IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 499
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG FIELD,
ORDER NO. 499-54
WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on March 31,
1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver,
Colorado, after giving Notice of Hearing, as required by law on the verified
application of North American Resources Company (NARCO) for an order to allow
the Chapin No. 33-4 Well, to be drilled at a location in the NW¼ SE¼ of Section
4, Township 1 North, Range 65 West, 6th P.M., located no closer than 990 feet
from any quarter section line, as an additional well for production from the
Dakota Formation for the 320-acre drilling and spacing unit consisting of the S½
of said Section 4.
FINDINGS
The Commission finds as follows:
1. North American Resources Company (NARCO), 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. 499-1, the Commission established 320-acre drilling and spacing
units for the production of oil, gas and associated hydrocarbons from the Dakota
Formation in certain lands, with the 320-acre drilling and spacing units to be
identical to those previously established for the "J" Sand Formation under Cause
No. 232, with the permitted wells to be located in the NW¼ and the SE¼ of the
section and no closer than 990 feet from the boundaries of the quarter section.
In Order Nos. 499-15, 232-89, 407-125, 493-22 and 496-3, the Commission
established 320-acre drilling and spacing units for certain lands previously not
spaced in the lands covered by Cause No. 232, for production from the Dakota
Formation to allow the recompletion and downhole commingling of production from
the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations, including
Section 4, Township 1 North, Range 65 West, 6th P.M.
5. Testimony and evidence was presented at the administrative hearing indicating
that the recoverable gas in the 320-acre drilling and spacing unit for the
application area is 2.3 BCF and that the estimated ultimate recovery from the
existing Dakota Formation well is 0.7 BCF which equates to a 27.8% recovery
factor. A drainage area of 114 acres is calculated for the existing Dakota
Formation well in the 320-acre drilling and spacing unit.
6. Testimony and evidence was also presented to show original gas in place
values, estimated ultimate recoveries, and drainage radii for Dakota Formation
wells in the area. These results indicate a single well does not efficiently
drain the 320-acre drilling and spacing unit for the Dakota Formation in this
area
7. That in order to prevent waste and protect the correlative rights, an
additional well is necessary to recover remaining Dakota Formation reserves.
8. At the time of the administrative hearing, the Applicant agreed to be bound
by oral order of the Commission.
9. Based on the facts stated in the application, having received no protests and
having been heard by the Hearing Officer who recommends approval of the
application, an order of the Commission should be entered amending Order Nos.
499-1 and 232-89, allowing the Chapin No. 33-4 Well to be drilled at a location
in the NW¼ SE¼ of Section 4, Township 1 North, Range 65 West, 6th P.M., located
no closer than 990 feet from any quarter section line, as an additional well for
production from the Dakota Formation for the 320-acre drilling and spacing unit
consisting of the S½ of said Section 4.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 499-1 and 232-89 are hereby
amended, to allow the Chapin No. 33-4 Well, to be drilled at a location in the
NW¼ SE¼ of Section 4, Township 1 North, Range 65 West, 6th P.M., located no
closer than 990 feet from any quarter section line, as an additional well for
production from the Dakota Formation for the 320-acre drilling and spacing unit
consisting of the S½ of said Section 4.
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 9th day of April, 1998, as of March 31, 1998.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801, 1120 Lincoln Street, Denver, Colorado 80203 April 10, 1998
(499-54)