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. 232-226, 407-280
THE WATTENBERG FIELD, WELD COUNTY, COLORADO
and 499-68
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on 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 HS Resources, Inc., for an order to allow the HSR Ralph Vincent
1-2A Well, to be drilled in the center of the NE¼ NE¼ of Section 2, Township 2
North, Range 67 West, 6th P.M., with a tolerance of 200 feet in any direction,
as a fourth well for production of gas and associated hydrocarbons from the "J"
Sand Formation for the 320-acre drilling and spacing unit consisting of the E½
of said Section 2. In the future, the Applicant may also recomplete this well to
the Dakota Formation for said 320-acre drilling and spacing unit and to the
Codell, Niobrara, Sussex or Shannon Formations for an 80-acre drilling and
spacing unit and commingle all production.
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, including Section 2, 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 Section 2, 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. In Order No. 499-1, 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,
including Section 2, Township 2 North, Range 67 West 6th P.M. 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.
8. Evidence submitted by the Applicant and reviewed by the Hearing Officer
indicates that the original gas in place in the “J” Sand Formation in the E½ of
Section 2, Township 2 North, Range 67 West is 9.1 BCF, and that the estimated
ultimate recovery from the two existing “J” Sand Formation wells will be 1.5 BCF
which equates to a 16% recovery factor for the drilling and spacing unit.
9. That in order to prevent waste and protect the correlative rights, an
additional well is 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 well to the Dakota, Codell or Niobrara Formations and commingle
production from these formations with production from the “J” Sand Formation. A
bottom-hole pressure of the “J” Sand Formation will not be obtained for this
well.
11. 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 reviewed 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 HSR Ralph Vincent 1-2A Well to be
drilled in the center of the NE¼ NE¼ of Section 2, Township 2 North, Range 67
West, 6th P.M., with a tolerance of 200 feet in any direction, as a fourth well
for production of gas and associated hydrocarbons from the "J" Sand Formation
for the 320-acre drilling and spacing unit consisting of the E½ of said Section
2. In the future, the Applicant may also recomplete this well to the Dakota
Formation for said 320-acre drilling and spacing unit and to the Codell,
Niobrara, Sussex or Shannon Formations for an 80-acre drilling and spacing unit
and commingle all production.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 232-89, 407-125 and 499-15 are
hereby amended to allow the HSR Ralph Vincent 1-2A Well, to be drilled in the
center of the NE¼ NE¼ of Section 2, Township 2 North, Range 67 West, 6th P.M.,
with a tolerance of 200 feet in any direction, as a fourth well for production
of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre
drilling and spacing unit consisting of the E½ of said Section 2. In the future,
the Applicant may also recomplete this well to the Dakota Formation for said
320-acre drilling and spacing unit and to the Codell, Niobrara, Sussex or
Shannon Formations for an 80-acre drilling and spacing unit and commingle all
production.
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, Codell or 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 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 19, 1998
(232-226)