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 CODELL-NIOBRARA SPACED AREA AND THE WATTENBERG GAS SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NO.  232 and 407

 

ORDER NO. 232-157 and 407-212

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on May 21, 1996, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Amoco Production Company, for an order to amend Cause No. 407 to allow the Pehr Pooling Unit No. 2 Well, located 1,710 feet FNL and 990 feet FWL, in the SW¼ NW¼ of Section 1, Township 1 North, Range 67 West, 6th P.M., to be re-entered and sidetracked to a bottom hole location in the SW¼ NW¼ as an additional third well for commingled production from the "J" Sand, Codell, and Niobrara Formations, and to approve the proposed allocation method.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Amoco Production Company, 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.  In Order No. 407‑1, the Commission established 80‑acre drilling and spacing units for the production of oil and/or gas and associated hydrocarbons from the Codell Formation.  Wells shall be located in the center of the 40‑acre tract or quarter‑quarter section with a tolerance of 200 feet in any direction.  In Order Nos. 407‑10 and 407‑13, the Commission amended Order No. 407‑1 to include production from the Niobrara Formation in certain lands and to allow the downhole commingling of production from the Codell and Niobrara Formations, including Section 1, Township 1 North, Range 67 West, 6th P.M.

 

                        5.  In Cause No. 232, the Commission established 320-acre drilling and spacing units with said units to consist of the N½ and S½ or the E½ and W½ of a governmental section for production from the "J" Sand Formation and with the authorized well to be located in the NE¼ and the SW¼ of each section no closer than 990 feet from the boundaries of the quarter section.  By Order No. 232-20, the Commission authorized the drilling of a second well for each 320-acre drilling and spacing unit with the additional well to be located no closer than 990 feet from the boundaries of the quarter section upon which it is located, including Section 1, Township 1 North, Range 67 West, 6th P.M.

 

                        6.  Order Nos. 407-66 and 232-47 issued April 16, 1991, among other things, allowed the recompletion, downhole commingling and approval of allocation methods for production from the "J" Sand, Codell, and Niobrara Formations, including Section 1, Township 1 North, Range 67 West, 6th P.M.

 

                        7.  The Pehr Pooling Unit #2 Well located at a legal "J" Sand location in the SW¼ NW¼ of Section 1, Township 1 North, Range 67 West, 6th P.M. originally produced from the "J" Sand.  Mechanical problems were encountered when an attempt was made to recomplete and commingle with the Codell and Niobrara Formations.  A "J" Sand replacement well, the Pehr Pooling Unit #2R, was drilled at a legal "J" Sand location in the NE¼ NW¼ of Section 1, Township 1 North, Range 67 West, 6th P.M.  This replacement well, which was drilled 956 feet away from the original well, encountered virgin reservoir pressure.

 

                        8.  This matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary recover additional "J" Sand, Codell and Niobrara reserves.


                        9.  An order of the Commission should be entered allowing the Pehr Pooling Unit No. 2 Well located 1,710 feet FNL and 990 feet FWL, in the SW¼ NW¼ of Section 1, Township 1 North, Range 67 West, 6th P.M., to be re-entered and sidetracked to a bottom hole location of approximately 2,220 feet FNL and 520 feet FWL in the SW¼ NW¼ as an additional third well for production from the "J" Sand  Formation for the 320-acre drilling and spacing unit consisting of the W½ of said Section 1 and to commingle production with the Codell and Niobrara Formations for the 80-acre drilling and spacing unit consisting of the W½ NW¼ of said Section 1, and to approve the proposed allocation method.

 

                        10.  Additional data should be obtained by Amoco Production Company upon completion to the "J" Sand Formation and provided to COGCC staff for review.

 

                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Order No. 407-1 is hereby amended to allow the Pehr Pooling Unit No. 2 Well located 1,710 feet FNL and 990 feet FWL, in the SW¼ NW¼ of Section 1, Township 1 North, Range 67 West, 6th P.M., to be re-entered and sidetracked to a bottom hole location of approximately 2,220 feet FNL and 520 feet FWL in the SW¼ NW¼ as an additional third well for production from the "J" Sand  Formation for the 320-acre drilling and spacing unit consisting of the W½ of said Section 1 and to commingle production with the Codell and Niobrara Formations for the 80-acre drilling and spacing unit consisting of the W½ NW¼ of said Section 1, and to approve the proposed allocation method.

 

                        IT IS FURTHER ORDERED, that upon completion to the "J" Sand Formation in the sidetrack of the Pehr Pooling Unit No. 2 Well, Amoco Production Company shall obtain the following data and provide it to the COGCC staff:

 

                        1.  Pre-frac shut-in bottomhole pressure sufficient to determine "J" Sand Formation reservoir pressure.

 

                        2.  Post-frac shut-in bottomhole pressure sufficient to determine "J" Sand Formation reservoir pressure.

 

                        3.  Daily oil and gas production volumes and flowing tubing pressure for the "J" Sand until such time as the Codell and Niobrara Formations are recompleted into and commingled with the "J" Sand Formation.

 

                        4.  Shut-in bottomhole pressure sufficient to determine "J" Sand reservoir pressure immediately before it would be commingled with the Codell and Niobrara Formations.

 

                        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                            , 1996, as of May 21, 1996.

 

                                                                        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

August 1, 2018