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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 WATTENBERG GAS SPACED AREA AND THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO |
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CAUSE NO. 232 and 407
ORDER NO. 232-205 and 407-265 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on February 9, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of North American Resources Company for an order to allow three (3) wells to be drilled in the center of certain 40-acre tracts or quarter-quarter sections, with a tolerance of 200 feet in any direction as third "J" Sand Formation wells for the 320-acre units as described. The Applicant may recomplete these wells to the Codell and Niobrara Formations in the future for 80-acre drilling and spacing units.
The Commission finds as follows:
1. North American Resources 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 Cause No. 232, the Commission established 320-acre drilling and spacing units for the production of gas from the "J" Sand Formation in the Wattenberg Field with one well allowed for each unit to be located in the NE¼ and SW¼ and no closer than 990 feet to the boundaries of the quarter section. On August 21, 1979, the Commission issued Order No. 232-20 which allowed a second well to be drilled on each 320-acre unit, including Sections 5 and 7, Township 2 North, Range 67 West, 6th P.M.
5. 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 Sections 5 and 7, Township 2 North, Range 67 West, 6th P.M.
6. In Order Nos. 407-66 and 232-47, the Commission, among other things, allowed recompletion to shallower zones, the downhole commingling of production from the "J" Sand Formation with production from the Codell and Niobrara Formations, and approval of an allocation method for commingled production.
7. The Applicant proposes to drill the below-listed wells in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction as third "J" Sand Formation wells for the 320-acre units as described.
Well Name Proposed Location 320-acre Drilling/Spacing Unit
McCoy No. 13-5 NW¼ SW¼ Sec 5-2N-67W S½
Wandell No. 21-7 NE¼ NW¼ Sec 7-2N-67W N½
Wandell No. 23-7 NE¼ SW¼ Sec 7-2N-67W S½
8. Testimony and evidence presented at the administrative hearing indicates the recovery efficiency of the existing “J” Sand Formation wells. The average drainage area from the two existing "J" Sand Formation wells for the S½ of Section 5 is one hundred eleven (110) acres, for the N½ of Section 7 is fifty-five (55) acres, and for the S½ of Section 7 is sixty-seven (67) acres.
9. That in order to prevent waste and protect the correlative rights additional wells are necessary to recover remaining "J" Sand Formation reserves.
10. The applicant agrees to request Commission approval not before six (6) months from the date production is obtained from the “J” Sand Formation to recomplete the wells to the Codell and Niobrara Formations and commingle production from these formations with production from the “J” Sand Formation.
11. At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the application, having received no protests and having been heard by the Hearing Officer who recommends approval of the application, an order of the Commission should be entered amending Order Nos. 407-185 and 232-140, to allow the drilling of three (3) additional "J" Sand Formation wells for each of the 320-acre drilling and spacing units described in Finding #7 to be located in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction. In the future, the Applicant plans to recomplete these wells to the Codell and Niobrara Formations and commingle production from these formations with production from the "J" Sand Formation.
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the drilling of an additional "J" Sand Formation well for each of the 320-acre drilling and spacing units in the below-listed lands to be located in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction.
Well Name Proposed Location 320-acre Drilling/Spacing Unit
McCoy No. 13-5 NW¼ SW¼ Sec 5-2N-67W S½
Wandell No. 21-7 NE¼ NW¼ Sec 7-2N-67W N½
Wandell No. 23-7 NE¼ SW¼ Sec 7-2N-67W S½
IT IS FURTHER ORDERED, that the Applicant shall request Commission approval not before approximately six (6) months from the date production is obtained from the "J" Sand Formation to recomplete the wells to the Codell and Niobrara Formations and commingle production from these formations with production from the “J” Sand 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 March, 1998, as of February 9, 1998.
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