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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 RULISON FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 139
ORDER NO. 139-63 |
This cause came on for hearing before the Commission at 10:00 a.m. on June 5, 2006, in the Council Chamber Room of the Ambulance Building, 304 West 3rd Street, Wray, Colorado, for an order to delete certain lands in Section 5, Township 7 South, Range 94 West, 6th P.M. from the provisions of Cause No. 139 and place the lands under the provisions of Rule 318. of the Rules and Regulations of the Oil and Gas Conservation Commission, and to establish the N½ and N½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. as a 386.52-acre drilling and spacing unit, for the production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be located with a bottomhole location no closer than 100 feet from the boundary line separating the SW¼ and S½ SE¼ from the remainder of Section 5.
The Commission finds as follows:
1. Williams Production RMT Company (“Williams”), 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 December 10, 1959, the Commission issued Order No. 139-1, which among other things, established 640-acre drilling and spacing units for the production of gas from the Mesaverde Formation. On February 12, 1988, the Commission issued Order No. 139-11, which among other things, allowed two (2) wells to be drilled on the 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde Formation. On February 22, 1994, the Commission issued Order No. 139-26, which among other things, allow up to eight (8) wells to be drilled on the 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde Formation. On February 21, 1995, amended April 26, 1995, and corrected February 21, 2000, the Commission issued Order No. 139-28, which among other things, allowed sixteen (16) wells to be drilled on the 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group. Section 5, Township 7 South, Range 94 West, 6th P.M. is subject to the above orders.
5. On March 22, 2006, Williams Production RMT Company, by its attorney, filed with the Commission a verified application for an order to vacate the SW¼ and S½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. from the provisions of Cause No. 139 and place the lands under the Rules and Regulations of the Commission, and to establish the N½ and N½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. as a 386.52-acre drilling and spacing unit, for the production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be located with a bottomhole location no closer than 100 feet from the boundary line separating the SW¼ and S½ SE¼ from the remainder of said Section 5.
6. The verified application states that the vacation of the SW¼ and S½ SE¼ from the drilling and spacing unit proposed in Finding #5 above will allow development of the Mesaverde Group to occur, will not promote waste, will not violate correlative rights, and will assure the greatest ultimate recovery of gas and associated hydrocarbon substances from the reservoir.
7. Testimony and exhibits presented at the administrative hearing showed the proposed 386.52 acre drilling and spacing unit and the proposed 225.47 acres that would be vacated from the provisions of Cause No. 139. Additional testimony indicated that the mineral owners of the lands to be vacated want to be removed from the current drilling and spacing unit in order to separately develop their minerals according to the provisions of Commission Rule 318., and that the mineral owners of the lands to be vacated have reimbursed the remaining mineral owners within the original drilling and spacing unit for proceeds paid on past production within the unit.
8. Williams agreed to be bound by oral order of the Commission.
9. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to delete certain lands in Section 5, Township 7 South, Range 94 West, 6th P.M. from the provisions of Cause No. 139 and place the lands under the provisions of Rule 318. of the Rules and Regulations of the Oil and Gas Conservation Commission, and to establish the N½ and N½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. as a 386.52-acre drilling and spacing unit, for the production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be located with a bottomhole location no closer than 100 feet from the boundary line separating the SW¼ and S½ SE¼ from the remainder of Section 5.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the SW¼ and S½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. are hereby removed from the provisions of Cause No. 139 and placed under the provisions of Rule 318. of the Rules and Regulations of the Commission.
IT IS FURTHER ORDERED, that the N½ and N½ SE¼ of Section 5, Township 7 South, Range 94 West, 6th P.M. is hereby established as a 386.52-acre drilling and spacing unit, for the production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be located with a bottomhole location no closer than 100 feet from the boundary line separating the SW¼ and S½ SE¼ from the remainder of said Section 5.
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.
IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.
IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.
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