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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. 191-32 |
This cause came on for hearing before the Commission at 8:30 a.m. on August 16, 2006, in the Meeker Town Hall, 345 Market Street, Meeker Colorado, for an order to allow the equivalent of one well per 10 acres, with the permitted well to be located no closer than 100 feet from the unit boundary for certain lands in Townships 6 and 7 South, Range 91 West, 6th P.M.
The Commission finds as follows:
1. Windsor Energy Group, LLC. (“Windsor”), 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. Certain lands in Townships 6 and 7 South, Range 91 West, 6th P.M. are subject to this rule.
5. On June
23, 2006, Windsor, by its
attorney, filed with the Commission a verified application for an order to
allow the equivalent of one (1) well per 10 acres, for the below-listed lands
for production of gas and associated hydrocarbons from the Williams Fork and
Iles Formations, with the permitted well to be located no closer than one
hundred (100) feet from the lease line, and no closer than two hundred (200)
feet from the lease lines where 10-acre density drilling has not been allowed,
without exception being granted by the Director of the Oil and Gas Conservation
Commission. Said wells will be drilled from the surface either vertically or
directionally from no more than one (1) pad located on a given quarter quarter
section, unless exception is granted by the Colorado Oil and Gas Conservation
Commission.
Township 6 South, Range 91 West, 6th P.M.
Section 31: SE¼ SW¼
Township 7 South, Range 91 West, 6th P.M.
Section 2: Lots 3-4, S½ SW¼
Sections 3 and 4: Lots 1-4, S½ S½ (All)
Section 5: Lots 1-3, S½ SE¼
Section 6: Lot 3, SE¼ SE¼
Section 7: Lots 1-4, E½, E½ W½ (All)
Sections 8 through 10: All
Section 15: N½, N½ S½, SW¼ SW¼
Sections 16 and 17: All
Section 18: E½, E½ NW¼, NE¼ SW¼
6. On July 31, 2006, Lisa Bracken, Emma Eicher, and Robert Eicher filed with the Commission a Statement under Rule 510. concerning the application. At the time of the administrative hearing on August 2, 2006, Windsor stated that the parties submitting the Rule 510. Statement do not own surface or mineral interest within the application lands, and that Windsor had been in contact with Ms. Bracken.
7. Testimony and exhibits presented at the administrative hearing showed that the Bureau of Land Management (“BLM”) owns 100% of the minerals in the application lands, that Windsor has 100% of the minerals leased, and that except for the NE¼ NE¼ of Section 10, Township 7 South, Range 91 West, 6th P.M., the BLM owns the surface within the application area.
8. Testimony and exhibits presented at the administrative hearing showed the geologic model for the application area indicating that within the application area discontinuous sand bodies of limited aerial extent were deposited in fluvial settings, that the average apparent sand body width is 526 feet, that without 10-acre density drilling a significant number of sand units would never be penetrated, leaving considerable gas behind, and that natural discontinuities exist within the sand bodies that are barriers to flow.
9. Testimony and exhibits presented at the administrative hearing showed that 10-acre well density will produce substantial incremental gas reserves and that cumulative gas production would be expected to double if well density is increased from 20 acres to 10 acres within the application area.
10. The above-referenced testimony and exhibits show that the proposed increased 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. No protests to the application have been filed with the Commission or the Applicant.
12. Windsor Energy Group, LLC. agreed to be bound by oral order of the Commission.
13. 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 enter an order to allow the equivalent of one well per 10 acres to be drilled in certain lands in Townships 6 and 7 South, Range 91 West, 6th P.M., with the permitted well to be located no closer than 100 feet from the lease line.
ORDER
NOW, THEREFORE IT IS ORDERED, that the equivalent of one (1) well per ten (10) acres is hereby approved to be drilled on the below-listed lands, for production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, with the permitted well to be located no closer than one hundred (100) feet from the lease line, and no closer than two hundred (200) feet from the lease lines where 10-acre density drilling has not been allowed, without exception being granted by the Director of the Oil and Gas Conservation Commission.
Township 6 South, Range 91 West, 6th P.M.
Section 31: SE¼ SW¼
Township 7 South, Range 91 West, 6th P.M.
Section 2: Lots 3-4, S½ SW¼
Section 3: Lots 1-4, S½ S½ (All)
Section 4: Lots 1-4, S½ S½ (All)
Section 5: Lots 1-3, S½ SE¼
Section 6: Lot 3, SE¼ SE¼
Section 7: Lots 1-4, E½, E½ W½ (All)
Sections 8 through 10: All
Section 15: N½, N½ S½, SW¼ SW¼
Sections 16 and 17: All
Section 18: E½, E½ NW¼, NE¼ SW¼
IT IS FURTHER ORDERED, that said wells shall be drilled from the surface either vertically or directionally from no more than one (1) pad located on a given quarter quarter section, unless exception is granted by the Colorado Oil and Gas Conservation Commission.
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.
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
August 25, 2006