BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF COLORADO
IN THE
MATTER OF THE PROMULGATION AND ) CAUSE NO. 407
ESTABLISHMENT
OF FIELD RULES TO GOVERN )
OPERATIONS
IN THE CODELL‑NIOBRARA SPACED) ORDER
NO. 407‑87
AREA,
ADAMS, BOULDER, JEFFERSON, LARIMER)
AND WELD
COUNTIES, COLORADO ) AMENDED
REPORT OF THE
COMMISSION
This cause came on for hearing
before the Commission on February 19, 1992, in Room 101, State Education
Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing, as
required by law on the verified application of Martin Exploration Management
Company and on the Commission's own motion for an order to extend the spaced
area of the Codell‑Niobrara Spaced Area as established by Order No. 407‑1
and subsequent orders by the addition of certain lands in Adams, Boulder,
Jefferson, Larimer and Weld Counties, Colorado.
FINDINGS
The Commission finds as follows:
1.
Martin Exploration Management Company 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.
4.
In Order No. 407‑1, the Commission established 80‑acre
drilling and spacing units for the production of oil and/or gas and associated
hydrocarbons from the Codell Formation.
Wells shall be located in the center of the 40‑acre tract or
quarter‑quarter section with a tolerance of 200 feet in any
direction. In Order Nos. 407‑10
and 407‑13, the Commission amended Order No. 407‑1 to include
production from the Niobrara Formation in certain lands and to allow the
downhole commingling of production from the Codell and Niobrara Formations.
5.
Testimony was heard by the Hearing Officer that indicates that a common
source of oil, gas and associated hydrocarbons Niobrara Formation underlies, in
addition to the area set forth in Order No. 407‑1 and subsequent orders,
the following described lands in Adams, Boulder and Weld Counties, Colorado, to‑wit:
Township 1 South, Range 67
West, 6th P.M.
Section 4: All
Township 1 South, Range 69
West, 6th P.M.
Section 1, 2 and
12: All
Township 1 North, Range 66
West, 6th P.M.
Sections 15, 16, 22, 28 and
29: All
Township 1 North, Range 67
West, 6th P.M.
Sections 2 and 6: All
Township 1 North, Range 68
West, 6th P.M.
Sections 6, 31, and
32: All
Township 1 North, Range 69
West, 6th P.M.
Sections 1 through
36: All
Township 2 North, Range 66
West, 6th P.M.
Sections 19 through
36: All
Township 2 North, Range 67
West, 6th P.M.
Sections 3, 13, 16, 20, and
36: All
Township 2 North, Range 68
West, 6th P.M.
Sections 12, 13, 24, 26, 27, and
31: All
Township 2 North, Range 69
West, 6th P.M.
Sections 14, 17, 28, 33 through
36: All
Township 3 North, Range 66
West, 6th P.M.
Sections 19, 30 and 32:
All
Township 3 North, Range 67
West, 6th P.M.
Sections 21 and 25: All
Township 3 North, Range 68
West, 6th P.M.
Section 14: All
6.
That upon the Commission's review evidence indicates that a common
source of oil, gas and associated hydrocarbons for the Niobrara Formation
underlies, in addition to the area set forth in Order No. 407‑1 and
subsequent orders, the following described lands in Adams, Boulder, Jefferson,
Larimer and Weld County, Colorado, to‑wit:
Township 1 South, Range 68
West, 6th P.M.
Section 2: SW1/4
Section 14: SE1/4
Section 15: E1/2 and NW1/4
Section 24: NW1/4
Township 1 South Ranges 69
West, 6th P.M.
Sections 3 through
11: All
Sections 13 through
36: All
Township 1 South 70 West,
6th P.M.
Sections 1 through
36: All
Township 2 South, Ranges 69 and
70 West, 6th P.M.
Sections 1 through
36: All
Township 1 North, Range 68
West, 6th P.M.
Sections 1 through
5: All
Sections 7 through
30: All
Sections 33 through
36: All
Township 1 North, Range 70
West, 6th P.M.
Sections 1 through
36: All
Township 2 North, Range 68
West, 6th P.M.
Sections 1 through
11: All
Sections 14 through
23: All
Section 25: All
Sections: 28 through
30: All
Sections 32 through
36: All
Township 2 North, Range 69
West, 6th P.M.
Sections 1 through
13: All
Sections 15 and 16: All
Sections 18 through
27: All
Sections 29 through
32: All
Township 2 North, Range 70
West, 6th P.M.
Sections 1-5: All
Sections 8 through
36: All
Township 3 North, Range 68
West, 6th P.M.
Sections 1 through
13: All
Sections 15 through
36: All
Township 3 North, Range 70
West, 6th P.M.
Sections 1, 12, 13, 21-28, and
33-36: All
Township 4 North, Range 68
West, 6th P.M.
Sections 1-3, 9-16, 21-29 and
32-36: All
Township 4 North, Range 69
West, 6th P.M.
Sections 2-11, 14-22, and
27-34: All
Township 5 North, Range 66
West, 6th P.M.
Sections 12, 13 and
36: All
Township 5 North, Range 68
West, 6th P.M.
Sections 1-16, 23-26 and
34-36: All
Township 5 North, Range 69
West, 6th P.M.
Sections 1-4, 9-16, 20-23, 26-29 and
31-35: All
Township 6 North, Range 68
West, 6th P.M.
Sections 1 through
36: All
Township 6 North, Range 69
West, 6th P.M.
Sections 1-4, 9-16, 21-28, and
33-36: All
7.
The existing locations, drilling and/or producing wells in the area
described in Findings 5 and 6 herein, should be the permitted wells for the
units upon which each is located.
8.
No objections to the application or to the Commission's motion were
received and the Hearing Officer recommended the application be approved based
upon the geological and engineering testimony presented at the administrative
hearing.
9.
At the time of administrative hearing the parties agreed to be bound by
the verbal order of the Commission in this matter.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that
the area set forth in Findings 5 and 6 herein shall be subject to the following
rules and regulations which shall apply hereafter to a well drilled, completed
or recompleted in the Codell‑Niobrara Formations, the Codell Formation,
and the Niobrara Formation, underlying lands described herein, in addition to
other applicable rules and regulations and orders of the Commission, if any,
heretofore adopted and not in conflict herewith.
Rule 1. Eighty (80) acre drilling and spacing units
shall be and the same is hereby established for the production of oil and/or
gas from the Codell‑Niobrara Formations underlying the following described
lands in Adams, Boulder, Jefferson, Larimer, and Weld Counties, Colorado, to‑wit:
Township 1 North, Ranges 64‑70
West, 6th P.M.
All Sections
Township 2 North, Ranges 64‑69
West, 6th P.M.
All Sections
Township 2 North, Ranges 70
West, 6th P.M.
Sections 1-5 and 8-36
Township 3 North, Ranges 64‑68
West, 6th P.M.
All Sections
Township 3 North, Range 70
West, 6th P.M.
Sections 1, 12, 13, 21‑28,
and 33‑36
Township 4 North, Ranges 64‑67
West, 6th P.M.
All sections, except SW1/4 Section 9, Township
4 North, Range 67 West
Township 4 North, Range 68
West, 6th P.M.
Sections 1‑3, 9‑16,
21‑29 and 32‑36
Township 4 North, Range 69
West, 6th P.M.
Sections 2‑11, 14‑22
and 27‑34
Township 5 North, Range 63
West, 6th P.M.
Sections 1‑20 and
30‑31
Township 5 North, Range 64
West, 6th P.M.
All Sections
Township 5 North, Range 65
West, 6th P.M.
Sections 2-36
Township 5 North, Range 66
West, 6th P.M.
Sections 1 and 2: S1/2,
3-36
Township 5 North, Range 68
West, 6th P.M.
Sections 1‑16, 23‑26
and 34‑36
Township 5 North, Range 67
West, 6th P.M.
All Sections
Township 5 North, Range 69
West, 6th P.M.
Sections 1‑4, 9‑16,
20‑23, 26‑29 and 31‑35
Township 6 North, Range 63
West, 6th P.M.
Sections 19‑36
Township 6 North, Range 64
West, 6th P.M.
All Sections
Township 6 North, Range 65
West, 6th P.M.
Sections 1‑18, 23‑26
and 31‑36
Township 6 North, Range 66
West, 6th P.M.
Sections 1‑14 Section 19: W1/2
Section 24: N1/2 Sections 30 and 31
Township 6 North, Ranges 67-68
West, 6th P.M.
All Sections
Township 6 North, Range 69
West, 6th P.M.
Sections 1‑4, 9‑16,
21‑28, and 33‑36
Township 1 South, Ranges 64‑67
West, 6th P.M.
All Sections
Township 1 South, Range 68
West, 6th P.M.
Section 2: SW1/4
Section 14: SE1/4
Section 15: E1/2 and NW1/4
Section 24: NW1/4
Township 1 South, Ranges 69‑70
West, 6th P.M.
All Sections
Township 2 South, Ranges 69‑70
West, 6th P.M.
All Sections
Rule 2. Eighty (80) acre drilling and spacing units
shall be and the same is hereby established for the production of oil and/or
gas from only the Codell Formation underlying the following described lands in
Boulder and Weld Counties, Colorado, to‑wit:
Township 3 North, Range 69
West, 6th P.M.
All Sections
Township 5 North, Range 65
West, 6th P.M.
Section 1
Rule 3. Eighty (80) acre drilling and spacing units
shall be and the same is hereby established for the production of oil and/or
gas from only the Niobrara Formation underlying the following described lands
in Larimer and Weld Counties, Colorado, to‑wit:
Township 5 North, Range 66
West, 6th P.M.
Sections 1 and 2: N1/2
Township 5 North, Range 68
West, 6th P.M.
Sections 17‑22: All
Rule 4. Said units and permitted well locations shall
be in accordance with the provisions of Order No. 407‑1.
Rule 5. Dual completion and downhole commingling
shall be allowed as to both oil and gas in the Codell and Niobrara Formations
in wells drilled, or to be drilled in the area described above in Rule 1.
The Commission takes notice that
subsequent orders to Order No. 407‑15 have allowed the segregation of
specific 80‑acre drilling and spacing units into 40‑acre drilling
and spacing units for production of oil, gas and associated hydrocarbons from
the Codell and Niobrara Formations.
IT IS FURTHER ORDERED, that the existing
well locations, drilling and/or producing wells in the area described in
Findings 5 and 6 herein, shall be the permitted well locations for the units
upon which they are located.
IT IS FURTHER ORDERED, that the
provisions contained in the above order shall become effective forthwith.
IT IS FURTHER ORDERED, that the
Commission expressly reserves its right, after notice and hearing, to alter,
amend or repeal any and/or all of the above orders.
ENTERED this day of , 1992, as of February 19, 1992.
AMENDED this day of , 1993.
OIL AND GAS
CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Patricia C. Beaver, Secretary
Dated at
Suite 380
1580
Logan Street
Denver,
Colorado 80203
August
23, 1993