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.   139-94

 

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.

 

7.     Testimony and exhibits submitted in support of the application indicated that Williams owns the leasehold on the application lands, and that, while there are no producing Wasatch Formation wells on the application lands, there are adjacent lands which have wells completed in the Wasatch Formation.

 

8.     Testimony and exhibits submitted in support of the application indicated that the Wasatch Formation is a shallow formation that sits immediately above the Mesaverde Formation.  Additional testimony indicated that the Wasatch Formation is a common source of supply as demonstrated through type logs.  Further testimony and exhibits indicated that adjacent sections have wells completed in the Wasatch Formation on 160-acre spacing, and that the 160-acre drilling and spacing units are ideal to efficiently and economically drain the reservoir.

 

9.     Testimony and exhibits submitted in support of the application indicated that wells completed on 160-acre spacing in the Wasatch Formation in an adjacent section will have a 20 year production history with an estimated ultimate recovery (EUR) that will vary from 0.26 to 1.28 BCF.  Additional testimony and exhibits showed that 160-acre drilling and spacing units will efficiently and economically drain the Wasatch Formation.

 

 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