BEFORE THE
OF THE STATE OF
IN THE MATTER OF THE PROMULGATION )
CAUSE NO. 315
AND ESTABLISHMENT OF FIELD RULES )
TO GOVERN OPERATIONS IN THE
FIELD,
REPORT OF THE COMMISSION
This cause came on for
hearing before the Commission at 8:00 a.m. on October 2, 2007, in the Public
Hearing Room, Old Court House, 544 Rood Avenue, 2nd Floor, Grand Junction, Colorado,
for an order to allow the Zwirn 24-11 Well to be drilled at an exception
location 1945 feet FSL and 2055 feet FWL in the NE¼ SW¼ of Section 24, Township
1 South, Range 44 West, 6th P.M., for the production of gas and associated
hydrocarbons from the Niobrara Formation.
FINDINGS
The
Commission finds as follows:
1. Rosetta Resources, Inc. (“Rosetta”), 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. On August 22, 1978, corrected November 20, 1978, the
Commission issued Order No. 315-3, which among other things, established
160-acre drilling and spacing units for certain lands including Section 24,
Township 1 South, Range 44 West 6th P.M., for the production of gas and
associated hydrocarbons from the Niobrara Formation, with the permitted well to
be located no closer than 900 feet from the boundaries of the quarter section
upon which it is located.
6. On
7. Testimony and exhibits submitted in support of the
application showed that the applicant proposes to drill the Zwirn 24-11 Well at
the proposed exception location to optimize recovery of reserves from the
Niobrara Formation based upon geologic considerations.
8. Testimony and exhibits submitted in support of the
application showed that in order to prevent waste and protect correlative
rights of all owners in the area surrounding the proposed location, it is
reasonable and equitable to permit an exception location to allow the drilling
of a well in the described location. Rosetta
also asserts that Rule 318.c. of the Rules and Regulations of the Colorado Oil
and Gas Conservation Commission provides for exception locations when geologic,
topographical or environmental conditions warrant a variance from field rules.
9. Testimony and exhibits showed that waivers
were requested from all contiguous and cornering owners in lands toward whom
the well is proposed to be moved who are affected by the exception location. Waivers have not been obtained but no party
from whom a waiver is sought expressed an objection to the request.
10. The testimony and exhibits submitted indicate that Rosetta has
complied with the requirements of 318.c. and, the applicant is also entitled to
a variance under Rule 502.b. since waivers were requested, but not obtained, by
all parties. Additional testimony
indicated that nearly four (4) months have elapsed since the request for
waivers, without any objection from the parties to whom the requests were sent.
11. The above-referenced testimony and exhibits show that the
proposed exception location will allow more efficient reservoir drainage, will
prevent waste, will assure a greater ultimate recovery of gas, and will not
violate correlative rights.
12. Rosetta Resources, Inc. agreed to be bound by oral order of
the Commission.
13. Based on the facts stated in the verified application, having
received no protests and having received two (2) out of the five (5) waivers
requested, and based on the Hearing Officer review of the application under
Rule 511.b., the Commission should enter an order to allow the Zwirn 24-11 Well
to be drilled at an exception location 1945 feet FSL and 2055 feet FWL in the
NE¼ SW¼ of Section 24, Township 1 South, Range 44 West, 6th P.M., for the
production of gas and associated hydrocarbons from the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS
ORDERED, that the Zwirn 24-11 Well is hereby approved to be drilled at an
exception location 1945 feet FSL and 2055 feet FWL in the NE¼ SW¼ of Section 24,
Township 1 South, Range 44 West, 6th P.M., for the production of gas and
associated hydrocarbons from the Niobrara Formation.
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 October, 2007, as of October 2, 2007.
OIL
AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
By____________________________________
Patricia
C. Beaver, Secretary
Dated
at
October
16, 2007