BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF PROMULGATION AND                   )           CAUSE NO. 191

ESTABLISHMENT OF FIELD RULES TO GOVERN      )

OPERATIONS IN THE MAMM CREEK FIELD AREA,    )           ORDER NO. 191-52

GARFIELD COUNTY, COLORADO                                   )

 

REPORT OF THE COMMISSION

 

 

This cause came on for hearing before the Commission at 9:00 a.m. on July 23, 2007, in Suite 801, in The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to establish an approximate 195-acre drilling and spacing unit consisting of certain lands in Section 8 in Township 6 South, Range 92 West, 6th P.M. for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.

 

FINDINGS

 

The Commission finds as follows:

 

1.  Antero Resources Piceance Corporation (“Antero”) 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 and gas well when drilling to the same common source of supply.  Certain lands in Section 8, Township 6 South, Range 92 West, 6th P.M. are subject to this Rule.

 

5.  On October 23, 2006, the Commission issued Order No. 191-36, which among other things, authorized the equivalent of one well per 10 acres for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, for the below-listed lands:

 

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

Section 8:       Lot 8, Lot 9, NEĽ SEĽ and S˝ SEĽ

 

All future Williams Fork Formation wells drilled on such drilling and spacing unit should be located downhole anywhere upon such lands but no closer than 100 feet from the outside boundary of the drilling and spacing unit unless such unit abuts or corners lands in respect of which the Commission has not at the time of the drilling permit application granted the right to drill 10-acre density downhole drilling for the Williams Fork Formation, in which event the Williams Fork Formation wells to be drilled upon the drilling and spacing unit should be drilled downhole no closer than 200 feet from the portion of the boundary which so abuts or corners the lands in respect of which 10-acre density downhole drilling for the Williams Fork Formation wells has not been order by the Commission.

 

All future Iles Formation wells drilled on such drilling and spacing unit should be located downhole anywhere upon such drilling and spacing unit no closer than 400 feet to the outside boundary of the drilling and spacing unit, it being understood that the Iles Formation wells may be drilled only in conjunction with the drilling to the Williams Fork Formation wells.

 

All Williams Fork Formation wells drilled upon such drilling and spacing unit will be drilled from the surface wither vertically or directionally from no more than one pad located on a given quarter quarter section unless exception is granted by the Colorado Oil and Gas Conservation Commission.

 

6.  On April 19, 2007, Antero Resources Piceance Corporation (“Antero”), by its attorney, filed with the Commission a verified application for an order to establish an approximate 195-acre drilling and spacing unit consisting of the below-described lands for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formation:

 

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

Section 8:       Lot 8, Lot 9, NEĽ SEĽ and S˝ SEĽ

 

7.  On July 12, 2007, Antero, 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.

 

8.  Testimony and exhibits submitted in support of the application showed that a drilling and spacing unit is necessary due to the numerous leases and unleased mineral ownership within the application lands and that establishing the unit would allow downhole well locations to be more efficiently placed thus assuring the greatest ultimate recovery of gas and associated hydrocarbon substances.  Additional testimony and evidence supporting the reference prior order of the Commission show that the proposed ten acre 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.

 

9.  The above-reverenced testimony and exhibits show that the proposed spacing will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.

 

10.  No protests to the application have been filed with the Commission or the applicant.

 

11.  Antero Resources Piceance Corporation agreed to be bound by oral order of the Commission.

 

12.  Based on the facts stated in the verified application, having received no protests, and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to establish an approximate 195-acre drilling and spacing unit consisting of certain lands in Section 8, Township 6 South, Range 92 West, 6th P.M. for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that an approximate 195-acre drilling and spacing unit is hereby established consisting of the below-described lands for the production of gas and associated hydrocarbons form the Williams Fork and Iles Formations:

 

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

Section 8:       Lot 8, Lot 9, NEĽ SEĽ and S˝ SEĽ

 

IT IS FURTHER ORDERED, that all future Williams Fork Formation wells drilled on such drilling and spacing unit shall be located downhole anywhere upon such lands but no closer than 100 feet from the outside boundary of the drilling and spacing unit unless such unit abuts or corners lands in respect of which the Commission has not at the time of the drilling permit application granted the right to drill 10-acre density downhole drilling for the Williams Fork Formation, in which event the Williams Fork Formation wells to be drilled upon the drilling and spacing unit shall be drilled downhole no closer than 200 feet from the portion of the boundary which so abuts or corners the lands on respect of which 10-acre density downhole drilling for the Williams Fork Formation wells has not been ordered by the Commission.

 

IT IS FURTHER ORDERED, that all future Iles Formation wells drilled on such drilling and spacing unit shall be located downhole anywhere upon such drilling and spacing unit but no closer than 400 feet to the outside boundary of the drilling and spacing unit, it being understood that the Iles Formation wells may be frilled only in conjunction with the drilling of the Williams Fork Formation wells.

 

IT IS FURTHER ORDERED, that wells drilled on the 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 Colorado Oil and Gas Conservation Commission.

 

IT IS FURTHER ORDERED, that all Williams Fork Formation wells drilled upon such drilling and spacing unit 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 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 August, 2007, as of July 23, 2007.

 

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 15, 2007