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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 MAMM CREEK FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 191
ORDER NO. 191-14 CORRECTED |
FINDINGS
The Commission finds as follows:
1. Antero Resources Corporation (“Antero”), 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 two thousand five hundred (2,500) feet in depth be located not less than six hundred (600) feet from any lease line, and located not less than one thousand two hundred (1,200) feet from any other producible or drilling oil or gas well when drilling to the same common source of supply, unless authorized by order of the Commission upon hearing. Portions of Sections 13 and 14, Township 6 South, Range 93 West, 6th P.M. are subject to this Rule.
5. On November 30, 2005, the Commission issued Order No. 510-16, which among other things, changed the existing well location and setback rules for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, to the equivalent of one well per 10 acres with the permitted well to be located no closer than 100 feet from the outside boundary of the applications lands. Portions of Sections 13 and 14, Township 6 South, Range 93 West, 6th P.M. are subject to this Order.
Township 6 South, Range 93 West, 6th P.M.
Section 13: N˝
Section 14: N˝
7. Testimony and exhibits presented at the administrative hearing showed the application lands in relation to other increased density areas previously approved by the Colorado Oil and Gas Conservation Commission, Antero Resources’ leasehold in the application lands, and indicated that a portion of the application lands are utilized by the Garfield County Airport.
8. Testimony and exhibits presented at the administrative hearing showed the geological nature of the Williams Fork Formation in the application area, sand depositional models for the Williams Fork Formation indicating depositional discontinuities in the sands of the Williams Fork Formation, and that the average sand width for the Williams Fork Formation is approximately four hundred (400) feet.
9. Testimony and exhibits presented at the administrative hearing showed that increased well density has increased gas production and would increase the ultimate gas recovery from the Williams Fork Formation in analogous 10-acre development areas located near the application lands, that increasing well density from twenty (20) to ten (10) acres would increase estimated ultimate recovery by approximately 6.0 BCF within the analogous development area located near the application lands, and that the proposed wells within the application lands would have an undiscounted payout in 4.47 years assuming production characteristics similar to the analogous wells.
10. The above-referenced testimony and exhibits show that the proposed spacing and 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. Antero Resources Corporation agreed to be bound by oral order of the Commission.
ORDER
Township 6 South, Range 93 West, 6th P.M.
Section 13: N˝
Section 14: N˝
IT IS FURTHER ORDERED, that all future Williams Fork Formation wells to be drilled on these lands shall be located downhole no closer than 100 feet from the boundaries of the unit unless such unit abuts or corners lands in respect of which the Director of 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 unit which so abuts or corners the lands in respect of which 10-acre density downhole drilling for Williams Fork Formation wells has not been ordered by the 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 19th day of January, 2006, as of January 9, 2006.
CORRECTED this day of February, 2006, as of January 9, 2006.
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