before the oil and gas conservation commission
of the state of COLORADO

 

IN THE MATTER OF PROMULGATION AND                        )   CAUSE NOS. 139, 440, 479 and 510

ESTABLISHMENT OF FIELD RULES TO GOVERN             )

OPERATIONS IN THE PARACHUTE AND RULISON           )   ORDER NOS. 139-74, 440-44, 479-19

FIELDS, GARFIELD COUNTY, COLORADO                        )                                   and 510-34

 

report of the commission

This cause came on for hearing before the Commission at 9:00 a.m. on May 10, 2007, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to allow the equivalent of one well per 10 acres, for the S˝ N˝ of Section 13, Township 6 South, Range 96 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.

 

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.         Rule 318.a. of the Rules and Regulations of the Commission requires that wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and 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.  Certain lands in Township 6 South, Range 96 West, 6th P.M. are subject to this Rule.

 

                        5.         On January 8, 2007, the Commission issued Order Nos. 139-69, 440-40, 479-18 and 510-30, which, among other things, allowed the equivalent of one well per 10 acres to be drilled for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, including the S˝ of Section 13, in Township 6 South, Range 96 West, 6th P.M.

 

6.         On March 20, 2007, Williams Production RMT Company, by its attorney, filed with the Commission a verified application for an order to allow the equivalent of one well per 10 acres to be drilled in the S˝ N˝ of Section 13, Township 6 South, Range 96 West, 6th P.M., for production of gas and associated hydrocarbons from the Williams Fork Formation.

           

All future wells on the application lands should be located downhole anywhere upon such lands but no closer than 100 feet from the outside boundary of the drilling and spacing unit unless such unit abuts or corners lands in respect of which the Commission has not at the time of the drilling permit application granted the right to drill 10-acre density downhole drilling for the Williams Fork Formation, in which event the Williams Fork Formation wells to be drilled upon the application lands should be drilled downhole no closer than 200 feet from the portion of the boundary which so abuts or corners the lands in respect of which 10-acre density downhole drilling for the Williams Fork Formation wells has not been ordered by the Commission.

 

That all wells to be drilled under the verified application will be drilled from the surface, either vertically or directionally, from no more than one pad locate on a given quarter quarter section unless exception is granted by the Colorado Oil and Gas Conservation Commission pursuant to application made for such exemption.

 

7.         On April 26, 2007, Williams, by its attorney, filed with the Commission a written request to approve the application based on the merits of the verified application and the supporting testimony and exhibit.  Sworn written testimony and an exhibit were submitted in support of the application. 

8.                  Testimony and an exhibit submitted in support of the application indicated that the application lands were inadvertently omitted from the application filed by Williams in Docket No. 0701-AW-02 which was approved by the Commission under Order Nos. 136-69, 440-40, 479-18 and 510-30.  Such application covered approximately 4,770 acres and included lands which were contiguous to the application lands under the application in the subject docket.  Williams requested that notice be taken of the evidence presented in support of Docket No. 0701-AW-02 including that evidence concerning pressure data.

9.                  Based upon the evidence and exhibits supporting the application in Docket No. 0701-AW-02 that resulted in Order Nos. 136-69, 440-40, 479-18 and 510-30, the proposed increased density for the application lands will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.

10.              No protests to the application have been filed with the Commission or the applicant.

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 received no protests and based on the Hearing Officer review of the application under Rule 511.b., the Commission should enter an order to allow the equivalent of one well per 10 acres for the S˝ N˝ of Section 13, Township 6 South, Range 96 West, 6th P.M., for production of gas and associated hydrocarbons from the Williams Fork Formation, with the permitted well to be located no closer than 100 feet from the outside boundary of the application lands.

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that the equivalent of one well per 10 acres is hereby approved for wells to be drilled in the S˝ N˝ of Section 13, Township 6 South, Range 96 West, 6th P.M., for production of gas and associated hydrocarbons from the Williams Fork Formation.

IT IS FURTHER ORDERED, that the permitted well shall be located no closer than 100 feet from the outside boundary of the application lands, unless such boundary abuts or corners lands in respect of which the Commission has not at the time of the drilling permit application granted the right to drill 10-acre density wells, in which event the wells to be drilled on the application lands shall be drilled downhole no closer than 200 feet from that portion of the boundary which so abuts or corners the lands in respect of which 10-acre density downhole drilling for Williams Fork Formation wells has not been ordered by the Commission.

IT IS FURTHER ORDERED, that except as previously authorized by order of the Commission, wells to be drilled under this application 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 Colorado Oil and Gas Conservation Commission pursuant to application made for such exception.

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 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 filing for judicial review.

ENTERED this ________ day of May, as of May 10, 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

May 25, 2007