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 FOR THE CODELL FORMATION, HEREFORD FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 421
DOCKET NO. 150300081
ORDER NO. 421-69
TYPE: SPACING
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REPORT OF THE COMMISSION
The Commission heard this matter on July 20, 2015 at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado upon application for an order to establish eleven approximate 1280-acre drilling and spacing units for several sections in Township 11 and 12 North, Range 62 and 63 West, 6th P.M., and to approve six horizontal wells within each unit, for the production of oil, gas, and associated hydrocarbons from the Codell Formation.
FINDINGS
The Commission finds as follows:
1. EOG Resources, Inc. (Operator No. 27442) (“EOG” or “Applicant”) 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 318.a. of the Commission Rules provides a well that is to be drilled 2,500 feet or greater shall be located not less than 600 feet from any lease line, and shall be located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply, unless authorized by the Commission upon hearing.
5. On December 22, 2014, EOG, by its attorneys, filed with the Commission a verified application (“Application”) pursuant to §34-60-116 C.R.S. for an order to establish eleven approximate 1280-acre drilling and spacing units.
6. On March 19, 2015, EOG, by its attorneys, filed with the Commission a verified amended application (“Application”) pursuant to §34-60-116 C.R.S. for an order to establish eleven approximate 1280-acre drilling and spacing units for the below-described lands (“Application Lands”) and to approve six horizontal wells within each unit, 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 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore producing from the same source of supply within the unit, without exception being granted by the Director:
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Township 12 North, Range 62 West, 6th P.M. – DSU #1 Section 20: All (All portions lying within the State of Colorado) Section 29: All
Township 12 North, Range 62 West, 6th P.M. – DSU #2 Section 19: All (All portions lying within the State of Colorado) Section 30: All
Township 12 North, Range 62 West, 6th P.M. – DSU #3 Section 32: All
Township 11 North, Range 62 West, 6th P.M. Section 5: All
Township 12 North, Range 62 West, 6th P.M. – DSU #4 Section 31: All
Township 11 North, Range 62 West, 6th P.M. Section 6: All
Township 11 North, Range 62 West, 6thP.M. – DSU #5 Section 7: All Section 18: All
Township 11 North, Range 63 West, 6th P.M. – DSU #6 Section 10: All Section 15: All
Township 11 North, Range 63 West, 6TH P.M. – DSU #7 Section 11: All Section 14: All
Township 11 North, Range 63 West, 6th P.M. – DSU #8 Section 12: All Section 13: All
Township 11 North, Range 63 West, 6th P.M. – DSU #9 Section 22: All Section 27: All
Township 11 North, Range 63 West, 6th P.M. – DSU #10 Section 23: All Section 26: All
Township 11 North, Range 63 West, 6th P.M. – DSU #11 Section 24: All Section 25: All |
7. On June 29, 2015, EOG, 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 Jason McLaren, Land Manager for EOG showed that EOG holds oil and gas leasehold interests and has a right to drill in the Application Lands.
9. Geologic testimony and exhibits submitted in support of the Application by Matthew Nobles, Petroleum Geologist for EOG showed that the Codell Formation is present throughout the Application Lands, is approximately 18 to 23 feet thick, and is generally of uniform thickness throughout the Application Lands.
10. Engineering testimony and exhibits submitted in support of the Application by Danny Frederick, Reservoir Engineer for EOG, showed that the drainage area for analog horizontal Codell Formation wells are estimated at 156 acres, and an appropriate 1280-acre drilling and spacing unit is therefore not less than the maximum area than can be efficiently, economically and effectively drained by six horizontal wells producing oil, gas and associated hydrocarbons from the Codell 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. EOG 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 eleven approximate 1280-acre drilling and spacing units for for several sections in Township 11 and 12 North, Range 62 and 63 West, 6th P.M., and approve six horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Codell Formation.
ORDER
IT IS HEREBY ORDERED:
1. Eleven approximate 1280-acre drilling and spacing units for the below-described lands, are hereby established, and a total of six horizontal wells within each unit, are hereby approved, for the production of oil, gas and associated hydrocarbons from the Codell Formation:
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Township 12 North, Range 62 West, 6th P.M. – DSU #1 Section 20: All (All portions lying within the State of Colorado) Section 29: All
Township 12 North, Range 62 West, 6th P.M. – DSU #2 Section 19: All (All portions lying within the State of Colorado) Section 30: All
Township 12 North, Range 62 West, 6th P.M. – DSU #3 Section 32: All
Township 11 North, Range 62 West, 6th P.M. Section 5: All
Township 12 North, Range 62 West, 6th P.M. – DSU #4 Section 31: All
Township 11 North, Range 62 West, 6th P.M. Section 6: All
Township 11 North, Range 62 West, 6thP.M. – DSU #5 Section 7: All Section 18: All
Township 11 North, Range 63 West, 6th P.M. – DSU #6 Section 10: All Section 15: All
Township 11 North, Range 63 West, 6TH P.M. – DSU #7 Section 11: All Section 14: All
Township 11 North, Range 63 West, 6th P.M. – DSU #8 Section 12: All Section 13: All
Township 11 North, Range 63 West, 6th P.M. – DSU #9 Section 22: All Section 27: All
Township 11 North, Range 63 West, 6th P.M. – DSU #10 Section 23: All Section 26: All
Township 11 North, Range 63 West, 6th P.M. – DSU #11 Section 24: All Section 25: All |
2. The productive interval of the wellbore will be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore producing from the same source of supply within the unit, without exception being granted by the Director.
3. A maximum of four surface locations will be allowed for development of minerals from the Codell Formation within the drilling and spacing unit, without exception being granted by the Director.
IT IS FURTHER ORDERED:
1. The provisions contained in the above order shall become effective immediately.
2. The Commission expressly reserves its 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 _____ day of August, 2015, as of July 20, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By__________________________________
Julie Murphy, Secretary