BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER THE PROMULGATION AND                               )                    CAUSE NO. 133

ESTABLISHMENT OF FIELD RULES TO GOVERN                     )

OPERATIONS IN THE HIAWATHA WEST FIELD,                         )                    ORDER NO. 133-19

MOFFAT COUNTY, COLORADO                                                     )

 

REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission at 10:00 a.m. on December 2, 2002, in Suite 801, 1120 Lincoln Street, Denver, Colorado for an order to allow up to five (5) wells to be drilled and completed at the option of the operator for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations on certain lands in the Hiawatha West Field.

 

FINDINGS

 

   The Commission finds as follows:

 

   1.  Chevron USA, Inc. (“Chevron”), 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.  On June 23, 1959, the Commission entered Order No. 133-1 establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations for certain lands in the Hiawatha West Field, including the below-listed lands. 

 

Township 12 North, Range 100 West, 6th P.M.

Section 17: SW¼

Section 18: S½

Section 19: All

Section 20: S½

Section 29: NW¼  

 

Drilling and spacing units were designated in Order No. 133-1, including the following:

 

Township 12 North, Range 100 West, 6th P.M.

SW¼ of Section 17 and NW¼ of Section 20 (“Unit A”)

SW¼ of Section 18 and NW¼ of Section 19 (“Unit B”)

SE¼ of Section 18 and NE¼ of Section 19 (“Unit C”)

S½ of Section 19 (“Unit D”)

NW¼ of Section 29 and SW¼ of Section 20 (“Unit E”)

 

5.   On February 2, 1996, the Commission entered Order No. 133-11 which allowed up to two (2) wells to be drilled on the 320-acre drilling and spacing units consisting of the below listed lands:

 

Township 12 North, Range 100 West, 6th P.M.

SW¼ of Section 17 and NW¼ of Section 20 

 

6.   On July 24, 2000, the Commission entered Order No. 133-14 which allowed up to three (3) wells to be drilled and completed on each of the below described 320-acre drilling and spacing units:

 

Township 12 North, Range 100 West, 6th P.M

SW¼ of Section 18 and NW¼ of Section 19

S½ of Section 19

             

7.  On June 18, 2001, the Commission entered Order No. 133-18 which allowed up to four (4) wells to be drilled in each of the 320-acre drilling and spacing units described below:

 

   

 Township 12 North, Range 100 West, 6th P.M.

SE¼ of Section 18 and NE¼ of Section 19

S½ of Section 19

NW¼ of Section 29 and SW¼ of Section 20

 

8.  On October 2, 2002, Chevron, by its attorney, filed with the Commission a verified application for an order to allow up to five (5) wells to be drilled on the 320-acre drilling and spacing units consisting of the above-listed lands, for production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations.

 

Township 12 North, Range 100 West, 6th P.M.

SW¼ of Section 17 and NW¼ of Section 20

SW¼ of Section 18 and NW¼ of Section 19

SE¼ of Section 18 and NE¼ of Section 19

S½ of Section 19

NW¼ of Section 29 and SW¼ of Section 20

 

9.  Testimony and exhibits presented at the administrative hearing indicated that the acreage in the application area is leased 100% by Chevron and consists solely of federal minerals and federal surface.

 

10.  Geologic testimony and exhibits presented at the administrative hearing indicated that the Lewis Formation is continuous underlying the application lands, while the Fort Union and Wasatch Formations are discontinuous fluvial sands underlying the application lands.  Additional testimony indicated that the permeability in the Mesaverde and Lewis Formations is consistently tight and requires stimulation, and that the Wasatch Formation may contain up to sixteen (16) different sands within each well.  Further testimony indicated that all of the formations present in the area are productive, although not all of the formations produce in each well.

 

11.  Engineering testimony and exhibits presented at the administrative hearing indicated that the existing wells in the five (5) 320-acre drilling and spacing units are not effectively draining the units.  Currently there are four (4) wells in four (4) of the 320-acre drilling and spacing units and three (3) wells in one unit.  Further testimony indicated that the number of acres drained in the units ranges from 167 acres to 264 acres and that additional wells are necessary to efficiently and economically drain the 320-acre drilling and spacing units in the application area while preventing waste and protecting correlative rights.

 

12.  Additional wells are necessary to efficiently and economically drain the 320-acre drilling and spacing units in the application area while preventing waste and protecting correlative rights.

 

13.  At the time of the administrative hearing, Chevron USA, Inc. agreed to be bound by oral order of the Commission.

 

14.  Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order to allow up to five (5) wells to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations, on the 320-acre drilling and spacing units described above in Finding No. 8.

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that Order Nos. 133-11, 133-14 and 133-18 are hereby amended to allow a total of five (5) wells to be drilled and completed on the 320-acre drilling and spacing units described below; for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations:

 

Township 12 North, Range 100 West, 6th P.M.

SW¼ of Section 17 and NW¼ of Section 20

SW¼ of Section 18 and NW¼ of Section 19

SE¼ of Section 18 and NE¼ of Section 19

S½ of Section 19

NW¼ of Section 29 and SW¼ of Section 20

 

                        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 2002, as of December 2, 2002.

 

                                                                        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 5, 2002