BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF WPX ENERGY ROCKY MOUNTAIN, LLC, FOR AN ORDER
TO ESTABLISH AN APPROXIMATE 160-ACRE DRILLING AND SPACING UNIT FOR THE SW¼ OF
SECTION 27, TOWNSHIP 7 SOUTH, RANGE 96 WEST, 6TH P.M., FOR THE
WASATCH FORMATION, GRAND VALLEY FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 510
DOCKET NO. 1303-SP-53
ORDER NO. 510-63
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REPORT OF THE COMMISSION
The Commission heard this matter on March 25, 2013, at the offices of the
Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver,
Colorado, upon application for an order to establish an approximate 160-acre
drilling and spacing unit for Section 27, Township 7 South, Range 96 West, 6th
P.M., and approve the recompletion of one or more existing wells completed to
other deeper formations within the unit, for the production of oil, gas and
associated hydrocarbons from the Wasatch Formation.
FINDINGS
The Commission finds as follows:
1.
WPX Energy Rocky Mountain, LLC (“WPX” or “Applicant”), 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 Oil and Gas Conservation
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. Section
27, Township 7 South, Range 96 West, 6th P.M. is subject to this Rule
for the Wasatch Formation.
5.
On January 24, 2013, WPX, by its attorneys, filed with the Commission
pursuant to §34-60-116 C.R.S., a verified application (“Application”) for an
order to establish an approximate 160-acre drilling and spacing unit for the
below-described lands (“Application Lands”), for the production of oil, gas and
associated hydrocarbons from the Wasatch Formation, and approve the recompletion
of one or more existing wells completed to other deeper formations within the
unit, with the completed interval of any permitted recompletion no closer than
600 feet from the boundaries of the unit, without exception being granted by the
Director:
Township 7 South, Range 96 West, 6th P.M.
Section 27:
SW¼
6.
On March 13, 2013, WPX, by its attorneys, filed with the Commission a
written request to approve the Application based on the merits of the verified
Application and the supporting exhibits.
Sworn written testimony and exhibits were submitted in support of the
Application.
7.
Land testimony and exhibits submitted in support of the Application by
Christopher M. Walsh, Senior Staff Landman for WPX, showed that WPX owns a
majority of the mineral leasehold interest underlying the Application Lands.
8.
Testimony and exhibits submitted in support of the Application by Susan
D. Anderson, Operations Geologist for WPX, showed that the Wasatch Formation
underlying the Application Lands is a shallow formation that sits immediately
above the Mesaverde Formation, and is a common source of supply of gas which may
result in the observed high bradenhead pressures seen at Williams Fork and Iles
Formation wells completed in the unit area.
9.
Testimony and exhibits submitted in support of the Application by Natalie
Eglinton, Engineer I for WPX, showed that existing wells drilled and completed
in the Williams Fork and Iles Formations have high bradenhead pressures. Additional testimony showed that
drilling on 160-acre drilling and spacing units in the Wasatch Formation will
help to relieve the high bradenhead pressures, will not violate correlative
rights and will assure the most effective way of relieving the high bradenhead
pressure.
10. The
above-referenced testimony and exhibits show that granting the Application will
allow more efficient reservoir drainage, will prevent waste, will assure a
greater ultimate recovery of hydrocarbons, and will not violate correlative
rights.
11. WPX
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., the Commission should enter an order to establish an approximate 160-acre
drilling and spacing unit for Section 27, Township 7 South, Range 96 West, 6th
P.M., and approve the recompletion of one or more existing wells completed to
other deeper formations within the unit, for the production of oil, gas and
associated hydrocarbons from the Wasatch Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that an approximate 160-acre drilling and spacing
unit for the below-described lands, is hereby established, and the recompletion
of one or more existing wells completed to other deeper formations within the
unit, is hereby approved, for the production of oil, gas and associated
hydrocarbons from the Wasatch Formation, with the completed interval of any
permitted recompletion to be no closer than 600 feet from the boundaries of the
unit, without exception being granted by the Director:
Township 7 South, Range 96 West, 6th P.M.
Section 27:
SW¼
IT IS FURTHER ORDERED,
that the provisions contained in the above order shall become effective
immediately.
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 Procedures 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 the filing for judicial review.
ENTERED this 5th day
of April, 2013, as of March 25, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary