION
The Commission heard this matter on January 30, 2017, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to pool all interests in an approximate 1280-acre drilling and spacing unit established for Sections 1 and 2, Township 7 North, Range 66 West, 6th P.M., for the development and operation of the Niobrara and Codell Formations.
FINDINGS
The Commission finds as follows:
1. Great Western Operating Company, LLC (Operator No. 10110) (“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.
5. On August 25, 2016, amended November 4, 2016, Great Western, by its attorneys, filed a verified Application (“Application”) pursuant to §34-60-116, C.R.S., for an order to pool all interests in an approximate 1280-acre drilling and spacing unit established for the below-described lands (“Application Lands”), for the development and operation of the Niobrara and Codell Formations effective as of the date of the Amended Application, and providing that although Applicant is not seeking cost recovery pursuant to §34-60-116(7), C.R.S., Applicant has the right to seek retroactive cost recovery from non-consenting parties in compliance with Commission Rule 530 upon issuance of an order allowing for such cost recovery:
Township 7 North, Range 66 West, 6th P.M.
Section 1: All
Section 2: All
6. On October 3, 2016, 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. On October 21, 2016, Anadarko E&P Onshore LLC (“Anadarko”) filed a protest. On November 7, 2016, the Hearing Officer approved Anadarko’s request to withdraw its protest.
8. Land testimony and exhibits submitted in support of the Application by Hal Writer, Land Manager for Great Western, showed that showed that Great Western has been unable to effect the voluntary pooling of interests within the approximate 1280-acre drilling and spacing unit established for the Application Lands, and that based upon examination of relevant contracts and records, all owners of an oil and gas interest in the tracts to be pooled (who could be located by Great Western) received timely notice of the Application.
9. Applicant confirmed that Commission Rule 530.b. and c. do not apply as Applicant is not seeking cost recovery pursuant to §34-60-116(7), C.R.S., at this time.
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. Great Western agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified Application, the protest having been withdrawn, and based on the Hearing Officer review of the Application under Rule 511., the Commission should enter an order to pool all interests in an approximate 1280-acre drilling and spacing unit established for portions of Sections 1 and 2, Township 7 North, Range 66 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 an approximate 1280-acre drilling and spacing unit established for the below-described lands are hereby pooled, effective as of the date of the Amended Application, for the development and operation of the Niobrara and Codell Formations:
Township 7 North, Range 66 West, 6th P.M.
Section 1: All
Section 2: All
2. The production obtained from the drilling and 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 drilling and spacing unit; each owner of an interest in the drilling and spacing unit shall be entitled to receive its share of the production of the Well located on the drilling and spacing unit applicable to its interest in the drilling and spacing unit.
3. Applicant has the right to seek retroactive cost recovery from non-consenting parties pursuant to §34-60-116(7) in compliance with Commission Rule 530 upon issuance of an order allowing for such cost recovery.
4. 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 1st day of February, 2017, as of January 30, 2017.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Julie Murphy, Secretary