BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND                                    )           CAUSE NOS. 232, 407

ESTABLISHMENT OF FIELD RULES TO GOVERN                      )                            493 and 499

OPERATIONS IN THE WATTENBERG GAS SPACED                 )

AREA, THE CODELL- NIOBRARA SPACED AREA AND              )           ORDER NOS. 232-200, 407-260,

THE WATTENBERG FIELD, WELD COUNTY, COLORADO        )                                   493-43 and 499-47

 

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 HS Resources, Inc., for an order to allow the HSR Booth No. 7-1A Well to be drilled in the center of the SW NE of Section 1, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 200 feet, as a third well for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the N of said Section 1.  In the future, the Applicant may recomplete this well to the Dakota Formation for said 320-acre drilling and spacing unit and to the Codell, Niobrara, Sussex or Shannon Formations for an 80-acre drilling and spacing unit and commingle any production with the "J" Sand Formation.

 

FINDINGS

 

                        The Commission finds as follows:

 

                        1.  HS Resources, Inc. 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 for the production of gas from the "J" Sand Formation in the Wattenberg Field with one well allowed for each unit to be located in the NE and SW and no closer than 990 feet to the boundaries of the quarter section.  On August 21, 1979, the Commission issued Order No. 232-20 which allowed a second well to be drilled on each 320-acre unit, including Section 1, Township 2 North, Range 68 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 1, Township 2 North, Range 68 West 6th P.M.

 

                        6.  In Order Nos. 407-66 and 232-47, the Commission, among other things, allowed recompletion to shallower zones, the downhole commingling of production from the "J" Sand Formation with production from the Codell and Niobrara Formations, and approval of an allocation method for commingled production.

 

                        7.  In Order Nos. 493‑9, 407-100, 232-66 and 499-3, the Commission established 80‑acre drilling and spacing units for the production of oil and/or gas and associated hydrocarbons from the Sussex Formation in certain lands in Weld County, Colorado.  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 and the downhole commingling of production from the Sussex, Codell and Niobrara Formations shall be allowed.

 

                        8.  In Order No. 499-3, 232-66, 407-100 and 493-9, the Commission established 320-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Dakota Formation in certain lands, with the 320-acre drilling and spacing units to be identical to those previously established for the "J" Sand Formation under Cause No. 232, with the permitted wells to be located in the NW and the SE of the section and no closer than 990 feet from the boundaries of the quarter section, including Section 1, Township 2 North, Range 68 West 6th P.M.  In Order Nos. 499-15, 232-89, 407-125, 493-22 and 496-3, the Commission allowed the commingling of production from the Dakota, "J" Sand, Codell, Niobrara, Sussex and Shannon Formations.

 

                        9.  The HSR Booth No. 7-1A Well will be drilled for production from the "J" Sand Formation from a surface location approximately two hundred (200) feet south of the legal location for the Codell and Niobrara Formations, however the bottom hole will be at a legal location for the Codell and Niobrara Formation.


 

                        10.  Testimony and evidence presented at the administrative hearing indicates that that estimated ultimate recovery from the two (2) existing J Sand Formation wells in the N of said Section 1 is forty-one percent (41%) and that allowing a third "J" Sand Formation well will increase the recovery factor to fifty-six percent (56%).

 

                        11.  That in order to prevent waste and protect the correlative rights, an additional well is necessary to recover remaining "J" Sand Formation reserves.

 

                        12.  The applicant agrees to request Commission approval not before six (6) months from the date production is obtained from the J Sand Formation to recomplete the well to the Dakota Formation at an exception location and to the Codell, Niobrara, Sussex or Shannon Formations and commingle production from these formations with production from the J Sand Formation.  The applicant also agrees to obtain reservoir pressure data from the J Sand Formation in one fourth of additional J Sand Formation wells drilled.

 

                        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. 232-89, 407-125, and 499-15 to allow the HSR Booth No. 7-1A Well to be drilled in the center of the SW NE of Section 1, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 200 feet, as a third well for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the N of said Section 1.  In the future, the Applicant may recomplete this well to the Dakota Formation for said 320-acre drilling and spacing unit and to the Codell, Niobrara, Sussex or Shannon Formations for an 80-acre drilling and spacing unit and commingle any production with the "J" Sand Formation.

 

ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Order Nos. 232-89, 407-125 and 499-15 are hereby amended to allow the HSR Booth No. 7-1A Well to be drilled in the center of the SW NE of Section 1, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 200 feet, as a third well for production of gas and associated hydrocarbons from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the N of said Section 1.  In the future, the Applicant may recomplete this well to the Dakota Formation for said 320-acre drilling and spacing unit and to the Codell, Niobrara, Sussex or Shannon Formations for an 80-acre drilling and spacing unit and commingle any production with the "J" Sand Formation.

 

                        IT IS FURTHER ORDERED, that the Applicant shall request Commission approval not before approximately six (6) months from the date production is obtained from the "J" Sand Formation to recomplete the well to the Dakota Formation at an exception location and to the Codell, Niobrara, Sussex or Shannon Formations and commingle production from these formations with production from the J Sand Formation.  The Applicant shall also obtain reservoir pressure data from the J Sand Formation in one fourth of additional J Sand Formation wells drilled.

 

                        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

date \@ "MMMM d, yyyy"January 19, 2012