IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 232
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG GAS SPACED
ORDER NO. 232-224
AREA, WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on March 31
and April 29, 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 Bataa Oil, Inc., for an order to allow seven (7) wells
to be drilled as third wells for production of gas and associated hydrocarbons
from the "J" Sand Formation for the 320-acre drilling and spacing units
described.
FINDINGS
The Commission finds as follows:
1. Bataa Oil, 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 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. On March 18, 1998, the Applicant filed with the Commission a written request
to withdraw from its application the well to be located in the NE¼ NE¼ of
Section 24, Township 2 North, Range 68 West, 6th P.M. pending resolution of
surface location issues. On March 30, 1998, the Applicant amended the
application to add the well back into the application and to change the location
of the well to the NW¼ NE¼ of Section 24, Township 2 North, Range 68 West, 6th
P.M., with a tolerance of 200 feet in any direction.
6. On March 23, 1998, Otto David J. Brooks and Brooks Farms filed a protest to
the well to be located in the SW¼ NW¼ of Section 6, Township 2 North, Range 67
West, 6th P.M. On March 30, 1998, the Applicant requested to continue the
hearing for this well pending further negotiations with the protestant.
7. In Order No. 232-115, issued March 31, 1998, the Commission allowed five (5)
of seven (7) wells to be drilled as third wells for production of gas and
associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling
and spacing units described.
8. On April 16, 1998, the protest to the well proposed in the SW¼ NW¼ of Section
6, Township 2 North, Range 67 West, 6th P.M. was withdrawn.
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
Coors Fee 12-6 SW¼ NW¼ Sec 6-2N-67W W½
Fox 31-24 NW¼ NE¼ Sec 24-2N-68 W N½
10. Evidence submitted by the Applicant and reviewed by the Hearing Officer
shows that the original gas in place in the "J" Sand Formation is 3.0 BCF in
Section 6 and 2.8 BCF in Section 24. The estimated ultimate recovery from the
NW¼ of Section 6 will be 0.3 BCF, which equates to a 14% recovery factor. The
estimated ultimate recovery from the SE¼ of Section 24 will be 0.2 BCF, which
equates to a 8% recovery factor.
11. Bottomhole pressure tests will not be obtained for either well.
12. That in order to prevent waste and protect the correlative rights,
additional wells are necessary to recover remaining "J" Sand Formation reserves.
13. The Applicant agreed to be bound by oral order of the Commission.
14. Based on the facts stated in the application, having and having been
reviewed by the Hearing Officer who recommends approval of the application, an
order of the Commission should be entered amending Cause No. 232, allowing the
drilling of a third "J" Sand Formation well for each of the 320-acre drilling
and spacing units described in Finding #9 to be located in the center of the
40-acre tract or quarter-quarter section with a tolerance of 200 feet in any
direction.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Cause No. 232 is hereby amended to allow the
drilling of a third "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
Coors Fee 12-6 SW¼ NW¼ Sec 6-2N-67W W½
Fox 31-24 NW¼ NE¼ Sec 24-2N-68 W N½
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 21st day of May, 1998, as of April 29, 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 May 21, 1998
(232-224)