BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WATTENBERG GAS SPACED AREA AND THE CODELL AND NIOBRARA SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NOS. 232 and 407

 

ORDER NOS. 407-81 and

                        232-54

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 17, 1991, in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing, as required by law on the verified application of Basin Operating Company for an order to amend Cause Nos. 407 and 232 to allow a well to be recompleted at an exception location in the NE1/4 NW1/4 of Section 4, Township 3 North, Range 67 West, 6th P.M., for production from the Codell-Niobrara Formations, and further, to allow the downhole commingling production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formations with production from the "J" Sand Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Basin Operating Company 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 Order Nos. 407-66 and 232-37, the Commission among other things, allowed wells drilled, completed or recompleted in the Codell and/or Niobrara Formations, where the production is commingled or dually completed with the "J" Formation, to be approved administratively, with additional rules established for well locations, unit designations and production allocation methods, for certain lands, including Section 4, Township 3 North, Range 67 West, 6th P. M.

 

5.      The Magnuson No. 2 Well was drilled, completed and produced at a legal location 1018 feet FNL and 1382 feet FWL, in accordance with Order No. 232-1, for production from the "J" Sand Formation.  Recompletion of the existing wellbore for production from the Codell-Niobrara Formations should result in an increase of recoverable reserves and the downhole commingling of production from the Codell, Niobrara and "J" Sand Formations will not result in irremediable reservoir damage.

 

6.      That evidence presented at an administrative hearing indicates that one hundred (100%) percent of the working interest owners and approximately sixty-nine (69%) percent of the royalty interest owners have approved the proposed allocation method for the three hundred and twenty (320) acre drilling and spacing unit consisting of the N1/2 of said Section 4, for production from the "J" Sand Formation. In addition, one hundred (100%) percent of the working interest owners and approximately sixty-three (63%) percent of the royalty interest owners have approved the proposed allocation method for the eighty (80) acre drilling and spacing unit consisting of the S1/2 NW1/4 of said Section 4. for production from the Codell-Niobrara Formations.

 

7.      The matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at the administrative hearing.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that an exception to allow the Magnuson No. 2 Well located 1018 feet FNL and 1382 feet FWL in the NE1/4 NW1/4 of Section 4, Township 3 North, Range 67 West, 6th P.M., to be recompleted for production from the Codell-Niobrara Formations is hereby granted and the production from the Codell-Niobrara Formations shall be allowed to be commingled with production from the "J" Sand Formation.

 

IT IS FURTHER ORDERED, that the allocation method described in Finding 6 shall be approved for the three hundred and twenty (320) acre drilling and spacing unit consisting of the N1/2 of said Section 4 for production from the "J" Sand Formation and for the eighty (80) acre drilling and spacing unit consisting of the S1/2 NW1/4 of said Section 4 for production from the Codell-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.

 

ENTERED this 22nd day of January, 1992, as of December 17, 1991.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

January 8, 1992