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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. 232-207 and 407-267 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on March 31, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the verified application of Patina Oil & Gas Corporation for an order to allow additional "J" Sand Formation wells to be completed on 320-acre drilling and spacing units. The Applicant proposes to drill three (3) 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. In the future, the Applicant may recomplete these wells to the Codell and Niobrara Formations and commingle production from the formations. The Applicant also proposes to deepen two (2) wells, currently producing from the Codell Formation, to the "J" Sand Formation for the 320-acre drilling and spacing unit as described, and commingle with production from the Codell Formation in the future.
The Commission finds as follows:
1. Patina Oil & Gas Corporation, 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 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.
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.
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.
7. On February 3, 1998, Bataa Oil Inc., filed with the Commission a protest in this matter stating that their correlative rights would be violated if the application were approved. On February 6, 1998, the Applicant and Protestant filed a Stipulation to continue this matter to the March hearing.
8. On February 3, 1998, the Hearing Officer received a telephone call from Mr. Vern Hamilton concerning the application. Mr. Hamilton explained there were already five wells located on his property, the SE¼ of Section 13, Township 2 North, Range 68 West, 6th P.M. and that the drilling and completion of an additional well would impact his ability to utilize his property. A letter was submitted to the Commission via facsimile on February 4, 1998 from Vern and Karen Hamilton requesting the Commission deny the drilling of the Buffalo Gardens U13-15Ji Well to be located in the SW¼ SE¼ of Section 13, Township 2 North, Range 68 West, 6th P.M., due to their concern that the additional well will further damage the surface of their land, given the fact that they are in the process of development. The Hearing Officer determined that the letter did not constitute a valid protest in accordance with Rule 509.a.
9. 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
Gregerson U 12-4Ji NW¼ SE¼ Sec 12-2N-68W E½
Buffalo Gardens U 13-15Ji SW¼ SE¼ Sec 13-2N-68W E½
Walsh U 24-4Ji SE¼ SE¼ Sec 24-2N-68W S½
The Applicant proposes to deepen the below-listed wells, currently producing from the Codell Formation, to the "J" Sand Formation for the 320-acre drilling and spacing unit as described, and commingle with production from the Codell Formation in the future.
Well Name Location 320-acre Drilling/Spacing Unit
Coors V 6-14 SE¼ SW¼ Sec 6-2N-67W W½
Glens VV 6-16 SE¼ SE¼ Sec 6-1N-67W E½
10. Testimony and evidence presented at the administrative hearing indicated that the existing wells have recovered between approximately 20.9% and 38.6% of the original gas in place and that the average drainage radii calculations are between 33 acres and 62 acres.
11. Patina will obtain a bottom-hole reservoir pressure for the “J” Sand Formation for the Buffalo Gardens U 13-15Ji Well to be located in the center of the SW¼ SE¼ of Section 13, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 200 feet in any direction.
12. The applicant will deepen the two (2) existing wells, the Coors V 6-14 Well, located in the SE¼ SW¼ of Section 6, Township 2 North, Range 67 West, and the Glens VV 6-16 Well, located in the SE¼ SE¼ of Section 6, Township 1 North, Range 67 West, complete the “J” Sand Formation and commingle the Codell Formation without a production test and without obtaining a bottom-hole reservoir pressure for the “J” Sand Formation.
13. That in order to prevent waste and protect the correlative rights additional wells are necessary to recover remaining "J" Sand Formation reserves.
14. At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.
15. Based on the facts stated in the application 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, allowing the drilling of and recompletion of 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. Once drilled and completed, these will be the third "J" Sand Formation wells for the 320-acre drilling and spacing units. In the future, the Applicant may recomplete these wells to the Codell and Niobrara Formations and commingle production from the formations.
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the drilling of additional "J" Sand Formation wells 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
Gregerson U 12-4Ji NW¼ SE¼ Sec 12-2N-68W E½
Buffalo Gardens U 13-15Ji SW¼ SE¼ Sec 13-2N-68W E½
Walsh U 24-4Ji SE¼ SE¼ Sec 24-2N-68W S½
IT IS FURTHER ORDERED, that Patina will obtain a bottom-hole reservoir pressure for the “J” Sand Formation for the Buffalo Gardens U 13-15Ji Well to be located in the center of the SW¼ SE¼ of Section 13, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 200 feet in any direction.
IT IS FURTHER ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the deepening of the below-listed wells to the "J" Sand Formation for the 320-acre unit as described.
Well Name Well Location 320-acre Drilling/Spacing Unit
Coors V 6-14 SE¼ SW¼ Sec 6-2N-67W W½
Glens VV 6-16 SE¼ SE¼ Sec 6-1N-67W E½
IT IS FURTHER ORDERED, that the Coors V6-14 and Glens W 6-16 Wells shall be deepened and completed to the “J” Sand Formation and commingled with the Codell Formation without a production test and without obtaining a bottom-hole reservoir pressure for 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 April, 1998, as of March 31, 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