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. 170600389
TYPE: SPACING
ORDER NO. 407-2089
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REPORT OF THE COMMISSION
The Commission heard this matter on June 12, 2017, at the Rio Blanco County Courthouse, 555 Main Street, Meeker, Colorado, upon application for an order to vacate Order No. 407-1818 which established an approximate 640-acre drilling and spacing unit for Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
FINDINGS
The Commission finds as follows:
1. Great Western Operating Company, LLC (Operator No. 10110) (“Great Western” or “Applicant”) 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. Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., are subject to this Order for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
5. On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., are subject to this Rule for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
6. On October 24, 2016, the Commission entered Order No. 407-1818 which, among other things, established an approximate 640-acre drilling and spacing unit for portions of Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., and approved a total of up to nine horizontal wells within the unit for the production of oil, gas and associated hydrocarbons from the Niobrara and Codell Formations, providing that the productive interval of the wellbore will be located 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, and providing that the proposed wells shall be located on no more than one multi-well pad, unless the Director grants an exception.
7. On April 13, 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 No. 407-1818 which established an approximate 640-acre drilling and spacing unit for the below-described lands (“Application Lands”), for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations:
Township 5 North, Range 65 West, 6th P.M.
Section 26: N˝
Section 27: N˝
8. On May 22, 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 was submitted in support of the Application.
9. Land testimony submitted in support of the Application by Santiago Rodriguez, Senior Landman for Great Western, showed that Great Western owns leasehold interests or holds the right to operate on the Application Lands. Land testimony further showed that Great Western no longer has plans to develop the 640-acre drilling and spacing unit established by Order No. 407-1818, is withdrawing the Applications for Permits to Drill that it previously filed for the Application Lands, and desires to vacate the Order No. 407-1818.
10. Great Western agreed to be bound by oral order of the Commission.
11. 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 vacating Order No. 407-1818 which established an approximate 640-acre drilling and spacing unit for Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations.
ORDER
IT IS HEREBY ORDERED:
1. Order No. 407-1818, which established an approximate 640-acre drilling and spacing unit for Sections 26 and 27, Township 5 North, Range 65 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara and Codell Formations, is 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 21st day of June, 2017, as of June 12, 2017.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By__________________________________
Peter Gowen, Acting Secretary