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 NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY,      COLORADO

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CAUSE NO. 407

 

DOCKET NO. 170100039

 

TYPE: POOLING

 

ORDER NO. 407-1876

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 vacate Order No. 407-1091, which order pooled all interests in an approximate 640-acre drilling and spacing unit established for Section 11, Township 3 North, Range 68 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation, effective as of the earlier of the date of the original pooling application, or the date that any of the costs specified in §34-60-116(7)(b), C.R.S., are first incurred for the drilling of Postle IC 11-302HN Well.

 

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 underlying certain lands, 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 for the Niobrara Formation.

 

5.         On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule.  Section 11, Township 3 North, Range 68 West, 6th P.M., is subject to this Rule for the Niobrara Formation.

 

6.         On July 29, 2013, the Commission entered Order No. 407-833 which established an approximate 640-acre drilling and spacing unit and approved up to 12 horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation. Section 11, Township 3 North, Range 68 West, 6th P.M., is subject to Order No. 407-833 for the Niobrara Formation.

 

7.         On July 28, 2014, the Commission entered Order No. 407-1091 which pooled any nonconsenting interests in the approximate 640-acre drilling and spacing unit established for Section 11, Township 3 North, Range 68 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from of the Niobrara Formation, effective as of the earlier of the date of the original pooling application, or the date that any of the costs specified in §34-60-116(7)(b), C.R.S., are first incurred for the drilling of Postle IC 11-302HN Well (API No. 05-123-38971).

 

8.         On December 1, 2016, Great Western, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to vacate Order No. 407-1091 which pooled all interests in an approximate 640-acre drilling and spacing unit established for the below-described lands (“Application Lands”), for the development and operation of the Niobrara Formations, and subjected any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Postle IC 11-302HN Well (API No. 05-123-38971) (“Well”):

 

Township 3 North, Range 68 West, 6th P.M.

Section 11:      All

 

9.         On January 9, 2017, 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.

 

10.       Land testimony and exhibits submitted in support of the Application by Santiago Rodriguez, Senior Landman for Great Western, showed that Great Western has abandoned the location for the Well and that the drilling permit for the Well has expired.  Land testimony further shows that Great Western is no longer seeking to pool any interests in the Well.

                                                 

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.

 

16.       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 vacate Order No. 407-1091, which order pooled all interests in an approximate 640-acre drilling and spacing unit established for Section 11, Township 3 North, Range 68 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation, effective as of the earlier of the date of the original pooling application, or the date that any of the costs specified in §34-60-116(7)(b), C.R.S., are first incurred for the drilling of Postle IC 11-302HN Well.

 

 

 

 

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, Order No. 407-1091 is hereby vacated.

 

2.         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.

 

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 2nd day of February, 2017, as of January 30, 2017.

           

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

By____________________________________

Julie Murphy, Secretary