BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 522
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE SOUTH LILLI FIELD, ) ORDER NO. 522-1
WELD COUNTY, COLORADO )
This cause came on for hearing before the Commission at 10:00 a.m. on December 3, 2001, at 1120 Lincoln Street, Denver, Colorado on the application of Walsh Production, Inc. for an order to remove the SW¼ NW¼ and SW¼ NE¼ of Section 13, Township 8 North, Range 59 West, 6th P.M. from the provisions of Order No. 459-2, and to establish certain 80-acre drilling and spacing units and designate certain wells for the production of oil and associated hydrocarbons from the “D” Sand Formation in Sections 13 and 24, Township 8 North, Range 59 West, 6th P.M.
The Commission finds as follows:
1. Walsh Production, Inc. (“Walsh”), as applicant herein, is an interested party in the subject matter of the above-referenced matter.
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. On March 21, 1988, the Commission issued Order No. 459-2 which established 80-acre drilling and spacing units for certain lands in the West Lilli Field for production of oil and associated hydrocarbons from the “D” Sand Formation, including the N½ of Section 13, Township 8 North, Range 59 West, 6th P.M.
5. On October 12, 2001, Walsh Production, Inc. by its attorney filed with the Commission a verified Application for an order to remove the SW¼ NW¼ and SW¼ NE¼ of said Section 13 from the provisions of Order No. 459-2 and to establish 80-acre drilling and spacing units as described below for the production of oil and associated hydrocarbons from the “D” Sand Formation in Sections 13 and 24, Township 8 North, Range 59 West, 6th P.M. Walsh proposes to designate the wells described below as the permitted wells for the 80-acre units, with the footages measured from the section lines of Section 13, with a 200 foot variance in any direction.
Unit Description Well Name and Location
Section 13: SW¼ NW¼ and NW¼ SW¼ Federal 12-13, 2600 feet FSL, 600 feet FWL
Section 13: SW¼ NE¼ and NW¼ SE¼ Federal 10-13, 2494 feet FSL, 1980 feet FEL
Section 13: E½ SW¼ Federal 11-13, 1450 feet FSL, 1980 feet FWL
Section 13: E½ SE¼ Federal 16-13, 1166 feet FSL, 812 feet FEL
Section 13: SW¼ SW¼ and Section 24: NW¼ NW¼ Federal 13-13, 200 feet FSL, 600 feet FWL
Section 13: SW¼ SE¼ and Section 24: NW¼ NE¼ Federal 15-13, 150 feet FSL, 2020 feet FEL
6. Testimony and exhibits presented at the administrative hearing showed the boundaries of the Lilli Unit, the Lilli Field, the West Lilli Field and the South Lilli area proposed to be spaced.
7. Testimony and exhibits presented at the administrative hearing indicated two wells have been drilled off pattern in Section 13 based on seismic data in an attempt to find “D” channel sand similar to the Sooner Field.
8. Testimony and exhibits presented at the administrative hearing indicated that the D1 Sand in the West Lilli Field is identical to the D1 Sand found in the South Lilli Field. Further testimony indicated that the drainage pattern for the wells in the South Lilli Field should therefore be the same as the drainage pattern in the West Lilli Field.
9. Testimony and exhibits presented at the administrative hearing describing current reservoir pressures indicated that a barrier exists between the West Lilli Field and the proposed South Lilli Field.
10. Testimony and exhibits presented at the administrative hearing indicated that 80-acres is not smaller than the maximum area that can be efficiently and economically drained by one well. Additional testimony indicated that approval of the application would protect correlative rights and prevent the waste of hydrocarbons.
11. Walsh agreed to be bound by oral order of the Commission.
12. Based on the verified application, the testimony presented at the administrative hearing and the Hearing Officer recommendation, the Commission should approve the application to remove the SW¼ NW¼ and SW¼ NE¼ of Section 13, Township 8 North, Range 59 West, 6th P.M. from the provisions of Order No. 459-2 and establish 80-acre drilling and spacing units with the footages measured from the section lines of Section 13 for the permitted wells described above in Finding No. 5, with a tolerance of 200 feet in any direction, for the production of oil and associated hydrocarbons from the “D” Sand Formation in Sections 13 and 24, Township 8 North, Range 59 West, 6th P.M.
ORDER
NOW, THEREFORE IT IS ORDERED, that the SW¼ NW¼ and SW¼ NE¼ of Section 13, Township 8 North, Range 59 West, 6th P.M. are hereby removed from the provisions of Order No. 459-2.
IT IS FURTHER ORDERED, that 80-acre drilling and spacing units are hereby established with the footages measured from the section lines of Section 13 for the permitted wells as described below, with a tolerance of 200 feet in any direction, for the production of oil and associated hydrocarbons from the “D” Sand Formation in Sections 13 and 24, Township 8 North, Range 59 West, 6th P.M.
Unit Description Well Name and Location
Section 13: SW¼ NW¼ and NW¼ SW¼ Federal 12-13, 2600 feet FSL, 600 feet FWL
Section 13: SW¼ NE¼ and NW¼ SE¼ Federal 10-13, 2494 feet FSL, 1980 feet FEL
Section 13: E½ SW¼ Federal 11-13, 1450 feet FSL, 1980 feet FWL
Section 13: E½ SE¼ Federal 16-13, 1166 feet FSL, 812 feet FEL
Section 13: SW¼ SW¼ and Section 24: NW¼ NW¼ Federal 13-13, 200 feet FSL, 600 feet FWL
Section 13: SW¼ SE¼ and Section 24: NW¼ NE¼ Federal 15-13, 150 feet FSL, 2020 feet FEL
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 December, 2001, as of December 3, 2001.
.
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
December 10, 2001