BEFORE THE OIL AND
GAS CONSERVATION COMMISSION
OF THE
STATE OF
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
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
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
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
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
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
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
Patricia C. Beaver, Secretary
Dated at