BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE WILLIAMS FORK AND ILES FORMATIONS, SULPHUR CREEK FIELD, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 527

 

DOCKET NO. 170100045

 

TYPE: ADDITIONAL WELLS

 

ORDER NO. 527-18

 

REPORT OF THE COMMISSION

 

The Commission heard this matter on January 30, 2017, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to approve the drilling of one well per 10 acres within portions of Sections 29 and 30, Township 2 South, Range 97 West, 6th P.M., for the production of the oil, gas, and associated hydrocarbons from the Williams Fork and Iles Formations. 

 

FINDINGS

 

The Commission finds as follows:

 

1.         Ursa Operating Company LLC (Operator No. 10447) (“Ursa” 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 shall 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, unless authorized by order of the Commission upon hearing.  Sections 29 and 30, Township 2 South, Range 97 West, 6th P.M., are subject to this Rule for the production of the oil, gas, and associated hydrocarbons from the Williams Fork and Iles Formations.

 

5.         On December 1, 2016, Ursa, by its attorneys, filed with the Commission pursuant to §34-60-116, C.R.S., a verified application (“Application”) for an order to approve the drilling of one well per 10 acres for the below-described lands (“Application Lands”), for the production of oil, gas and associated hydrocarbons from the Williams Fork and Iles Formations, with the productive interval of any wellbore to be no closer than 100 feet from the outer boundaries of the Application Lands, provided that where the Application Lands abut or corner lands for which the Commission has not at the time of drilling permit application granted the right to drill one well per 10 acres to the Williams Fork and Iles Formations, the productive interval of any wellbore should be located closer than 200 feet from the boundaries of the Application Lands, without exception being granted by the Director:

 

Township 2 South, Range 97 West, 6th P.M.

Section 29:      SW¼NW¼, W½SW¼

Section 30:      SE¼SE¼

 

Applicant stated that any wells to be drilled pursuant to an Order approving this Application will be drilled either vertically or directionally from no more than one pad per 40 acres, unless the Director grants an exception.

 

6.         On January 9, 2017, Ursa, 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 N. Arthur Bollen, Land Manager for Ursa, showed that Ursa holds oil and gas leasehold interests and has a right to drill in the Application Lands.

 

10.       Geologic testimony submitted in support of the Application by Duke Cooley, Geologist for Ursa, along with testimony and exhibits used to support Order Nos. 527-1 and 527-4, showed the Williams Fork and Iles Formations are present throughout the Application Lands, and contain a series of lenticular fluvial sandstone reservoirs that can best be accessed by allowing 10-acre bottom hole well locations.

 

8.         Engineering testimony submitted in support of the Application by Andrew Haney, Vice President of Development for Ursa, along with testimony and exhibits used to support Order Nos. 527-1 and 527-4, demonstrated that the requested one well per 10 acres for the Williams Fork and Iles Formations in the Application Lands, will promote efficient drainage, protect correlative rights, and prevent waste.

 

9.         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.

 

10.       Ursa agreed to be bound by oral order of the Commission. 

 

11.       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 approve the drilling of one well per 10 acres within portions of Sections 29 and 30, Township 2 South, Range 97 West, 6th P.M., for the production of the oil, gas, and associated hydrocarbons from the Williams Fork and Iles Formations. 

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         One well per 10 acres for the below-described lands is hereby approved for the production of oil, gas and associated hydrocarbons from the Williams Fork and Iles Formations, with the productive interval of any wellbore to be no closer than 100 feet from the outer boundaries of the Application Lands, provided that where the below-described lands abut or corner lands for which the Commission has not at the time of drilling permit application granted the right to drill one well per 10 acres to the Williams Fork and Iles Formations, the productive interval of any wellbore should be located closer than 200 feet from the boundaries of the below-described lands, unless the Director grants an exception:

 

Township 2 South, Range 97 West, 6th P.M.

Section 29:      SW¼NW¼, W½SW¼

Section 30:      SE¼SE¼

 

2.         All wells permitted under this Order shall be drilled either vertically or directionally from no more than one wellpad per quarter-quarter section, unless the Director grants an exception.

 

 

IT IS FURTHER ORDERED:

 

1.         The provisions contained in the above order shall become effective immediately.

 

2.         The Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

 

3.         Under the State Administrative Procedure Act the Commission considers this Order to be final agency action for purposes of judicial review within 35 days after the date this Order is mailed by the Commission.

 

4.         An application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.

 

ENTERED this 2d day of February, 2017, effective as of January 30, 2017.

           

OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

By: ____________________________________     

     Julie Murphy, Secretary