BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE McCLAVE FIELD, BENT COUNTY, COLORADO

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CAUSE NO. 105

 

ORDER NO. 105-40

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 8:30 a.m. on March 14, 2000, in Boettcher Auditorium, The Colorado History Museum, 1300 Broadway, Denver, Colorado on the application of Ellora Energy, LLC for an order to allow an additional productive well to be drilled at a legal location in the 640-acre drilling and spacing unit consisting of Lots 1-10, Section 1, Township 21 South, Range 48 West, 6th P.M., for the production of gas and associated hydrocarbons from the Morrow Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Ellora Energy, LLC ("Ellora") 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 May 15, 1957, the Commission issued Order No. 105-1 which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the McClave Sand underlying certain lands in the McClave Field, with the units to consist of a governmental section.  Subsequent Order No. 105-2, among other things, established Lots 1-10, Section 1, Township 21 South, Range 48 West, 6th P.M. as an approximate 640-acre drilling and spacing unit, with the permitted well to be located not less than 990 feet from the boundary lines.

 

5.      Testimony and exhibits presented at the administrative hearing showed that the existing Semmens #1 Well located in the SE¼ NW¼ of Section 1, Township 21 South, Range 48 West, 6th P.M. has produced 2.5 BCF of gas.  Additional testimony and exhibits presented at the administrative hearing on the volumetric gas in place calculations for the unit consisting of Lots 1-10, Section 1, Township 21 South, Range 48 West, 6th P.M., based on the average 18 feet of McClave Sand thickness, indicates that 4.05 BCF of recoverable gas was originally in place in the spacing unit consisting of Section 1, Township 21 South, Range 48 West, 6th P.M., and that there are remaining recoverable reserves of 1.25 BCF of gas estimated in the unit, and that recovery of these reserves is economic.

 

6.      Testimony and exhibits presented at the administrative hearing showed that in order to protect correlative rights, to prevent waste and to recover additional reserves, an additional productive well should be allowed at a legal location in accordance with Order No. 105-2.

 

7. At the time of the administrative hearing, Ellora Energy, LLC agreed to be bound by oral order of the Commission.

 

8.      Based on the facts stated in the verified application, having received no protests to the application and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to allow an additional productive well to be drilled at a legal location in the 640-acre drilling and spacing unit consisting of Lots 1-10 in Section 1, Township 21 South, Range 48 West, 6th P.M., for the production of gas and associated hydrocarbons from the Morrow Formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that an additional productive well is hereby approved to be dilled [sic] at a legal location for the 640-acre drilling and spacing unit consisting of Lots 1-10 in Section 1, Township 21 South, Range 48 West, 6th P.M., for the production of gas and associated hydrocarbons from the Morrow Formation.

 

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 12th day of April, as of March 14, 2000.

 

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

April 12, 2000