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. 139-94 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on Wednesday, June 11, 2008 8:30 a.m. at the Two Rivers Convention Center, 159 Main Street, White Water Room in Grand Junction, Colorado, for an order establishing four (4) approximately 160-acre drilling and spacing units for the Wasatch Formation with the bottomhole location for each well to be located no closer than 600 feet from the drilling and spacing unit boundaries for Section 12, Township 7 South, Range 95 West, 6th P.M.
FINDINGS
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. Rule 318.a. of the Rules and Regulations of the Commission requires that wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply. Section 12, Township 7 South, Range 95 West, 6th P.M. is subject to this Rule for the Wasatch Formation.
5. On April 21, 2008, Williams, by its attorney, filed with the Commission a verified application for an order to establish four (4) approximate 160-acre drilling and spacing units for the below-listed lands for production of gas and associated hydrocarbons from the Wasatch Formation:
Township 7 South, Range 95 West, 6th P.M.
Section 12: NE¼ (approximately 165.76 acres)
Section 12: NW¼ (approximately 162.87 acres)
Section 12: SW¼ (approximately 162.77 acres)
Section 12: SE¼ (approximately 165.83 acres)
6. On May 29, 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.
10. The above-referenced testimony and exhibits show that the proposed drilling and spacing units 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.
12. 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 establish four approximate 160-acre drilling and spacing units for Section 12, Township 7 South, Range 95 West, 6th P.M., with the bottomhole location of each permitted well in the unit to be located no closer than 600 feet from the unit boundaries.
ORDER
NOW, THEREFORE IT IS ORDERED, that four (4) approximate 160-acre drilling and spacing units are hereby established for the below-listed lands for production of gas and associated hydrocarbons from the Wasatch Formation:
Township 7 South, Range 95 West, 6th P.M.
Section 12: NE¼ (approximately 165.76 acres)
Section 12: NW¼ (approximately 162.87 acres)
Section 12: SW¼ (approximately 162.77 acres)
Section 12: SE¼ (approximately 165.83 acres)
IT IS FURTHER ORDERED, that each Wasatch Formation well may be located anywhere in the drilling and spacing unit provided that it shall be drilled from a common surface location pad associated with Williams Fork Formation operations within each drilling and spacing unit, with the bottomhole location of each Wasatch Formation well to be located no closer than 600 feet from the boundaries of the drilling and spacing unit.
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 June, 2008, as of June 11, 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
June 30, 2008