|
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
IN THE MATTER OF APPLICATIONS FOR PERMIT- TO-DRILL WITHIN ONE AND ONE-HALF MILES OF THE OUTCROP CONTACT BETWEEN THE FRUITLAND AND PICTURED CLIFFS FORMATIONS, LA PLATA COUNTY, COLORADO |
) ) ) ) |
CAUSE NO. 112
ORDER NO. 112-159 CORRECTED |
REPORT OF THE COMMISSION
This cause came on for hearing before the Colorado Oil and Gas Conservation Commission at 8:30 a.m. on December 4, 2000, at the Chancery Building, 1120 Lincoln Street, Suite 801, Denver, Colorado, on the verified application of Amoco Production Company for an order to allow the Wommer GU A#2 Well to be drilled 1000 feet FSL and 1780 feet FWL in the SE¼ SW¼ of Section 24, Township 35 North, Range 7 West, N.M.P.M., within one and one-half (1½) miles of the outcrop contact between the Fruitland and Pictured Cliffs Formations.
The Commission finds as follows:
1. Amoco Production Company (“Amoco”), 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 July 28, 2000, the Colorado Oil and Gas Conservation Commission entered Order No. 112-156 allowing an optional well to be drilled for production of gas from the Fruitland Coal seams for certain 320-acre drilling and spacing units in the Ignacio-Blanco Field, including Section 24, Township 35 North, Range 7 West, N.M.P.M.
5. In accordance with Well Permit Limitations in Order No. 112-156, “A Commission hearing shall be required before a drilling permit may be issued for a well site located within one and one-half (1½) miles of the outcrop contact between the Fruitland and Pictured Cliffs Formations. The purpose of the hearing shall be to address potential adverse impacts to the Fruitland outcrop.”
6. On October 25, 2000, Amoco, by its attorney, filed with the Commission an Application for Permit-to-Drill the Wommer GU A#2 Well (the “Wommer Well”), proposed to be located 1000 feet FSL and 1780 feet FWL in the SE¼ SW¼ of Section 24, Township 35 North, Range 7 West, N.M.P.M., within one and one-half (1½) miles of the outcrop contact between the Fruitland and Pictured Cliffs Formations.
7. On November 16, 2000 La Plata County filed with the Commission a Statement in Protest and Intervention to the application, to raise issues relating to impacts on the environment and on public health, safety and welfare arising out of the application. The County intervenes by right pursuant to Rule 509.a.
8. Testimony and exhibits presented at the hearing indicated Amoco’s position that existing monitoring wells are sufficient to adequately monitor Fruitland Coal well production and that the Wommer Well would likely not show any impact to the monitoring well proposed in Section 17. In addition, testimony indicated that models showed no increase in gas seepage at the outcrop.
9. Testimony presented at the hearing indicated La Plata County’s position that additional data is needed prior to allowing the Wommer Well to produce from the Fruitland Coal Formation due to its proximity to the outcrop contact.
10. A sworn statement was made in accordance with Rule 510. by Dr. Robert Magoon, mineral and surface owner on the lands the Wommer Well is proposed, who stated his preference for getting the well drilled and producing as soon as possible.
11. COGCC staff analysis indicated that monitoring wells exist within 1.5 miles of the proposed Wommer Well location and the proposed monitoring well in Section 17 is 2.7 miles from the Wommer Well.
12. At the time of the hearing, Amoco Production Company agreed to be bound by oral order of the Commission.
13. Based on the facts stated in the verified application and the testimony and exhibits presented at the December 4, 2000 hearing, the Commission should enter an order to allow the Wommer GU A#2 Well to be drilled 1000 feet FSL and 1780 feet FWL in the SE¼ SW¼ of Section 24, Township 35 North, Range 7 West, N.M.P.M., within one and one-half (1½) miles of the outcrop contact between the Fruitland and Pictured Cliffs Formations.
NOW, THEREFORE, IT IS ORDERED that the Wommer GU A#2 Well is hereby approved to be drilled and completed for production of gas from the Fruitland Coal Formation at a location of 1000 feet FSL and 1780 feet FWL in the SE¼ SW¼ of Section 24, Township 35 North, Range 7 West, N.M.P.M., within one and one-half miles of the outcrop contact between the Fruitland and Pictured Cliffs Formations.
IT IS FURTHER ORDERED, that the following shall be added as a condition of permit approval for the Wommer GU A#2 Well: “Amoco Production Company shall advise COGCC staff of the first date of production from the Wommer GU A#2 Well within thirty (30) days of said date. Commission staff shall review gas and water production (6) months and twelve (12) months from the first date of production, and report the results at the next quarterly Gas and Oil Regulatory Team (“GORT”) meeting. La Plata County reserves its right to file an application for hearing before the Commission in accordance with Rule 503.”
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 19th day of December 2000, as of December 4, 2000.
CORRECTED this _______ day of December 2000, as of December 4, 2000.
GAS AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________________
Dated at Suite 801 Patricia C. Beaver, Secretary
1120 Lincoln Street
December 21, 2000