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 MAM CREEK FIELD,              

GARFIELD COUNTY, COLORADO

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CAUSE NO.   191

 

ORDER NO.   191-5

 

                                                              REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on October 21, 1997 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Vessels Oil & Gas Company for an order to permit additional wells, not to exceed a total of sixteen (16) wells, to be drilled in the previously established 640-acre drilling and spacing unit consisting of Section 25, Township 6 South, Range 92 West, 6th P.M., and to decrease the size of the previously established 640-acre drilling and spacing unit located in Section 36, Township 6 South, Range 92 West, 6th P.M., from 640-acres to 40-acres, for the production of oil, gas and associated hydrocarbons from the Mesaverde Group, including the Williams Fork Formation.  In addition, the Applicant requests that the permitted well locations in Section 25 be at a distance of at least 400 feet from the outer boundaries of the drilling and spacing unit and no closer than 800 feet to any well or wells producing or producible from the same formation, and that the permitted well locations in Section 36 be in accordance with Commission Rule 318.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Vessels Oil & Gas Company, 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 February 22, 1994, the Commission issued Order No. 191-4 which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde Formation, including, but not limited to, the Cozzette and Corcoran members, with the permitted well to be located no closer than 990 feet to the boundaries of the unit; however, the Director may grant exceptions, providing the offset operators, file a waiver or consent in writing, for the below-listed lands, to-wit:

 

Township 6 South, Range 92 West, 6th P.M.

Sections 24 and 25:  All

Sections 35 and 36:  All

 

                        5.  That the depositional environment of the Williams Fork Formation in the application lands was similar to the Gibson Gulch II Unit which lies directly adjacent to the east of the application area and is developed on 40-acre spacing, and to the Rulison Field approximately fifteen (15) miles to the west which is being developed on 40-acre well density.

 

                        6.  That in order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to insure the proper, and efficient development and promote conservation of the oil and gas resources of the State, an order should be entered allowing additional wells, not to exceed a total of sixteen (16) wells to be drilled on the 640-acre drilling and spacing unit consisting of Section 25, Township 6 South, Range 92 West, 6th P.M. for the production of oil, gas, and associated hydrocarbons from the Mesaverde Formation, with the permitted well to be located a distance of at least 400 feet from the outer boundaries of the drilling and spacing unit and no closer than 800 feet to any well or wells producing or producible from the same formation.

 

                        7.  In addition, the order should decrease the 640-acre drilling and spacing unit consisting of Section 31, Township 6 South, Range 92 West, 6th P.M., established for production of oil, gas and associated hydrocarbons from the Mesaverde Formation, to 40-acre drilling and spacing units to adequately and efficiently drain the reserves based on testimony presented at the administrative hearing that 40-acres is not smaller than the maximum area that can be efficiently and economically drained by one well.  The permitted wells should be located in accordance with Rule 318.

 

                        8.  At the time of the hearing, the Applicant agreed to be bound by oral order of the Commission.

 

                        9.  Based on the facts stated in the verified amended application, receiving no protests and having been heard by the Hearing Officers and recommended for approval, the Commission should enter an order to permit additional wells, not to exceed a total of sixteen (16) wells, to be drilled in the previously established 640-acre drilling and spacing unit consisting of Section 25, Township 6 South, Range 92 West, 6th P.M., and to decrease the size of the previously established 640-acre drilling and spacing unit located in Section 36, Township 6 South, Range 92 West, 6th P.M., from 640-acres to 40-acres, for the production of oil, gas and associated hydrocarbons from the Mesaverde Group, including the Williams Fork Formation.  In addition, permitted well locations in Section 25 should be at a distance of at least 400 feet from the outer boundaries of the drilling and spacing unit and no closer than 800 feet to any well or wells producing or producible from the same formation, and that the permitted well locations in Section 36 should be in accordance with Commission Rule 318.

 

                                                                                   ORDER

 

                        NOW, THEREFORE IT IS ORDERED, that additional wells, not to exceed a total of sixteen (16) wells shall be allowed to be drilled in the 640-acre drilling and spacing unit consisting of Section 25, Township 6 South, Range 92 West, 6th P.M., for production of oil, gas and associated hydrocarbons from the Mesaverde Formation with the permitted well to be located at a distance of at least 400 feet from the outer boundaries of the drilling and spacing unit and no closer than 800 feet to any well or wells producing or producible from the same formation.

 

                        IT IS FURTHER ORDERED, that the 640-acre drilling and spacing unit consisting of Section 36, Township 6 South, Range 92 West, 6th P.M., shall be decreased to 40-acre drilling and spacing units, for the production of oil, gas and associated hydrocarbons from the Mesaverde Group with the permitted well locations to be located in accordance with Commission Rule 318.

 

                        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.

 

                        ENTERED this                day of November, 1997 as of October 21, 1997.

 

                                                                        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

July 19, 2018