IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 407
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE CODELL NIOBRARA
ORDER NO. 407 236
SPACED AREA, WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 1, 1997, in Suite
801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving
Notice of Hearing, as required by law on the application of Prima Oil and Gas
Company, to amend Order No. 407 1 to segregate the W½SW¼ (Lot 4) of Section 6,
Township 3 North, Range 64 West, 6th P.M. into two separate and distinct
drilling and spacing units consisting of one 40-acre drilling unit in the SW¼
SW¼ (S½ of Lot 4) and one 29.40 acre drilling and spacing unit in the NW¼ SW¼
(North 29.40 acres of Lot 4) of said Section 6, for production from the Codell
and Niobrara Formations
FINDINGS
The Commission finds as follows:
1. Prima Oil & Gas Company, as applicant herein, is an interested party in the
subject matter of the above entitled 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 December 19, 1983, the Commission authorized Order No. 407 1 to be issued
which established 80 acre drilling and spacing units for the production of oil,
gas and associated hydrocarbons from the Codell Formation. The units consist of
the E½ and W½ or the N½ and S½ of each governmental quarter quarter section. The
permitted well shall be located in the center of either 40-acre tract within the
unit, with a tolerance of 200 feet and the option to drill an additional well in
the undrilled 40 acre tract. Subsequent Order No. 407 10 included the Niobrara
Formation and allowed downhole commingling of production from the Codell and
Niobrara Formations. Section 6, Township 3 North, Range 64 West, 6th P.M., Weld
County, Colorado lies within the area spaced by these orders.
5. The Faramir Farms No. 6-1 RC Well located in the SW¼SW¼ of Section 6,
Township 3 North, Range 64 West, 6th P.M., was completed as a producing well in
the Codell and Niobrara Formations prior to the issuance of Order No. 407-1 and
has been continuously operated and produced from the 40-acre drilling and
spacing unit consisting of the south 40 acres of Lot 4.
6. The Faramir Farms No. 6-32 Well located in the north 29.40-acres of Lot 4
(NW¼SW¼) of Section 6, Township 3 North, Range 64 West, 6th P.M., has been
drilled and completed by Prima Oil & Gas Company for production from the Codell
and Niobrara Formations, and payment to royalty owners in this irregular quarter
quarter section has not yet occurred.
7. Testimony presented at the administrative hearing indicated that drainage
radii between 7.14 acres and 8.10 acres have been calculated for cumulative gas
production for the two wells in the W½ SW¼ of Section 6 and that drainage radii
for ultimate gas recovery has been calculated for the Faramir Farms No. 6-1 Well
to be 19.66 acres and for the Faramir Farms No. 6-32 to be 28.10 acres
8. The Faramir Farms No. 6-1 Well located in the SW¼ SW¼ and the Faramir Farms
No. 16-32 Well located in the NW¼ SW¼ of said Section 6 should be approved as
the permitted wells for the 40-acre drilling and spacing unit and the 29.40
drilling and spacing unit.
9. At the time of the administrative hearing, Prima Oil & Gas Company agreed to
be bound by oral order of the Commission.
10. Based on the facts stated in the application, having received no protests,
and having been heard by the Hearing Officer who recommends approval, the
Commission should enter an order approving the request to amend Order No. 407 1
to segregate the W½SW¼ (Lot 4) of Section 6, Township 3 North, Range 64 West,
6th P.M. into two separate and distinct drilling and spacing units consisting of
one 40-acre drilling unit in the SW¼ SW¼ (S½ of Lot 4) and one 29.40 acre
drilling and spacing unit in the NW¼ SW¼ (North 29.40 acres of Lot 4) of said
Section 6, for production from the Codell and Niobrara Formations with the
Faramir Farms No. 6-1 RC Well located in the SW¼SW¼ of Section 6, Township 3
North, Range 64 West, 6th P.M., as the permitted well for the south 40 acres of
Lot 4 and the Faramir Farms No. 6-32 Well located in the NW¼SW¼ of Section 6,
Township 3 North, Range 64 West, 6th P.M., the permitted well for the north
29.40-acres of Lot 4.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that Order No. 407 1 shall be amended to
segregate the 80-acre drilling and spacing unit consisting of the W½SW¼ (Lot 4)
of Section 6, Township 3 North, Range 64 West, 6th P.M. into two separate and
distinct drilling and spacing units consisting of one 40-acre drilling unit in
the SW¼ SW¼ (S½ of Lot 4) and one 29.40 acre drilling and spacing unit in the
NW¼ SW¼ (North 29.40 acres of Lot 4) of said Section 6, for production from the
Codell and Niobrara Formations.
IT IS FURTHER ORDERED, that the Faramir Farms No. 6-1 RC Well located in the
SW¼SW¼ of Section 6, Township 3 North, Range 64 West, 6th P.M., shall be the
permitted well for the south 40 acres of Lot 4.
IT IS FURTHER ORDERED, that the Faramir Farms No. 6-32 Well located in the
NW¼SW¼ of Section 6, Township 3 North, Range 64 West, 6th P.M., shall be the
permitted well for the north 29.40-acres of Lot 4.
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 with the verbal consent of the interested parties at
the time of hearing, this order shall become effective forthwith.
ENTERED this 18th day of July, 1997, as of July 1, 1997.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801, 1110 Lincoln Street, Denver, Colorado 80203 July 3, 1997
(407-236)