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 CODELL AND NIOBRARA FORMATIONS, WATTENBERG COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 170100027
TYPE: ADDITIONAL WELLS
ORDER NO. 407-1874 |
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 approve a total of up to 17 horizontal wells within an approximate 640-acre drilling and spacing unit established by Order No. 407-833 for Section 11, Township 3 North, Range 68 West, 6th P.M., for the production of the oil, gas, and associated hydrocarbons from the Codell and Niobrara 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.
4. On February 19, 1992, the Commission entered Order No. 407-87 (amended August 20, 1993) 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 permitted well locations in accordance with the provisions of Order No. 407-1. Section 11, Township 3 North, Range 68 West, 6th P.M., is subject to this Order.
5. On July 29, 2013, the Commission entered Order No. 407-833 which, among other things, established an approximate 640-acre horizontal drilling and spacing unit for Section 11, Township 3 North, Range 68 West, 6th P.M., and approved up to 12 horizontal wells within the drilling and spacing unit for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation, with the treated interval of the wellbore to be located no closer than 460 feet from the unit boundaries and no closer than 150 feet from the treated interval of any other wellbore located in the unit, without exception being granted by the Director, and providing that Applicant may use its existing surface blanket bond to locate the wellpads for the proposed horizontal wells at a surface location outside the applicable GWA drilling window within the unit.
Township 3 North, Range 68 West, 6th P.M.
Section 11: All
Applicant states that any horizontal wells to be drilled under this Application will be drilled from no more than two multi-well pads, unless the Director grants an exception.
7. On January 9, 2017, 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.
8. Land testimony and exhibits submitted in support of the Application by Santiago Rodriguez, Senior Landman for Great Western, showed that Grizzly Petroleum Company, LLC holds oil and gas leasehold interests in the Application Lands, and that Great Western is authorized to operate Grizzly Petroleum’s interests and has a right to drill in the Application Lands.
9. Geoscience testimony and exhibits submitted in support of the Application by Willis Wilcoxon, Geologist for Great Western, showed the Niobrara Formation is present throughout the Application Lands, is approximately 262 to 272 feet thick, and is generally of uniform thickness throughout the Application Lands. The geoscience testimony further showed that the Codell Formation is present throughout the Application Lands, is approximately 21 to 23 feet thick, and is generally of uniform thickness throughout the Application Lands.
10. Engineering testimony and exhibits submitted in support of the Application by Lewis S. Wandke, Senior Engineer for Petrotek Engineering Corporation, showed that the drainage area for analog horizontal Niobrara Formation wells is estimated at 29 acres, the drainage area for analog horizontal Codell Formation wells is estimated at 80 acres, and an approximate 640-acre drilling and spacing unit is therefore not less than the maximum area than can be efficiently, economically and effectively drained by 17 horizontal wells producing oil, gas and associated hydrocarbons from the Niobrara and Codell Formations.
11. 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.
12. Great Western agreed to be bound by oral order of the Commission.
13. 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 approve a total of up to 17 horizontal wells within an approximate 640-acre drilling and spacing unit established by Order No. 407-833 for Section 11, Township 3 North, Range 68 West, 6th P.M., for the production of the oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. A total of up to 17 horizontal wells within an approximate 640-acre drilling and spacing unit established by Order No. 407-833 for the below described lands are hereby approved for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the productive interval of any horizontal 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 the unit, unless the Director grants an exception:
Township 3 North, Range 68 West, 6th P.M.
Section 11: All
2. All wells permitted under this Order shall be drilled from no more than two multi-well pads within the Application Lands, unless the Director grants an exception.
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 1st day of February, 2017, effective as of January 30, 2017.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By: ____________________________________
Julie Murphy, Secretary