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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. 139-83 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 9:00 a.m. on January 15, 2008, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to allow the equivalent of one well per 10 acres to be drilled in the 320-acre drilling and spacing units in Section 31, Township 6 South, Range 94 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
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 July 16, 1979, the Commission issued Order No. 139-8, which among other things, established 320-acre drilling and spacing units for certain lands, including Section 31, Township 6 South, Range 94 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
5. On April 20, 1990, the Commission issued Order No. 139-16, which among other things, amended Order No. 139-8, to allow wells to be located in the NE¼ or the SW¼ for certain lands including Section 31, Township 6 South, Range 94 West, 6th P.M., no less than 600 feet from the unit boundaries and at least 1200 feet from the nearest well producing from the same source of supply for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
6. 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 up to 8 wells per 320-acre drilling and spacing unit for certain lands, including Section 31, Township 6 South, Range 94 West, 6th P.M., with the permitted well to be located no closer that 400 feet from the boundaries of the unit and no closer that 800 feet from any existing Williams Fork Formation well, for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
7. On November 19, 2007, Williams, by its attorney, filed with the Commission a verified application for an order to allow the equivalent of one well per 10 acres to be drilled in the 320-acre drilling and spacing units in Section 31, Township 6 South, Range 94 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
That as to all future Williams Fork Formation wells to be drilled upon each of the units constituting the application lands, the wells should be located downhole anywhere in each of the drilling and spacing units constituting the application lands but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission. It is provided, however, that in cases where a unit abuts or corners lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Williams Fork Formation wells, the well should be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission. Further, wells drilled under this application will be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section unless exception is granted by the Director of the Oil and Gas Conservation Commission.
8. On January 3, 2008, Williams, by its attorney, 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.
12. The above-referenced testimony and exhibits show that the proposed increased well density will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.
13. Williams Production RMT Company agreed to be bound by oral order of the Commission.
14. 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.b., the Commission should enter an order to allow the equivalent of one well per 10 acres to be drilled in the 320-acre drilling and spacing units in Section 31, Township 6 South, Range 94 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
NOW, THEREFORE, IT IS ORDERED, that the equivalent of one well per 10 acres is hereby approved to be drilled in the 320-acre drilling and spacing units in Section 31, Township 6 South, Range 94 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
IT IS FURTHER ORDERED, that all future Williams Fork Formation wells shall be located downhole anywhere in each of the drilling and spacing units but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission. It is provided, however, that in cases where a unit abuts or corners lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Williams Fork Formation wells, the well shall be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission.
IT IS FURTHER ORDERED, that wells drilled under this application shall be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section unless exception is granted by the Director of the Oil and Gas Conservation Commission.
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.
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.
ENTERED this__________day of January, 2008, as of January 15, 2008.
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
January 23, 2008