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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 HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 133
ORDER NO. 133-14 CORRECTED |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on March 14, 2000, in Boettcher Auditorium, The Colorado History Museum, 1300 Broadway, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Texaco Exploration and Production Inc., for an order to allow up to three wells to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations on three (3) 320-acre drilling and spacing units described herein at the option of the operator.
FINDINGS
The Commission finds as follows:
1. Texaco Exploration and Production Inc. (“Texaco”), as applicant herein, in 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 June 23, 1959 the Commission entered Order No. 133-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations underlying certain lands in the Hiawatha West Field, including the SW¼ of Section 18 and NW¼ of Section 19 and the S½ of Section 19, Township 12 North, Range 100 West, 6th P.M., and the S½ of Section 24, Township 12 North, Range 101 West, 6th P.M., with the permitted well to be located no closer than 600 feet from the boundaries of the unit.
5. On September 17, 1990 the Commission entered Order No. 133-4 which allowed the Van Schaick B-3 Well to be drilled as a second well in the SW¼ SW¼ of Section 24, Township 12 North, Range 101 West, 6th P.M. for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations for the 320-acre drilling and spacing unit consisting of the S½ of Section 24.
6. On December 20, 1993 the Commission entered Order No. 133-6 which allowed the Van Schaick Unit “A” No. 4 Well to be drilled as a second well in the SW¼ SE¼ of Section 19, Township 12 North, Range 100 West, 6th P.M. for the production of gas and associated hydrocarbons for the 320-acre drilling and spacing unit consisting of the S½ of Section 19.
7. On December 20, 1993 the Commission entered Order No. 133-9 which allowed the Duncan Unit No. 3 Well to be drilled as a second well in the SE¼ NW¼ of Section 18, Township 12 North, Range 100 West, 6th P.M., for the production of gas and associated hydrocarbons for the 320-acre drilling and spacing unit consisting of the SW¼ of Section 18 and the NW¼ of Section 19, of Township 12 North, Range 100 West, 6th P.M.
8. On January 20, 2000, Texaco, by its attorney, filed with the Commission a verified application for an order to allow additional wells to be drilled as third wells at a legal location in the 320-acre drilling and spacing units consisting of the SW¼ of Section 18 and NW¼ of Section 19, and the S½ of Section 19, Township 12 North, Range 100 West, 6th P.M. and the S½ of Section 24, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations.
9. Testimony and exhibits presented at the administrative hearing indicated that the existing wells in each 320-acre drilling and spacing unit are not effectively draining the units. The two (2) wells in the SW¼ of Section 18 and the NW¼ Section 19 show a drainage area of 197 acres, the two (2) wells in the S½ of Section 19 show a drainage area of 195 acres, and the two (2) wells in the S½ of Section 24 show a drainage of 245 acres.
10. Testimony and exhibits presented at the administrative hearing indicated that additional wells are necessary to efficiently and economically drain the three (3) 320-acre drilling and spacing units in the application lands while preventing waste and protecting correlative rights.
11. At the time of the administrative hearing, Texaco Exploration and Production Inc. agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should approve the request for an order to allow up to three wells to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations on three (3) 320-acre drilling and spacing units described herein at the option of the operator.
ORDER
NOW, THEREFORE IT IS ORDERED that up to three (3) wells shall be allowed to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations, on each of the below-described 320-acre drilling and spacing units at the option of the operator.
S½ of Section 19
S½ of Section 24
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 rights, after notice and hearing to alter, amend or repeal any and/or all of the above orders.
ENTERED this 12th day of April, as of March 14, 2000.
CORRECTED this 24th day of July, as of March 14, 2000.
OF THE STATE OF COLORADO
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
July 24, 2000