BEFORE THE OIL AND
GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE APPLICATION OF NOBLE ENERGY, INC. FOR AN ORDER TO VACATE ORDER NO. 407-480 IN SECTION 25, TOWNSHIP 6 NORTH, RANGE 63 WEST 6TH P.M. FOR THE NIOBRARA FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 1310-SP-1197
ORDER NO. 407-882 |
REPORT OF THE COMMISSION
The Commission heard this matter on October 28, 2013, at the Limon Community Center, 477 D Avenue, Limon, Colorado, upon application for an order to vacate Order No. 407-480, and establish that Rule 318A applies to the below described lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
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 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 and/or gas from the Codell-Niobrara Formation underlying certain lands, with the permitted well locations in accordance with the provisions of Order No. 407-1. Section 25, Township 6 North, Range 63 West, 6th P.M. is subject to this Order for the Codell-Niobrara Formation.
5. On April 27, 1998, the Commission adopted Rule 318A which, among other things, allowed certain drilling locations to be utilized to drill or twin a well, deepen a well or recomplete a well and to commingle any or all of the Cretaceous Age Formations from the base of the Dakota Formation to the surface. Rule 318A supersedes all prior Commission drilling and spacing orders affecting well location and density requirements of Greater Wattenberg Area wells. On December 5, 2005, Rule 318A was amended, among other things, to allow interior infill and boundary wells to be drilled and wellbore spacing units to be established. On August 8, 2011, Rule 318A was again amended, among other things, to address drilling of horizontal wells. Section 25, Township 6 North, Range 63 West, 6th P.M. is subject to this Order for the Niobrara Formation.
6. On September 19, 2011, the Commission entered Order No. 407-480 which established an approximate 640-acre wellbore spacing unit, approved up to eight horizontal wells in the unit, and approved a variance from Rule 318A.f. to authorize a total of nine producing completions. Section 25, Township 6 North, Range 63 West, 6th P.M. is subject to this Order for the Niobrara Formation.
7. On August 28, 2013, Noble, by its attorneys, filed with the Commission pursuant to §34-60-116 C.R.S., a verified application (“Application”) for an order to vacate Order No. 407-480, and establish that Rule 318A applies to the below described lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:
Township 6 North, Range 63 West, 6th P.M.
Section 25: All
Applicant stated that ownership is common in the Application Lands and that Order No. 407-480, which was established prior to the 2011 amendments to Rule 318A pertaining to horizontal wells, arbitrarily limited the number of horizontal wells that may be drilled in the Application Lands and such limits impeded effective hydrocarbon production in the Application Lands.
8. On October 15, 2013, 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.
9. Land testimony and exhibits submitted in support of the Application by Joseph H. Lorenzo, Land Manager for Noble, showed he Application Lands were subject to Rule 318A, which effectively superseded Order No. 407-480.
10. COGCC permitting records show there were no wells permitted under Order No. 407-480.
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, having received no protests, and based on the Hearing Officer review of the Application under Rule 511, the Commission should enter an order to vacate Order No. 407-480, and establish that Rule 318A applies to the below described lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
IT IS HEREBY ORDERED:
1. Order No. 407-480 (dated September 19, 2011) is hereby vacated.
2. Rule 318A applies to the below-described lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:
Township 6 North, Range 63 West, 6th P.M.
Section 25: All
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 30 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 8th day of November, 2013, as of October 28, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary