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. 133-23
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: W½
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: E½
Sections 23 through 26: All
Section 27: E½
Section 34: NE¼
Sections 35 and 36: N½
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
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
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
Patricia C. Beaver, Secretary
Dated at