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. 133-23

MOFFAT COUNTY, COLORADO                                                        )

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 10:00 a.m. on January 5, 2004, in Suite 801, 1120 Lincoln Street, Denver, Colorado for an order to allow the drilling of the Lion Government #14-26 Well at an exception location 448 feet FSL and 1187 feet FWL in Section 26, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch and Fort Union-Lance-Lewis Formations.

 

FINDINGS

 

The Commission finds as follows:

 

1.  Ensign Operating Company (“Ensign”) 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 issued 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 the below-listed lands, with the permitted well to be located no closer than 660 feet from the boundaries of the drilling unit and the wells previously drilled and capable of producing shall be the permitted wells for the units on which they are located.

 

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

Section 17:  Lots 3 through 6

Section 18:  Lots 5 through 12

Section 19:  All

Section 20: 

Section 29:  NW¼

Section 30:  All

 

Township 12 North, Range 101 West, 6th P.M.

Sections 13 and 14:  Lots 1 through 8

Section 15:  Lots 1, 2, 7, and 8

Section 22: 

Sections 23 through 26:  All

Section 27: 

Section 34:  NE¼

Sections 35 and 36: 

 

5.  On August 18, 2003, the Commission issued Order No. 133-22, which allowed up to eight (8) 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 for the lands described below, with the additional wells being optional wells to be drilled and completed at the discretion of the Operator and with any new wells located no closer than 600 feet from the unit boundaries:

 

Township 12 North, Range 101 West, 6th P.M.

Section 26: All

Section 36: N½

 

6.       On November 14, 2003, Ensign Operating Co. (“Ensign”), by its attorney, filed with the Commission a verified application for an order to allow the drilling of the Lion Government #14-26 Well at an exception location 448 feet FSL and 1187 feet FWL of Section 26, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch and Fort Union-Lance-Lewis Formations.

 

7.  Testimony and exhibits presented at the administrative hearing showed that Ensign owns approximately 90% of the working interest in the application lands and that Fidelity Exploration and Production owns the remainder of the working interest.  Additional testimony indicated that effective December 1, 2003 Ensign changed its name to Medicine Bow Operating Company.  Further testimony indicated that the topography in the area is rough canyon lands, and that the permitted well location would be in the bottom of the canyon, thus the need for an exception location.

 

8.  Testimony and exhibits presented at the administrative hearing showed that Ensign sent letters requesting waivers to the exception location to all of the parties and received a response from Wexpro Company indicating a concern about the bottomhole location.  No protests to the application were received by the Commission.  Additional testimony indicated that the Bureau of Land Management (“BLM”) had verbally approved the location of the well, and subsequently approved the Application for Permit-to-Drill the Lion Government #14-26 Well at the requested exception location.

 

9.  At the time of the administrative hearing, Medicine Bow Operating Company agreed to be bound by oral order of the Commission.

 

10.  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 the drilling of the Lion Government #14-26 Well at an exception location 448 feet FSL and 1187 feet FWL in Section 26, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch and Fort Union-Lance-Lewis Formations.

 

ORDER

 

            NOW, THEREFORE IT IS ORDERED, that Order No. 133-22 is hereby amended to allow the drilling of the Lion Government #14-26 Well at an exception location 448 feet FSL and 1187 feet FWL in Section 26, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch and Fort Union-Lance-Lewis Formations.

 

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.

 

IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

 

IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

 

 

 

                        ENTERED this                    day of January 2004, as of January 5, 2004

 

                                                                        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

January 20, 2004