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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 LADDER CREEK FIELD, CHEYENNE COUNTY, COLORADO |
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CAUSE NO. 219
ORDER NO. 219-7 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on August 5, 1997 in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Mull Drilling Company, Inc. for an order removing certain lands from Order No. 219-1 governing operations in the Ladder Creek Field. The Applicant requests the lands be subject to Rule No. 318, with permitted wells to be located no closer than 600 feet from the boundaries of the lease and no closer than 950 feet to another well drilled for production from the Mississippian Formation.
The Commission finds as follows:
1. Mull Drilling Company, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced matter.
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 October 21, 1969, the Commission authorized Order No. 219-1 to be issued, establishing 80-acre drilling and spacing units for production of oil from the Mississippian Formation for various lands in the Ladder Creek Field. Each such drilling unit shall consist of the W½ or the E½ of each quarter section, with the permitted well for each such drilling unit to be located in the center of the NW¼ and SE¼ of each such quarter section, with a tolerance of 150 feet in any direction from the prescribed location permitted for surface conditions. Order No. 219-5 entered December 16, 1991 reduced the lands included in Ladder Creek Field and segregated certain 80-acre drilling and spacing units into 40-acre units, allowing wells to be drilled on 40-acre tracts.
5. The below-listed lands are the only lands remaining under the provisions of Order No. 219-1 in the Ladder Creek Field:
Township 15 South, Range 44 West, 6th P.M.
Section 6: NW¼, E½
Section 7: E½
Township 15 South, Range 45 West, 6th P.M.
Section 1: NW¼, W½ SW¼
Section 12: W½
6. Testimony was presented at the administrative hearing indicating that wells previously drilled in the Ladder Creek Field on 40-acre drilling and spacing units are appropriate to recover additional reserves, prevent waste and protect correlative rights.
7. Testimony was presented that a modification to Rule 318. to allow wells to be located no closer than 950 feet to another well drilled to or producing from the Mississippian Formation, rather than 1,200 feet, will allow the wells to be optimally located based on seismic interpretation while preventing waste and protecting correlative rights.
8.. Based on the testimony that no wells in the Ladder Creek Field are currently producing on 80-acre drilling and spacing units from the Mississippian Formation, and that 40-acres is not smaller than the maximum area that can be efficiently and economically drained by one well, the lands remaining subject to Order No. 219-1 should be removed, the order rescinded, and the wells drilling in accordance with Rule No. 318.
9. At the time of the administrative hearing, Mull Drilling Company, Inc. agreed to be bound by oral order of the Commission.
10. Based on the facts stated in the application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should enter an order removing the lands described in Finding No. 5 from the provisions of Cause No. 219 for the Ladder Creek Field. The lands should be subject to Rule No. 318, with permitted wells to be located no closer than 600 feet from the boundaries of the lease and no closer than 950 feet to another well drilled or producing from the Mississippian Formation.
NOW, THEREFORE, IT IS ORDERED that the below-described lands shall be removed from the provisions of Cause No. 219 governing operations in the Ladder Creek Field.
Township 15 South, Range 44 West, 6th P.M.
Sections 6 and 7: All
Township 15 South, Range 45 West, 6th P.M.
Sections 1 and 12: All
IT IS FURTHER ORDERED, that the lands shall be subject to Rule No. 318., as modified, with permitted wells to be located no closer than 600 feet from the boundaries of the lease and no closer than 950 feet to another well drilled for production from the Mississippian Formation.
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 August, 1997, as of August 5, 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 26, 2018