BEFORE THE OIL AND
GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
|
IN THE MATTER OF THE APPLICATION OF URSA OPERATING COMPANY LLC FOR AN ORDER TO ESTABLISH AN APPROXIMATE 563.1-ACRE DRILLING AND SPACING UNIT FOR SECTION 24 (SOUTH OF THE CENTER LINE OF THE COLORADO RIVER), TOWNSHIP 7 SOUTH, RANGE 96 WEST, 6TH P.M., FOR THE WILLIAMS FORK FORMATION, PARACHUTE FIELD, GARFIELD COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) |
CAUSE NOS. 139 & 440
DOCKET NO. 1306-SP-102
ORDER NOS. 139-116 & 440-67
SECOND CORRECTED |
REPORT OF THE COMMISSION
The Commission heard this matter
on June 17, 2013, at the Two Rivers Convention Center, 159 Main Street, Grand
Junction, Colorado, upon application for an order to establish an approximate 563.1-acre
drilling and spacing unit for Section 24, Township 7 South, Range 96 West, 6th P.M., and approve 10-acre
bottomhole density for up to 58 56 wells within the unit, for the
production of oil, gas and associated hydrocarbons from the Williams Fork
Formation.
FINDINGS
The Commission finds as follows:
1. Ursa Operating Company LLC (“Ursa” or “Applicant”), 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 1, 1997, the Commission entered Order Nos. 139-31 and 440-18 which, among other things, approved the drilling of up to sixteen wells per 640-acre drilling and spacing unit (40-acre well density) and up to eight wells per 320-acre drilling and spacing unit, for certain lands in the Rulison and Parachute Fields, for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group. Section 24, Township 7 South, Range 96 West, 6th P.M. is subject to these Orders for the Williams Fork Formation.
5. On April 18, 2013, Ursa,
by its attorneys, filed with the Commission pursuant to §34-60-116 C.R.S., a
verified application (“Application”) for an order to establish an approximate 563.1-acre drilling and spacing unit for
the below-described lands (“Application Lands”), and approve 10-acre bottomhole
density for up to 58 56 wells within the unit, for the production
of oil, gas and associated hydrocarbons from the Williams Fork Formation, with
such wells to be drilled either vertically or directionally from no more than
one pad located on a given quarter-quarter section, absent an exception
approved by the Commission. Further, the wells may be located downhole
anywhere upon the Application Lands, but no closer than 100 feet from the
outside boundary of the Application Lands, unless such boundary abuts or
corners lands for which the Commission has not at the time of the well permit
application granted the right to drill 10-acre density wells, in which event
the wells may be drilled no closer than 200 feet to such abutting or cornering
lands:
Township 7 South, Range 96 West, 6th P.M.
Section 24: Lots 1, 5 and 6; and adjacent lands thereto, lying up to the center line of the Colorado River, NE¼NE¼; S½ NE¼; S½ (excluding Lots 2, 3 and 4, North of the center line of the Colorado River)
6. On June 4, 2013, Ursa, by its attorneys, filed with the Commission a written request to approve the Application based on the merits of the verified Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
7. Land testimony and exhibits submitted in support of the Application by Jarred McGhee, Landman for Ursa, showed that due to multiple parcels and multiple leases, establishing a drilling and spacing unit will allow Ursa to coordinate efficient development and limit surface disturbance on the Application Lands. Testimony further showed that Ursa owns a partial leasehold ownership interest in the Application Lands.
8. The Commission finds that sufficient geological and engineering evidence has been presented previously to support 10-acre bottomhole density for wells drilled in the Williams Fork Formation of the Piceance Basin, including but not limited to, certain lands in the vicinity of the Application Lands as shown below. The Commission takes administrative notice of said evidence:
|
T-R-S |
Unit Area |
COGCC |
Adjacent Spaced Boundary Setback (ft.) |
Adjacent Unspaced
Boundary Setback |
Well to Well Setback |
Optional Well Density |
|
Williams Fork Formation |
||||||
|
07S-95W-16 |
ALL |
139-95 & 440-52 |
100 |
200 |
None |
10 Acre |
|
07S-95W-17 |
E½ E½ |
139-95 & 440-52 |
100 |
200 |
None |
10 Acre |
|
07S-95W-18 |
S½ |
440-60 |
100 |
200 |
None |
10 Acre |
|
07S-95W-19 |
ALL |
139-95 & 440-52 |
100 |
200 |
None |
10 Acre |
|
07S-95W-20 |
ALL |
139-95 & 440-52 |
100 |
200 |
None |
10 Acre |
|
06S-92W-21 |
ALL |
139-95 & 440-52 |
100 |
200 |
None |
10 Acre |
9. The above-referenced testimony and exhibits show that granting the Application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of hydrocarbons, and will not violate correlative rights.
10. Ursa agreed to be bound by oral order of the Commission.
11. Based on
the facts stated in the verified Application, having received no protests, and
based on the Hearing Officer review of the Application under Rule 511, the
Commission should enter an order to establish an approximate 563.1-acre drilling and spacing unit
for Section 24, Township 7 South, Range 96
West, 6th P.M., and approve 10-acre bottomhole density for up
to 58 56 wells within the unit, for the production of oil, gas and
associated hydrocarbons from the Williams Fork Formation.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 563.1-acre drilling and spacing unit for
the below-described lands, is hereby established, and 10-acre bottomhole
density for up to 58 56 wells within the unit, are hereby
approved, for the production of oil, gas and associated hydrocarbons from the
Williams Fork Formation, with such wells to be drilled either vertically or
directionally from no more than one pad located on a given quarter-quarter
section, without exception being granted by the Director:
Township 7 South, Range 96 West, 6th P.M.
Section 24: Lots 1, 5 and 6; and adjacent lands thereto, lying up to the center line of the Colorado River, NE¼NE¼; S½ NE¼; S½ (excluding Lots 2, 3 and 4, North of the center line of the Colorado River)
2. All Wells drilled to the Williams Fork Formation shall be located downhole no closer than 100 feet from the boundaries of the unit, unless such boundary abuts or corners lands for which the Commission has not at the time of the well permit application granted the right to drill 10-acre density wells, in which event the wells shall be located downhole no closer than 200 feet to such abutting or cornering lands, without exception being granted by the Director.
1. The provisions contained in the above order shall become effective immediately.
2. The Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
3. Under the State Administrative Procedure Act the Commission considers this Order to be final agency action for purposes of judicial review within 30 days after the date this Order is mailed by the Commission.
4. An application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.
ENTERED THIS 8th day of July, 2013, as of June 17, 2013.
CORRECTED this 9th day of January, 2014, as of June 17, 2013.
SECOND CORRECTED this 15th day of April, 2014, as of June 17, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary