BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                             OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND                   )                    CAUSE NOS. 440, 479 and 139

AND ESTABLISHMENT OF FIELD RULES TO GOVERN      )

OPERATIONS IN THE PARACHUTE FIELD, GRAND            )                    ORDER NOS.     440-16, 479-5 and

VALLEY FIELD, AND RULISON FIELD,                                    )                                          139-28

GARFIELD COUNTY, COLORADO                                            )                    AMENDED

                                                                                                                              CORRECTED

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on February 21, 1995 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Barrett Resources Corporation, for an order to amend Cause Nos. 440, 479, and 139 to increase the number of wells allowed in each 640-acre, 320-acre, and 160-acre drilling and spacing unit which can be optionally drilled into and produced from the Williams Fork Formation of the Mesaverde Group.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Barrett Resources 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.  On February 22, 1994, the Commission issued Order Nos. 440-14, 479-3, and 139-26 which allowed an increase in the number of wells that could be optionally drilled into and produced from the Williams Fork Formation of the Mesaverde Group.  For the 640-acre drilling and spacing units established for the below-listed lands, eight (8) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the lease line nor 800 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

                                                    Township 6 South, Range 94 West, 6th P.M.

                                                                        Sections 25 - 26:  All

                                                                        Sections 34 - 36:  All

 

                                                    Township 7 South, Range 94 West, 6th P.M.

                                                                           Sections 1 - 5:  All

 

                                                Township 7 South, Range 94 West, 6th P.M. cont.

                                                                         Sections 6 - 12:  All

 

                                                    Township 7 South, Range 95 West, 6th P.M.

                                                                           Sections 3 - 4:  All

                                                                             Section 12:  All

 

For the 320-acre drilling and spacing units established for the below-listed lands, four (4) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the lease line nor 800 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

                                                    Township 6 South, Range 94 West, 6th P.M.

                                                                           Sections 1 - 3:  All

                                                                         Sections 9 - 24:  All

                                                                        Sections 27 - 33:  All

 

                                                    Township 6 South, Range 95 West, 6th P.M.

                                                                         Sections 7 - 10:  All

                                                                        Sections 15 - 20:  All

 

                                                Township 6 South, Range 95 West, 6th P.M. cont.

                                                                        Sections 25 - 28:  All

                                                                      Sections 31 & 32:  All

                                                                       Sections 34 – 36: All

 

                                                    Township 6 South, Range 96 West, 6th P.M.

                                                                        Sections 23 - 27:  All

                                                                        Sections 34 - 36:  All

 

                                                    Township 7 South, Range 95 West, 6th P.M.

                                                                           Sections 1 - 2:  All

                                                                             Section 5:  N/2

                                                                             Section 6:  N/2

                                                                            Section 10:  E/2

                                                                             Section 11:  All

 

                                                    Township 7 South, Range 96 West, 6th P.M.

                                                                              Section 1:  All

 

For the 160-acre drilling and spacing units established for the below-listed lands, two (2) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the lease line nor 800 feet from any other producible or drilling oil and gas well in the Williams Fork Formation.

 

                                                    Township 6 South, Range 95 West, 6th P.M.

                                                                             Section 33:  All

 

                                                    Township 6 South, Range 96 West, 6th P.M.

                                                                            Section 36:  N/2

 

                        5.  Letters of support were filed by the U.S. Department of Energy, Snyder Oil Corporation and W.F. Clough.

 

                        6.  That evidence presented at the administrative hearing indicated that the number of wells previously approved for 640, 320 and 160-acre drilling and spacing units could not adequately drain those units, for production from the Williams Fork Formation of the Mesaverde Group for the above-described lands in Garfield County, Colorado.

 

                        7.  That based upon extensive field, engineering studies and the intensive geological, geophysical and reservoir modeling work done at the Multiwell Experiment site in the application lands, the sands within the Williams Fork Formation of the Mesaverde Group are tight and contain extensive natural fractures, such fractures however being vertically and laterally limited in extent and, for the most part, do not extend beyond lithologic boundaries.  Evidence presented indicated that there was no pressure communication evident between wells.

 

                        8.  Based on the facts stated in the application, having been heard by the Hearing Officer on February 16, 1995 and recommended for approval, the Commission should approve the application to increase the number of wells allowed in previously established drilling and spacing units.

 

                                                                                   ORDER

 

                        NOW, THEREFORE IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well or wells drilled, completed or recompleted in the Williams Fork Formation of the Mesaverde Group described herein below, in addition to other applicable rules and regulations and policies and orders of the Commission, if any, heretofore adopted and not in conflict herein:

 

                        Rule 1.  That for the 640-acre drilling and spacing units established for the below-listed lands, sixteen (16) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.

 

                                                    Township 6 South, Range 94 West, 6th P.M.

                                                                        Sections 25 - 26:  All

                                                                        Sections 34 - 36:  All

 

                                                    Township 7 South, Range 94 West, 6th P.M.

                                                                         Sections 1 - 12:  All

 

                                                    Township 7 South, Range 95 West, 6th P.M.

                                                                           Sections 3 - 4:  All

                                                                             Section 12:  All

 

                        Rule 2.  That for the 320-acre drilling and spacing units established for the below-listed lands, eight (8) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.


 

                                                    Township 6 South, Range 94 West, 6th P.M.

                                                                           Sections 1 - 3:  All

                                                                         Sections 9 - 24:  All

                                                                        Sections 27 - 33:  All

 

                                                    Township 6 South, Range 95 West, 6th P.M.

                                                                         Sections 7 - 10:  All

                                                                        Sections 15 - 20:  All

                                                                        Sections 25 - 28:  All

                                                                      Sections 31 & 32:  All

                                                                       Sections 34 - 36:  All

 

                                                    Township 6 South, Range 96 West, 6th P.M.

                                                                        Sections 23 - 27:  All

                                                                        Sections 34 - 35:  All

                                                                            Section 36:  S/2

 

                                                    Township 7 South, Range 95 West, 6th P.M.

                                                                           Sections 1 - 2:  All

                                                                             Section 5:  N/2

                                                                             Section 6:  N/2

                                                                            Section 10:  E/2

                                                                             Section 11:  All

 

                                                    Township 7 South, Range 96 West, 6th P.M.

                                                                              Section 1:  All

 

                        Rule 3.  That for the 160-acre drilling and spacing units established for the below-listed lands, four (4) wells shall be allowed to be optionally drilled into and produced from the Williams Fork Formation, with the permitted well to be located no closer than 400 feet from the boundaries of the unit and no closer than 800 feet from any existing Williams Fork Formation well or wells.

 

                                                    Township 6 South, Range 95 West, 6th P.M.

                                                                             Section 33:  All

 

                                                    Township 6 South, Range 96 West, 6th P.M.

                                                                            Section 36:  N/2

 

                        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 15th day of March, 1995, as of February 21, 1995.

 

                        AMENDED this 26th day of April, 1995, as of February 21, 1995.

 

                        CORRECTED this 21st day of February, 2000, as of February 21, 1995

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

 

 

                                                                        By                                                                    

                                                                                     Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

October 7, 2005