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 BUCK PEAK FIELD, MOFFAT COUNTY, COLORADO

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CAUSE NO. 103

 

ORDER NO. 103-7         (Corrected)

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 17, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Meridian Oil Inc. for an order to clarify the designation of the common source of supply identified as the Tow Creek Zone of the Mancos formation and to designate that common source of supply as the Calcareous Zone of the Mancos Formation, also know [sic] as the Tow Creek Zone of the Mancos Formation, Buck Peak Zone of the Mancos Formation, and Niobrara Formation, and to define those formations and horizons as the Niobrara formation as encountered in the Malco Petroleum Kowach No. 1 Well located in the NW1/4 NW1/4 of Section 25 between the depth of 100 feet above 6,350 feet and 100 feet below the depth of 7,750 feet.  The applicant further requests that an order be issued establishing all of said Section 23 as a drilling and spacing unit for the horizontal wells to be drilled to the Niobrara formation, to permit the drilling of one or two wells at the discretion of the applicant in the above spacing unit, to allow the horizontal leg within the Niobrara formation to be no closer than 600 feet from the boundary line of the section, and that the horizontal leg of any well within the Niobrara formation shall be no closer than 1200 [sic] feet from any other well producing from the same source of supply on adjacent or cornering lands.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Meridian Oil Inc., 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 April 8, 1957, the Commission issued Order No. 103-1 which established 80-acre drilling and spacing units for the production of oil from the Tow Creek Zone of the Mancos formation with each such unit to consist of the E1/2 or the W1/2 of a quarter section with the permitted well to be located in the NW1/4 and the SE1/4 of each quarter section and located not closer than 330 feet from the boundary line of such quarter-quarter section.  The order further established 320-acre drilling and spacing units for the production of gas from the Morapas Sand of the Mancos formation and the Mesaverde formation with each such unit to consist of the E1/2 and the W1/2 of each section with the permitted well to be located in the SE1/4 and the NW1/4 of each section and located not closer than 660 feet from the boundary line of such quarter section.  The Commission found that upon its own motion or upon petition of any interested party, that it reserved the right to reconsider this matter when further geological and engineering data becomes available.  The below listed lands describe the Buck Peak Field, Moffat County, Colorado:

 

Township 6 North, Range 90 West, 6th P.M.

Section 22:  All

Section 27:  All

Section 23:  All

Section 34:  All

Section 24:  All

Section 35:  All

Section 25:  All

Section 36:  All

Section 26:  All

 

 

5.      On September 13, 1990 B&M Oil, Inc. filed with the Commission an Application For Leave to File Protest and to Re-Set Hearing which was subsequently withdrawn on September 14, 1990.

 

6.      The geological testimony indicated that the correct name for the common source of supply should be the Niobrara formation as encountered between the depths of 6250 feet and 7850 feet in the well Kowach No. 1 located in the NW1/4 NW1/4 Section 25, Township 6 North, Range 90 West, 6th P.M. and that this designation conforms to U.S.G.S. standards.

 

7.      Further testimony indicated that for the purposes of drilling a highly deviated borehole to encounter possible fractures in the Niobrara formation, a 640-acre drilling and spacing unit consisting of Section 23 [sic] Township 6 North, Range 90 West, 6th P.M. should be established.

 

8.      One highly deviated well should be authorized for the above described 640-acre drilling and spacing unit with the wellbore to encounter and depart the Niobrara formation no closer than 600 feet from the boundary lines of the section.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the common source of supply previously established in Cause No. 103 as the Calcareous Zone of the Mancos or the Buck Peak Zone of the Niobrara formation shall be designated as the Niobrara formation as encountered in the interval from 6250 feet to 1850 feet in the Kowach No. 1 well located in the NW1/4 NW1/4 of Section 25 [sic] Township 6 North, Range 90 West, 6th P.M.

 

IT IS FURTHER ORDERED, that a 640-acre drilling and spacing unit consisting of Section 23 [sic] Township 6 North, Range 90 West is hereby established for the drilling of a highly deviated well bore to encounter the above defined Niobrara formation and to establish production from the Niobrara formation.

 

IT IS FURTHER ORDERED, that one well shall be located on the above described 640-acre unit with the well bore to encounter and to depart the Niobrara formation no closer than 600 feet from the boundary lines of the section and that conditions be placed on the Application-to-Drill to ascertain the above requirements are fulfilled.

 

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 2nd this day of October 1990, as of September 17, 1990.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Dennis R. Bicknell, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203