IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 317
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WHISPER FIELD,
ORDER NO. 317-7
YUMA COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Hearing Officers at 10:00 a.m. on
January 7, 2002 in Room 201, Greeley Recreation Center, 651 10th Avenue,
Greeley, Colorado on the application of Williams Production RMT Company for an
order to amend Order Nos. 317-3 and 317-5 to allow any well drilled as the
initial well in a 160-acre drilling and spacing unit to be located no closer
than 560 feet from the outer boundaries of the 160-acre drilling and spacing
unit for certain lands in the Whisper Field.
FINDINGS
The Commission finds as follows:
1. Williams Production RMT 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. On January 17, 1977, the Commission issued Order No. 317-1, which established
640-acre drilling and spacing units for the production of gas and associated
hydrocarbons from the Niobrara Formation with the permitted well to be located
no closer than 990 feet from the unit boundary underlying certain lands in the
Whisper Field. The spaced area was extended by Order No. 317-2 issued December
15, 1977. By Order No. 317-3, dated August 22, 1978 and upheld by Order No.
317-4 dated September 9, 1981, the size of the drilling and spacing units within
the spaced area was reduced to 160-acres with the permitted well to be located
no closer than 900 feet from the unit boundaries for the below-listed lands:
Township 3 North, Range 47 West, 6th P.M.
Sections 3 thru 5: All
Sections 8 thru 10: All
Sections 15 thru 17: All
Sections 20 thru 22: All
5. On June 4, 1999, the Commission issued Order No. 317-5 which allowed an
additional well to be drilled and completed in Section 16, Township 3 North,
Range 47 West, 6th P.M. On October 29, 2001, the Commission issued Order No.
317-6 to allow additional wells to be drilled and completed in the below-listed
lands and to allow any well drilled as the initial well in a 160-acre drilling
and spacing unit to be located no closer than 560 feet from the outer boundaries
of the 160-acre drilling and spacing unit:
Township 3 North, Range 47 West, 6th P.M.
Sections 3 thru 5: All
Sections 8 thru 10: All
Section 15: All
Section 17: All
Sections 20 thru 22: All
6. On November 19, 2001, Williams Production RMT Company, by its attorney filed
with the Commission a verified Application for an order to amend Order Nos.
317-3 and 317-5 to allow any well drilled as the initial well in any 160-acre
drilling and spacing unit in Section 16, Township 3 North, Range 47 West, 6th
P.M. to be located no closer than 560 feet from the outer boundaries of the
160-acre drilling and spacing unit, and to allow the Director authority to grant
an exception location to the permitted well location without prior notice or
hearing upon an adequate showing by the operator that topography makes it
unreasonable to drill a well within a 560 feet setback, but no closer than 380
feet from the boundary of the drilling and spacing unit.
7. No protests were filed on the Application and an administrative hearing was
held. At the time of the administrative hearing Williams withdrew from the
application the request to allow the Director authority to grant an exception
location no closer than 380 feet from the boundary of the drilling and spacing
unit without prior notice and hearing.
8. Testimony presented at the administrative hearing indicated that a change in
well location setbacks is necessary to allow flexibility in locating wells and
optimizing drainage.
9. At the time of the administrative hearing, Williams Production RMT Company
agreed to be bound by oral order of the Commission.
10. The Commission should enter an order to allow any well drilled as the
initial well in any 160-acre drilling and spacing unit in Section 16, Township 3
North, Range 47 West, 6th P.M. to be located no closer than 560 feet from the
outer boundaries of the 160-acre drilling and spacing unit.
ORDER
NOW, THEREFORE IT IS ORDERED, that Order Nos. 317-3 and 317-5 are hereby amended
to allow any well drilled as the initial well in any 160-acre drilling and
spacing unit in Section 16, Township 3 North, Range 47 West, 6th P.M. to be
located no closer than 560 feet from the outer boundaries of the 160-acre
drilling and spacing unit.
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 10th day of January, 2002, as of January 7, 2002.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 January 10, 2002
(317-7)