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. 191-54

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 8:00 a.m. on July 15, 2008, in Ballroom B of the Brown Palace Hotel, 321 Seventeenth Street, Denver, Colorado, for an order to vacate Order Nos. 191-15 and 191-25, which established a 320-acre drilling and spacing unit, to establish three drilling and spacing units for certain lands in the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M., and continue 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 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”), 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 January 9, 2006 (corrected February 28, 2006), the Commission issued Order No. 191-15, which among other things, established 320-acre drilling and spacing units for certain lands including the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M. for the production of gas and associated hydrocarbons from the Williams Fork Formation.

 

5.    On June 5, 2006, the Commission issued Order No. 191-25, which among other things, established 320-acre drilling and spacing units for certain lands including the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M. for the production of gas and associated hydrocarbons from the Iles Formation.

 

6.    On May 23, 2008, Antero, by its attorney, filed with the Commission a verified application for an order to vacate Order Nos. 191-15 and 191-25, which established a 320-acre drilling and spacing unit consisting of the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M. for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, and establish the below-described drilling and spacing units for said formations.  The vacation of the 320-acre drilling and spacing unit is proposed due to one or more lessors objecting to voluntary pooling of such lands within this unit.

 

Township 6 South, Range 93 West, 6th P.M.

Section 11:    E˝ NEĽ (an approximate 80 acre drilling and spacing unit)

 

Section 11:    A parcel of land beginning at a point 1320.00 feet west of the NEĽ NEĽ of Section 11, Township 6 South, Range 93 West, said point being the north west corner of the NEĽ NEĽ of said Section 11; thence due West a distance of 3960.00 feet; thence due South a distance of 2640.00 feet, thence due east a distance of 3166.18 feet; thence due north a distance of 1320.00 feet; thence due east a distance of 792.645 feet, thence due north a distance of 1320.00 feet to the point of beginning (an approximate 215.94 acre drilling and spacing unit)

7.        On June 30, 2008, the application was protested by Dolphin Energy Corporation.  The protest was resolved between the parties by agreement that a third drilling and spacing unit be established in the N˝ of Section 11, as described below and said unit also would continue to be approved for 10-acre density drilling for the Williams Fork and Iles Formations:

Section 11:  Beginning at the Southwest corner of the E˝ NEĽ going due North a distance of approximately 1320 feet; thence due West a distance of approximate 800 feet; due South approximately 1320 feet; then due East approximately 800 feet to the point of beginning (approximately 24.152 acres)

 

8.    On July 3, 2008, 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.  Sworn written testimony and exhibits were submitted in support of the application.

 

9.    Testimony and exhibits submitted in support of the application showed that Antero is the leasehold owner for Williams Fork and Iles Formations on the application lands. 

 

10.  The above-referenced testimony and exhibits show that the proposed drilling and spacing units will not violate correlative rights.

 

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

 

12.  Based on the facts stated in the verified amended application, having received one protest which resulted in Antero proposing a third drilling and spacing unit at the request of the protestant, and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to vacate the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M. from Order Nos. 191-15 and 191-25, which established a 320-acre drilling and spacing unit, and to establish three drilling and spacing units for certain lands in the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M., and continue 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 the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that the 320-acre drilling and spacing unit consisting of the N˝ of Section 11, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, is hereby vacated from Order Nos. 191-15 and 191-25, and the below-described drilling and spacing units are hereby established for said formations:

 

Township 6 South, Range 93 West, 6th P.M.

Section 11:    E˝ NEĽ (an approximate 80 acre drilling and spacing unit)

 

Section 11:    A parcel of land beginning at a point 1320.00 feet west of the NEĽ NEĽ of Section 11, Township 6 South, Range 93 West, said point being the north west corner of the NEĽ NEĽ of said Section 11; thence due West a distance of 3960.00 feet; thence due South a distance of 2640.00 feet, thence due east a distance of 3166.18 feet; thence due north a distance of 1320.00 feet; thence due east a distance of 792.645 feet, thence due north a distance of 1320.00 feet to the point of beginning (an approximate 215.94 acre drilling and spacing unit)

 

Section 11:  Beginning at the Southwest corner of the E˝ NEĽ going due North a distance of approximately 1320 feet; thence due West a distance of approximate 800 feet; due South approximately 1320 feet; then due East approximately 800 feet to the point of beginning (approximately 24.152 acres)

 

IT IS FURTHER ORDERED, that all future Williams Fork Formation wells to be drilled upon each of said drilling and spacing units constituting the application lands, shall be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission.  In cases where the application lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Williams Fork Formation wells, the well shall be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission.

 

IT IS FURTHER ORDERED, that all future Iles Formation wells to be drilled upon each of said drilling and spacing units constituting the application lands, shall be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission.  In cases where the application lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10-acre density Iles Formation wells, the wells shall be located downhole no closer than 400 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission. 

 

IT IS FURTHER ORDERED, that except as previously authorized by order of the Commission, wells to be drilled under this application shall be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section (or lots or parcels approximately equivalent thereto) unless exception is granted by the Colorado Oil and Gas Conservation Commission pursuant to application made for such exception.

 

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 July, 2008, as of July 15, 2008.

           

                                                                        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 21, 2008