BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                        OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND )       CAUSE NO. 139

ESTABLISHMENT OF FIELD RULES TO GOVERN)       ORDER NO. 139-22

OPERATIONS IN THE RULISON FIELD,      )       AMENDED

GARFIELD COUNTY, COLORADO             )                   

 

                        REPORT OF THE COMMISSION

 

             This cause came on for hearing before the Commission on August 17, 1992 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Meridian Oil Inc., for an order to amend Order No. 139-8 and designate the Mesaverde Formation into four separate common sources of supply and establish a 640-acre drilling and spacing unit for production from the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran Formations.

 

                                FINDINGS

 

             The Commission finds as follows:

 

             1.  Meridian Oil Inc., 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 16, 1979, the Commission authorized Order No. 139-8 to be issued, which established 320‑acre drilling and spacing units, for production of oil, gas and associated hydrocarbons from the Mesaverde Formation.  The permitted well shall be located in the NE1/4 and the SW1/4 of each section, no closer than 600 feet to the boundaries of the quarter section upon which it is located and no closer than 1200 feet from another producing or producible well in the same formation, including Section 33, Township 6 South, Range 94 West, 6th P.M.               

 

             5.  That evidence presented at the hearing indicates that the Upper Mesaverde, Upper Cozzette, Lower Cozzette and Corcoran Formations constitute a common source of supply of the following described lands in Garfield County, Colorado to‑wit:

 

                Township 6 South, Range 94 West, 6th P.M.

                            Section 33:  All

              

             6.  That the stratigraphic equivalent for the four intervals is found in the Dual Induction log for the DOE/CER MWX No. 1 Well, located in the NW1/4 of Section 34, Township 6 South, Range 94 West, 6th P.M. and defined as follows:

 

        Upper Mesaverde      3862 feet to 7666 feet

        Upper Cozzette       7830 feet to 7895 feet

        Lower Cozzette       7949 feet to 7996 feet

        Corcoran             8110 feet to 8270 feet

            

             7.  A 640-acre drilling and spacing unit should be established for production from the Upper Cozzette, Lower Cozzette or Corcoran Formations in said Section 33.  Two wells should be allowed to be drilled for production from each of these common sources of supply and the permitted location for each well should be no closer than 600 feet from the outer boundaries of the spacing unit and no closer than 1200 feet to any well or wells producing from the same reservoir.

 

             8.  The E1/2 and the W1/2 of said Section 33 should be established as the 320-acre drilling and spacing units for the Upper Mesaverde Formation, with the permitted well to be located in the NE1/4 and SW1/4 of each section, no closer than 600 feet to the boundaries of the quarter section upon which it is located and no closer than 1200 feet from another producing or producible well in the same formation.  The GV No. 9-33 Well located in the NE1/4 of said Section 33 should be designated as the permitted well for the 320-acre drilling and spacing unit consisting of the E1/2 of Section 33, Township 6 South, Range 94 West, 6th P.M., for the Upper Mesaverde Formation.


 

                                O R D E R

 

             NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well or wells drilled, completed or recompleted in the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran Formations, described herein below, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herein:

 

             Rule 1.  That evidence presented at the hearing indicates that the Upper Mesaverde, Upper Cozzette, Lower Cozzette and Corcoran Formations constitute common sources of supply of oil, gas and associated hydrocarbons underlying the following described lands in Garfield County, Colorado to‑wit:

 

                Township 6 South, Range 94 West, 6th P.M.

                     Section 33:  All

 

             Rule 2:  That the stratigraphic equivalent for the four intervals is found in the Dual Induction log for the DOE/CER MWX No. 1 Well, located in the NW1/4 of Section 34, Township 6 South, Range 94 West, 6th P.M. and shall be defined as follows:

 

        Upper Mesaverde      3862 feet to 7666 feet

        Upper Cozzette       7830 feet to 7895 feet

        Lower Cozzette       7949 feet to 7996 feet

        Corcoran             8110 feet to 8270 feet

 

             Rule 3:  A 640-acre drilling and spacing unit shall be established for production from the Upper Cozzette, Lower Cozzette or Corcoran Formations in said Section 33.  Two wells shall be allowed to be drilled for production from each of these common sources of supply and the permitted location for each well shall be no closer than 600 feet from the outer boundaries of the spacing unit and no closer than 1200 feet to any well or wells producing from the same reservoir.

 

             Rule 4:  The E1/2 and the W1/2 of said Section 33 shall be established as the 320-acre drilling and spacing units for the Upper Mesaverde Formation, with the permitted well to be located in the NE1/4 and SW1/4 of each section, no closer than 600 feet to the boundaries of the quarter section upon which it is located and no closer than 1200 feet from another producing or producible well in the same formation.  The GV No. 9-33 Well located in the NE1/4 of said Section 33 is hereby designated as the permitted well for the 320-acre drilling and spacing unit consisting of the E1/2 of Section 33, Township 6 South, Range 94 West, 6th P.M., for the Upper Mesaverde Formation.

 

             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                   , 1992, as of August 17, 1992.

 

             AMENDED this              day of                   , 1993.

 

                             OIL AND GAS CONSERVATION COMMISSION

                                    OF THE STATE OF COLORADO

 

 

                             By                                 

                                  Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

April 12, 1993