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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. 133-16 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on December 4, 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 (3) 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 the 320-acre drilling and spacing unit consisting of the N½ of Section 35, 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 July 23, 1959, the Commission entered Order No. 133-1 establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations for certain lands in the Hiawatha West Field, including the N½ of Section 35, Township 12 North, Range 101 West, 6th P.M.
5. On October 16, 2000, Texaco, by its attorney, filed with the Commission a verified application for an order to allow an additional well to be drilled at a legal location as a third well in the 320-acre drilling and spacing unit consisting of the N½ of Section 35, 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.
6. 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.
7. Testimony and exhibits presented at the administrative hearing showed the geology and lithology of the application area. The proposed third well in the drilling and spacing unit is located in the area of one (1) to three (3) productive channels.
8. 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.
9. Testimony and exhibits presented at the administrative hearing showed the existing wells in the 320-acre drilling and spacing unit are not effectively draining the unit. The two (2) existing wells in the N½ of Section 35, Township 12 North, Range 101 West, 6th P.M. show a drainage area of 51 acres.
10. Testimony and exhibits presented at the administrative hearing showed drilling of an additional well in the 320-acre drilling and spacing unit 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 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 up to three (3) 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 the 320-acre drilling and spacing unit consisting of the N½ of Section 35, Township 12 North, Range 101 West, 6th P.M.
NOW, THEREFORE IT IS ORDERED that up to three (3) wells are hereby granted to be drilled and completed for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations on the 320-acre drilling and spacing unit consisting of the N½ of Section 35, Township 12 North, Range 101 West, 6th P.M.
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 18th day of December 2000, as of December 4, 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