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, FORT HAYS, CODELL, AND CARLILE FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 407 DOCKET NO. 190900586 TYPE: POOLING ORDER NO. 407-2932 CORRECTED

REPORT OF THE COMMISSION

The Commission heard this matter on September 25, 2019, at the Margaret Carpenter Recreation Center, 11151 Colorado Blvd, Thornton, Colorado, upon application for an order to pool all interests within an approximate 1,600-acre drilling and spacing unit established for the below-described lands (“Application Lands”), for the drilling of the Guttersen 0D25-772 Well (API No. 05-123-48627), the Guttersen 0D25-753 Well (API No. 05-123-48628), the Guttersen 0D25-781 Well (API No. 05-123-48630), the Guttersen 0D25-762 Well (API No. 05-123-48631), the Guttersen 0D25-724 Well (API No. 05-123-48634), the Guttersen 0D25-715 Well (API No. 05-123-48635), the Guttersen 0D25-743 Well (API No. 05-123-48636), and the Guttersen 0D25-734 Well (API No. 05-123-48637) (“Wells”), for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations:

Township 3 North, Range 64 West, 6^th P.M.

Section 13:      All

Section 24:      All

Section 25:      N½

FINDINGS

The Commission finds as follows:

1. Noble Energy, Inc. (Operator No. 100322) (“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.

5.         On October 29, 2018, the Commission entered Order No. 407-2605 which, among other things, established seven drilling and spacing units and authorized well density and setback requirements for several drilling and spacing units identified as DSU Nos. 1, 2, 3, 4, 5, 10, and 11, for the Niobrara, Fort Hays, Codell, and Carlile Formations underlying the Application Lands.  While Order No. 407-2605 is not applicable to the Application Lands, Order No. 407-2605 governs operations of development in other related drilling and spacing units that are included as part of the Comprehensive Development Plan established by Order No. 1-228.

6.         On October 29, 2018, the Commission entered Order No. 407-2624 which, among other things, established four drilling spacing units and authorized a total of up to 15 horizontal wells within each of several drilling and spacing units identified as DSU Nos. 6, 7, 8, and 9, for development of the Niobrara, Fort Hays, Codell, and Carlile Formations underlying the Application Lands underlying the Application Lands of the respective drilling and spacing units. As is pertinent to the Application, Order No. 407-2624 established an approximate 1,600-acre drilling and spacing unit, identified as DSU No. 7 within the Application, for the Application Lands and authorized the drilling of up to 15 horizontal wells within the unit for the Niobrara, Fort Hays, Codell, and Carlile Formations underlying the Application Lands.

7.         On June 27, 2019, which was at least 90 days before the Commission heard this matter, Noble filed a verified application (“Application”) pursuant to § 34-60-116, C.R.S., for an order to pool all interests in the Application Lands, for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations, for the drilling of the Wells.

8.         The Applicant filed with the Commission a written request to approve the Application based on the merits of the Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.

9.         Land testimony and exhibits submitted in support of the Application by Ryan D. Antonio, Land Manager for Noble, Land Manager for Noble, show that the Applicant owns, or has secured the consent of the owners of, more than 45% of the mineral interest to be pooled. In addition, the land testimony and exhibits show that there are no unleased mineral interests within the Application Lands and that all owners in the Application Lands received timely notice of the Application.

10.       The cost recovery provisions in Rule 530 and §34-60-116(7), C.R.S., do not apply because the Applicant is not seeking to recover costs for the Wells.

11.       Granting the Application is consistent with the protection of public health, safety, welfare, the environment, and wildlife resources.

12.       Noble agreed to be bound by oral order of the Commission.

13.       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 pool all interests in the Application Lands, for the drilling of the Wells, for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations.

ORDER

IT IS HEREBY ORDERED:

1.         Pursuant to the provisions of § 34-60-116, C.R.S., all interests in an approximate 1,600-acre drilling and spacing unit established for the Application Lands are hereby pooled, for the drilling of the Wells, for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations, effective as of the date the Application was filed.

2.         The production obtained from the drilling and spacing unit shall be allocated to each owner in the unit on the basis of the proportion that the number of acres in such tract bears to the total number of mineral acres within the drilling and spacing unit; each owner of an interest in the drilling and spacing unit shall be entitled to receive its share of the production of the Wells located on the drilling and spacing unit applicable to its interest in the drilling and spacing unit.

3.         A nonconsenting owner is immune from liability for costs arising from spills, releases, damage, or injury resulting from oil and gas operations on the drilling and spacing unit.

4.         The operator shall not use the surface owned by a nonconsenting owner without the nonconsenting owner’s permission.

5.         Nothing in this order is intended to conflict with §34-60-116, C.R.S. 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 3rd day of October, 2019, as of September 25, 2019

CORRECTED this 21st day of January, 2020, as of September 25, 2019.

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

By____________________________________

Mimi C. Larsen, Secretary