BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF
IN THE MATTER
THE PROMULGATION AND ) CAUSE NO. 489
ESTABLISHMENT
OF FIELD RULES TO GOVERN )
OPERATIONS IN
THE BUFFALO GRASS FIELD, ) ORDER NO. 489-6
This cause came on for hearing
before the Commission on June 3, 2003 at 10:00 a.m. in the Conference Center,
Holiday Inn Express, 2121 E. 2nd
Ave, Cortez, Colorado for an order to allow
up to two (2) additional wells to be drilled on the 160-acre drilling and
spacing units for certain lands in the Buffalo Grass Field, for production of
gas and associated hydrocarbons from the Niobrara Formation, with the
additional well or wells to be located on any undrilled
quarter-quarter section within the spacing unit and any wells drilled
subsequent to the issuance of the order to be located no closer than 560 feet
from the outer boundaries of the spacing unit.
FINDINGS
The Commission finds as follows:
1.
J-W Operating Company, 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 February 4, 1991, the Commission issued
Order No. 489-1 establishing 160-acre drilling and spacing units for the production
of gas and associated hydrocarbons from the Niobrara Formation for the
below-listed lands, with the permitted well to located no closer than 900 feet
from the boundaries of the drilling unit, with a tolerance of one hundred (100)
feet in any direction. In addition, any
wells that were producing or capable of producing were designated as the
permitted well for the unit upon which each well was located.
Township 4 North,
Range 47 West, 6th P.M.
Sections 22 and
23: All
Sections 26 and
27: All
Sections 34 and
35: All
5.
On May 7, 1999, the Commission issued Order No. 489-5 which amended
Order No. 489-1 to allow one (1) additional well to be drilled on each 160-acre
drilling and spacing unit at the option of the operator for the production of
gas and associated hydrocarbons from the Niobrara Formation, with subsequent
wells to be located no closer than 560 feet from the outer boundaries of the
spacing unit.
6. On
7.
Testimony and exhibits presented at the administrative hearing indicated
that J-W Operating has most of the application lands under lease and that the
notice requirement in Rule 507 has been met.
8.
Testimony and exhibits presented at the administrative hearing show the
9.
Testimony and exhibits presented at the administrative hearing showed
the production curves used to determine the ultimate recoveries of the wells in
the Buffalo Grass Field. Testimony indicated
that additional wells are necessary to recover remaining reserves and to
prevent waste while protecting correlative rights of mineral owners.
10. At the time of the administrative hearing, J-W
Operating Company agreed to be bound by an oral order of the Commission.
11. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should approve an order to allow up to two (2) additional wells to be drilled on the 160-acre drilling and spacing units for the lands described in Finding No. 4, for production of gas and associated hydrocarbons from the Niobrara Formation, with the additional well or wells to be located on any undrilled quarter-quarter section within the spacing unit and any wells drilled subsequent to the issuance of the order to be located no closer than 560 feet from the outer boundaries of the spacing unit.
NOW, THEREFORE IT IS ORDERED, that Order No.
489-5 shall be amended to allow up to two (2) additional wells to be
drilled on the 160-acre drilling and spacing units for the below-listed lands for
production of gas and associated hydrocarbons from the Niobrara Formation, with
the additional well or wells to be located on any undrilled
quarter-quarter section within the spacing unit and any wells drilled
subsequent to the issuance of the order to be located no closer than 560 feet
from the outer boundaries of the spacing unit:
Township 4
North, Range 47 West, 6th P.M.
Sections 22 and 23: All
Section 26 and 27: All
Section 34 and 35:
All
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 June 2003, as of
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF
By
_______________________
Patricia
C. Beaver, Secretary
Dated at