BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE APPLICATION OF D.J. SIMMONS, INC. FOR AN ORDER
CORRECTING
ORDER NO. 231-2 TO REFLECT A 217.38-ACRE DRILLING AND SPACING UNIT LOCATED IN
THE NW¼ OF SECTION 7, TOWNSHIP 39 NORTH, RANGE 19 WEST, N.M.P.M., FOR THE DESERT
CREEK FORMATION, DOLORES COUNTY, COLORADO |
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CAUSE NO. 231
DOCKET NO. 1301-SP-16
ORDER NO. 231-14
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REPORT OF THE COMMISSION
The Commission heard this matter on January 7, 2013, at the
Sheraton Denver Downtown Hotel, 1550 Court Place,
Denver, Colorado, upon application for an
order to
correct the
acreage of the drilling and spacing unit established by Order No. 231-2 for the
NW¼ of
Section 7, Township 39 North, Range 19 West, N.M.P.M.,
from
160-acres to 217.38-acres, for the
production of oil, gas, and associated hydrocarbons from the Desert Creek
Formation of the Hermosa Group.
FINDINGS
The Commission finds as follows:
1.
D.J. Simmons, Inc.
(“Simmons” or
“Applicant”),
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
19, 1971, the Commission entered Order No. 231-2 which, among other things,
established approximate 160-acre drilling and spacing units for the production
of oil from the Desert Creek Formation, with the permitted well to be located in
any undrilled quarter section no closer than 990 feet from the boundaries of the
quarter section.
Section 7, Township 39 North, Range 19 West, N.M.P.M. is subject
to Order 231-2 for the Desert Creek Formation.
5.
On November 2, 2012,
Simmons,
by its attorneys, filed
with the Commission pursuant to §34-60-116 C.R.S., a verified application
(“Application”)
for an order to
correct Order
No. 231-2 (which originally established an approximate 160-acre drilling and
spacing unit) to reflect the correct acreage
for the 217.38-acre drilling and spacing
unit, for the below-described lands (“Application Lands”), for the
production of oil, gas, and associated hydrocarbons from the Desert Creek
Formation of the Hermosa Group:
Township 39 North, Range 19 West, N.M.P.M.
Section 7: NW¼
(Lots 6 thru 11 and Part Tract 52)
6.
On December 19, 2012, Simmons, by its attorneys, 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.
7.
Land testimony and exhibits submitted in support of the Application by
Walter S. Parks, Senior Landman for DJ. Simmons, showed the correct acreage of
the Application Lands is 217.38-acres, and that all interested parties received
notice of the Application.
8.
The above-referenced testimony and exhibits show that granting the
Application will allow more efficient reservoir drainage, will prevent waste,
will assure a greater ultimate recovery of hydrocarbons, and will not violate
correlative rights.
9.
Simmons agreed to be bound by oral order of the Commission.
10.
Based on the facts stated in the verified Application, having received no
protests, and based on the Hearings Officer review of the Application under Rule
511., the Commission should enter an
order to
correct the
acreage of the drilling and spacing unit established by Order No. 231-2 for the
NW¼ of
Section 7, Township 39 North, Range 19 West, N.M.P.M.,
from
160-acres to 217.38-acres, for the
production of oil, gas, and associated hydrocarbons from the Desert Creek
Formation of the Hermosa Group.
ORDER
NOW, THEREFORE IT IS ORDERED, that the approximate 160-acre drilling and spacing
unit established by
Order No.
231-2 for the NW¼ of
Section 7,
Township 39 North, Range 19 West, N.M.P.M., is hereby
corrected, from 160-acres to 217.38-acres,
for the production of oil, gas, and associated hydrocarbons from the Desert
Creek Formation of the Hermosa Group:
Township 39 North, Range 19 West, N.M.P.M.
Section 7: NW¼
(Lots 6 thru 11 and Part Tract 52)
IT IS FURTHER ORDERED,
that the provisions contained in the above order shall become effective
immediately.
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 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 January, 2013, as of January 7, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary