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 WEST MUDDY FIELD, GUNNISON COUNTY, COLORADO

 

)

)

)

)

CAUSE NO. 1

 

ORDER NO. 1-168

 

REPORT OF COMMISSION

 

                        This cause came on for hearing before the Commission on June 27, 2011, Elbert County Fairgrounds, Ag Building, 95 Ute Avenue, Kiowa, Colorado, for an order to amend the Hotchkiss Federal Comprehensive Drilling Plan, for lands in Gunnison County, including Sections 17 through 20, Township 12 South, Range 89 West, 6th P.M., to allow the planning and construction of the Hotchkiss Water Storage Facility by Gunnison Energy Corporation. 

 

FINDINGS

 

The Commission finds as follows:

 

1.    Gunnison Energy Corporation (“GEC”), 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 pursuant to the Oil and Gas Conservation Act.

 

4.    On March 30, 2009, the Commission entered Order No. 1-143 approving an application by Gunnison Energy Corporation (“GEC”) for the approval of GEC’s Hotchkiss Federal Comprehensive Drilling Plan (“CDP”), for lands in Gunnison County, including Sections 17 through 20, Township 12 South, Range 89 West, 6th P.M.

 

5.    On May 3, 2011, the Commission Staff filed an application (the “Application”) which requested an order to amend the CDP to allow the planning and construction of the Hotchkiss Water Storage Facility.  GEC will still be required to go through the Commission approval process for the permit necessary to construct the Hotchkiss Water Storage Facility as well as any other governmental agency requirements.  Consultations with other agencies will be minimized however, as conditions of approval of facilities covered by the CDP have been pre-negotiated among referral agencies and the Commission.

 

6.    This matter was heard by the Commission at its June 27, 2011 meeting.  Staff presentation explained the benefits of amending the CDP to allow the planning and construction of the Hotchkiss Water Storage Facility by Gunnison Energy Corporation

 

7.    The above-referenced testimony and related exhibits show that granting the Application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.

 

8.    GEC agreed to be bound by oral order of the Commission. 

 

9.    Based on the facts stated in the verified Application, having received no protests, and based on the testimony given at hearing, the Commission should enter an order to amend the Hotchkiss Federal Comprehensive Drilling Plan for lands in Gunnison County, including Sections 17 through 20, Township 12 South, Range 89 West, 6th P.M to allow the planning and construction of the Hotchkiss Water Storage Facility by Gunnison Energy Corporation. 

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that the Hotchkiss Federal Comprehensive Drilling Plan of Gunnison Energy Corporation, adopted by the Commission on March 30, 2009, by Order No. 1-143, for lands in Gunnison County, including Sections 17 through 20, Township 12 South, Range 89 West, 6th P.M., is hereby amended to allow the planning and construction of the Hotchkiss Water Storage Facility.

 

IT IS FURTHER ORDERED that other provisions of the CDP approved in Order No. 1-143 that are not inconsistent with this Order shall remain in effect.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective immediately.

           

                        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 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     30th    day of June, 2011, as of June 27, 2011.

           

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By____________________________________         

                                                                                    Robert A. Willis, Acting Secretary

 

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

June 30, 2011