BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF GREAT WESTERN OPERATING COMPANY, LLC FOR AN ORDER TO VACATE ORDER NO. 407-829 WHICH ESTABLISHED AN APPROXIMATE 640-ACRE DRILLING AND SPACING UNIT FOR SECTION 18, TOWNSHIP 1 SOUTH,  RANGE 67 WEST, 6TH P.M. FOR THE CODELL-NIOBRARA  FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 407

 

DOCKET NO. 1401-SP-2007

 

ORDER NO. 407-919

 

REPORT OF THE COMMISSION

 

            The Commission heard this matter on January 27, 2014, at the Centennial Building, 1313 Sherman Street, Room 318, Denver, Colorado, upon application for an order to vacate an approximate 640-acre drilling and spacing unit established by Order No. 407-829 for Section 18, Township 1 South, Range 67 West, 6th P.M., for the Codell-Niobrara Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.         Great Western Operating Company, LLC (“Great Western” 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, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. Section 18, Township 1 South, Range 67 West, 6th P.M. is subject to this Order for the Codell-Niobrara Formation.

 

5.         On July 29, 2013, the Commission entered Order No. 407-829 which, among other things, established an approximate 640-acre drilling and spacing unit, and approved up to twelve horizontal wells within the unit, for development and production of oil, gas and related hydrocarbons from the Codell-Niobrara Formation, Section 18, Township 1 South, Range 67 West, 6th P.M. is subject to this Order for the Codell-Niobrara Formation.

 

6.         On November 27, 2013, Great Western, 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. 407-829 which, among other things,  established an approximate 640-acre drilling and spacing unit for the below-described lands (“Application Lands”) for the Codell-Niobrara Formation and to revert the Application Lands to Rule 318.A or other Order of the Commission:

 

Township 1 South, Range 67 West, 6th P.M.

                        Section 18:      All

 

7.         On January 13, 2014, Great Western, 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 Steve R. Stacy, Senior Vice President of Land for Great Western, showed that vacating Order No. 407-529 will allow for greater flexibility in developing the Application Lands and better comport with its plans for development of the Application Lands.

 

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.       Great Western 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 vacate an approximate 640-acre drilling and spacing unit established by Order No. 407-829 for Section 18, Township 1 South, Range 67 West, 6th P.M., for the Codell-Niobrara Formation.

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         An approximate 640-acre drilling and spacing unit established by Order No. 407-829, for the below-described lands, is hereby vacated, for the Codell-Niobrara Formation.

 

Township 1 South, Range 67 West, 6th P.M.

                        Section 18:      All

 

2.         The Application Lands are hereby subject to Rule 318A. or other Order of the Commission.

 

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   21st   day of February, 2014, as of January 27, 2014.

           

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By____________________________________       

                                                                                    Robert J. Frick, Secretary