BEFORE THE ENERGY AND CARBON MANAGEMENT COMMISSION
OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE NIOBRARA, FORT HAYS, CODELL, AND CARLILE FORMATIONS, WATTENBERG FIELD, LARIMER COUNTY, COLORADO

) ) ) ) ) ) ) )

CAUSE NO. 407   DOCKET NO. 220700198   TYPE: OIL AND GAS DEVELOPMENT PLAN   ORDER NO. 407-3545

REPORT OF THE COMMISSION

 

The Commission heard this matter on November 29, 2023, at the Colorado Energy and Carbon Management Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to approve an approximate 1,685-acre Oil and Gas Development Plan, comprised of an approximate 13.4-acre Oil and Gas Location, for the drilling of 15 new horizontal wells to be developed from one multi-well pad on the below-described lands (“Application Lands”), for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations (the “CE OGDP”):

 

Surface Lands:

Township 5 North, Range 68 West, 6^th P.M.

Section 11:      SE¼NE¼      

 

CE Pad (Location ID 485676)

 

Mineral Development:

Township 5 North, Range 68 West, 6^th P.M. 
Section 2:        S½
Section 3:        E½SW¼, SE¼  
Section 10:      E½W½, E½
Section 11:      All

FINDINGS

 

The Commission finds as follows:

 

1.            MRG, LP (Operator No. 10792) (“MRG” 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.            Pursuant to C.R.S. § 34-60-106(2.5)(a), the Commission shall regulate oil and gas operations in a reasonable manner to protect and minimize adverse impacts to public health, safety, and welfare, the environment, and wildlife resources, and shall protect against adverse environmental impacts on any air, water, soil, or biological resource resulting from oil and gas operations.

 

5.            Rule 303.a of the Rules and Regulations of the Energy and Carbon Management Commission provides that prior to commencing Oil and Gas Operations at an Oil and Gas Location that meets the criteria of Rule 304.a, an Operator will have an approved Oil and Gas Development Plan.

 

6.            Rule 311.a provides that except as specified by Rule 314.b.(2), unless drilling operations commence within 3 years from the effective date of this Order, the Oil and Gas Development Plan will expire.

 

7.            Rule 401.a requires that a Well completion 2,500 feet or greater below the surface will be located not less than 600 feet from any lease line and not less than 1,200 feet from any other existing or permitted Well completion in the same common source of supply, unless authorized by order of the Commission or an exception under Rule 401.c is obtained.

 

8.            On July 27, 2022, amended October 12, 2022, MRG, by its attorneys, filed with the Commission a verified application (“Application”) pursuant to Rule 303.a and Rule 503.g.(1) for an order to approve the CE OGDP for the drilling of 15 new horizontal wells, to be developed from one multi-well pad for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations.

 

9.            With the CE OGDP Application, Applicant submitted a Form 2A, Oil and Gas Location Assessment (Form 2A) for construction of the CE Location (Location ID 485676) for the development of the Application Lands pursuant to Rule 303.a.(2) and Rule 304. (Document No. 403096386/Exhibit 1).

 

10.          With the CE OGDP Application, Applicant submitted a Form 2B, Cumulative Impact Data Identification (Form 2B), pursuant to Rule 303.a.(5). (Document No. 403099677/Exhibit 2).

 

11.          With the CE OGDP Application, Applicant submitted a Form 2C, Oil and Gas Development Plan Certification, pursuant to Rule 303.a.(7). (Document No. 403099680/Exhibit 3).

 

12.          With the CE OGDP Application, sworn written testimony and exhibits were submitted in support of the Application pursuant to Rule 505.

 

13.          With the CE OGDP Application, Applicant submitted an application for a drilling and spacing unit, approved pursuant to Rules 305 and 503.g.(2).

 

14.          On January 23, 2023, the City of Loveland and Larimer County filed petitions to the Application.

 

15.          On September 29, 2023, the City of Loveland withdrew its petition to the Application.

 

16.          On October 11, 2023, Larimer County withdrew its petition in lieu of providing a ten-minute public comment at the outset of the hearing.

 

17.          On November 20, 2023, the Director issued a recommendation that the Commission conditionally approve the proposed Oil and Gas Development Plan on the basis that the Oil and Gas Development Plan complies with all requirements of the Commission’s Rules, and protects and minimizes adverse impacts to public health safety, welfare, the environment, and wildlife resources. The Director’s Recommendation was posted on the Commission’s website and filed with the Hearings Unit.

 

18.          MRG agreed to be bound by oral order of the Commission.

 

19.          Based on the facts stated in the verified Application, all petitions having been resolved, and based on the Hearing Officer, Director, and Commission review of the Application under Rule 510, the Commission should enter an order approving the CE OGDP and associated Form 2A for the drilling of 15 new horizontal wells to be developed from one multi-well pad, for the development and operation of the Niobrara, Fort Hays, Codell, and Carlile Formations.   

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.            An Oil and Gas Development Plan is hereby approved for the Application Lands and 15 new horizontal wells are hereby authorized within the Application Lands, for the production of oil, gas, and associated hydrocarbons from the Niobrara, Fort Hays, Codell, and Carlile Formations.

 

2.            Applicant is subject to the findings made and approval of Order No. 407-3546, attached to this Order as Exhibit 4, which established one approximate 1,685-acre drilling and spacing unit for the Application Lands, and approved up to 15 new horizontal wells within the units, and was approved by the Commission on November 29, 2023.

 

3.            The Oil and Gas Location proposed by the CE Form 2A satisfies C.R.S. § 34-60-106(2.5)(a), and is hereby approved in accordance with the Oil and Gas Development Plan.

 

4.            The Commission’s approval of this Oil and Gas Development Plan is not an approval of any proposed Form 2.

 

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 22^nd day of December, 2023, as of November 29, 2023.

           

  ENERGY AND CARBON MANAGEMENT COMMISSION

  OF THE STATE OF COLORADO

 

 

 

  By___________________________________________

                                                                               Elias J. Thomas, Commission Secretary