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. 407-510

 

 

REPORT OF THE COMMISSION

 

                        The Commission heard this matter on October 31, 2011, at the City of Littleton Council Chambers, 2255 West Berry Avenue, Littleton, Colorado 80120 upon application for an order to establish an approximate 80-acre drilling and spacing unit within Section 20, Township 7 North, Range 63 West, 6th P.M., Weld County, for the planned Wilson PC AC20-10 Well (API No. 05-123-33351), for development and production of oil, gas and related hydrocarbons from 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.   Rule 318A., which, among other things, established drilling windows and 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.  Pursuant to Rule 318A.j., Rule 318A. supersedes all prior Commission drilling and spacing orders affecting well location and density requirements of Greater Wattenberg Area wells.  Rule 318A.d. provides that an operator may allocate production to any drilling and spacing unit with respect to a particular Cretaceous Age Formation consistent with the provisions of Rule 318A.  Section 20, Township 7 North, Range 63 West, 6th P.M. is subject to Rule 318A., for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.

 

5.  On September 1, 2011, Noble, by its attorneys, filed with the Commission a verified application (“Application”) for an order to establish an approximate 80-acre drilling and spacing unit for the below-listed lands (“Application Lands”) to drill the planned Wilson PC AC20-10 Well (API No. 05-123-33351), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:

 

Township 7 North, Range 63 West, 6th P.M

Section 20:  W½ SE¼

 

6.  On October 18, 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.

 

                        7.  Land testimony and exhibits submitted in support of the Application by Joseph H. Lorenzo, Senior Land Manager for Noble, showed Noble owns a leasehold interest in the Application Lands.

 

                        8.  Geologic testimony and exhibits submitted in support of the Application by Ron Pritchett, Senior Geologist for Noble, showed the Niobrara and Codell Formations underlying the Application Lands are fairly uniform in thickness and contiguous throughout the entire spacing area.  Offset wells nearby lead Noble to conclude oil and gas can economically be produced from the Application Lands.

 

                        9.   Engineering testimony and exhibits submitted in support of the Application by Ryan Sullivan, Engineering Team Lead for Noble, showed an 80-acre spacing unit is appropriate for the ultimate recovery of hydrocarbons from Application Lands.

 

10.  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 hydrocarbons, and will not violate correlative rights.

 

11.   The Application was reviewed by the Colorado Department of Public Health and Environment (“CDPHE”) pursuant to consultation provisions of Rule 306.d.  In a letter dated October 21, 2011, the CDPHE Oil & Gas Coordinator indicated that CDPHE does not believe any additional conditions of approval are necessary for approving the amended Application.

 

12.  Noble agreed to be bound by oral order of the Commission. 

 

                        13.  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 to establish an approximate 80-acre drilling and spacing unit within Section 20, Township 7 North, Range 63 West, 6th P.M., Weld County, for the planned Wilson PC AC20-10 Well (API No. 05-123-33351), for development and production of oil, gas and related hydrocarbons from the Codell and Niobrara Formations. 

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that an approximate 80-acre drilling and spacing unit, is hereby established, for the below-listed lands to drill the planned Wilson PC AC20-10 Well (API No. 05-123-33351), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:

 

Township 7 North, Range 63 West, 6th P.M

Section 20:  W½ SE¼

 

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   7th  day of November, 2011, as of October 31, 2011.

           

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By____________________________________         

                                                                                    Peter J. Gowen, Acting Secretary

 

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

November 7, 2011