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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 PLATEAU FIELD, MESA COUNTY, COLORADO
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CAUSE NO. 166
ORDER NO. 166-21 |
This cause came on for hearing before the Commission at 10:00 a.m. on October 31, 2005, in the Ramada Inn & Suites, 124 West 6th Street, Glenwood Springs, Colorado, for an order to re-establish a 640-acre drilling and spacing unit consisting of Section 1, Township 10 South, Range 96 West, 6th P.M., with the permitted well to be located no closer than 600 feet from any lease line or 1200 feet from any producible well, for the production of gas from the Mesaverde Formation.
FINDINGS
The Commission finds as follows:
1. EnCana Oil & Gas (USA) Inc. (“EnCana”) 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.
6. Testimony and exhibits presented at the administrative hearing showed that approximately sixty (60) percent of the surface is owned by Hittle Cattle Company, that the surface use is agricultural/pasture land, and that all surface owners have signed surface use agreements with EnCana.
7. Testimony and exhibits presented at the administrative hearing showed that approximately three-eights of the minerals in the application area are federal with the remainder being fee minerals, and that EnCana has leased all of the minerals in the application area.
8. Testimony and exhibits presented at the administrative hearing showed a schematic diagram of the proposed horizontal well that will consist of one (1) vertical well bore and three (3) horizontal laterals.
9. Testimony and exhibits presented at the administrative hearing showed the reservoir quality of the Cozzette and Corcoran Sands near the application area, and indicated the mean Estimated Ultimate Recovery (“EUR”) of the Iles Formation is 0.5 BCF.
10. Testimony and exhibits presented at the administrative hearing showed the fifty (50) percent probability drainage area for these wells is 21.6 acres. Further testimony showed that the drainage area of 21.6 acres calculates to an equivalent drainage radius of 547 feet, and the requested 600 foot setback from the spacing unit boundary is appropriate.
11. EnCana Oil and Gas (USA), Inc. agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified application, having received no protests to the application and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to re-establish a 640-acre drilling and spacing unit consisting of Section 1, Township 10 South, Range 96 West, 6th P.M., with the permitted well to be located no closer than 600 feet from any lease line or 1200 feet from any producible well, for the production of gas from the Mesaverde Formation, unless an exception is granted by the Director.
NOW, THEREFORE IT IS ORDERED, that a 640-acre drilling and spacing unit consisting of Section 1, Township 10 South, Range 96 West, 6th P.M. is hereby re-established, with the permitted well to be located no closer than 600 feet from any lease line or 1200 feet from any producible well, for the production of gas from the Mesaverde Formation, unless an exception is granted by the Director.
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 November 2005, as of October 31, 2005.
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
November 30, 2005