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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. 112-188 |
This cause came on for hearing before the Commission at 9:00 a.m. on April 24, 2006, Suite 801, in The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to allow an exception to the permitted location in Order No. 112-157, for a second well to be drilled as a horizontal well and located no closer than 660 feet from the boundaries of the E½ of Section 2, Township 32 North, Range 6 West, N.M.P.M., with the 130 foot setback to the interior quarter section to be eliminated, for the production of gas and associated hydrocarbons from the Fruitland coal seams.
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 2, Township 32 North, Range 6 West, N.M.P.M., with the permitted well to be located in the NE¼ and the SW¼ of the section and 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 the application lands.
5. On March 10, 2006, BP, by its attorney, filed with the Commission a verified application for an order to allow an exception to the permitted location in Order No. 112-157, for a second well to be drilled as a horizontal well and located no closer than 660 feet from the boundaries of the E½ of Section 2, Township 32 North, Range 6 West, N.M.P.M., with the 130 foot setback to the interior quarter section to be eliminated. BP proposes to drill the Glover GU #2 Well (the “Well”) as a second well in the 320-acre drilling and spacing unit consisting of the E½ of said Section 2, at a surface location 1734 feet from the south line and 996 feet from the east line, with a bottomhole location 660 feet from the north line and 996 feet from the east line of said Section 2. The Glover #1 Well, a vertical well, currently exists in the E½ 320-acre drilling and spacing unit and is located 1650 feet from the south line and 990 feet from the east line in the SE¼ of said Section 2. 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 said Section 2.
6. Testimony and exhibits presented at the administrative hearing showed that BP and the Southern Ute Indian Tribe are the mineral owners in and surrounding the application lands.
7. Testimony and exhibits presented at the administrative hearing showed a directional drilling plan for the proposed well, to show the proposed wellbore path and the bottomhole location of the Well.
8. No protests to the application have been filed with the Commission or the Applicant.
9. BP America Production Company agreed 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 an exception to the permitted location in Order No. 112-157, for a second well to be drilled as a horizontal well and located no closer than 660 feet from the boundaries of the E½ of Section 2, Township 32 North, Range 6 West, N.M.P.M., with the 130 foot setback to the interior quarter section to be eliminated.
ORDER
NOW, THEREFORE, IT IS ORDERED, an exception to the permitted location in Order No. 112-157 is hereby approved, for a second well to be drilled as a horizontal well and located no closer than 660 feet from the boundaries of the E½ of Section 2, Township 32 North, Range 6 West, N.M.P.M., with the 130 foot setback to the interior quarter section to be eliminated, for the production of gas and associated hydrocarbons from the Fruitland coal seams.
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.
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