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 WATTENBERG GAS SPACED AREA. WELD COUNTY, COLORADO

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CAUSE NO. 232

 

ORDER NO. 232-21

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 20. 1981 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado after giving Notice of Hearing as required by law on the application of Harry L. Willett for an order pooling all interests in the drilling and spacing unit consisting of the E˝ Section 14, Township 2 North, Range 68 West, 6th P.M. for the development of the "J" Sand underlying said unit.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Harry L. Willett 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 November 17, 1970 the Commission issued Order No. 232-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying the Wattenberg Gas Spaced Area in Weld County, Colorado.  The units consist of the E˝ and W˝ or the N˝ and S˝ of each section.  Subsequent orders added additional lands to the spaced area and by Order No. 232-20 an additional well is allowed to be drilled in the 320-acre units in a portion of the Wattenberg Gas Spaced Area which includes the E˝ Section 14 Township 2 North, Range 68 West, 6th P.M.

 

5.      Evidence presented at the hearing indicates that no development has occurred on the unit to date and by Order No. 232-20, two (2) wells are allowed to be drilled on the unit, one on each 160-acre tract.

 

6.      There are two (2) separately owned 160-acre tracts within the drilling unit and there are no pooling agreements on either tract.  Further, the parties have testified that they will not voluntary [sic] pool either tract.

 

7.      Since each tract is separately owned and there is no evidence that the geology of one tract is more favorable to the other for the drilling of a well, no violation of correlative rights will occur if the operator of each tract is allowed to drill on its own 160-acre tract.

 

8.      The operator of the SEĽ of said Section 14 has represented that he will waive any right to participate in the well drilled in the NEĽ of said Section 14, and will indemnify the operator of the NEĽ from any claims by royalty owners in the SEĽ for participation in the well drilled in the NEĽ.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the application of Harry L. Willett requesting the pooling of all interests in the 320-acre drilling and spacing unit consisting of the E˝ Section 14, Township 2 North, Range 68 West, 6th P.M. is hereby denied.

 

IT IS FURTHER ORDERED, that Order No. 232-20 is hereby amended and development of gas and associated hydrocarbons from the "J" Sand reservoir is allowed on the E˝ Section 14, Township 2 North, Range 68 West, 6th P.M. on the basis of 160-acre drilling and spacing units consisting of the NEĽ and SEĽ of said section.

 

IT IS FURTHER ORDERED, that conditions of the granting of this order shall be that the working interest owner of the SEĽ Section 14, Township 2 North, Range 68 West, 6th P.M. shall stipulate that he will waive any right to participate in the well drilled in the NEĽ of said Section 14 and will indemnify the operator of the unit consisting of said NEĽ from any claims by the royalty owners in the unit consisting of the SEĽ of said Section 14, for participation in the well drilled in the NEĽ.

 

IT IS FURTHER ORDERED, that this order shall become effective upon receipt of said stipulation.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above orders.

 

ENTERED this 19th day of August, 1981 as of July 20, 1981.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary