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. 170700428
TYPE: EXCEPTION LOCATION
ORDER NO. 407-2114 |
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 amend Order No. 407-1955 to allow not less than 100 feet from the productive interval of another well within the unit, unless an exception is granted by the Director, for any of the allowed horizontal wells within the approximate 2,560-acre drilling and spacing unit established for Sections 31, 32, 33, and 34, Township 5 North, Range 66 West, 6th P.M., 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 May 1, 2017, the Commission entered Order No. 407-1955 which approved, among other things, an approximate 2,560-acre drilling and spacing unit for Sections 31, 32, 33 and 34, Township 5 North, Range 66 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations and to approve up to 26 new horizontal wells in the proposed approximate 2,560-acre drilling and spacing unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations. Order No. 407-1955 also allowed for interwell subsurface setbacks of “not less than 150 feet from the productive interval of another well within the unit”, unless an exception is granted by the Director.
Township 5 North, Range 66 West, 6th P.M.
Section 31: All
Section 32: All
Section 33: All
Section 34: All
6. On July 3, 2017 (Supplemented on July 12, 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.
7. Land testimony and exhibits submitted in support of the Application by Ryan Antonio, Land Manager for Noble, showed that Noble owns a majority leasehold interest in the Application Lands, that the mineral ownership is owned in fee, and that the treated perforation of the Wells within the Codell or Niobrara Formations will not be closer than 460 feet from the boundaries of the proposed unit (regardless of lease lines within the unit), and not less than 100 feet from the treated interval of another well within the unit, unless an exception is granted by the Director, and that the closest interwell setback will be 140’ as shown on the attached Property Location Plat, and that Noble has, or will obtain, a waiver to the 150’ requirements set forth in 317.r. and 317.s.
8. Engineering testimony and exhibits submitted in support of the Application by Hilary McKenna, Reservoir Engineer at Noble, demonstrated the average estimated drainage area normalized to a lateral length of 9490’ is 102 acres for the Niobrara Wells and 126 acres for Codell Wells, and that the current well plans have at least 140’ between TPZs to recover volumes between the heels of the wells going to the east and those going to the west, and that Noble will obtain a waiver from itself pursuant to Rule 317.r. and 317.s.
9. 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.
10. Noble 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 amend Order No. 407-1955 to allow not less than 100 feet from the productive interval of another well within the unit, unless an exception is granted by the Director, for any of the allowed horizontal wells within the approximate 2,560-acre drilling and spacing unit established for Sections 31, 32, 33, and 34, Township 5 North, Range 66 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. Order No. 407-1955 is hereby amended to allow not less than 100 feet from the productive interval of another well within the unit, unless an exception is granted by the Director, for any of the allowed horizontal wells within the approximate 2,560-acre drilling and spacing unit established for the below-described lands, for the production of oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations.
Township 5 North, Range 66 West, 6th P.M.
Section 31: All
Section 32: All
Section 33: All
Section 34: All
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 14th 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