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 FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 170500290
TYPE: SPACING
ORDER NO. 407-2101 |
REPORT OF THE COMMISSION
The Commission heard this matter on July 24, 2017, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver, Colorado, upon application for an order to establish an approximate 1,280-acre drilling and spacing unit for Sections 15 and 16, Township 7 North, Range 64 West, 6th P.M., and approve up to 10 horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. Noble Energy, Inc. (“Noble” 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 April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The Application Lands are subject to this Rule for the Niobrara and Codell Formations.
Township 7 North, Range 64 West, 6th P.M.
Section 15: All
Section 16: All
6. Applicant states that the wells permitted under this Order shall be drilled from no more than three new well pads in the unit or adjacent thereto, unless an exception is granted by the Director.
7. On or before July 3, 2017, Noble, 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 Ryan Antonio, Land Manager for Noble, showed that both the mineral and surface interests in the Application Lands are owned in fee, and that Noble has the authority to operate 100% of the leasehold interest in the Application Lands.
9. Geoscience testimony and exhibits submitted in support of the Application by Heather LaReau, Senior Geologist for Noble, showed the Codell Formation is present throughout the Application Lands and is approximately 14 - 16 feet thick, and the Niobrara Formation is present throughout the Application Lands and is approximately 245 feet thick.
10. Engineering testimony and exhibits submitted in support of the Application by Hilary McKenna, Reservoir Engineer at Noble, demonstrated that the hydrocarbons under the Application Lands would not be fully recovered without horizontal drilling, that the average estimated drainage area normalized to a lateral length of 9490’ is 89 acres for the Niobrara wells and 129 acres for Codell wells, and that the proposed drilling and spacing unit, with the requested setbacks, and the requested number of horizontal wells in the Codell and Niobrara Formations in the Application Lands, will promote efficient drainage, protect correlative rights, and prevent waste.
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. Noble agreed to be bound by oral order of the Commission.
13. 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 to establish an approximate 1,280-acre drilling and spacing unit for Sections 15 and 16, Township 7 North, Range 64 West, 6th P.M., and approve up to 10 horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 1,280-acre drilling and spacing unit is hereby established for the below-described lands, and up to ten new horizontal wells are hereby approved within the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the productive interval of each proposed horizontal well shall be no closer than 460 feet from the boundaries of the unit, and no closer than 150 feet from the productive interval of another well producing from the same supply within the unit, unless an exception is granted by the Director:
Township 7 North, Range 64 West, 6th P.M.
Section 15: All
Section 16: All
2. The wells shall be drilled from no more than two wellpads within the unit, or adjacent thereto, unless an exception is granted by the Director.
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 16th day of August, 2017, effective as of July 24, 2017.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By: ____________________________________
James Rouse, Acting Secretary