BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF COLORADO
|
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WATTENBERG FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 407
ORDER NO. 407-429 CORRECTED |
REPORT OF COMMISSION
This cause came on for hearing before the Commission on May 16, 2011, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to vacate the pooling order, entered in Order No. 407-375, for the S½ of Section 6, Township 5 North, Range 62 West, 6th P.M., for the development and operation of the Codell and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. Noble Energy, Inc. (“Noble” or “Applicant”), 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 pursuant to the Oil and Gas Conservation Act.
4. On April 27, 1998, the Commission adopted Rule 318A., which, among other things, allowed certain drilling locations to be utilized to drill or twin a well, deepen a well or recomplete a well and to commingle any or all of the Cretaceous Age Formations from the base of the Dakota Formation to the surface. Further, Rule 318A.a.(4)C. provides that when completing a Greater Wattenberg Area (“GWA”) well to an unspaced formation, the operator shall designate a drilling and spacing unit not smaller than a governmental quarter-quarter section if such well is proposed to be located greater than 460 feet from the quarter-quarter section boundary in which it is located. Section 6, Township 5 North, Range 62 West, 6th P.M. is subject to these Rules for the Codell and Niobrara Formations.
5. On August 12, 2010, the Commission entered Order No. 407-375, which among other things, pooled all nonconsenting owners in four 80-acre drilling and spacing units designated within the below-listed lands, for the development and operation of the Codell and Niobrara Formations, retroactive to the spud dates of the wells drilled, or to be drilled, within the units:
Township 5 North, Range 62 West, 6th P.M.
Section 6: S½
6. On March 17, 2011, Noble, by its attorneys, filed with the Commission a verified application (the “Application”) for an order to vacate the pooling order entered in Order No. 407-375 for the below-listed lands (the “Application Lands”), for the development and operation of the Codell and Niobrara Formations:
Township 5 North, Range 62 West, 6th P.M.
Section 6: S½
7. On May 3, 2011, Noble, by its attorneys, filed with the Commission a written request to approve the Application based on the merits of the verified Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
8. Testimony and exhibits submitted in support of the Application by Joseph Lorenzo, Senior Land Manager for Noble, showed that Noble and the non-consenting parties, Donald C. Flynn, Margaret E. Flynn Calder, and Patrick Henry Flynn and Marilyn F. Flynn (collectively referred to as “the Flynns”), would file a Joint Unopposed Motion for Vacation of Order No. 407-375, if and when the Flynns established their undivided fractional marketable record title in the Application Lands. Further testimony showed that on March 3, 2011, the District Court of Weld County, Colorado issued a Final Order of Default Judgment and Decree Quieting Title in the Flynns giving them marketable record title in their undivided fractional interest in the Application Lands. Further testimony and exhibits showed that the Flynns have no objection to, and expressly consent to, an order vacating Order No. 407-375.
9. The above-referenced testimony and exhibits show that granting the Application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of oil, and will not violate correlative rights.
10. Noble agreed to be bound by oral order of the Commission.
11. Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Officer review of the Application under Rule 511., the Commission should enter an order vacating the pooling order, entered in Order No. 407-375, for the S½ of Section 6, Township 5 North, Range 62 West, 6th P.M., for the development and operation of the Codell and Niobrara Formations.
ORDER
NOW, THEREFORE IT IS ORDERED, that the pooling order entered in Order No. 407-375 for the below-listed lands, is hereby vacated, for the development and operation of the Codell and Niobrara Formations:
Township 5 North, Range 62 West, 6th P.M.
Section 6: S½
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective immediately.
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 under the State Administrative Procedure Act the Commission considers this Order to be final agency action for purposes of judicial review within 30 days after the date this Order is mailed by the Commission.
IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.
ENTERED this ___23rd ___ day of May, 2011, as of May 16, 2011.
CORRECTED this ___2nd ___ day of June, 2011, as of May 16, 2011.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert A. Willis, Acting Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
June 2, 2011