BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 440
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE PARACHUTE FIELD, ) ORDER NO. 440-51
GARFIELD COUNTY, COLORADO )
report of the commission
This cause came on for hearing before the Commission at 9:00 a.m. on December 12, 2007, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to vacate the 320-acre drilling and spacing unit consisting of the S½ of Section 25, Township 6 South, Range 95 West, 6th P.M., and establish a 160-acre drilling and spacing unit consisting of the SE¼, an 80-acre drilling and spacing unit consisting of the S½ SW¼, and a 40-acre drilling and spacing unit consisting of the NE¼ SW¼, all in said Section 25, for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, and continue to allow wells to be drilled in accordance with Order Nos. 139-64 and 440-35.
FINDINGS
The Commission finds as follows:
1. Williams Production RMT Company (“Williams”), 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 April 20, 1990, the Commission issued Order No. 440-12, which among other things, established 320-acre drilling and spacing units for certain lands, including Section 25, Township 6 South, Range 95 West, 6th P.M., for the production of gas and associated hydrocarbons from the Mesaverde Formation, with the permitted well to be located no closer than 600 feet from the boundaries of said unit and no closer than 1200 feet from any well producing or producible from the same formation.
6. On October 16, 2007, Williams, by its attorney, filed with the Commission a verified application for an order to vacate the 320-acre drilling and spacing unit consisting of the S½ of Section 25, Township 6 South, Range 95 West, 6th P.M., and establish a 160-acre drilling and spacing unit consisting of the SE¼, an 80-acre drilling and spacing unit consisting of the S½ SW¼, and a 40-acre drilling and spacing unit consisting of the NE¼ SW¼, all in said Section 25, for the production of gas and associated hydrocarbons from the Mesaverde Group, and continue to allow wells to be drilled in accordance with Order Nos. 139-64 and 440-35.
10. The above-referenced testimony and exhibits show that the proposed spacing and density will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.
11. Williams Production RMT Company agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified application, having resolved the BLM’s protest, and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to vacate the 320-acre drilling and spacing unit consisting of the S½ of Section 25, Township 6 South, Range 95 West, 6th P.M., and establish a 160-acre drilling and spacing unit consisting of the SE¼, an 80-acre drilling and spacing unit consisting of the S½ SW¼, and a 40-acre drilling and spacing unit consisting of the NE¼ SW¼, all in said Section 25, for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, and continue to allow wells to be drilled in accordance with Order Nos. 139-64 and 440-35.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the 320-acre drilling and spacing unit consisting of the S½ of Section 25, Township 6 South, Range 95 West, 6th P.M., is hereby vacated and the following drilling and spacing units are hereby established: 1) a 160-acre drilling and spacing unit consisting of the SE¼, 2) an 80-acre drilling and spacing unit consisting of the S½ SW¼, and 3) a 40-acre drilling and spacing unit consisting of the NE¼ SW¼, all in Section 25, Township 6 South, Range 95 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
IT IS FURTHER ORDERED, that all future Williams Fork Formation wells shall be drilled upon each of these newly established drilling and spacing units in accordance with Order Nos. 139-64 and 440-35 such that wells shall be located downhole anywhere in the unit but no closer that 100 feet from the boundary of the unit, without exception being granted by the Director, except that with respect to lands abutting or cornering the boundary of a given unit for which the Commission has not at the time of the drilling permit application granted the right to drill 10-acre density Williams Fork Formation wells, the well shall be located downhole no closer than 200 feet from the boundary of the drilling and spacing unit so abutting or cornering such lands.
IT IS FURTHER ORDERED, that all Williams Fork Formation wells drilled upon the SE¼, S½ SW¼ and NE¼ SW¼ of said Section 25 shall be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section unless exception is granted by the Director of the Colorado Oil and Gas Conservation Commission.
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.
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 thirty (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 December, 2007, as of December 12, 2007.
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
December 27, 2007