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. 232-166 and 407-222

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission at 8:30 a.m. on September 5, 1996, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on the application of Vessels Oil and Gas Company, for an order to amend the reservoir testing program as outlined in Order Nos. 232-152 and 407-200.  Vessels requests the order be amended to allow Vessels to submit simulated reservoir pressure data.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Vessels Oil and Gas 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.  On January 18, 1996, effective July 17, 1995, the Commission approved Order Nos. 232‑152 and 407‑200, to allow four wells to be drilled at exception locations for production from the "J" Sand Formation, and to allow the downhole commingling of production from the "J" Sand Formation with production from the Codell and Niobrara Formations.  As part of the Order, the Commission ordered Vessels Oil & Gas Company to perform certain pressure buildup tests on the four wells and monitor existing offset wells for pressure changes.  In addition, the Commission ordered that Vessels Oil & Gas Company keep daily records of production and flowing tubing pressures for both existing and newly drilled wells in the lands covered by the Order

 

                        5.  Data presented at a meeting held June 13, 1996 between COGCC engineering staff and the Applicant, indicated that reservoir simulation can provide reservoir data in lieu of pressure buildup tests.

 

                        6.  Based on evidence presented, an order of the Commission should be entered to amend the reservoir testing program as outlined in Order Nos. 232-152 and 407-200 with the following stipulations:  Vessels agrees to acquire initial bottom hole pressures on all new wells drilled in the area; Vessels agrees to provide the Commission with projected and actual production information on the newly drilled "J" Sand Formation wells and the existing "J" Sand Formation wells; all new "J" Sand Formation wells will be produced from the "J" Sand Formation only for a period of one (1) year in order to obtain representative production information; and all data will be provided to the Commission on a quarterly basis.

 

                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Order Nos. 232-152 and 407-200 shall be amended to allow the use of reservoir simulation to provide pressure data in lieu of bottom hole pressure tests.

 

                        IT IS FURTHER ORDERED, that Vessels Oil and Gas Company shall acquire initial bottom hole pressures on all new wells drilled in the area; Vessels Oil and Gas Company shall provide the Commission with projected and actual production information on the newly drilled "J" Sand Formation wells and the existing "J" Sand Formation wells; all new "J" Sand Formation wells shall be produced from the "J" Sand Formation only for a period of one (1) year in order to obtain representative production information; and all data shall be provided to the Commission on a quarterly basis.

 

                        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 September, 1996, as of September 5, 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