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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WATTENBERG GAS SPACED AREA, WELD COUNTY, COLORADO |
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CAUSE NO. 232
ORDER NO. 232-60 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on April 20, 1992, 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 Freedom Energy, Inc. for an order to amend Cause No. 232 to allow the 320-acre drilling and spacing unit consisting of the N1/2 of Section 28, Township 3 North, Range 63 West, 6th P.M. to be segregated into two 160-acre drilling and spacing units consisting of the NW1/4 and the NE1/4 of said Section 28 for production from the "J" Sand Formation. Further, the order should establish a 160-acre exploratory unit consisting of the NW1/4 of Section 28, for production from the Dakota, Codell, Niobrara, Sussex and Shannon Formations, with the downhole commingling of production from all formations to be allowed.
FINDINGS
The Commission finds as follows:
1. Freedom Energy, 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 in the Wattenberg Field with one well allowed for each unit to be located in the NE1/4 and SW1/4 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.
5. On April 19, 1991, the General Assembly of the State of Colorado enacted Senate Bill 91-87, which among other things, authorized the Commission, when unable to determine the existence of a pool and the appropriate acreage to be embraced with a drilling unit, to establish the existence of a pool and the appropriate size and shape of the drilling unit to be applied.
6. That evidence presented at the hearing indicates that the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations constitute common sources of supply of oil, gas and associated hydrocarbons underlying Section 28, Township 3 North, Range 63 West, 6th P.M., in Weld County, Colorado.
7. Engineering testimony presented indicated that prudent production engineering practices would allow commingled production from the various reservoirs resulting in increased recovery of reserves and no irremediable reservoir damage.
8. Based on the facts stated in the verified application, receiving no protests, having been heard by the Director as Hearing Officer on April 17, 1992, and recommended for approval, the Commission should enter an order segregating the 320-acre drilling and spacing unit consisting of the N1/2 of Section 28, Township 3 North, Range 63 West, 6th P.M. into two 160-acre drilling and spacing units consisting of the NW1/4 and the NE1/4 for production from the "J" Sand Formation. In addition, a 160-acre exploratory unit should be established consisting of the NW1/4 of Section 28, for production from the Dakota, Codell, Niobrara, Sussex and Shannon Formations, allowing the downhole commingling of production from the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations.
ORDER
NOW, THEREFORE, IT IS ORDERED, that,
1. Cause No. 232 is hereby amended to allow the 320-acre drilling and spacing unit consisting of the N1/2 of Section 28, Township 3 North, Range 63 West, 6th P.M. to be segregated into two 160-acre drilling and spacing units consisting of the NW1/4 and the NE1/4 of said Section 28 for production from the "J" Sand Formation.
2. A 160-acre exploratory unit shall be established, consisting of the NW1/4 of Section 28, Township 3 North, Range 63 West, 6th P.M. for production from the Dakota, Codell, Niobrara, Sussex and Shannon Formations, with a total of no more than four wells allowed to be drilled in said unit. One well is hereby approved to be drilled for production from the "J" Sand and Dakota Formations, located no closer than 990 feet to the boundaries of the quarter section, allowing the recompletion of said well for production from the Codell, Niobrara, Sussex or Shannon Formations. Wells not to exceed a total of four are hereby approved to be drilled for production from the Codell, Niobrara, Sussex and Shannon Formations, located in the center of the 40-acre quarter-quarter section with a tolerance of 200 feet in any direction. Any well completed in the "J" Sand Formation at a location permitted in accordance with Order No. 232-1 shall be approved as an exception location for the Dakota, Codell, Niobrara, Sussex and Shannon Formations.
3. Multiple zone completions and downhole commingling of oil, gas and associated hydrocarbons from the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations is hereby approved.
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 day of , 1992, as of April 20, 1992.
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
May 15, 1992