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. 139-89 |
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.
6. On May 10, 2007, the Commission issued Order No. 139-73, which among other things, established 40-acre drilling and spacing units for Section 8, Township 7 South, Range 94 West, 6th P.M., and allowed one well per 10 acres for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, with the permitted well to be located no closer than 100 feet from the unit boundary, and no closer than 200 feet from the unit boundaries where 10-acre density drilling has not been allowed, without exception being granted by the Director of the Oil and Gas Conservation Commission. Said wells shall be drilled from the surface either vertically or directionally from no more than one pad located on a give quarter quarter section unless exception is granted by the Director of the Oil and Gas Conservation Commission.
10. The above-referenced testimony and exhibits show that the proposed spacing and 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.
11. Williams Production RMT Company agreed to be bound by oral order of the Commission.
ORDER
NOW, THEREFORE IT IS ORDERED, that the 40-acre drilling and spacing units established in Order No. 139-73 are hereby vacated and an approximate 440-acre drilling and spacing unit is hereby established consisting of the S½, S½ NE¼, SE¼ NW¼ of Section 8, Township 7 South, Range 94 West, 6th P.M., allowing one well per 10 acres for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
IT IS FURTHER ORDERED, that all future Williams Fork Formation and Iles Formation wells to be drilled on the application lands shall be located downhole anywhere upon such lands but no closer than 100 feet from a lease line or the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission. In cases where the 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 wells, the well shall be located downhole no closer than 200 feet from the boundary or boundaries of the application lands 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 all wells drilled to the Iles Formation shall be drilled only in connection with the drilling of Williams Fork Formation wells.
IT IS FURTHER ORDERED, that all Williams Fork Formation and Iles Formation wells drilled upon the application lands shall be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section (or lots or parcels approximately equivalent thereto) unless exception is granted by the Director of the Colorado Oil and Gas Conservation Commission.
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 April, 2008, as of March 31, 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
April 8, 2008