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 RULISON FIELD, GARFIELD COUNTY, COLORADO

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CAUSE NO.   139

 

ORDER NO.   139-25

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 22, 1993 at 8:30 a.m.,in [sic] Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notices of Hearing as required by law, on the verified applications of Meridian Oil Inc., for an order to amend Order Nos. 139-8 and 139-11 and designate the Mesaverde Formation into four separate common sources of supply and to establish drilling and spacing units 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 Notices, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

 

4.      On December 10, 1959, the Commission authorized Order No. 139-1 to be issued which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde Formation.  Subsequent Order No. 139-11 amended Order No. 139-1 and allowed an additional well to be drilled on the unit, with the permitted well to be located no closer than 600 feet to the outer boundaries of the spacing unit and no closer than 1200 feet to another well or wells producing from the same formation, where the second such well is to be located in a quarter section in which there is no well producing from that source of supply.  Sections 3 and 4, Township 7 South, Range 94 West, 6th P.M. were included in these orders.

 

5.      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. Section 28, Township 6 South, Range 94 West,6th [sic] P.M. was included in this order.

 

6.      That evidence presented at the administrative 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 28:  W1/2

 

Township 7 South, Range 94 West, 6th P.M.

Section 3:  All

Section 4:  All

 

7.      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

 

8.      640-acre drilling and spacing units should be established for the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran Formations in said Sections 3 and 4.  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.

 

9.      A 320-acre drilling and spacing unit should be established for the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran in the W1/2 of said Section 28 with the permitted location for the well to 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.

 

10. Based on the facts stated in the verified applications, receiving no protests and having been heard by the Hearing Officer on February 18, 1993 and recommended for approval, the Commission should approve the applications as submitted.

 

ORDER

 

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 Upper Mesaverde, Upper Cozzette, Lower Cozzette and Corcoran 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 28:  W1/2

 

Township 7 South, Range 94 West, 6th P.M.

Section 3:  All

Section 4:  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.    640-acre drilling and spacing units shall be established for production from the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran Formations in said Sections 3 and 4.  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.  The Bonneville No. 3-94 Well located in the SE1/4 NW1/4 of said Section 3 is hereby designated as one of the permitted wells for the 640-acre drilling and spacing unit consisting of said Section 3 for the Upper Mesaverde Formation.  The Fuel Resources Development Co. 0-4-7-94 Federal Well located in the SW1/4 SE1/4 of said Section 4 is hereby designated as one of the permitted wells for the 640-acre drilling and spacing unit consisting of said Section 4.

 

Rule 4.    The W1/2 of said Section 28 shall be established as a 320-acre drilling and spacing unit for production from the Upper Mesaverde, Upper Cozzette, Lower Cozzette or Corcoran Formations with a well 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.

 

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 12th day of March, 1993 as of February 22, 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

March 12, 1993