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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. 133-18 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on May 31, 2001, 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 four (4) wells to be drilled and completed at the option of the operator for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations for certain 320-acre drilling and spacing units in the Hiawatha Field.
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 June 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 SE¼ of Section 18 and the NE¼ of Section 19, the S½ of Section 19, and the NW¼ of Section 29 and the SW¼ of Section 20, all in Township 12 North, Range 100 West, 6th P.M. On November 8, 2000, the Commission entered Order No. 133-15 which allowed up to three (3) wells to be drilled in each of the 320-acre drilling and spacing units described above.
5. On April 5, 2001, Texaco, by its attorney, filed with the Commission a verified application for an order to allow additional wells to be drilled as fourth wells at legal locations in the 320-acre drilling and spacing units in the SE¼ of Section 18 and the NE¼ of Section 19, the S½ of Section 19, and the NW¼ of Section 29 and the SW¼ of Section 20, all in Township 12 North, Range 100 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 that although the Fort Union, Lewis and Mesaverde Formations are continuous across the application lands, the fluvial sands of the Fort Union and Wasatch Formations are not continuous from well to well.
8. Testimony and exhibits presented at the administrative hearing showed that the existing wells in the 320-acre drilling and spacing units are not effectively draining the units.
9. Testimony and exhibits presented at the administrative hearing showed the drilling of additional wells will be economic.
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 up to four (4) wells to be drilled and completed 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 units described above.
ORDER
NOW, THEREFORE IT IS ORDERED that up to four (4) 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 units described below:
Township 12 North, Range 100 West, 6th P.M.
SE¼ of Section 18 and NE¼ of Section 19
S½ of Section 19
NW¼ of Section 29 and SW¼ of Section 20
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 day of , 2001, as of May 31, 2001.
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