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. 105-35

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 8:30 a.m. on September 16, 1997, in the La Plata County Commissioner Hearing Room, 1060 E. 2nd Avenue, Durango, Colorado, on the application of Ellora Energy, LLC, to amend Order No. 105-6 to allow the drilling of an additional well in certain 640-acre drilling and spacing units.  The Applicant proposes to drill five (5) wells as additional wells at various locations in McClave Field, for production of gas and associated hydrocarbons from the McClave Sand.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Ellora Energy, LLC, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

 

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 oil and associated hydrocarbons from the McClave Sand underlying certain lands in the McClave Field, with the units to consist of a governmental section, with the permitted well to be located no closer than 600 feet from the exterior boundary of the drilling and spacing unit upon which it is located.  Subsequent Orders included additional lands, listed below, under the provisions of the McClave Field, and allowed the permitted well in the S˝ of Sections 1 through 4, Township 21 South, Range 48 West, 6th P.M., to be located no closer than 990 feet from the boundary of the unit.

 

Township 19 South, Range 48 West, 6th P.M.

Section 28, 31 - 34: All

 

Township 19 South, Range 49 West, 6th P.M.

Sections 35 - 36:  All

 

Township 20 South, Range 48 West, 6th P.M.

Sections 3 – [sic] 36:  All

 


 

Township 20 South, Range 48 West, 6th P.M.

Sections 1 – 3:  All

Sections 10 – 14:  All

Sections 23 – 26:  All

Sections 35 – 36:  All

 

Kiowa County

 

Township 21 South, Range 47 West, 6th P.M.

Sections 5 – 8:  All

Sections 17 – 20:  All

Sections 29 – 32:  All

 

Prowers County

 

Township 21 South, Range 48 West, 6th P.M.

Sections 1 – 6:  All

Sections 8 – 16:  All

Sections 21 – 28:  All

Sections 35 – 36:  All

 

Bent County

 

5.      Geologic and engineering evidence presented at the administrative hearing indicated one well will not efficiently and economically drain certain 640-acre drilling and spacing units, and that in order to prevent waste and protect correlative rights, the below-listed wells are necessary to be drilled to recover additional reserves in the McClave Sand:

 

Well Name

Location

Temple B-2A

1,702' FSL, 1,334' FWL, Section 2, Township 21 South, Range 48 West, 6th P.M.

Wollert 2A

3,826' FNL, 1,320' FEL, Section 3, Township 21 South, Range 48 West, 6th P.M.

Humphrey 2A

2,680' FNL, 1,000' FEL, Section 4, Township 21 South, Range 48 West, 6th P.M.

Weimer 1

2,364' FSL, 2,525' FWL, Section 24, Township 21 South, Range 48 West, 6th P.M.

Rowe A-2

2,052' FSL, 2,763' FWL, Section 25, Township 21 South, Range 48 West, 6th P.M.

 

6. That at the time of the administrative hearing, Ellora Energy, LLC., [sic] agreed to be bound by oral order of the Commission.

 

7.      Based on the facts stated in the application, having received no protests, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should approve the request and amend Order No. 105-6 to allow the five (5) wells described in Finding No. 5 to be drilled as additional wells for production of gas and associated hydrocarbons from the McClave Sand, in the 640-acre drilling and spacing units.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 105-6 shall be amended to allow the drilling of the below-listed wells as additional wells in certain 640-acre drilling and spacing units for production of gas and associated hydrocarbons from the McClave Sand:


 

 

Well Name

Location

Temple B-2A

1,702' FSL, 1,334' FWL, Section 2, Township 21 South, Range 48 West, 6th P.M.

Wollert 2A

3,826' FNL, 1,320' FEL, Section 3, Township 21 South, Range 48 West, 6th P.M.

Humphrey 2A

2,680' FNL, 1,000' FEL, Section 4, Township 21 South, Range 48 West, 6th P.M.

Weimer 1

2,364' FSL, 2,525' FWL, Section 24, Township 21 South, Range 48 West, 6th P.M.

Rowe A-2

2,052' FSL, 2,763' FWL, Section 25, Township 21 South, Range 48 West, 6th P.M.

 

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

 

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 9th day of October, 1997, as of September 16, 1997.

 

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

October 9, 1997