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. 304-10 and

AND THE CODELL-NIOBRARA SPACED AREA,                    )                                    407-195

WELD COUNTY, COLORADO                                          )                    CORRECTED

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on April 19, 1995, in Suite 801, The Chancery Building, 1120 Lincoln 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 a well 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 a 160-acre drilling and spacing unit for the Sussex Formation and for an 80-acre drilling and spacing unit for the Codell and Niobrara Formations.

 

                                                                                 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 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 18, Township 4 North, Range 65 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 18, Township 4 North, Range 65 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 18, Township 4 North, Range 65 West, 6th P.M.

 

                        6.  This matter was heard by the Hearing Officers who recommend approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary since one Sussex well will not adequately drain the gas reserves in the SW¼ of Section 18, and to avoid multiple wellhead facilities by allowing an existing well to be recompleted for production from a shallower zone.

 

                        7.  There is a difference in ownership between the Sussex Formation and Codell and Niobrara Formations and the proposed allocation should insure that each owner receives their equitable share of production.

 

                        8.  No objections to the application were received and an order of the Commission should be entered allowing the Dinner No. 13-18 Well located in the NW¼ SW¼ of Section 18, Township 4 North, Range 65 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 allocation method for the 160-acre drilling and spacing unit consisting of the S½ for the Sussex Formation and the 80-acre drilling and spacing unit consisting of the W½ SW¼ for the Codell and Niobrara Formations.


                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Order Nos. 304-4 and 407-28 shall be amended to allow the Dinner No. 13-18 Well located in the NW¼ SW¼ of Section 18, Township 4 North, Range 65 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 S½ for the Sussex Formation and for the 80-acre drilling and spacing unit consisting of the W½ SW¼ 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     18th        day of       May               , 1995, as of April 19, 1995.

 

                        CORRECTED this               day of                         , 1995, as of April 19, 1995.

 

                                                                        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

July 7, 1995