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 CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NO. 407

 

ORDER NO. 407-45

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 17, 1989, in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law on the verified application of Francis Energy, Inc. and Silverado Oil, Inc. for an order to amend Order No. [sic] 407-1 and 407-10 and to establish two 40-acre drilling and spacing units for production from the Codell and Niobrara formations underlying an 80-acre unit and to allow downhole commingling of production from said formations.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Francis Energy, inc. and Silverado Oil, inc. as applicants herein, are interested parties 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 E1/2 and W1/2 or the N1/2 and S1/2 of each governmental quarter-quarter section with a tolerance of 200 feet and the option to drill and 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.  The N1/2 SE1/4 of Section 14, Township 5 North, Range 65 West, 6th P.M., Weld County, Colorado is a drilling and spacing unit.

 

5.      Based on the facts stated in the verified application and having been heard by the Hearing Officer who recommended approval of the application and having received no protests, the Commission should approve the request and amend Order Nos. 407-1 and 407-10 and establish two 40-acre drilling and spacing units consisting of (1) NW1/4 SE1/4 and (2) NE1/4 SE1/4, Section 14, Township 5 North, Range 65 West, 6th P.M., Weld County for the commingled production of oil, gas and associated hydrocarbons from the Niobrara and Codell formations.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-1 and 407-10 are hereby amended and 40-acre drilling and spacing units are hereby established for the commingled production of oil, gas and associated hydrocarbons from the Codell and Niobrara formations consisting of (1) NW1/4 SE1/4 and (2) NE1/4 SE1/4, Section 14, Township 5 North, Range 65 West, 6th P.M., Weld County, Colorado.

 

IT IS FURTHER ORDERED, that the above order shall become effective forthwith.

 

ENTERED this 20th day of January, 1989, as of January 17, 1989.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By

Dennis R. Bicknell, Secretary