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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 ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, ARCHULETA COUNTY, COLORADO |
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CAUSE NO. 112
ORDER NO. 112-183 |
This cause came on for hearing before the Commission at 9:00 a.m. on January 9, 2006 in Suite 801, 1120 Lincoln Street, Denver, Colorado for an order to allow a horizontal well to be drilled for production from the Fruitland coal seams in the 320-acre drilling and spacing unit consisting of the E½ of Section 11, Township 32 North, Range 6 West, N.M.P.M., with a surface location in the NE¼ of Section 11, 1263 feet from the north line and 851 feet from the east line, possibly resulting in production from two (2) wells in the NE½ of Section 11.
The Commission finds as follows:
1. BP America Production Company (“BP”), 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 Oil and Gas Conservation Act.
4. On July 11, 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, including Section 11, Township 32 North, Range 6 West, N.M.P.M., with the permitted well no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line. On May 15, 2000, the Commission issued Order No. 112-157, which allowed an optional additional well to be drilled on certain 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams underlying certain lands including Section 11, Township 32 North, Range 6 West, N.M.P.M.
5. On November 21, 2005, BP America Production Company (“BP”) by its attorney, filed with the Commission a verified application for an order to allow a horizontal well to be drilled as a second well in the 320-acre drilling and spacing unit consisting of the E½ of Section 11, Township 32 North, Range 6 West, N.M.P.M. The Luchini GU 32-6-11 #1 Well, a vertical well, currently exists in the E½ 320-acre unit and is located 1250 feet from the north line and 1150 feet from the east line in the NE¼ of Section 11, Township 32 North, Range 6 West, N.M.P.M. BP proposes to drill the Luchini GU 32-6-11 #2 Well as a second well in the E½ 320-acre drilling and spacing unit of Section 11, at a surface location 1263 feet from the north line and 851 feet from the east line, also in the NE¼ adjacent and contiguous to the original well pad, with the producing leg to be drilled in a southerly direction with a proposed bottomhole location(s) in the SE¼ of Section 11, no closer than 660’ from the outer boundaries of Section 11, with no interior line setback. The Applicant requests the right to produce from both wellbores located partially in the NE¼. All owners in the 320-acre spacing unit are common and no violation of correlative rights exists by allowing both permitted wells to be produced from the E½ of Section 11.
6. Testimony and exhibits presented at the administrative hearing showed the location of the existing well and a plat map of the proposed well along with the proposed surface location and drilling window.
7. Testimony and exhibits presented at the administrative hearing showed the directional drilling plans for the proposed well, indicating the proposed wellbore path and the bottomhole location of each lateral leg of the well.
8. No protests to the application have been filed with the Commission or the Applicant.
9. BP America Production Company agrees to be bound by oral order of the Commission.
10. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to allow a horizontal well to be drilled for production from the Fruitland coal seams in the 320-acre drilling and spacing unit consisting of the E½ of Section 11, Township 32 North, Range 6 West, N.M.P.M., with a surface location in the NE¼ of Section 11, 1263 feet from the north line and 851 feet from the east line, possibly resulting in production from two (2) wells in the NE½ of Section 11.
NOW, THEREFORE, IT IS ORDERED, that the request to allow a horizontal well to be drilled for production from the Fruitland coal seams in the 320-acre drilling and spacing unit consisting of the E½ of Section 11, Township 32 North, Range 6 West, N.M.P.M. is hereby approved, with a surface location in the NE¼ of Section 11, 1263 feet from the north line and 851 feet from the east line, possibly resulting in production from two (2) wells in the NE½ of Section 11.
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.
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 thirty (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 day of January, 2006, as of January 9, 2006.
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
January 19, 2006