IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 407
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE CODELL-NIOBRARA
ORDER NO. 407-237
SPACED AREA, WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 1, 1997, 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 & Gas
Company for an order allowing certain wells to be drilled at exception locations
for production from the Codell Formation.
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 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. 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 Sections 11-13 and 23, in Township 5 North, Range 67 West, 6th P.M.
5. Prima Oil & Gas Company wishes to drill the following wells at the locations
described below:
Section 11 Wells: SE¼ bottomhole locations (BHL)1 Section 12 Wells: SW¼
bottomhole locations (BHL)1
Tri-Pointe 11-4C Tri-Pointe 12-3C
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 2000' FEL 1200' FSL BHL 460’ FWL 1200’ FSL
SL 450' FNL 700' FWL Sec. 13 SL 450’ FNL 760’ FWL Sec. 13
80 acre unit: W½SE¼ 80 acre unit: W½SW¼
Tri-Pointe 11-4B Tri-Pointe 12-3B
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 1300' FEL 1200' FSL BHL 1200’ FSL 1300’ FWL
SL 450' FNL 720' FWL Sec. 13 SL 450’ FNL 780’ FWL Sec. 13
80 acre unit: E½SE¼ 80-acre unit: W½SW¼
Tri-Pointe 11-4A Tri-Pointe 12-3A
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 460' FEL 1200' FSL BHL 2000’ FWL 450’ FNL Sec. 13
SL 450' FNL 740' FWL Sec. 13 SL 450’ FNL 800’ FWL Sec. 13
80-acre unit: E½SE¼ 80-acre unit: E½SW¼
1 All six (6) wells to be drilled from one surface location (SL) in Section 13,
Township 5 North, Range 67 West, 6th P.M., at 700’ to 800’ FWL, 450’ FNL.
Section 13 Wells: NW¼ and SW¼ Section 23 Wells: SW¼
same surface and bottomhole locations same surface and bottomhole locations
Shupe 13-23 Kinzer 23-3A
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1750' FNL 460' FWL 1320' FSL 2180' FWL
80-acre unit: S½NW¼ 80-acre unit: E½SW¼
Shupe 13-2B Kinzer 23-3B
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1320' FNL 1620' FWL 1320' FSL 1607' FWL
80-acre unit: S½NW¼ 80-acre unit: E½SW¼
Shupe 13-2A Kinzer 23-3C
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
2180' FWL 1320' FNL 1320' FSL 1034' FWL
80-acre unit: N½NW¼ 80-acre unit: W½SW¼
Moore 13-35 Kinzer 23-3D
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1315' FSL 1305' FWL 1320' FSL 460' FWL
80-acre unit: W½SW¼ 80-acre unit: W½SW¼
6. That testimony presented at the administrative hearing indicated that the
most efficient pattern for reservoir drainage is to place wells in an east-west
line and perform large fractures to recover natural gas reserves to the north
and south. Wells located in this manner will prevent waste, have greater
economic recovery, and will reduce surface impacts.
7. That the 200 foot drilling windows establish a normal 460 foot setback from
the unit boundaries. No exception locations are closer than this setback except
for the proposed Shupe 13-2A Well in the NW¼ of Section 13, Township 5 North,
Range 67 West, 6th P.M., which is 439 feet from the unit boundary.
8. The proposed wells in Sections 11 and 12, Township 5 North, Range 67 West
have bottom hole locations under the Tri Pointe development located within the
City of Greeley boundary. All six (6) of these wells will be drilled
directionally from a single location located 450 feet outside of the Greeley
city boundary. Three (3) wells instead of four (4) will be drilled per quarter
quarter section in this area due to the economics of directional drilling.
9. This matter was heard by the Hearing Officer who recommends approval based
upon the testimony presented at the administrative hearing that an exception to
the permitted well location is necessary to avoid multiple wellhead facilities
by allowing an existing well to be recompleted for production from shallower
zones.
10. At the time of the administrative hearing, Prima Oil & Gas Company agreed to
be bound by oral order of the Commission.
11. 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 wells described in Finding No. 5
to be drilled at exception locations for production oil, gas and associated
hydrocarbons from the Codell Formation, for the specified drilling and spacing
units.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-1 and 407-10 shall be amended
to allow the below-listed wells to be drilled at exception locations for
production oil, gas and associated hydrocarbons from the Codell Formation, for
the specified drilling and spacing units.
Section 11 Wells: SE¼ bottomhole locations (BHL)1 Section 12 Wells: SW¼
bottomhole locations (BHL)1
Tri-Pointe 11-4C Tri-Pointe 12-3C
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 2000' FEL 1200' FSL BHL 460’ FWL 1200’ FSL
SL 450' FNL 700' FWL Sec. 13 SL 450’ FNL 760’ FWL Sec. 13
80 acre unit: W½SE¼ 80 acre unit: W½SW¼
Tri-Pointe 11-4B Tri-Pointe 12-3B
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 1300' FEL 1200' FSL BHL 1200’ FSL 1300’ FWL
SL 450' FNL 720' FWL Sec. 13 SL 450’ FNL 780’ FWL Sec. 13
80 acre unit: E½SE¼ 80-acre unit: W½SW¼
Tri-Pointe 11-4A Tri-Pointe 12-3A
Sec. 11 T5N, R67W Sec. 12 T5N, R67W
BHL 460' FEL 1200' FSL BHL 2000’ FWL 450’ FNL Sec. 13
SL 450' FNL 740' FWL Sec. 13 SL 450’ FNL 800’ FWL Sec. 13
80-acre unit: E½SE¼ 80-acre unit: E½SW¼
1 All six (6) wells to be drilled from one surface location (SL) in Section 13,
Township 5 North, Range 67 West, 6th P.M., at 700’ to 800’ FWL, 450’ FNL.
Section 13 Wells: NW¼ and SW¼ Section 23 Wells: SW¼
same surface and bottomhole locations same surface and bottomhole locations
Shupe 13-23 Kinzer 23-3A
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1750' FNL 460' FWL 1320' FSL 2180' FWL
80-acre unit: S½NW¼ 80-acre unit: E½SW¼
Shupe 13-2B Kinzer 23-3B
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1320' FNL 1620' FWL 1320' FSL 1607' FWL
80-acre unit: S½NW¼ 80-acre unit: E½SW¼
Shupe 13-2A Kinzer 23-3C
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
2180' FWL 1320' FNL 1320' FSL 1034' FWL
80-acre unit: N½NW¼ 80-acre unit: W½SW¼
Moore 13-35 Kinzer 23-3D
Sec. 13 T5N, R67W Sec. 23 T5N, R67W
1315' FSL 1305' FWL 1320' FSL 460' FWL
80-acre unit: W½SW¼ 80-acre unit: W½SW¼
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 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, 1120 Lincoln Street, Denver, Colorado 80203 July 18, 1997
(407-237)