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 MAMM CREEK FIELD,

GARFIELD COUNTY, COLORADO

 

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CAUSE NO.   191

 

ORDER NO.   191-35

 

            REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission at 8:00 a.m. on October 23, 2006, in Room 200, Las Animas County Court House, 200 East First Street, Trinidad, Colorado, for an order to amend Order No. 191-32 to include Lot 1, Section 18, Township 7 South, Range 91 West, 6th P.M. under the provisions of Order No. 191-32 and allow the equivalent of one (1) well per 10 acres for production from the Williams Fork and Iles Formations, with the permitted wells to be located in accordance with those established in Order No. 191-32.

 

FINDINGS

 

                        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.  On August 16, 2006, the Commission issued Order No. 191-32, which among other things, allowed the equivalent of one (1) well per ten (10) acres for certain lands in Townships 6 and 7 South, Range 91 West, 6th P.M., for production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, with the permitted well for the Williams Fork Formation 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, and with the permitted well for the Iles Formation to be located no closer than four hundred (400) feet from the lease line 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. 

                        5.  On August 24, 2006, Windsor, by its attorney, filed with the Commission a verified application for an order to amend Order No. 191-32 to include Lot 1, Section 18, Township 7 South, Range 91 West, 6th P.M. under the provisions of Order No. 191-32 and allow the equivalent of one (1) well per 10 acres for production from the Williams Fork and Iles Formations, with the permitted wells to be located in accordance with those established in Order No. 191-32.

 

                        6.  On October 11, 2006, Windsor, 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

                       

                        7. Testimony and exhibits submitted in support of the application showed the location of the application area in reference to previously approved Commission orders allowing 10-acre well density for the Williams Fork and Iles Formations.

 

                        8.  Testimony and exhibits submitted in support of the application showed that within the application lands the Bureau of Land Management owned 100% of the minerals, Windsor had 100% of the minerals leased, and that except for the NEĽ NEĽ of Section 10, Township 7 South, Range 91 West, 6th P.M., the Bureau of Land Management owned the surface within the application lands.

 

                        9.  Testimony and exhibits submitted in support of the application showed that within the application lands discontinuous sand bodies of limited aerial extent were deposited in fluvial settings; average apparent sand body width is 526 feet; without 10-acre density drilling a significant number of sand units would never be penetrated, leaving considerable gas behind; natural discontinuities exist within the sand bodies that are barriers to flow; extensive outcrop around the basin, dense well control, and cored wells provide detailed information to support the geologic model.

 

                        10.  Testimony and exhibits submitted in support of the application 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.

 

                        11.       The above-referenced testimony and exhibits show that the proposed increased well density will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.

 

                        12.  Windsor Energy Group 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 amend Order No. 191-32 to include Lot 1, Section 18, Township 7 South, Range 91 West, 6th P.M. under the provisions of Order No. 191-32 and allow the equivalent of one (1) well per 10 acres for production from the Williams Fork and Iles Formations, with the permitted wells to be located in accordance with those established in Order No. 191-32.

 

ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Order No. 191-32 is hereby amended to include Lot 1, Section 18, Township 7 South, Range 91 West, 6th P.M. under the provisions of Order No. 191-32, allowing the equivalent of one (1) well per 10 acres for production from the Williams Fork and Iles Formations, with the permitted wells to be located in accordance with those established in Order No. 191-32.

 

                        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, 2006, as of October 23, 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

November 8, 2006