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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 POWDER WASH FIELD, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 207
ORDER NO. 207-5 |
REPORT OF THE COMMISSION
This cause came on before the Commission at 9:00 a.m. on March 22, 2005 in Room 201, Las Animas County Courthouse, 200 East First Street, Trinidad, Colorado for an order to allow, at the option of the operator, two wells to be drilled and completed in the Fort Union Formation in each 160-acre drilling unit in the Section 16, Township 11 North, Range 91 West, 6th P.M., with the permitted well to be located no closer than 600 feet from the outer boundary of the drilling unit and no closer than 900 feet from another well producing or producible from the same formation, and that the Director should be authorized, without additional notice and hearing or consent, to grant an exception to the well location setbacks up to and including 100 feet, but not beyond, for topographic reasons and to avoid archeological sites.
The Commission finds as follows:
1. On January 16, 1968, the Commission entered Order No. 207-2, which established 160-acre drilling and spacing units for certain lands in the Powder Wash Field including Section 16, Township 11 North, Range 97 West, 6th P.M. for production of oil and gas from the Fort Union Formation, with the permitted well to be located in the center of the NE¼ or the SW¼ of each quarter section; and provided that a tolerance of 200 feet in any direction is permitted for surface hazards.
2. On December 27, 2004, Samson Resources Company, by its attorney, filed with the Commission a verified application for an order to allow, at the option of the operator, two (2) wells to be drilled and completed in the Fort Union Formation in each 160-acre drilling unit in the Section 16, Township 11 North, Range 91 West, 6th P.M., with the permitted well to be located no closer than 600 feet from the outer boundary of the drilling unit and no closer than 900 feet from another well producing or producible from the same formation, and that the Director should be authorized, without additional notice and hearing or consent, to grant an exception to the well location setbacks up to and including 100 feet, but not beyond, for topographic reasons and to avoid archeological sites.
3. Testimony and exhibits presented at the administrative hearing showed the application area located thirty (30) miles north of Maybell, Colorado. Additional testimony indicated that all affected land owners had been notified of this application and that no protests to the application have been received.
4. Testimony and exhibits presented at the administrative hearing showed the application area is located between the Jacks Draw Federal Unit and the Powder Wash Federal Unit. Additional testimony showed that the application area is composed of two (2) leases consisting of the north half of Section 16 and the south half of Section 16. The surface is owned by the Bureau of Land Management and the minerals are owned by the State of Colorado.
5. Testimony and exhibits presented at the administrative hearing showed that the entire field has currently recovered 360 BCFG and 11.7 MMBO, with an average gas recovery of 2.9 BCFG per well.
6. Testimony and exhibits presented at the administrative hearing showed the stratigraphic location of Fort Union Formation below the Wasatch Formation and above the Lance Formation. Additional testimony showed the Fort Union Formation thickens to the west of the application area.
7. Testimony and exhibits presented at the administrative hearing showed the Fort Union sands are discontinuous across the application area. Additional testimony showed that eight (8) sands comprise the Fort Union Formation and that development of all eight (8) sands is not present in any one well in the field.
8. Testimony and exhibits presented at the administrative hearing showed estimated ultimate recovery for the four (4) producing wells in Section 16 will be approximately 8.6 BCFG. Additional testimony and exhibits presented showed estimated recoverable gas in place for Section 16 to be 44.8 BCFG.
9. Testimony and exhibits presented at the administrative hearing showed that the existing wells in Section 16 will drain between sixteen (16) to fifty-three (53) acres, depending on the well, with average drainage area of thirty-one (31) acres.
10. Testimony and exhibits presented at the administrative hearing showed the gas reserves for a typical well in Section 16 to be 1.4 BCF assuming a 20 acre drainage area. Additional testimony and exhibits showed that wells would be economic at a recovery of 1.4 BCFG.
11. Testimony and exhibits presented at the administrative hearing showed that one (1) well would not efficiently and economically drain 160 acres in Section 16. Additional testimony indicated that two (2) wells would be required to efficiently and economically drain the drilling and spacing units in Section 16, and that the existing drilling and spacing units are not smaller than the area that can be efficiently and economically drained by two (2) wells. Further testimony showed that correlative rights would be protected if this application were approved.
12. No protests to the application have been filed with the Commission or the Applicant.
13. Samson Resources Company agrees to be bound by oral order of the Commission.
14. Based on the facts stated in the verified application, having received no protest to the application and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to allow, at the option of the operator, two (2) wells to be drilled and completed in the Fort Union Formation in each 160-acre drilling unit in the Section 16, Township 11 North, Range 91 West, 6th P.M., with the permitted well to be located no closer than 600 feet from the outer boundary of the drilling unit and no closer than 900 feet from another well producing or producible from the same formation, and the Director should be authorized, without additional notice and hearing or consent, to grant an exception to the well location setbacks up to and including 100 feet, but not beyond, for topographic reasons and to avoid archeological sites.
ORDER
NOW, THEREFORE IT IS ORDERED that, at the option of the operator, two (2) wells are hereby allowed to be drilled and completed in the Fort Union Formation in each 160-acre drilling unit in the Section 16, Township 11 North, Range 91 West, 6th P.M., with the permitted well to be located no closer than 600 feet from the outer boundary of the drilling unit and no closer than 900 feet from another well producing or producible from the same formation.
IT IS FURTHER ORDERED that, the Director shall be authorized, without additional notice and hearing or consent, to grant an exception to the well location setbacks up to and including 100 feet, but not beyond, for topographic reasons and to avoid archeological sites.
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 April, as of March 22, 2005.
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 26, 2018