BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NOS. 232 and 407
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE WATTENBERG GAS SPACED AREA ) ORDER NOS. 232-187
AND THE CODELL-NIOBRARA SPACED AREA, ) and 407-247
WELD COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on February 9, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the verified application of Patina Oil & Gas Corporation for an order to allow additional "J" Sand Formation wells to be completed on 320-acre drilling and spacing units. The Applicant proposes to drill one (1) well in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction as a third "J" Sand Formation well for one (1) 320-acre unit and deepen two (2) wells to the "J" Sand Formation for two (2) 320-acre units for certain lands in Weld County, Colorado.
The Commission finds as follows:
1. Patina Oil & Gas 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 Cause No. 232, the Commission established 320-acre drilling and spacing units with said units to consist of the N½ and S½ or the E½ and W½ of a governmental section for production from the "J" Sand Formation and with the authorized well to be located in the NE¼ and the SW¼ of each section no closer than 990 feet from the boundaries of the quarter section. By Order No. 232-20, the Commission authorized the drilling of a second well for each 320-acre drilling and spacing unit with the additional well to be located no closer than 990 feet from the boundaries of the quarter section upon which it is located.
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.
6. Order Nos. 407-66 and 232-47 issued April 16, 1991, among other things, allowed the recompletion, downhole commingling and approval of allocation methods for production from the "J" Sand, Codell, and Niobrara Formations.
7. At the time of the administrative hearing, Patina withdrew from the application the request to allow a third “J” Sand Formation well in the SE¼ NW¼ Section 1, Township 1 North, Range 68 West, 6th P.M.
8. The Applicant proposes to drill the below-listed well in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction as a third "J" Sand Formation well for the 320-acre unit as described.
Well Name Proposed Well Location 320-acre Drilling/Spacing Unit
Strong P 21-1Ji NE¼ NE¼ Sec 21-3N-67W E½
The Applicant proposes to deepen the below-listed wells, currently producing from the Codell and Niobrara Formations, to the "J" Sand Formation for the 320-acre units as described.
Well Name Well Location 320-acre Drilling/Spacing Unit
UPRC 5-10 K6 NW¼ SE¼ Sec 5-2N-66W S½
Fehrn 4-28 SE¼ SW¼ Sec 28-2N-66W W½
9. Testimony and evidence presented at the administrative hearing indicated that the existing wells are recovering approximately 22.9% to 42.1% of original gas in place and that the average drainage radii calculations range from 37 acres to 67 acres.
10. The Strong P 21-1Ji Well, to be located in the NE¼ NE¼ of Section 21, Township 3 North, Range 67 West, will be completed in the “J” Sand Formation and placed on production at least six (6) months prior to completion of and commingling with any other formation. A bottom-hole reservoir pressure for the “J” Sand Formation will be obtained.
11. The applicant will deepen the existing wells, the UPRC 5-10K6 Well, located in the NW¼ SE¼ of Section 5, Township 2 North, Range 66 West and the Fehrn 4-28 Well, located in the SE¼ SW¼ of Section 28, Township 2 North, Range 66 West, complete “J” Sand Formation and commingle the Codell Formation without a production test and without obtaining a bottom-hole reservoir pressure for the “J” Sand Formation.
12. That in order to prevent waste and protect the correlative rights additional wells are necessary to recover remaining "J" Sand Formation reserves.
13. At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.
14. Based on the facts stated in the application, having received no protests and having been heard by the Hearing Officer who recommends approval of the application, an order of the Commission should be entered amending Order Nos. 407-185 and 232-140, allowing the drilling of additional "J" Sand Formation wells on 320-acre drilling and spacing units. The Applicant proposes to drill one (1) well in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction as a third "J" Sand Formation well for one (1) 320-acre unit and deepen two (2) wells to the "J" Sand Formation for two (2) 320-acre units for certain lands in Weld County, Colorado.
NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the drilling of an additional "J" Sand Formation well for the 320-acre drilling and spacing unit in the below-listed lands to be located in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction.
Well Name Proposed Well Location 320-acre Drilling/Spacing Unit
Strong P 21-1Ji NE¼ NE¼ Sec 21-3N-67W E½
IT IS FURTHER ORDERED, that the above-described well shall be drilled and completed in the “J” Sand Formation and produced six (6) months prior to completing the Codell Formation to obtain an established production curve for the “J” Sand Formation. Patina shall obtain a bottom-hole reservoir pressure for the “J” Sand Formation prior to the completion of the Codell Formation.
IT IS FURTHER ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the deepening of the below-listed wells to the "J" Sand Formation for the 320-acre units as described.
Well Name Well Location 320-acre Drilling/Spacing Unit
UPRC 5-10 K6 NW¼ SE¼ Sec 5-2N-66W S½
Fehrn 4-28 SE¼ SW¼ Sec 28-2N-66W W½
IT IS FURTHER ORDERED, that the UPRC 5-10K6 Well and the Fehrn 4-28 Well, shall be deepened and completed to the “J” Sand Formation and commingled with the Codell Formation without a production test and without obtaining a bottom-hole reservoir pressure for the “J” Sand Formation.
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 March, 1998, as of February 9, 1998.
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
April 7, 2023