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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 MAM CREEK FIELD, MESAVERDE FORMATION, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 191
ORDER NO. 191-6 |
This cause came on for hearing before the Commission at 10:00 a.m. on December 2, 2002, in Suite 801, 1120 Lincoln Street, Denver, Colorado for an order to remove Section 23, Township 6 South, Range 92 West, 6th P.M. from the provisions of Order Nos. 191-3 and 191-4 and to place the lands under the Rules and Regulations of the Commission.
FINDINGS
The Commission finds as follows:
1. Calpine Natural Gas Company (“Calpine”), 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 July 19, 1982, the Commission issued Order No. 191-3 which established 640-acre drilling and spacing units for the production of gas from the Mesaverde Formation, including the Cozzette and Corcoran members, with the permitted well to be located no closer than 990 feet from the unit boundary underlying certain lands in the Mam Creek Field. The spaced area was extended by Order No. 191-4 issued February 22, 1994 and the below-listed lands are subject to the orders:
Township 6 South, Range 92 West, 6th P.M.
Sections 22 through 27: All
Sections 35 and 36: All
5. On October 21, 1997, the Commission issued Order No. 191-5 which allowed 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., and decreased the 640-acre drilling and spacing unit consisting of Section 36, Township 6 South, Range 92 West, 6th P.M. to 40-acre drilling and spacing units, for the production of oil, gas and associated hydrocarbons from the Mesaverde Formation.
6. On October 10, 2002, Calpine, by its attorney, filed with the Commission a verified Application for an order to remove Section 23, Township 6 South, Range 92 West, 6th P.M. from the provisions of Order Nos. 191-3 and 191-4 and to place the lands under the Rules and Regulations of the Commission, including Rule 318 for well locations. The Friport No. 14-22 Well has been drilled in Section 22 for production of gas from the Mesaverde Formation, and geological and engineering data indicate that one well is not sufficient to efficiently and economically drain the entire section.
7. Geologic testimony and exhibits presented at the administrative hearing described the entire Mesaverde Formation with pay sections typical of the wells in the area. Additional testimony indicated that the sands are 10 to 30 feet thick, fluvial and point bar in origin, discontinuous and difficult to correlate.
8. Engineering testimony and exhibits presented at the administrative hearing showed that there is a low recovery rate for nearby wells, that the current spacing and well density is not adequate to efficiently and economically drain Section 23, and that the drilling of additional wells would be economical.
9. The approval of the application would allow additional reserves to be recovered, prevent waste and protect correlative rights.
10. At the time of the administrative hearing, Calpine Natural Gas Company agreed to be bound by an oral order of the Commission.
11. 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 approve an order to remove Section 23, Township 6 South, Range 92 West, 6th P.M. from the provisions of Order Nos. 191-3 and 191-4 and place the lands under the Rules and Regulations of the Commission, including Rule 318 for well locations.
NOW, THEREFORE IT IS ORDERED, that Section 23, Township 6 South, Range 92 West, 6th P.M. is hereby removed from the provisions of Order Nos. 191-3 and 191-4 and that the lands shall be placed under the provisions of the Rules and Regulations of the 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.
ENTERED this day of December, 2002, as of December 2, 2002.
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
December 5, 2002