|
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO
|
) ) ) ) |
CAUSE NO. 133
ORDER NO. 133-15 CORRECTED |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on October 30, 2000, in Suite 801, the Chancery Building, 1120 Lincoln Street, 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 located in Sections 18, 19, 20 and 29 of Township 12 North, Range 100 West, 6th P.M. and Sections 13 and 24 of Township 12 North, Range 101 West, 6th P.M.
FINDINGS
The Commission finds as follows:
1. Texaco Exploration and Production Inc. (“Texaco”), 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.
4. On September 18, 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 in the 320-acre drilling and spacing units to be drilled at a legal location in the NE¼ of Section 19 and SE¼ of Section 18, and the NW¼ of Section 29 and the SW¼ of Section 20, Township 12 North, Range 100 West, 6th P.M., and in the NE¼ of Section 24 and SE¼ of Section 13, 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.
5. Testimony and exhibits presented at the administrative hearing showed the acreage in the application area is leased 100% by Texaco and consists of federal minerals and federal surface.
6. Testimony and exhibits presented at the administrative hearing showed the geology and lithology of the application area; the proposed third wells in the drilling and spacing units consisting of the NE¼ of Section 19 and SE¼ of Section 18, Township 12 North, Range 100 West, and the NE¼ of Section 24 and SE¼ of Section 13, Township 12 North, Range 101 West, 6th P.M. are located in the area of 7 to 9 productive channels. The proposed third well in the drilling and spacing unit consisting of the NW¼ of Section 29 and SW¼ of Section 20, Township 12 North, Range 100 West, 6th P.M. is located in the area of 4 to 6 productive channels.
7. Testimony and exhibits presented at the administrative hearing showed the Fort Union, Lewis and Mesaverde Formations are continuous across the application lands, the Fort Union and the Wasatch Formations consist of fluvial sands which are not continuous from well to well, and the Lewis Formation has permeability barriers within a continuous formation.
8. Testimony and exhibits presented at the administrative hearing indicated the average drainage area for Wasatch Formation wells is 59 acres, with an average ultimate gas production of 382 MMCF.
9. Testimony and exhibits presented at the administrative hearing showed the existing wells in each 320-acre drilling and spacing unit are not effectively draining the units. The two (2) wells in the NE¼ of Section 19 and SE¼ of Section 18, Township 12 North, Range 100 West show a drainage area of 149 acres, the two (2) wells in the NW¼ of Section 29 and SW¼ of Section 20, Township 12 North, Range 100 West, 6th P.M. show a drainage area of 221 acres, and the two (2) wells in the NE¼ of Section 24 and SE¼ of Section 13, Township 12 North, Range 101 West, 6th P.M. show a drainage area of 223 acres.
10. Testimony and exhibits presented at the administrative hearing showed drilling of an additional well in each of the three (3) 320-acre drilling and spacing units in the application lands will not adversely affect correlative rights, will be economic and will prevent waste.
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 verified application, having received no protests and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order allowing an optional third well to be drilled 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 located in Sections 18, 19, 20 and 29 of Township 12 North, Range 100 West, 6th P.M. and Sections 13 and 24 of Township 12 North, Range 101 West, 6th P.M.
NOW, THEREFORE IT IS ORDERED that up to three wells may 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:
Township 12 North, Range 100 West, 6th P.M.
NE¼ of Section 19 and SE¼ of Section 18
NW¼ of Section 29 and SW¼ of Section 20
Township 12 North, Range 101 West, 6th P.M.
NE¼ of Section 24 and SE¼ of Section 13
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 8th day of November 2000, as of October 30, 2000.
CORRECTED this day of November 2003, as of October 30, 2000.
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
November 13, 2003