BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NOS. 191, 510 and 523
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE MAMM CREEK FIELD, ) ORDER NOS. 191-60, 510-46 and 523-5
GARFIELD COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 9:00 a.m. on January 13, 2009, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to establish various drilling and spacing units and allow one well per 10 acres, with the permitted well to be located no closer than 100 feet to the unit for certain lands in Sections 6 through 10, and 14 through 19, Township 6 South, Range 92 West, 6th P.M., and Sections 1, and 11 through 14, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Mancos Group Formation.
FINDINGS
The Commission finds as follows:
1. Antero Resources Piceance Corporation (“Antero”), 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 October 31, 2005, the Commission issued Order No. 510-16, which among other things, established well density and setback rules for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, with the permitted well to be located no closer than 100 feet for certain lands, including portions of Sections 11, 12, 13 and 14, Township 6 South, Range 93 West, 6th P.M. and Sections 7, 8 and 18, Township 6 South, Range 92 West, 6th P.M.
5. On October 31, 2005, the Commission issued Order No. 523-2, which among other things, established 320-acre drilling and spacing units for the N½ of Sections 14 and 15 and the S½ of Sections 9 and 10, Township 6 South, Range 92 West, 6th P.M., for production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group.
6. On January 9, 2006, corrected February 28, 2006, the Commission issued Order No. 191-13, which among other things, established a 320-drilling and spacing unit for the S½ of Section 13, Township 6 South, Range 93 West, 6th P.M., and an approximate 260-acre drilling and spacing unit for the S½ of Section 18, Township 6 South, Range 92 West, 6th P.M., for the production of gas from Williams Fork Formation of the Mesaverde Group.
7. On January 9, 2006, corrected February 28, 2006, the Commission issued Order No. 191-14, which among other things, established 320-drilling and spacing units for the N½ of Sections 13 and 14, Township 6 South, Range 93 West, 6th P.M., for the production of gas from the Williams Fork Formation of the Mesaverde Group.
8. On January 9, 2006, the Commission issued Order No. 191-17, which among other things, established well location and setback rules applicable to drilling and production in the E½ NE¼ and the NW¼ NE¼ of Section 16, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
9. On April 24, 2006, the Commission issued Order No. 191-24, which among other things, established 320-drilling and spacing units for the S½ of Sections 15 and 17, the N½ of Section 17, a 160-acre drilling and spacing unit for the SW¼ of Section 14, an 80-acre drilling and spacing unit for the N½ SE¼, and a 40-acre drilling and spacing unit for the SW¼ SE¼ of Section 14, all in Township 6 South, Range 92 West, 6th P.M., for the production of gas from the Williams Fork Formation of the Mesaverde Group.
10. On June 5, 2006, the Commission issued Order No. 191-25, which among other things, established various 320-acre, 260-acre, 160-acre, 80-acre and 40-acre drilling and spacing units for certain lands in Townships 5 and 6 South, Range 92 West, 6th P.M., and Township 6 South, Range 93 West, 6th P.M., and allowed the equivalent of one (1) well per 10 acres, with the permitted well to be located no closer than 100 feet from the unit boundary, for the production of gas and associated hydrocarbons from the Iles Formation.
11. On June 5, 2006, the Commission issued Order No. 191-27, which among other things, established a 160-acre drilling and spacing unit for the SW¼ and two (2) 40-acre drilling and spacing units for the NW¼ SE¼ and the SE¼ SE¼, all in Section 16, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group, and allowed the equivalent of one well per 10 acres to be drilled on said units, with the permitted well to be located no closer than 100 feet from the boundaries of the unit.
12. On September 18, 2006, the Commission issued Order No. 191-34, which among other things, established various drilling and spacing units for the below-listed lands, for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
Township 6 South, Range 92 West, 6th P.M.
Section 8: S½ SW¼
Section 16: NW¼
Section 16: SW¼ NE¼
Section 23: NW¼ NE¼ and NE¼ NW¼ (80-acre drilling and spacing unit)
13. On October 23, 2006, the Commission issued Order No. 191-38, which among other things, established an approximate 50.23-acre drilling and spacing unit for the N½ N½ of Section 7, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
14. On October 23, 2006, the Commission issued Order No. 191-39, which among other things, vacated the 320-acre drilling and spacing unit for the S½ of Section 11, Township 6 South, Range 93 West, 6th P.M from the provisions of Order Nos. 191-15 and 191-25, and established two (2) 160-acre drilling and spacing units consisting of the SE¼ and SW¼ of Section 11, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
15. On November 27, 2006, the Commission issued Order No. 191-40, which among other things, established an approximate 223.578-acre drilling and spacing unit for certain lands in the N½ of Section 18, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations of the Mesaverde Group.
16. On January 8, 2007, the Commission issued Order No. 191-43, which among other things, established an approximate 320-acre drilling and spacing unit consisting of the S½ of Section 6, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
17. On February 12, 2007, the Commission issued Order No. 191-45, which among other things, established an approximate 130.805 acre drilling and spacing unit for certain lands in the N½ of Section 8 in Township 6 South, Range 95 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations, and allowed the equivalent of one well per ten acres to be drilled and produced on said unit.
18. On March 26, 2007, the Commission issued Order No. 191-48, which among other things, established an approximate 320-acre drilling and spacing unit consisting of the S½ of Section 1, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
19. On July 23, 2007, the Commission issued Order No. 191-50, which among other things, established an approximate 160-acre drilling and spacing unit for the SW¼ of Section 14, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Iles Formation.
20. On July 23, 2007, the Commission issued Order No. 191-52, which among other things, established an approximate 195-acre drilling and spacing unit for certain lands in Section 8, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
21. On October 2, 2007, the Commission issued Order No. 191-53, which among other things, established an approximate 48.55-acre drilling and spacing unit consisting of Lot 1, Section 19, Township 6 South, Range 92 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
22. On July 15, 2008, the Commission issued Order No. 191-54, which among other things, vacated provisions in Order Nos. 191-15 and 191-25 which established a 320-acre drilling and spacing unit consisting of the N½ of Section 11, Township 6 South, Range 93 West, 6th P.M., established three (3) drilling and spacing units in the N½ of said Section 11, and continued to allow the equivalent of one well per 10 acres, with the permitted well to be located no closer than 100 feet from the unit boundary, for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
23. On December 9, 2008, the Commission issued Order No. 191-58 which among other things, vacated Order No. 191-37, which had established a 186.3-acre drilling and spacing unit, and established an approximate 154.36-acre and an approximate 36.845-acre drilling and spacing unit for certain lands in the N½ of Section 12, Township 6 South, Range 93 West, 6th P.M., and continued to allow the equivalent of one well per 10 acres, with the permitted well to be located no closer than 100 feet from the unit boundary, for the production of gas and associated hydrocarbons from the Williams Fork and Iles Formations.
24. On November 21, 2008, Antero, by its attorney, filed with the Commission a verified application for an order to establish various drilling and spacing units for the below-listed lands, consistent with those established for the Williams Fork and Iles Formations, for the production of gas and associated hydrocarbons from the Mancos Group Formation, which is comprised of the stratographic equivalent of the Mancos Shale, the Niobrara Formation and the Mowry Shale. Further, said application requests that the order allow the equivalent of one well per 10 acres, with the permitted well to be located identical to the setbacks established for the Iles Formation, no closer than 100 feet to the boundary of the unit or no closer than 400 feet from the boundary of the unit for lands not approved for 10-acre density:
Township 6 South, Range 92 West, 6th P.M.
· Section 6: SE¼, Lot 5 (48.07 acres), Lot 6 (48.16 acres); Otherwise described as the S½ of Section 6
· Section 7: N½ N½; more particularly described as follows: Beginning at the Northwestern corner of Section 7; thence South 00°52'12'' West a distance of 938.2 feet; thence North 78°47' East a distance of 2001.30 feet; thence North 6°20' East a distance of 55.90 feet; thence North 89°39' East a distance of 1024.80 feet; thence North a distance of 154.30 feet; thence South 88°52' East a distance of 1253.40 feet; thence North 00°52'48'' East 261 feet; thence North 88°40'12'' West a distance of 4240.5 feet to the point of beginning. Containing 50.23 acres more or less.
· Section 8: S½ SW¼
· Section 8: Lot 8, Lot 9, NE¼ SE¼ and S½ SE¼
· Section 8: That part of Section 8 lying in the N½ of said Section 8 more particularly described as follows: Beginning at the Northwestern corner of Section 8; thence South 01°03’ West a distance of 811.7 feet to a point South of the Colorado River Meander Land; thence continuing along said Meander Land following twenty-five (25) courses: North 67°05’ East a distance of 679.3 feet; thence North 76°22’ East a distance of 141.3 feet; thence South 78°14’ East a distance of 102 feet; thence North 71°34’ East a distance of 52.6 feet; thence South 86°40’ East a distance of 429.2 feet; thence South 55°59’ East a distance of 200.8 feet; thence South 85°26’ East a distance of 104.3 feet; thence North 87°43’ East a distance of 104.1 feet; thence South 43°29’ East a distance of 894.6 feet; thence North 77°28’ West a distance of 76.70 feet; thence South 65°55’ East a distance of 464.9 feet; thence South 75°57’36" East a distance of 169.2 feet; thence South 76°37’ East a distance of 185.8 feet; thence South 72°55’ East a distance of 200.8 feet; thence South 86°05’ East a distance of 159.1 feet; thence South 87°46’ East a distance of 246.5 feet; thence North 83°00’ East a distance of 157.1 feet; thence North 82°23’ East a distance of 121.5 feet; thence North 75°19’ East a distance of 342.4 feet; thence North 72°45’36" East a distance of 249.2 feet; thence North 54°41’24" East a distance of 241.4 feet; thence North 71°24’ East a distance of 153.1 feet; thence North 70°51’ East a distance of 188.6 feet; thence North 73°36’36" East a distance of 290.9 feet; thence North 69°44’ East a distance of 23.4 feet; thence leaving said Meander Land North 00°43’12" East along the Easterly line of Section 8 a distance of 1001 feet; thence North 88°47’59" West along the Northerly line of Section 8 a distance of 5291.7 feet to the point of beginning. Containing 130.805 acres more or less.
· Section 9: S½
· Section 10: S½
· Section 14: N½
· Section 14: SW¼
· Section 14: N½ SE¼
· Section 14: SW¼ SE¼
· Section 15: N½
· Section 15: S½
· Section 16: SE¼ SE¼
· Section 16: NW¼ SE¼
· Section 16: SW¼
· Section 16: SW¼ NE¼
· Section 16: NW¼
· Section 17: N½
· Section 17: S½
· Section 18: SE¼, Lot 3 (48.52 acres), Lot 4 (48.56 acres); Otherwise described as the S½ of Section 18
· Section 18: Part of the N½ more particularly described as: A parcel of land in the N½ of Section 18, Township 6 South, Range 92 West, 6th P.M. beginning 445.03 feet south of the NE¼ NE¼ of said section; thence south 00° 34’ 00” East a distance of 362.60 feet; thence south 519.00 feet; thence south 1320.00 feet; thence west 4260.91 feet; thence North 70° 50’ 00” East a distance of 471.60 feet; thence South 89° 30’ 00” East a distance of 300.00; thence South 76° 42’ 00” east a distance of 1128.10 feet; thence south 76° 42’ 00” east a distance of 1128.10 feet; thence South 89° 30’ 00” east a distance of 2085.20 feet; thence south 89° 59’ 00” east a distance of 181.30 feet; thence south 89° 58’ 00” east a distance of 150.5 feet to the point of beginning.
· Section 19: Lot 1
Township 6 South, Range 93 West, 6th P.M.
· Section 1: S½
· Section 11: SE¼
· Section 11: E½ NE¼
· Section 12: All that part of Section 12, Township 6 South, Range 93 West, 6th Principal Meridian, lying in the N½ of said Section more particularly described as follows: Commencing at a point which bears North 89° 08’ 35” West a distance of 1525.88 feet from the NE/C of Section 12, the point of beginning; thence North 88° 47’ 46” West a distance of 3710.54 feet; thence South 01° 24’ 28” West a distance of 2311.22 feet; thence North 70° 28’ 03” East a distance of 763.97 feet; thence North 75° 57’ 40” East a distance of 813.12 feet; thence North 78° 30’ 55” East a distance of 2160.49 feet; thence North 77° 41’ 31” East a distance of 381.56 feet; thence North 00° 30’ 04” West a distance of 599.27 feet; thence North 88° 31’ 17” West a distance of 229.48 feet; thence North 00° 11’ 49” East a distance of 663.22 to the point of beginning. Containing 154.377 acres more or less.
· Section 12: All that part of Section 12, Township 6 South, Range 93 West, 6th Principal Meridian, lying in the NE¼ of said Section more particularly described as follows: Commencing at a point on the NE/C of Section 12, the point of beginning; thence South 00° 32’ 18” West a distance of 938.55 feet; thence South 78° 27’ 55” West a distance of 1310.58 feet; thence North 00° 30’ 04” West a distance of 599.27 feet; thence North 88° 31’ 17” West a distance of 229.48 feet; thence North 00° 11’ 49” East a distance of 663.22 feet; thence South 89° 08’ 35” East a distance of 1525.88 feet to the point of beginning. Containing 36.845 acres more or less.
· Section 13: S½
· Section 13: N½
· Section 14: N½
Relaxed Setback Areas
Township 6 South, Ranges 92 and 93 West, 6th P.M.
· Portions of Section 12 of Township 6 South, Range 93 West, as well as portions of Sections 7, 8 and 18 of Township 6 South, Range 92 West, described as follows:
A tract of land beginning at the Southwestern corner of Section 12, Township 6 South, Range 93 West, 6th P.M.; thence North 64°50’20" East a distance of 2975 feet; thence North 66°30’ East a distance of 300.70 feet; thence North 69°53’ East a distance of 453.30 feet; thence North 75°31’ East a distance of 551.10 feet; thence North 78°41’ East a distance of 764.30 feet; thence North 78°10’ East a distance of 379.80 feet; thence North 82°34’ East a distance of 278.10 feet; thence North 78°01’ East a distance of 1011.30 feet; thence North 77°24’ East a distance of 1677.20 feet to a point on the East line of Section 12; thence North 78°47’ East a distance of 2001.30 feet; thence North 6°20’ East a distance of 55.90 feet; thence North 89°39’ East a distance of 1024.80 feet; thence North a distance of 154.30 feet; thence South 88°52’ East a distance of 1253.40 feet; thence South 0°49’ West a distance of 432.20 feet; thence North 67°05’ East a distance of 673 feet; thence North 76°22’ East a distance of 141.30 feet; thence South 78°14’ East a distance of 102 feet; thence North 71°34’ East a distance of 52.60 feet; thence South 86°40’ East a distance of 429.20 feet; thence South 55°59’ East a distance of 200.80 feet; thence South 85°26’ East a distance of 104.30 feet; thence North 87°43’ East a distance of 104.10 feet; thence South 43°29’ East a distance of 894.60 feet; thence North 77°28’ West a distance of 76.70 feet; thence South 65°55’ East a distance of 425.90 feet; thence South 01°04’ West a distance of 1354 feet; thence South 89°16’ East a distance 1314.80 feet; thence South 0°43’ West a distance of 1319 feet; thence North 88°59’ West a distance of 3978 feet to a point along the Westerly line of Section 8; thence South 0°48’ West a distance of 1771.90 feet; thence North 83°25’ West a distance of 160 feet; thence North 1°04’ East a distance of 1722.50 feet to a point South of the Colorado River Meander Land; thence continuing along said Meander Land following twenty-three (23) courses: North 34°34’ West a distance of 341.30 feet; thence West a distance of 49.40 feet; thence North 5°43’ 62 feet; thence North 37°52’ West a distance of 211.20 feet; thence North 83°03’ West a distance of 255 feet; thence North 62°06’ West a distance of 237.50 feet; thence North 75°01’ West a distance of 453.70 feet; thence South 84°14’ West a distance of 552.20 feet; thence North a distance of 30.90 feet; thence North 81°52’ West a distance of 567.50 feet; thence South 48°49’ West a distance of 129.70 feet; thence South 54°07’ West a distance of 141.50 feet; thence South 59°37’ West a distance of 164 feet; thence South 71°14’ West a distance of 136.60 feet; thence South 72°59’ West a distance of 125 feet; thence South 83°29’ West a distance of 86 feet; thence South 87°08’ West a distance of 146.60 feet; thence South 72°02’ West a distance of 94.90 feet; thence South 80°06’ West a distance of 156.10 feet; thence South 54°10’ West a distance of 270.90 feet; thence South 81°02’ West a distance of 93.90 feet; thence South 70°49’ West a distance of 118.80 feet; thence South 31°13’ West a distance of 390.90 feet. Thence leaving said Meander Land South 01°04’ West along Westerly line of Section 7 a distance of 1050.20 feet; thence North 88°50’17" West a distance of 5525 feet to the point of beginning.
Township 6 South, Range 92 West, 6th P.M.
· Section 16: E½ NE¼, NW¼ NE¼
Further, Antero agreed that, as to the N½ of Section 14, Township 6 South, Range 93 West, it would not drill any Mancos Group Formation well any closer than 600 feet to the EnCana leasehold located in the NE corner of the SE¼ of Section 15, Township 6 South, Range 93 West, 6th P.M. pending settlement of any dispute with EnCana.
27. On December 31, 2008, an administrative hearing was convened wherein sworn testimony and supporting exhibits were presented by Antero in support of the application.
29. Testimony and exhibits presented at the administrative hearing showed that Antero had undertaken an extensive exploration program to determine whether the Mancos Group underlying the Williams Fork and Iles Formations contained gas which could be economically recovered in concert with the development of the Williams Fork and Iles Formations. Additional testimony showed that shale gas resources have provided major new opportunities for hydrocarbon production in North America, and that a new shale gas resource play is emerging below the traditional Mesaverde tight gas sand accumulations in the Piceance Basin which targets shale gas accumulation in the gas-prone source rocks of the Late Cretaceous Mancos Group interval. Further testimony demonstated that the Mancos interval is composed of organic bearing siliciclastic, “mudrock” lithologies that accumulated in offshore marine depositional systems, and that burial of these shales during the Late Cretaceous and Tertiary within the basinal areas moved them into the hydrocarbon generation window. Testimony showed that these shale gas reservoirs store the thermally generated gas as an adsorbed component and a free gas component, and that natural fracturing is present within these shales which help to provide permeability pathways within the shale reservoir. Further testimony showed that advances in hydraulic fracture stimulation technology have been a critical contributor to commercial development of gas from shales, and that six Mancos Group Formation wells have been drilled in the application lands with five of those wells now producing to sales. Testimony revealed that the Mancos Group Formation underlies the entire application lands with reservoir characteristics being similar across the entire area, and that all lithologic intervals within said formation are gas bearing with drainage ellipse orientations for said formation being parallel to those in the shallow Williams Fork and Iles well completions.
30. Testimony and exhibits presented at the administrative hearing showed that economics for shallow Williams Fork and Iles Formation wells vary from uneconomic to moderately commercial based on commodity prices and ultimate recoveries, however, incremental Mancos Group Formation production can substantially improve economics when commingled with the production for the Williams Fork and Iles Formations. Additional testimony showed that there is significant gas-in-place in the Mancos Group Formation underlying the application lands, and that low recovery factors, small fracture stimulations and low formation permeability support 10 acre well density while having no adverse affect on correlative rights. Further testimony showed that by developing the Mancos Group Formation underlying the application lands on 40-acre well density would waste an estimated 132 BCF of recoverable gas per section, and that developing said formation on 20-acre well density would waste an estimated 88 BCF of recoverable gas per section.
31. The above-referenced testimony and exhibits show that the proposed spacing and proposed well density will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.
32. Antero Resources Piceance Corporation agreed to be bound by oral order of the Commission.
33. Based on the facts stated in the verified application, having received two protests, one which was withdrawn and one which was reserved due the continuation of certain lands under the application, and based on the Hearing Officers having conducted an administrative hearing, the Commission should enter an order to establish various drilling and spacing units and allow one well per 10 acres, with the permitted well to be located no closer than 100 feet to the unit for certain lands in Sections 6 through 10, and 14 through 19, Township 6 South, Range 92 West, 6th P.M., and Sections 1, and 11 through 14, Township 6 South, Range 93 West, 6th P.M., for the production of gas and associated hydrocarbons from the Mancos Group Formations.
ORDER
NOW, THEREFORE IT IS ORDERED, that various drilling and spacing units are hereby established for the below-listed lands, consistent with those established for the Williams Fork and Iles Formations, for the production of gas and associated hydrocarbons from the Mancos Group Formation, which is comprised of the stratographic equivalent of the Mancos Shale, the Niobrara Formation and the Mowry Shale, and that the equivalent of one (1) well per 10 acres is hereby approved, with the permitted well to be located no closer than 100 feet to the boundary of the unit or no closer than 400 feet from the boundary of the unit for lands not approved for 10-acre density:
Township 6 South, Range 92 West, 6th P.M.
· Section 6: SE¼, Lot 5 (48.07 acres), Lot 6 (48.16 acres); Otherwise described as the S½ of Section 6
· Section 7: N½ N½; more particularly described as follows: Beginning at the Northwestern corner of Section 7; thence South 00°52'12'' West a distance of 938.2 feet; thence North 78°47' East a distance of 2001.30 feet; thence North 6°20' East a distance of 55.90 feet; thence North 89°39' East a distance of 1024.80 feet; thence North a distance of 154.30 feet; thence South 88°52' East a distance of 1253.40 feet; thence North 00°52'48'' East 261 feet; thence North 88°40'12'' West a distance of 4240.5 feet to the point of beginning. Containing 50.23 acres more or less.
· Section 8: S½ SW¼
· Section 8: Lot 8, Lot 9, NE¼ SE¼ and S½ SE¼
· Section 8: That part of Section 8 lying in the N½ of said Section 8 more particularly described as follows: Beginning at the Northwestern corner of Section 8; thence South 01°03’ West a distance of 811.7 feet to a point South of the Colorado River Meander Land; thence continuing along said Meander Land following twenty-five (25) courses: North 67°05’ East a distance of 679.3 feet; thence North 76°22’ East a distance of 141.3 feet; thence South 78°14’ East a distance of 102 feet; thence North 71°34’ East a distance of 52.6 feet; thence South 86°40’ East a distance of 429.2 feet; thence South 55°59’ East a distance of 200.8 feet; thence South 85°26’ East a distance of 104.3 feet; thence North 87°43’ East a distance of 104.1 feet; thence South 43°29’ East a distance of 894.6 feet; thence North 77°28’ West a distance of 76.70 feet; thence South 65°55’ East a distance of 464.9 feet; thence South 75°57’36" East a distance of 169.2 feet; thence South 76°37’ East a distance of 185.8 feet; thence South 72°55’ East a distance of 200.8 feet; thence South 86°05’ East a distance of 159.1 feet; thence South 87°46’ East a distance of 246.5 feet; thence North 83°00’ East a distance of 157.1 feet; thence North 82°23’ East a distance of 121.5 feet; thence North 75°19’ East a distance of 342.4 feet; thence North 72°45’36" East a distance of 249.2 feet; thence North 54°41’24" East a distance of 241.4 feet; thence North 71°24’ East a distance of 153.1 feet; thence North 70°51’ East a distance of 188.6 feet; thence North 73°36’36" East a distance of 290.9 feet; thence North 69°44’ East a distance of 23.4 feet; thence leaving said Meander Land North 00°43’12" East along the Easterly line of Section 8 a distance of 1001 feet; thence North 88°47’59" West along the Northerly line of Section 8 a distance of 5291.7 feet to the point of beginning. Containing 130.805 acres more or less.
· Section 9: S½
· Section 10: S½
· Section 14: N½
· Section 14: SW¼
· Section 14: N½ SE¼
· Section 14: SW¼ SE¼
· Section 15: N½
· Section 15: S½
· Section 16: SE¼ SE¼
· Section 16: NW¼ SE¼
· Section 16: SW¼
· Section 16: SW¼ NE¼
· Section 16: NW¼
· Section 17: N½
· Section 17: S½
· Section 18: Part of the N½ more particularly described as: A parcel of land in the N½ of Section 18, Township 6 South, Range 92 West, 6th P.M. beginning 445.03 feet south of the NE¼ NE¼ of said section; thence south 00° 34’ 00” East a distance of 362.60 feet; thence south 519.00 feet; thence south 1320.00 feet; thence west 4260.91 feet; thence North 70° 50’ 00” East a distance of 471.60 feet; thence South 89° 30’ 00” East a distance of 300.00; thence South 76° 42’ 00” east a distance of 1128.10 feet; thence south 76° 42’ 00” east a distance of 1128.10 feet; thence South 89° 30’ 00” east a distance of 2085.20 feet; thence south 89° 59’ 00” east a distance of 181.30 feet; thence south 89° 58’ 00” east a distance of 150.5 feet to the point of beginning.
Township 6 South, Range 93 West, 6th P.M.
· Section 1: S½
· Section 11: SE¼
· Section 11: E½ NE¼
· Section 12: All that part of Section 12, Township 6 South, Range 93 West, 6th Principal Meridian, lying in the N½ of said Section more particularly described as follows: Commencing at a point which bears North 89° 08’ 35” West a distance of 1525.88 feet from the NE/C of Section 12, the point of beginning; thence North 88° 47’ 46” West a distance of 3710.54 feet; thence South 01° 24’ 28” West a distance of 2311.22 feet; thence North 70° 28’ 03” East a distance of 763.97 feet; thence North 75° 57’ 40” East a distance of 813.12 feet; thence North 78° 30’ 55” East a distance of 2160.49 feet; thence North 77° 41’ 31” East a distance of 381.56 feet; thence North 00° 30’ 04” West a distance of 599.27 feet; thence North 88° 31’ 17” West a distance of 229.48 feet; thence North 00° 11’ 49” East a distance of 663.22 to the point of beginning. Containing 154.377 acres more or less.
· Section 12: All that part of Section 12, Township 6 South, Range 93 West, 6th Principal Meridian, lying in the NE¼ of said Section more particularly described as follows: Commencing at a point on the NE/C of Section 12, the point of beginning; thence South 00° 32’ 18” West a distance of 938.55 feet; thence South 78° 27’ 55” West a distance of 1310.58 feet; thence North 00° 30’ 04” West a distance of 599.27 feet; thence North 88° 31’ 17” West a distance of 229.48 feet; thence North 00° 11’ 49” East a distance of 663.22 feet; thence South 89° 08’ 35” East a distance of 1525.88 feet to the point of beginning. Containing 36.845 acres more or less.
· Section 13: N½
· Section 14: N½
Relaxed Setback Areas
Township 6 South, Ranges 92 and 93 West, 6th P.M.
· Portions of Section 12 of Township 6 South, Range 93 West, as well as portions of Sections 7, 8 and 18 of Township 6 South, Range 92 West, described as follows:
A tract of land beginning at the Southwestern corner of Section 12, Township 6 South, Range 93 West, 6th P.M.; thence North 64°50’20" East a distance of 2975 feet; thence North 66°30’ East a distance of 300.70 feet; thence North 69°53’ East a distance of 453.30 feet; thence North 75°31’ East a distance of 551.10 feet; thence North 78°41’ East a distance of 764.30 feet; thence North 78°10’ East a distance of 379.80 feet; thence North 82°34’ East a distance of 278.10 feet; thence North 78°01’ East a distance of 1011.30 feet; thence North 77°24’ East a distance of 1677.20 feet to a point on the East line of Section 12; thence North 78°47’ East a distance of 2001.30 feet; thence North 6°20’ East a distance of 55.90 feet; thence North 89°39’ East a distance of 1024.80 feet; thence North a distance of 154.30 feet; thence South 88°52’ East a distance of 1253.40 feet; thence South 0°49’ West a distance of 432.20 feet; thence North 67°05’ East a distance of 673 feet; thence North 76°22’ East a distance of 141.30 feet; thence South 78°14’ East a distance of 102 feet; thence North 71°34’ East a distance of 52.60 feet; thence South 86°40’ East a distance of 429.20 feet; thence South 55°59’ East a distance of 200.80 feet; thence South 85°26’ East a distance of 104.30 feet; thence North 87°43’ East a distance of 104.10 feet; thence South 43°29’ East a distance of 894.60 feet; thence North 77°28’ West a distance of 76.70 feet; thence South 65°55’ East a distance of 425.90 feet; thence South 01°04’ West a distance of 1354 feet; thence South 89°16’ East a distance 1314.80 feet; thence South 0°43’ West a distance of 1319 feet; thence North 88°59’ West a distance of 3978 feet to a point along the Westerly line of Section 8; thence South 0°48’ West a distance of 1771.90 feet; thence North 83°25’ West a distance of 160 feet; thence North 1°04’ East a distance of 1722.50 feet to a point South of the Colorado River Meander Land; thence continuing along said Meander Land following twenty-three (23) courses: North 34°34’ West a distance of 341.30 feet; thence West a distance of 49.40 feet; thence North 5°43’ 62 feet; thence North 37°52’ West a distance of 211.20 feet; thence North 83°03’ West a distance of 255 feet; thence North 62°06’ West a distance of 237.50 feet; thence North 75°01’ West a distance of 453.70 feet; thence South 84°14’ West a distance of 552.20 feet; thence North a distance of 30.90 feet; thence North 81°52’ West a distance of 567.50 feet; thence South 48°49’ West a distance of 129.70 feet; thence South 54°07’ West a distance of 141.50 feet; thence South 59°37’ West a distance of 164 feet; thence South 71°14’ West a distance of 136.60 feet; thence South 72°59’ West a distance of 125 feet; thence South 83°29’ West a distance of 86 feet; thence South 87°08’ West a distance of 146.60 feet; thence South 72°02’ West a distance of 94.90 feet; thence South 80°06’ West a distance of 156.10 feet; thence South 54°10’ West a distance of 270.90 feet; thence South 81°02’ West a distance of 93.90 feet; thence South 70°49’ West a distance of 118.80 feet; thence South 31°13’ West a distance of 390.90 feet. Thence leaving said Meander Land South 01°04’ West along Westerly line of Section 7 a distance of 1050.20 feet; thence North 88°50’17" West a distance of 5525 feet to the point of beginning.
Township 6 South, Range 92 West, 6th P.M.
· Section 16: E½ NE¼, NW¼ NE¼
IT IS FURTHER ORDERED, that for the Mancos Group Formation wells to be drilled on such drilling and spacing units, each such well may be located anywhere upon a given drilling and spacing unit but no closer than one 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission. It is provided however that in cases where a given unit abuts or corners lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill optional 10 acre density Mancos Group Formation wells, the Mancos Group Formation well should be located downhole no closer than 400 feet from the boundary of boundaries of the drilling unit so abutting or cornering such unit without exception being granted by the Director of the Oil and Gas Conservation Commission.
IT IS FURTHER ORDERED, that for the Mancos Group Formation wells to be drilled on application lands which are unspaced for the Williams Fork and Iles Formation but which have previously been approved for 10 acre density drilling for these formations, each such Mancos Group Formation well shall be located no closer than 100 feet from a lease line and no closer than 100 feet from the boundary or boundaries of the unspaced lands as described in a given order. It is provided however that in cases where unspaced lands as described in a given order abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10 acre density Mancos Group wells, the Mancos Group Formation well should be located downhole no closer than 400 feet from the boundary or boundaries of such described boundary or boundaries of the unspaced lands as described in a given order.
IT IS FURTHER ORDERED, that except as previously authorized by order of the Commission, wells to be drilled under this application shall be drilled form the surface either vertically or directionally from no more than one (1) pad located on a given quarter quarter section (or lots or parcels approximately equivalent thereto) 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 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 January, 2009, as of January 13, 2009.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert A. Willis, Acting Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
January 26, 2009