BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NOS. 304 and 407
ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS IN THE HAMBERT FIELD ) ORDER NOS. 304-8 and
AND THE CODELL-NIOBRARA SPACED AREA, ) 407-139
WELD COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 19, 1993, in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Basin Operating Company, for an order to amend Cause No. 304 and 407 to allow the Brown No. 34-24 Well located in the SW1/4 SE1/4 of Section 24, Township 4 North, Range 66 West, 6th P.M., to be recompleted to the Sussex Formation and to allow the downhole commingling of production from the Sussex Formation with production from the Codell and Niobrara Formations. In addition, the applicant requests that an allocation method be approved for the 160-acre drilling and spacing unit consisting of the SE1/4 for the Sussex Formation and for the 80-acre drilling and spacing unit consisting of the S1/2 SE1/4 for the Codell and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. Basin Operating Company as applicant herein, are interested parties 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 No. 304-4, which amended Order No. 304-1, the Commission established 160-acre drilling and spacing units for production from the Sussex Formation, including Section 24, Township 4 North, Range 66 West, 6th P.M. The Commission issued Order No. 304-5 on February 17, 1978, which established 160-acre drilling and spacing units for production of gas from the Sussex Formation underlying the entire spacing area of the Hambert Field, with the permitted well located no closer than 600 feet from the boundaries of the unit, including Section 24, Township 4 North, Range 66 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 24, Township 4 North, Range 66 West, 6th P.M.
6. In Order Nos. 304-6 and 407-28, issued April 20, 1987, the Commission authorized the location of an additional well at either the center of the NE1/4 or the SW1/4 of each quarter section, with a tolerance of 200 feet in any direction for production from the Sussex Formation. In addition, the order allowed the downhole commingling of production from the Sussex Formation with production from the Codell and Niobrara Formations when no difference in ownership between the formations existed within the 160-acre unit, including Section 24, Township 4 North, Range 66 West, 6th P.M.
7. This matter was heard by the Hearing Officers who recommend approval based upon the testimony presented at the administrative hearing that the working interest ownership in the SE1/4 of Section 24, Township 4 North, Range 66 West, 6th P.M. is not common, although the royalty interests in the SE1/4 of Section 24 are common.
8. No objections to the application were received and an order of the Commission should be entered allowing the Brown No. 34-24 Well located in the SW1/4 SE1/4 of Section 24, Township 4 North, Range 66 West, 6th P.M. to be recompleted to the Sussex Formation, allowing the downhole commingling of production from the Sussex Formation with production from the Codell and Niobrara Formations, and approving the 160-acre drilling and spacing unit consisting of the SE1/4 for the Sussex Formation and the 80-acre drilling and spacing unit consisting of the S1/2 SE1/4 for the Codell and Niobrara Formations.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 304-6 and 407-28 shall be amended to allow the Brown No. 34-24 Well located in the SW1/4 SE1/4 of Section 24, Township 4 North, Range 66 West, 6th P.M. to be recompleted to the Sussex Formation.
IT IS FURTHER ORDERED, that downhole commingling of production from the Sussex Formation with production from the Codell and Niobrara Formations shall be allowed and that the allocation method for the 160-acre drilling and spacing unit consisting of the SE1/4 for the Sussex Formation and for the 80-acre drilling and spacing unit consisting of the S1/2 SE1/4 for the Codell and Niobrara Formations shall be 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 July, 1993, as of July 19, 1993.
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
July 30, 1993