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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO |
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CAUSE NO. 112
ORDER NO. 112-140 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on February 9, 1998, at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Vastar Resources, Inc., for an order amending Order No. 112-61 to allow the Southern Ute #20-2 Well to be recompleted from the Mesa Verde Formation to the Fruitland Coal seams and produced as an additional well at an exception location 1,650 feet FWL and 1,120 feet FSL in the W½ of Section 20, Township 33 North, Range 10 West, N.M.P.M., for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.
FINDINGS
The Commission finds as follows:
1. Vastar Resources, 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 pursuant to the terms of a Memorandum of Understanding between the Commission and the Bureau of Land Management.
4. On June 15, 1988, the Commission issued Order No. 112‑60 which established 320‑acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams, underlying certain lands in the Ignacio‑Blanco Field including Section 20, Township 33 North, Range 10 West, N.M.P.M., with the units to consist of a governmental half section and the permitted well to be located in the NE¼ and the SW¼ of each section, no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line. Order No. 112-61 was subsequently adopted amending Order No. 112-60 to establish additional field rules for the Fruitland Coal Formation.
5. Evidence presented at the administrative hearing stated that the Southern Ute 20-2 Well was originally completed in 1983 as a Mesa Verde Formation well and Vastar Resources now requests to recomplete this well to the Fruitland Coal seams.
6. Evidence presented at the administrative hearing indicated that one well will not efficiently and economically drain the 320‑acre drilling and spacing unit consisting of the W½ of Section 20, and that an additional well is necessary to prevent waste, protect correlative rights, and to recover gas and associated hydrocarbons from the Fruitland Coal seams.
7. At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.
8. The Southern Ute Indian Tribe submitted a letter dated February 2, 1998, providing strong support for this application.
9. Cedar Ridge LLC and EnerVest San Juan Operating Company submitted letters in support of this application.
10. Amoco Production Company submitted a letter dated February 6, 1998, stating that while they do not fully support the application they will not oppose the application. Amoco is concerned that the well is in the fairway rather than the transition zone as maintained by Vastar.
11. Based on the facts stated in the application and the testimony and exhibits presented at the time of the administrative hearing by the applicant, the Commission should approve the request to amend Order No. 112-61 to allow the Southern Ute #20-2 Well to be recompleted from the Mesa Verde Formation to the Fruitland Coal seams and produced as an additional well at an exception location 1,650 feet FWL and 1,120 feet FSL in the W½ of Section 20, Township 33 North, Range 10 West, N.M.P.M., for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.
ORDER
NOW, THEREFORE, IT IS ORDERED that Order No. 112-61 is hereby amended to allow the Southern Ute #20-2 Well to be recompleted from the Mesa Verde Formation to the Fruitland Coal seams and produced as an additional well at an exception location 1,650 feet FWL and 1,120 feet FSL in the W½ of Section 20, Township 33 North, Range 10 West, N.M.P.M., for the 320-acre drilling and spacing unit consisting of the W½ of said Section 20.
IT IS FURTHER ORDERED, that in accordance with G.4.b. paragraph 2 of the MOU of August 22, 1991, between the BLM and COGCC, this order is hereby deemed to be an order by the BLM. As such, any appeal or challenge of this order with respect to Indian lands shall go through the BLM State Director Review process outlined in 43 CFR 3165.3.
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, as the party agreed to accept the verbal order of the Commission.
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 March, 1998, as of February 9, 1998.
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
July 3, 2018