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. 304-15 and
AND THE CODELL-NIOBRARA SPACED AREA, ) 407-207
WELD COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on January 18, 1996, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Snyder Oil Corporation, for an order to amend Cause Nos. 304 and 407 to allow the Mercure No. 8-6I5 Well located 2,021 feet FNL and 1,986 feet FWL in the SE¼ NW¼ of Section 8, Township 4 North, Range 65 West, 6th P.M., to be recompleted at an exception location for production from 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. Snyder Oil Corporation, 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 320-acre drilling and spacing units for production from the Sussex Formation, including Section 8, Township 4 North, Ranges 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 8, 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 8, Township 4 North, Range 65 West, 6th P.M.
6. HS Resources, Inc. filed a letter on December 12, 1995 concerning the allocation proposal because it did not include a thirty (30) day test period for the separate formations. This objection was addressed with a production test for the Sussex Formation.
7. An order of the Commission should be entered allowing the Mercure No. 8-6I5 Well located 2,021 feet FNL and 1,986 feet FWL in the SE¼ NE¼ of Section 8, Township 4 North, Range 65 West, 6th P.M., to be recompleted for production from 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 NW¼ of Section 8 for production from the Sussex Formation and the 80-acre drilling and spacing unit consisting of the E½ NW¼ of Section 8 for production from 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 Mercure No. 8-6I5 Well located 2,021 feet FNL and 1,986 feet FWL in the SE¼ NW¼ of Section 8, Township 4 North, Range 65 West, 6th P.M. , to be recompleted for production from 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 NW¼ of Section 8 for production from the Sussex Formation and for the 80-acre drilling and spacing unit consisting of the E½ NW¼ of Section 8 for production from the Codell and Niobrara Formations shall be approved.
IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.
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 , 1996, as of January 18, 1996.
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
February 5, 1996