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 FOR THE CODELL AND NIOBRARA FORMATIONS, UNNAMED FIELD, WELD COUNTY, COLORADO

) ) ) ) )

CAUSE NO.  421   DOCKET NO. 150500255   ORDER NO. 421-60

REPORT OF THE COMMISSION

 

The Commission heard this matter on May 18, 2015, at the Aims Community College, 260 College Avenue, Fort Lupton, Colorado, upon application for an order to: 1) approve an additional six horizontal wells, for a total of seven horizontal wells, in an approximate 1285.19-acre drilling and spacing unit established by Order No. 421-50 for the below-described lands (“Application Lands”), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) approve an additional five horizontal wells, for a total of six horizontal wells, in an approximate 1280-acre drilling and spacing unit established by Order No. 421-57, for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation

 

FINDINGS

 

The Commission finds as follows:

1.            Anadarko E&P Onshore LLC, Operator No. 2800, (“Anadarko” 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 15, 2014, the Commission entered Order No. 421-50 which vacated two approximate 640-acre drilling and spacing units established by Order No. 421-3 for the Application Lands, established an approximate 1285.19-acre drilling and spacing unit for the Application Lands, and approved one horizontal well within the unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation. 

5.            On January 26, 2015 (Amended April 13, 2015), the Commission entered Order No. 421-57 which established an approximate 1280-acre drilling and spacing unit for the Application Lands and approved one horizontal well within the unit, for the production of oil, gas and associated hydrocarbons from the Codell Formation.

6.            On February 24, 2015 (Amended March 10, 2015), Anadarko, by its attorneys, filed with the Commission a verified application (“Application”) for an order to: 1) approve an additional six horizontal wells, for a total of seven horizontal wells, in an approximate 1285.19-acre drilling and spacing unit established by Order No. 421-50 for the below-described lands (“Application Lands”), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) approve an additional five horizontal wells, for a total of six horizontal wells, in an approximate 1280-acre drilling and spacing unit established by Order No. 421-57, for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell Formation, with the productive interval of the wellbore to be located no closer than 600 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit producing from the same formation, without exception being granted by the Director:

Township 11 North, Range 63 West, 6th P.M. Section 6:        Lot 1 (40.49 acres), Lot 2 (40.35 acres),                         Lot 3 (40.21 acres), Lot 4 (40.86 acres),                         Lot 5 (40.78 acres), Lot 6 (40.78 acres),                         Lot 7 (40.76 acres), S½NE¼, SE¼NW¼,                         E½SW¼, SE¼ (All)   Township 12 North, Range 63 West, 6th P.M. Section 31:      Lot 1 (39.82 acres), Lot 2 (40.10 acres),                         Lot 3 (40.38 acres), Lot 4 (40.66 acres),                         E½, E½W½ (All)

 

Applicant states that any horizontal well to be drilled under this Application will be drilled from the surface of the drilling unit, or on adjacent lands with consent of the landowner, unless an exception is granted by the Director.

 

7.            On April 27, 2015, Anadarko, 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 Jason Rayburn, Landman for Anadarko, showed that Anadarko owns substantial leasehold interests in the Application Lands.

9.            Testimony and exhibits submitted in support of the Application by Thomas A. Berkman, Senior Project Geologist for Anadarko, showed that the Codell and Niobrara Formations underlie the entirety of the Application Lands.  The Codell Formation ranges from approximately 16 to 20 feet thick, and the Niobrara Formation ranges from 135 to 140 feet thick under the Application Lands.

10.          Testimony and exhibits submitted in support of the Application by Emily Boecking, Reservoir Engineer for Anadarko, showed that the estimated  drainage area for the Codell Formation ranges from 94 to 286 acres for approximate 1280-acre horizontal laterals and would accommodate a total of six horizontal wells, for the Codell Formation and the estimated drainage area for the Niobrara Formation is approximately 137 acres for approximate 1280-acre horizontal laterals, and would accommodate up to seven horizontal wells for the Niobrara Formation.

 

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.          Anadarko agrees 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: 1) approve an additional six horizontal wells, for a total of seven horizontal wells, in an approximate 1285.19-acre drilling and spacing unit established by Order No. 421-50 for Section 6, Township 11 North, Range 63 West, 6^th P.M. and Section 31, Township 12 North, Range 63 West, 6^th P.M., for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 2) approve an additional five horizontal wells, for a total of six horizontal wells, in an approximate 1280-acre drilling and spacing unit established by Order No. 421-57, for Section 6, Township 11 North, Range 63 West, 6^th P.M. and Section 31, Township 12 North, Range 63 West, 6^th P.M., for the production of oil, gas and associated hydrocarbons from the Codell Formation.

ORDER

 

IT IS HEREBY ORDERED:

 

1.            An additional six horizontal wells, for a total of up to seven horizontal, wells within an approximate 1285.19-acre drilling and spacing unit established by Order No. 421-50 for the below-described lands, are hereby approved, for production of oil, gas and associated hydrocarbons from the Niobrara Formation:

 

2.            An additional five horizontal wells, for a total of up to six horizontal wells, within an approximate 1280-acre drilling and spacing unit established by Order No. 421-57 for the below-described lands, are hereby approved, for production of oil, gas and associated hydrocarbons from the Codell Formation:

3.            The productive interval of the wellbores shall be located no closer than 600 feet from the unit boundaries and no closer than 150 feet from the productive interval of any well producing from the same formation, without exception being granted by the Director.

4.            A maximum of eight surface locations will be allowed for development of minerals from all hydrocarbon-bearing formations within the spacing unit.

IT IS FURTHER ORDERED:

1.            The provisions contained in the above order shall become effective immediately.

2.            The Commission expressly reserves the right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

3.            Under the State Administrative Procedure Act, the Commission considers this Order to be final agency action for purposes of judicial review within 35 days after the date this Order is mailed by the Commission.

4.            An application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.

ENTERED this 1^st day of June, 2015, as of May 18, 2015.

                                                            OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

By                                                                                           

                        Julie Murphy, Secretary