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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 MAM CREEK FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 191
ORDER NO. 191-11 |
FINDINGS
The Commission finds as follows:
1. Bill Barrett Corporation, 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.
4. On January 10, 2005, the Commission issued Order No. 191-8, which, among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be to be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Colorado Oil and Gas Conservation Commission for various sections in Township 6 South, Range 91 West, 6th P.M. Where these lands abut or corner 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 Colorado Oil and Gas Conservation Commission. In addition, the order allowed the number of wells which can be optionally drilled into and produced from the Williams Fork Formation to the equivalent of one well per 10 acres.
Township 6 South, Range 91 West, 6th P.M.
Section 22: E½
Section 25: N½
Section 26: N½
Section 27: S½
6. Testimony and exhibits presented at the administrative hearing indicated that the lessor of the application lands preferred not to be included in a drilling and spacing unit, wanting his lands to be pooled on a basis no larger than a 40-acre parcel.
7. Testimony and exhibits presented at the administrative hearing showed the proposed setbacks that would remain in place for the application lands if the request to rescind the drilling and spacing units was granted. Additional testimony indicated that, if approved, these setbacks would apply to lease lines rather than drilling and spacing units.
8. Bill Barrett Corporation agrees to be bound by oral order of the Commission.
9. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should approve an order to vacate the 320-drilling and spacing units established in Order No. 191-8 for certain lands in Township 6 South, Range 91 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
NOW, THEREFORE IT IS ORDERED, that the below-listed lands are hereby removed from Order No. 191-8, which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Williams Fork Formation:
Township 6 South, Range 91 West, 6th P.M.
Section 22: E½
Section 25: N½
Section 26: N½
Section 27: S½
IT IS FURTHER ORDERED, that for these unspaced lands where the lands abut or corner 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 100 feet from the boundaries of any lease line unless such lease line abuts or corners lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill Williams Fork Formation 10 acre density wells in which event the wells shall be drilled downhole no closer than 200 feet from the lease line which so abuts or corners the lands in respect of which 10 acre density downhole drilling for Williams Fork wells has not been ordered by the Commission.
IT IS FURTHER ORDERED, that wells drilled on these 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 unless exception is granted by the Director of the Colorado 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 May, 2005, as of April 25, 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
May 16, 2005