IN THE MATTER OF THE PROMULGATION AND
CAUSE NOS. 232, 407
ESTABLISHMENT OF FIELD RULES TO GOVERN
and 499
OPERATIONS IN THE WATTENBERG GAS SPACED
AREA, THE CODELL- NIOBRARA SPACED AREA AND
ORDER NOS. 232-217, 407-273,
THE WATTENBERG FIELD, WELD COUNTY, COLORADO
and 499-61
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 HS Resources, Inc., for an order to allow the HSR Dreiling No.
1-5A Well to be drilled in the NE¼ of Section 5, Township 1 North, Range 65
West, 6th P.M., no closer than 990 feet to the boundaries of the quarter
section, and the HSR Weichel No. 13-14A Well to be drilled in the SW¼ of Section
14, Township 2 North, Range 65 West, 6th P.M., no closer than 990 feet to the
boundaries of the quarter section, as third wells for production of gas and
associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling
and spacing unit consisting of the N½ of Section 5 and the W½ of Section 14. In
the future, the Applicant may recomplete these wells to the Dakota Formation for
said 320-acre drilling and spacing units and to the Codell, Niobrara, Sussex and
Shannon Formations for 80-acre drilling and spacing units and commingle any
production with the "J" Sand Formation.
FINDINGS
The Commission finds as follows:
1. HS Resources, Inc. 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.
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. 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. In Order No. 499-7, 232-77, 407-11 and 493-14, the Commission established
320-acre drilling and spacing units for the production of oil, gas and
associated hydrocarbons from the Dakota Formation in certain lands, with the
320-acre drilling and spacing units to be identical to those previously
established for the "J" Sand Formation under Cause No. 232, with the permitted
wells to be located in the NW¼ and the SE¼ of the section and no closer than 990
feet from the boundaries of the quarter section. In Order Nos. 499-15, 232-89,
407-125, 493-22 and 496-3, the Commission allowed the commingling of production
from the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations,
including Section 5, Township 1 North, Range 65 West 6th P.M. and Section 14,
Township 2 North, Range 65 West, 6th P.M.
8. The below-listed wells are to be drilled, no closer than 990 feet to the
boundaries of the quarter section, as third wells for production of gas and
associated hydrocarbons from the "J" Sand Formation for the specified 320-acre
drilling and spacing unit.
Proposed Well Location 320-acre Unit
HSR Dreiling No. 1-5A NE¼ NE¼ Sec 5-1N-65W N½
HSR Weichel No. 13-14A SW¼ SW¼ Sec 14-2N-65W W½
9. Evidence submitted by the Applicant and reviewed by the Hearing Officer shows
that the original gas in place ranges from 4.2 to 5.4 BCF and that estimated
ultimate recovery from the two existing “J” Sand Formation wells in each
specified 320-acre drilling and spacing unit ranges from 0.49 BCF to 1.2 BCF,
which equates to recovery factors ranging from eleven percent (11%) to
twenty-three percent (23%).
10. That in order to prevent waste and protect the correlative rights,
additional wells are necessary to recover remaining "J" Sand Formation reserves.
11. 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 well to the Dakota Formation at an exception location and to the
Codell, Niobrara, Sussex or Shannon Formations and commingle production from
these formations with production from the “J” Sand Formation. Bottomhole
pressure tests of the "J" Sand Formation will not be obtained from these wells.
12. The Applicant agreed to be bound by oral order of the Commission.
13. 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.
232-89, 407-125, and 499-15 to allow the two (2) wells listed in Finding #9 to
be drilled as third wells for production of gas and associated hydrocarbons from
the "J" Sand Formation for the specified 320-acre drilling and spacing unit. In
the future, the Applicant may recomplete these wells to the Dakota Formation for
the 320-acre drilling and spacing units and to the Codell, Niobrara and Sussex
Formations for the 80-acre drilling and spacing units and commingle any
production with the "J" Sand Formation.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 232-89, 407-125 and 499-15 are
hereby amended to allow the below-listed wells to be drilled as third wells for
production of gas and associated hydrocarbons from the "J" Sand Formation for
the specified 320-acre drilling and spacing unit. The Applicant may recomplete
these wells to the Dakota Formation for the 320-acre drilling and spacing units
and to the Codell, Niobrara and Sussex Formations in the future for the 80-acre
drilling and spacing units and commingle any production with the "J" Sand
Formation.
Proposed Well Location 320-acre Unit
HSR Dreiling No. 1-5A NE¼ NE¼ Sec 5-1N-65W N½
HSR Weichel No. 13-14A SW¼ SW¼ Sec 14-2N-65W W½
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 well to the Dakota Formation at an
exception location and to the Codell, Niobrara, Sussex or Shannon 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 13th 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 April 13, 1998
(232-217)