BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NOS. 232, 407 and 499
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE WATTENBERG GAS SPACED ) ORDER NOS. 232-230, 407-284,
AREA, THE CODELL-NOBRARA SPACED AREA AND ) and 499-72
THE WATTENBERG FIELD, WELD COUNTY, COLORADO )
CORRECTED
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 Patina Oil & Gas Corporation for an order to allow six (6) wells to be drilled in the center of the 40-acre tracts or quarter-quarters with a tolerance of 200 feet in any direction, as third wells for the production of gas and associated hydrocarbons from the “J” Sand Formation, for certain 320-acre drilling and spacing units. Further, the Applicant seeks an order to drill the Mayer X 33-15Ji Well in the SW¼ SE¼ of Section 33, Township 2 North, Range 65 West, 6th P.M., as a third well for the production of gas and associated hydrocarbons from both the Dakota and “J” Sand Formations for the 320-acre drilling and spacing unit consisting of the E½ of said Section 33.
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 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 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 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.
8. The below-listed wells are proposed to be drilled in the center of the 40-acre tracts or quarter-quarters with a tolerance of 200 feet in any direction, as third wells for the production of gas and associated hydrocarbons from the “J” Sand Formation, for the described 320-acre drilling and spacing units.
Proposed Well Location 320-acre unit
Appel-Heirs W32-5Ji SW¼ NW¼ Sec 32-2N-66W W½
Hull U 25-3Ji NE¼ NW¼ Sec 25-2N-68W W½
Travelers U 28-13Ji SW¼ SW¼ Sec 28-2N-68W S½
UPRC U 33-8Ji SE¼ NE¼ Sec 33-2N-68W E½
Brattain L 12-12Ji NW¼ SW¼ Sec 12-3N-66W S½
Erickson-Brikle P 25-7Ji SW¼ NE¼ Sec 25-3N-67W N½
9. The Applicant proposes to drill the Mayer X 33-15Ji Well in the SW¼ SE¼ of Section 33, Township 2 North, Range 65 West, 6th P.M., as the third well for production of gas and associated hydrocarbons from both the Dakota and “J” Sand Formations for the 320-acre drilling and spacing unit consisting of the E½ of said Section 33. Once the well is drilled, the Dakota Formation will be tested, and if productive, the Applicant will abandon the Dakota Formation in the existing Mayer 33-9P Well located in the NE¼ SE¼ of said Section 33.
10. Evidence submitted by the Applicant and reviewed by the Hearing Officer shows that for the wells listed in Finding #8, the original gas in place ranges from 1.6 to 4.5 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 0.6 BCF to 1.4 BCF, which equates to recovery factors ranging from sixteen percent (16%) to fifty-nine percent (59%).
11. 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 33, Township 2 North, Range 65 West is 1.5 BCF, and that the estimated ultimate recovery from the three existing “J” Sand Formation wells will be 0.5 BCF which equates to a 24% recovery factor for the drilling and spacing unit.
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 agrees to request Commission approval not before six (6) months from the date production is obtained from the “J” Sand Formation to recomplete the wells to the Dakota, Codell, Niobrara, Sussex or Shannon Formations and commingle production from these formations with production from the “J” Sand Formation.
14. The Applicant will conduct a bottom hole pressure test of the “J” Sand Formation on the Brattain L 12-12Ji Well.
15. The Applicant agreed to be bound by oral order of the Commission.
16. 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 in order of the Commission should be entered amending Order Nos. 232-89, 407-125, and 499-15 to allow the six (6) wells listed in Finding #8 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 addition, the Hearing Officer recommends approval to drill the Mayer X 33-15Ji Well in the SW¼ SE¼ of Section 33, Township 2 North, Range 65 West, 6th P.M., as the third well for production of as and associated hydrocarbons from both the Dakota and “J” Sand Formations for the 320-acre drilling and spacing unit consisting of the E½ of said Section 33. Once the well is drilled, the Dakota Formation will be tested, and if productive, the Applicant will abandon the Dakota Formation in the existing Mayer 33-9P Well located in the NE¼ SE¼ of said Section 33.
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 in the center of the 40-acre tracts or quarter-quarters with a tolerance of 200 feet in any direction, as third wells for the production of gas and associated hydrocarbons from the “J” Sand Formation for the described 320-acre drilling and spacing units.
Proposed Well Location 320-acre unit
Appel-Heirs W 32-5Ji SW¼ NW¼ Sec 32-2N-66W W½
Hull U 25-3Ji NE¼ NW¼ Sec 25-2N-68W W½
Travelers U 28-13Ji SW¼ SW¼ Sec 28-2N-68W S½
UPRC U 33-8Ji SE¼ NE¼ Sec 33-2N-68W E½
Brattain L 12-12Ji NW¼ SW¼ Sec 12-3N-66W S½
Erickson-Brikle P 25-7Ji SW¼ NE¼ Sec 25-3N-67W N½
IT IS FURTHER ORDERED, that the Mayer X 33-15Ji Well shall be allowed to be drilled in the SW¼ SE¼ of Section 33, Township 2 North, Range 65 West 6th P.M., as the third well for production of gas and associated hydrocarbons from both the Dakota and “J” Sand Formations for the 320-acre drilling and spacing unit consisting of the E½ of said Section 33. Once the well is drilled, the Dakota Formation shall be tested, and if productive, the Applicant shall abandon the Dakota Formation in the existing Mayer 33-9P Well located in the NE¼ SE¼ of said Section 33.
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 wells to the Dakota, 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 Applicant shall conduct a bottom hole pressure test of the “J” Sand Formation on the Brattain L 12-12Ji Well.
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.
CORRECTED this 30th day of September, 1999, 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