BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 9:00 a.m. on November 30, 2009, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to approve an exception to the permitted location for the the Lorenz L #30-4D Well located in the NW¼ NW¼ of Section 30, Township 3 North, Range 66 West, 6^th P.M., for the production of gas and associated hydrocarbons from the Codell and Niobrara Formations.

FINDINGS

The Commission finds as follows:

1.     Noble Energy, Inc., (“Noble”), 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 pursuant to the Oil and Gas Conservation Act.

4.     Rule 318.a. of the Rules and Regulations of the Oil and Gas Conservation Commission requires that wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply.  Section 30, Township 3 North, Range 66 West, 6^th P.M., is subject to this Rule for the Codell and Niobrara Formations.

5.     On April 27, 1998, the Commission adopted Rule 318A., which, among other things, allowed certain drilling locations to be utilized to drill or twin a well, deepen a well or recomplete a well and to commingle any or all of the Cretaceous Age Formations from the base of the Dakota Formation to the surface.  On December 5, 2005, Rule 318A. was amended to, among other things, allow interior infill and boundary wells to be drilled and wellbore spacing units to be established.  Section 30, Township 3 North, Range 66 West, 6^th P.M., is subject to this Rule for the Codell and Niobrara Formations.

6.     On December 7, 1999, Patina Oil & Gas Corporation, predecessor to Noble, was issued an Application for Permit to Drill (“APD”) for the Lorenz L #30-4D Well (API No. 05-123-19864), located in the NW¼ NW¼ of Section 30, Township 3 North, Range 66 West, 6^th P.M., for a vertical well with a location of 625 feet FNL and 868 feet FWL (due to topographic reasons and to comply with the desires of the surface owner, an exception location was subsequently approved for 359 feet FNL and 862 feet FWL in said Section 30), for the production of gas and associated hydrocarbons from the Dakota and “J” Sand Formations. 

7.     On September 4, 2009, Noble, by its attorneys, filed with the Commission a verified application for an order to allow an exception location to the permitted well location for the Lorenz L #30-4D Well, located at approximately 359 feet FNL and 862 feet FWL in the NW¼ NW¼ of Section 30, Township 3 North, Range 66 West, 6^th P.M., for the production of gas and associated hydrocarbons from the Codell and Niobrara Formations.

8.     On November 19, 2009, Noble, by its attorneys, filed with the Commission a written request to approve the application based on the merits of the verified application and the supporting exhibits as is provided for by Rule 511.  Sworn written testimony and exhibits were submitted in support of the application.

9.     Testimony and exhibits submitted in support of the application showed that the actual surveyed location of the Lorenz L #30-4D Well is 334 feet FNL and 818 feet FWL of Section 30, Township 3 North, Range 66 West, 6^th P.M.  Additional testimony showed that on or about December 7, 1999, an exception location was approved for the Lorenz L #30-4D Well at a proposed location of 359’ FNL and 862’ FWL in said Section 30, for the production of gas and associated hydrocarbons from the Dakota and “J” Sand Formations, with required notice having been sent to over 200 mineral interest owners within or adjacent to the drilling and spacing unit resulting in no protest from said mineral interest owners to the request for variance.  Further testimony indicated that Noble is requesting to recomplete the Lorenz L #30-4D Well in the Codell and Niobrara Formations in its actual surveyed location, having given sufficient notice to the affected mineral interests owners as is required by Rule 507.b.(5) and having received no protest by any owner.

10.  Noble Energy, Inc. agreed to be bound by oral order of the Commission.

11.   Based on the facts stated in the verified application, having received no protests, and based on the Hearing Officer review of the application under Rule 511., the Commission should enter an order to approve an exception to the permitted location for the the Lorenz L #30-4D Well, located at approximately 334 feet FNL and 818 feet FWL in the NW¼ NW¼ of Section 30, Township 3 North, Range 66 West, 6^th P.M., for the production of gas and associated hydrocarbons from the Codell and Niobrara Formations.

ORDER

NOW, THEREFORE IT IS ORDERED, that an exception is approved for the permitted location for the the Lorenz L #30-4D Well (API No. 05-123-19864), located at approximately 334 feet FNL and 818 feet FWL in the NW¼ NW¼ of Section 30, Township 3 North, Range 66 West, 6^th P.M., for the production of gas and associated hydrocarbons from the Codell and Niobrara Formations.

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.

IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

                        ENTERED this__________day of December, 2009, as of November 30, 2009.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

                                                                        By____________________________________       

                                                                                    Robert A. Willis, Acting Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

December 7, 2009