IN THE MATTER OF THE PROMULGATION AND
CAUSE NO. 499
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG FIELD,
ORDER NO. 499-27
WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on April 21, 1997, 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 Amoco Production Company for an order to allow the Elsie L. Smith No. 1 Well,
currently producing or capable of producing from the "J" Sand and Codell
Formations, to be produced from the Dakota Formation as an additional well for
the 320-acre drilling and spacing unit consisting of the E½ of Section 33,
Township 2 North, Range 65 West, 6th P.M. The Mayer 33-9P Well located in the
SE¼ of said Section 33 currently produces from the "J" Sand and Dakota
Formations, for the 320-acre drilling and spacing unit consisting of the E½ of
Section 33. The order should also allow the UPRR 62 Pan Am J No. 1 Well,
currently producing or capable of producing from the "J" Sand Formation, to be
produced from the Dakota Formation as an additional well for the 320-acre
drilling and spacing unit consisting of the N½ of Section 27, Township 2 North,
Range 65 West, 6th P.M. The UPRR 62 Pan Am J No. 2 Well located in the NW¼ of
said Section 27 currently produces from the "J" Sand, Codell, and Dakota
Formations, for the 320-acre drilling and spacing unit consisting of the N½ of
Section 27. In addition, the order should allow the Earl Young No. 2 Well,
currently producing or capable of producing from the "J" Sand and Codell
Formations, to be produced from the Dakota Formation as an additional well for
the 320-acre drilling and spacing unit consisting of the S½ of Section 34,
Township 2 North, Range 65 West, 6th P.M. The Earl Young No. 1 Well located in
the SE¼ of said Section 34 currently produces from the "J" Sand and Dakota
Formations, for the 320-acre drilling and spacing unit consisting of the S½ of
Section 34.
FINDINGS
The Commission finds as follows:
1. Amoco Production Company. 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. 499-1, the Commission established 320-acre drilling and spacing
units for the production of oil, gas and associated hydrocarbons from the Dakota
Formation in certain lands, with the 320-acre drilling and spacing units to be
identical to those previously established for the "J" Sand Formation under Cause
No. 232, with the permitted wells to be located in the NW¼ and the SE¼ of the
section and no closer than 990 feet from the boundaries of the quarter section,
including Sections 27, 33 and 34, Township 2 North, Range 65 West, 6th P.M.
5. This matter was heard by the Hearing Officer who recommends approval based
upon the testimony presented at the administrative hearing that 320-acres is not
less than the area that could be efficiently and economically drained by two (2)
wells on this unit and that waste would occur if an additional wells were not
allowed to be produced on the 320-acre units.
6. That at the time of the administrative hearing, Amoco Production Company
agreed to be bound by oral order of the Commission.
7. Based on the facts stated in the application, having received no protests to
the application, and having been heard by the Hearing Officer who recommends
approval, the Commission should enter an order allowing the Elsie L. Smith No. 1
Well, to be produced from the Dakota Formation as an additional well for the
320-acre drilling and spacing unit consisting of the E½ of Section 33, Township
2 North, Range 65 West, 6th P.M., the UPRR 62 Pan Am J No. 1 Well, to be
produced from the Dakota Formation as an additional well for the 320-acre
drilling and spacing unit consisting of the N½ of Section 27, Township 2 North,
Range 65 West, 6th P.M., and the Earl Young No. 2 Well, to be produced from the
Dakota Formation as an additional well for the 320-acre drilling and spacing
unit consisting of the S½ of Section 34, Township 2 North, Range 65 West, 6th
P.M.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the Elsie L. Smith No. 1 Well, is hereby
approved to be produced from the Dakota Formation as an additional well for the
320-acre drilling and spacing unit consisting of the E½ of Section 33, Township
2 North, Range 65 West, 6th P.M.
IT IS FURTHER ORDERED, that the UPRR 62 Pan Am J No. 1 Well, is hereby approved
to be produced from the Dakota Formation as an additional well for the 320-acre
drilling and spacing unit consisting of the N½ of Section 27, Township 2 North,
Range 65 West, 6th P.M.
IT IS FURTHER ORDERED, that the Earl Young No. 2 Well, is hereby approved to be
produced from the Dakota Formation as an additional well for the 320-acre
drilling and spacing unit consisting of the S½ of Section 34, Township 2 North,
Range 65 West, 6th P.M.
IT IS FURTHER ORDERED, that should a commercial well be completed at the
location set forth above, the Commission shall, upon application of any
interested person, take such action as will offset any advantage which the
person securing the exception may have over other procedures by reason of the
drilling of the well as an exception location.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall
become effective forthwith, as the party agreed to accept the verbal order of
the Commission.
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 28th day of April, 1997, as of April 21, 1997.
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 April 28, 1997
(499-27)