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

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CAUSE NO. 407

 

DOCKET NO. 170300128

 

TYPE: POOLING

 

ORDER NO. 407-1910

REPORT OF THE COMMISSION

 

The Commission heard this matter on March 20, 2017, at the Larimer County Conference Center at The Ranch, First National Bank Building, 5280 Arena Circle, Loveland, Colorado, upon application for an order to vacate Order Nos. 407-1090, 407-1550, 407-1551, 407-1552, 407-1631, 407-1632, 407-1633, 407-1641, 407-1642, 407-1643, 407-1644, 407-1645, 407-1760, 407-1761, 407-1762, and 407-1763, which pooled all interests in various wellbore spacing units located within the Application Lands, for the development and operation of 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 July 28, 2014 (corrected October 6, 2015), the Commission entered Order No. 407-1090 which, among other things, pooled all interests in an approximate 480-acre wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation, and to subject any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., effective as of the earlier of the date of the Application, or the date that any of the costs specified in §34-60-116(7)(b), C.R.S., were first incurred for the drilling of the Kodak North FD 27-019HN Well (API No. 05-123-38908, re-named the Kodak North FD 28-002HN).

 

5.         On December 8, 2015, the Commission entered Order No. 407-1550 which, among other things, pooled all interests in an approximate 240-acre designated wellbore spacing unit established for portions of Sections 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 27-179HN Well (API No. 05-123-39344, re-named the Kodak North FD 28-162HN), for the development and operation of the Niobrara Formation.

 

6.         On December 8, 2015, the Commission entered Order No. 407-1551 which, among other things, pooled all interests in an approximate 480-acre designated wellbore spacing unit established for portions of Sections 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 27-179HC Well (API No. 05-123-39348, re-named the Kodak North FD 28-162HC), for the development and operation of the Codell Formation.

 

7.         On December 8, 2015, the Commission entered Order No. 407-1552 which, among other things, pooled all interests in an approximate 480-acre designated wellbore spacing unit established for portions of Sections 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 27-182HN Well (API No. 05-123-39345, re-named the Kodak North FD 28-199HN), for the development and operation of the Niobrara Formation.

 

8.         On January 26, 2016, the Commission entered Order No. 407-1631 which, among other things, pooled all interests in two approximate 480-acre designated horizontal wellbore spacing units established for portions of Section 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak South FD 27-299HN Well (API No. 05-123-40801, re-named the Kodak South FD 28-302HNX) and the Kodak South FD 27-339HN Well (API No. 05-123-40807, re-named the Kodak South FD 28-339HN), for the development and operation of the Niobrara Formation.

 

9.         On January 26, 2016, the Commission entered Order No. 407-1632 which, among other things, pooled all interests in two approximate 240-acre designated horizontal wellbore spacing units established for portions of Section 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak South FD 27-222HN Well (API No. 05-123-40805, re-named the Kodak South FD 28-222HN) and the Kodak South FD 27-259HC Well (API No. 05-123-40800, re-named the Kodak South FD 28-259HN), for the development and operation of the Niobrara and Codell Formations.

 

10.       On January 26, 2016, the Commission entered Order No. 407-1633 which, among other things, pooled all interests in two approximate 240-acre designated horizontal wellbore spacing units established for portions of Section 26 and 27, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak South FD 27-379HN Well (API No. 05-123-40821, re-named the Kodak South FD 28-379HN) and the Kodak South FD 27-339HC Well (API No. 05-123-40806, re-named the Kodak South FD 28-339HC), for the development and operation of the Niobrara and Codell Formations.

 

11.       On March 7, 2016, the Commission entered Order No. 407-1641 which, among other things, pooled all interests in two approximate 560-acre designated horizontal wellbore spacing units established for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak South FD 25-202HC Well (API No. 05-123-40798, re-named the Kodak South FE 25-201HC) and the Kodak South FD 25-239HN Well (API No. 05-123-40796, re-named the Kodak South FE 25-240HN), for the development and operation of the Niobrara and Codell Formations.

 

12.       On March 7, 2016, the Commission entered Order No. 407-1642 which, among other things, pooled all interests in three approximate 560-acre designated horizontal wellbore spacing units established for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak South FD 25-279HN Well (API No. 05-123-40804, re-named the Kodak South FE 25-280HNX), the Kodak South FD 25-282HC Well (API No. 05-123-40802, re-named the Kodak South FE 25-280HN), and the Kodak South FD 25-319HN Well (API No. 05-123-40799, re-named the Kodak South FE 25-320HC), for the development and operation of the Niobrara and Codell Formations. 

 

13.       On March 7, 2016, the Commission entered Order No. 407-1643 which, among other things, pooled all interests in an approximate 280-acre designated horizontal wellbore spacing unit established for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak South FD 25-362HN Well (API No. 05-123-40797, re-named the Kodak South FE 25-361HN), for the development and operation of the Niobrara Formation.

 

14.       On March 7, 2016, the Commission entered Order No. 407-1644 which, among other things, pooled all interests in an approximate 560-acre designated horizontal wellbore spacing unit established for portions of Sections 25, 26, 35 and 36, Township 6 North, Range 67 West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak South FD 25-399HN Well (API No. 05-123-40795, re-named the Kodak South FE 25-400HN), for the development and operation of the Niobrara Formation.

 

15.       On March 7, 2016, the Commission entered Order No. 407-1645 which, among other things, pooled all interests in an approximate 480-acre designated horizontal wellbore spacing unit established for portions of Sections 26, 27, 34 and 35, Township 6 North, Range 67 West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak South FD 27-382HN Well (API No. 05-123-40803, re-named the Kodak South FD 27-381HN), for the development and operation of the Niobrara Formation.

 

16.       On August 29, 2016, the Commission entered Order No. 407-1760 which, among other things, pooled all interests in an approximate 560-acre designated wellbore spacing unit for portions of Sections 23, 24, 25, and 26, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 25-039HC Well (API No. 05-123-39388, re-named the Kodak North FD 25-040HC), for the development and operation of the Codell Formation.

 

17.       On August 29, 2016, the Commission entered Order No. 407-1761 which, among other things, pooled all interests in an approximate 280-acre designated wellbore spacing unit for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 25-039HN Well (API No. 05-123-39386, re-named the Kodak North FD 25-040HN), for the development and operation of the Niobrara Formation.

 

18.       On August 29, 2016, the Commission entered Order No. 407-1762 which, among other things, pooled all interests in three approximate 560-acre designated wellbore spacing units for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 25-079HN Well (API No. 05-123-39342, re-named the Kodak North FD 25-080HN), the Kodak North FD 25-119HC Well (API No. 05-123-39387 re-named the Kodak North FD 25-120HC), and the Kodak North FD 25-122HN Well (API No. 05-123-39346, re-named the Kodak North FD 25-121HN), for the development and operation of the Codell and Niobrara Formations.

 

19.       On August 29, 2016, the Commission entered Order No. 407-1763 which, among other things, pooled all interests in an approximate 560-acre designated wellbore spacing unit for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak North FD 25-162HN Well (API No. 05-123-39343, re-named the Kodak North FD 25-161HN), for the development and operation of the Niobrara Formation.

 

20.       On October 24, 2016, the Commission entered Order No. 407-1824 which, among other things, established an approximate 1,120-acre drilling and spacing unit for the Application Lands in portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., and approved up to 21 horizontal wells within the new unit for the efficient and economic production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, providing that there will be no more than two new well pads in the unit, unless an exception is granted by the Director, and providing that the productive interval of each wellbore shall be no closer than 150 feet from the productive interval of any other wellbore producing from the Niobrara or Codell Formations and no closer than 460 feet from a unit boundary.

 

21.       On January 30, 2017, the Commission entered Order No. 407-1880 which modified the setbacks for the approximate 1,120-acre drilling and spacing unit established by Order No. 407-1824, for the production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations, such that the productive interval of any permitted well within the unit be no less than 460 feet from the northern, southern and western boundaries of the unit, and no less than 150 feet from the eastern boundary of the unit, without exception being granted by the Director.

 

22.       On January 19, 2017, Great Western, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to vacate Order Nos. 407-1090, 407-1550, 407-1551, 407-1552, 407-1631, 407-1632, 407-1633, 407-1641, 407-1642, 407-1643, 407-1644, 407-1645, 407-1760, 407-1761, 407-1762, and 407-1763, which pooled all interests in various wellbore spacing units located within the Application Lands described below, for the development and operation of the Codell and Niobrara Formations:

 

Township 6 North, Range 67 West, 6th P.M.

Section 22:      S˝S˝

Section 23:      S˝S˝ 

Section 24:      S˝S˝

Section 25:      All

Section 26:      All

Section 27:      All

Section 34:      N˝N˝

Section 35:      N˝N˝ 

Section 36:      N˝N˝ 

 

23.       On February 27, 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.

 

24.       Land testimony and an exhibit submitted in support of the Application by Michael Tucker, Senior Landman for Great Western, showed that Applicant is requesting to vacate the abovementioned Orders and is no longer seeking to pool any interests pursuant to the subject Orders.

 

25.       The above-referenced testimony and exhibit show that granting the Application will result in administrative clean-up of the COGCC records.

 

26.       Great Western agreed to be bound by oral order of the Commission.

 

27.       Based on the facts stated in the verified Application, and based on the Hearing Officer review of the Application under Rule 511, the Commission should enter an order vacate Order Nos. 407-1090, 407-1550, 407-1551, 407-1552, 407-1631, 407-1632, 407-1633, 407-1641, 407-1642, 407-1643, 407-1644, 407-1645, 407-1760, 407-1761, 407-1762, and 407-1763, which pooled all interests in various wellbore spacing units located within the Application Lands, for the development and operation of the Codell and Niobrara 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 Order Nos. 407-1090, 407-1550, 407-1551, 407-1552, 407-1631, 407-1632, 407-1633, 407-1641, 407-1642, 407-1643, 407-1644, 407-1645, 407-1760, 407-1761, 407-1762, and 407-1763 are hereby vacated.

 

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 27th day of March, 2017, as of March 20, 2017.

           

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

By____________________________________

Peter Gowen, Acting Secretary