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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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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. 407-61 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on April 16, 1991, 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 Lyco Energy Corporation for an order to extend the spaced area of the Codell-Niobrara Spaced Area as established by Order No. 407-1 and subsequent orders by the addition of certain lands in Weld County, Colorado.
FINDINGS
The Commission finds as follows:
1. Lyco Energy 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 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.
5. Testimony was heard by the Hearing Officer that indicates a common source of oil, gas and associated hydrocarbons underlies, in addition to the area set forth in Order No. 407-1 and subsequent orders, the following described lands in Weld County, Colorado, to-wit:
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Township 5 North, Range 63 West, 6th P.M. |
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Sections 1-18: All |
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Township 6 North, Range 63 West, 6th P.M. |
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Sections 19-36: All |
6. The existing locations, drilling and/or producing wells in the area described in Finding 5 herein, should be the permitted wells for the units upon which each is located.
7. No objections to the application were received and the Hearing Officer recommended the application be approved based upon the geological and engineering testimony presented at the administrative hearing.
8. At the time of administrative hearing the parties agreed to be bound by the verbal order of the Commission in this matter.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the following rules and regulations which shall apply hereafter to a well drilled, completed or recompleted in the Codell-Niobrara formations, the Codell formation, and the Niobrara formation, underlying lands described herein, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.
Rule 1. Eighty (80) acre drilling and spacing units shall be and the same is [sic] hereby established for the production of oil and/or gas from the Codell-Niobrara formations underlying the following described lands in Weld County, Colorado, to-wit:
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Township 1 North, Ranges 64-67 West, 6th P.M. |
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All Sections |
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Township 2 North, Ranges 64-67 West, 6th P.M. |
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All Sections |
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Township 3 North, Ranges 64-67 West, 6th P.M. |
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All Sections |
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Township 4 North, Ranges 64-67 West, 6th P.M. |
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All, except SW1/4 Section 9, Township 4 North, Range 67 West |
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Township 5 North, Range 63 West, 6th P.M. |
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Sections 1-20 and 30-31 |
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Township 5 North, Ranges 64-65 West, 6th P.M. |
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All Sections |
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Township 5 North, Range 66 West, 6th P.M. |
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Sections 1 and 2: S1/2, 3-11 and 14-35 |
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Township 5 North, Range 67 West, 6th P.M. |
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All Sections |
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Township 6 North, Range 63 West, 6th P.M. |
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Sections 19-36 |
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Township 6 North, Range 64 West, 6th P.M. |
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All Sections |
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Township 6 North, Range 65 West, 6th P.M. |
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Sections 1-18, 23-26 and 31-36 |
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Township 6 North, Range 66 West, 6th P.M. |
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Sections 1-14 |
Section 19: W1/2 |
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Section 24: N1/2 |
Sections 30 and 31 |
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Township 6 North, Range 67 West, 6th P.M. |
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All Sections |
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Township 1 South, Ranges 64-67 West, 6th P.M. |
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All Sections |
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Rule 2. Eighty (80) acre drilling and spacing units shall be and the same is [sic] hereby established for the production of oil and/or gas from only the Codell formation underlying the following described lands in Adams, Boulder, Jefferson, Larimer, and Weld Counties, Colorado, to-wit:
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Township 1 North, Ranges 68-70 West, 6th P.M. |
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All Sections |
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Township 2 North, Ranges 68-69 West, 6th P.M. |
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All Sections |
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Township 2 North, Range 70 West, 6th P.M. |
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Sections 1-5 and 8-36 |
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Township 3 North, Ranges 68-69 West, 6th P.M. |
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All Sections |
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Township 3 North, Range 70 West, 6th P.M. |
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Sections 1, 12, 13, 21-28, and 33-36 |
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Township 4 North, Range 68 West, 6th P.M. |
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Sections 1-3, 9-16, 21-29 and 32-36 |
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Township 4 North, Range 69 West, 6th P.M. |
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Sections 2-11, 14-22 and 27-34 |
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Township 5 North, Range 66 West, 6th P.M. |
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Sections 12, 13 and 36 |
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Township 5 North, Range 68 West, 6th P.M. |
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Sections 1-16, 23-26 and 34-36 |
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Township 5 North, Range 69 West, 6th P.M. |
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Sections 1-4, 9-16, 20-23, 26-29 and 31-35 |
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Township 6 North, Range 68 West, 6th P.M. |
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All Sections |
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Township 6 North, Range 69 West, 6th P.M. |
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Sections 1-4, 9-16, 21-28, and 33-36 |
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Township 1 South, Ranges 68-70 West, 6th P.M. |
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All Sections |
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Township 2 South, Ranges 69-70 West, 6th P.M. |
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All Sections |
Rule 3. Eighty (80) acre drilling and spacing units shall be and the same is [sic] hereby established for the production of oil and/or gas from only the Niobrara formation underlying the following described lands in Larimer and Weld Counties, Colorado, to-wit:
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Township 5 North, Range 66 West, 6th P.M. |
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Sections 1 and 2: N1/2 |
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Township 5 North, Range 68 West, 6th P.M. |
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Sections 17-22: All |
Rule 4. Said units and permitted well locations shall be in accordance with the provisions of Order No. 407-1.
Rule 5. Dual completion and downhole commingling shall be allowed as to both oil and gas in the Codell and Niobrara formations in wells drilled, or to be drilled in the area described above in Rule 1.
The Commission takes notice that subsequent orders to Order No. 407-15 have allowed the segregation of specific 80-acre drilling and spacing units into 40-acre drilling and spacing units for production of oil, gas and associated hydrocarbons from the Codell and Niobrara formations.
IT IS FURTHER ORDERED, that the existing well locations, drilling and/or producing wells in the area described in Finding 5 herein, shall be the permitted well locations for the units upon which they are located.
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 7th day of May, 1991, as of April 16, 1991.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By |
Patricia C. Beaver, Secretary |
Dated at Suite 380
1580 Logan Street
Denver, Colorado 80203
May 2, 1991