IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 449
AND ESTABLISHMENT OF FIELD RULES TO
GOVERN OPERATIONS IN THE ARAPAHOE FIELD,
ORDER NO. 449-32
CHEYENNE COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 9, 1998, 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
Wiepking-Fullerton Energy, L.L.C., for an order to rescind the production
restrictions contained in Order No. 449-20, Rule 3, which established production
limits for each well of 300 barrels of fluid per day and 100 MCF of gas per day
from the Morrow "B" Sand Formation for lands contained in Arapahoe Field.
FINDINGS
The Commission finds as follows:
1. Wiepking-Fullerton Energy, L.L.C., 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. In Order No. 449-20 issued September 19, 1988 and corrected December 5, 1988,
the Commission established 80-acre drilling and spacing units for the production
of oil and associated hydrocarbons from the Morrow "A" and "B" Sandstone
Formations for the below-listed lands. Said units consist of the E½ and the W½
or the N½ and the S½ of a governmental quarter section, with the unit designated
by the operator of the first well in each quarter section. The permitted well
for each 80-acre unit shall be located within the NE¼ or SW¼ of a quarter
section and no closer than 460 feet from the boundaries of the unit tract. The
Order also established a maximum production allowable of 300 barrels of fluid
and 100 MCF gas per day per well
Township 13 South, Range 42 West, 6th P.M.
Section 26: W½
Sections 27 - 34: All
Section 35: W½
Township 13 South, Range 43 West, 6th P.M.
Section 25: All
Section 36: All
Township 14 South, Range 42 West, 6th P.M.
Section 2: W½
Section 3 - 6: All
Section 10: All
Township 14 South, Range 43 West, 6th P.M.
Section 1: All
5. Evidence presented at the administrative hearing indicated that when portions
of the Arapahoe Field were unitized as the Arapahoe Unit and the NW Arapahoe
Unit, production restrictions were rescinded for these areas in September, 1989.
Additional testimony was presented to show that there are existing wells in the
E½ of Section 26 and the E½ of Section 35 which are located just outside of the
Arapahoe Field boundary and are not subject to production restrictions, although
these wells also produce from the Morrow "B" Sand Formation.
6. Evidence presented at the administrative hearing indicated that when Order
No. 449-20 was entered no market existed in this area for the produced gas and
production restrictions were necessary to prevent waste. A gas market now exists
for the produced gas.
7. Evidence presented at the administrative hearing indicated that secondary
recovery for this area of the Arapahoe Field is not economic and that this
portion of the Field should be produced under primary depletion without
production limits.
8. Letters in support of the Application have been received by the Commission
from Union Pacific Resources and Mull Drilling Company.
9. At the time of the administrative hearing, the Applicant agreed to be bound
by oral order of the Commission.
10. Based on the facts stated in the application and the testimony and exhibits
presented at the time of the administrative hearing by the applicant, the
Commission should approve the request to rescind the production restrictions
contained in Order No. 449-20, Rule 3 which established production limits for
each well of 300 barrels of fluid per day and 100 MCF of gas per day from the
Morrow "B" Sand Formation for lands contained in Arapahoe Field.
ORDER
NOW, THEREFORE, IT IS ORDERED that Order No. 449-20, Rule 3 is hereby rescinded
for the production restrictions for production of oil and associated
hydrocarbons from the Morrow "B" Sandstone Formation for the below-described
lands:
Township 13 South, Range 42 West, 6th P.M.
Section 26: W½
Sections 27 - 34: All
Section 35: W½
Township 13 South, Range 43 West, 6th P.M.
Section 25: All
Section 36: All
Township 14 South, Range 42 West, 6th P.M.
Section 2: W½
Section 3 - 6: All
Section 10: All
Township 14 South, Range 43 West, 6th P.M.
Section 1: All
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 July, 1998 , as of July 9, 1998.
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 July 20, 1998
(449-32)