BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER
OF THE APPLICATION OF CONTINENTAL RESOURCES, INC., FOR AN ORDER APPROVING UP
TO TWO HORIZONTAL WELLS WITHIN A 1,280-ACRE DRILLING AND SPACING UNIT LOCATED
IN SECTIONS 2 AND 11, TOWNSHIP 7 NORTH, RANGE 60 WEST, 6TH P.M.
FOR THE NIOBRARA FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) |
CAUSE
NOS. 407 & 535 DOCKET
NO. 1211-AW-23
ORDER
NOS. 407-725 & 535-214 |
REPORT OF THE COMMISSION
The Commission heard
this matter on November 15, 2012, at the offices of the Colorado Oil and Gas
Conservation Commission, 1120 Lincoln Street, Denver, Colorado, upon
application for an order to approve up to two horizontal wells within an
approximate 1280-acre drilling and spacing unit established for Sections 2 and
11, Township 7 North, Range 60 West, 6th P.M., for the production of
oil, gas and associated hydrocarbons from the Niobrara Formation.
FINDINGS
The Commission finds as follows:
1. Continental
Resources, Inc. (“Continental” 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
December 12, 2011, the Commission entered Order No. 407-514 which, among other
things, established an approximate 1280-acre drilling and spacing unit, and
approved one horizontal well within the unit, for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation. Sections 2 and 11, Township 7 North, Range 60
West, 6th P.M. are subject to this Order
for the Niobrara Formation.
5. On
January 23, 2012, the Commission entered Order No. 535-137 which,
among other things, pooled all interests in an approximate 1280-acre drilling
and spacing unit established for Sections 2 and 11, Township 7 North, Range 60
West, 6th P.M., for the development and production of oil, gas and
associated hydrocarbons from the Niobrara Formation.
6. On September 17, 2012, Continental
Resources, Inc. (“Continental” or “Applicant”), by its attorneys, filed with
the Commission pursuant to § 34-60-116 C.R.S., a verified application
(“Application”) for an order to approve up to two horizontal wells within an
approximate 1280-acre drilling and spacing unit established for the
below-described lands (“Application Lands”), for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation, with the treated interval
of the wellbore to be located no closer than 600 feet from the unit boundaries
and no closer than 600 feet from the treated interval of any other wellbore
located in the unit, without exception being granted by the Director:
Township 7 North, Range 60 West, 6th
P.M.
Section
2: All
Section
11: All
7. On
November 1, 2012, Continental, 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. Land
testimony and exhibits submitted in support of the Application by Matthew D.
Callaway, Northern Region Landman for Continental,
showed that Continental has a leasehold interest in the Application Lands.
9. Geologic
testimony and exhibits submitted in support of the Application by Matthew
Liter, Geologist for Continental, showed that the Niobrara Formation underlies
the Application Lands. An isopach map of Niobrara Formation showed the total
thickness of the Niobrara averages approximately 295 feet in the area of the
Application Lands. A type log of the
Niobrara Formation showed resistivities and density
values similar to logs from analogous wells producing from the Niobrara
Formation. Stratigraphic cross-sections
and gross thickness isopach tests show the Niobrara
to be consistent, continuous, and underlying all the Application Lands.
10.
Engineering testimony and exhibits submitted in support of the Application by
Kyle Harris, Reservoir Engineer for Continental, showed that analog wells
drilled by Applicant and other operators within its Weld County operational
area indicate an estimated ultimate recovery (“EUR”) of 276 MBO and a drainage
area estimated to be up to 152-acres.
11. 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.
12.
Continental 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 Hearings
Officer review of the Application under Rule 511., the Commission should enter
an order to approve up to two horizontal wells within an approximate 1280-acre
drilling and spacing unit established for Sections 2 and 11, Township 7 North,
Range 60 West, 6th P.M., for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation.
ORDER
NOW, THEREFORE IT
IS ORDERED, that up to two horizontal wells within an approximate 1280-acre
drilling and spacing unit established for the below-described lands, are hereby
approved, for the production of oil, gas and associated hydrocarbons from the
Niobrara Formation, with the treated interval of the wellbore to be located no
closer than 600 feet from the unit boundaries and no closer than 600 feet from
the treated interval of any other wellbore located in the unit, without
exception being granted by the Director:
Township 7 North, Range 60 West, 6th
P.M.
Section
2: All
Section
11: All
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 _____ day of November, 2012, as of November 15,
2012.
OIL
AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert
J. Frick, Secretary