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 FORMATION, SULPHUR CREEK FIELD, RIO BLANCO COUNTY, COLORADO |
) ) ) ) ) ) ) |
CAUSE NO. 527
DOCKET NO. 171000711
TYPED: SPACING
ORDER NO. 527-20 |
REPORT OF THE COMMISSION
The Commission heard this matter on November 28, 2017, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order amending Order No. 527-1 so as to add portions of Sections 19 and 30, Township 2 South, Range 97 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
FINDINGS
The Commission finds as follows:
1. Ursa Operating Company LLC (Operator No. 10447) (“Ursa” or “Applicant”), 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.
5. 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 19 and 30, Township 2 South, Range 97 West, 6th P.M., are subject to Rule 318.a. for the Williams Fork Formation.
6. On March 20, 2006 (corrected July 31, 2006 and February 9, 2017), the Commission entered Order No. 527-1 which, among other things, allowed additional wells to be drilled on the below-described lands, the equivalent of one well per 10 acres, with the permitted well to be located no closer than 100 feet from the boundary of the lands, for the production of gas and associated hydrocarbons from the Williams Fork Formation. The following lands are subject to Order No. 527-1:
Township 2 South, Range 97 West, 6th P.M.
Section 19: Lot 4, SE¼SW¼, S½SE¼
Section 20: SW¼SW¼
Section 29: NW¼NW¼
Section 30: E½NE¼, NE¼SE¼
Township 2 South, Range 98 West, 6th P.M.
Section 23: S½S½
Section 24: S½S½
Section 26: NW¼NW¼
Section 27: NE¼SW¼, NW¼SE¼, S½NE¼
Section 28: SE¼SE¼
Section 32: S½SE¼, NE¼SE¼
Section 33: S½NW¼, NE¼NW¼, N½NE¼
Township 3 South, Range 98 West, 6th P.M.
Section 5: S½NW¼, NW¼NE¼, NW¼SW¼
Section 6: E½SE¼
Section 7: NE¼NE¼
4. Applicant is an Owner in the below-listed lands:
Township 2 South, Range 97 West, 6th P.M.
Section 19: Lots 1, 2 and 3, NE¼, E½NW¼, N½SE¼,
NE¼SW¼
Section 30: Lots 1-4, SE¼SE¼, W½E½, E½W½
These lands are hereinafter referred to as the “Application Lands”
7. On August 31, 2017, Ursa, by its attorneys, filed with the Commission a verified application (“Application”) pursuant to §34-60-116 C.R.S., for an order to amend the terms of Order No. 527-1 as follows (which amendment includes the lands originally covered by Order No. 527-1 as well as the Application Lands):
Township 2 South, Range 97 West, 6th P.M.
Section
19: Lot 4, SE¼SW¼, S½SE¼ Lots 1-4, E½, E½W½ (a/d/a ALL)
Section 20: SW¼SW¼
Section 29: NW¼NW¼
Section 30: E½NE¼,
NE¼SE¼ Lots 1-4, E½, E½W½ (a/d/a ALL)
Township 2 South, Range 98 West, 6th P.M.
Section 23: S½S½
Section 24: S½S½
Section 26: NW¼NW¼
Section 27: NE¼SW¼, NW¼SE¼, S½NE¼
Section 28: SE¼SE¼
Section 32: S½SE¼, NE¼SE¼
Section 33: S½NW¼, NE¼NW¼, N½NE¼
Township 3 South, Range 98 West, 6th P.M.
Section 5: S½NW¼, NW¼NE¼, NW¼SW¼
Section 6: E½SE¼
Section 7: NE¼NE¼
8. Applicant further requested that all other terms and conditions of Order No. 527-1 remain unchanged, to wit:
A. The equivalent of one well per 10 acres well density is authorized for all lands subject to Order No. 527-1 (as corrected and amended by this Application), for the production of gas and associated hydrocarbons from the Williams Fork Formation, as necessary to economically and efficiently recover resources, while minimizing surface impacts, creating efficiencies for drilling and production, increasing the ultimate recovery of the reserves, preventing waste, and protecting correlative rights.
B. For any permitted wells to be drilled under Order No. 527-1 (as corrected and amended by this Application), the bottomhole location should be located anywhere upon the Application Lands but no closer than 100 feet from the boundaries of the Application Lands, without exception being granted by the Director. Furthermore, in cases where the Application Lands 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 Williams Fork Formation wells, the permitted well should be located downhole no closer than 200 feet from the boundaries of the Application Lands, without exception being granted by the Director.
C. Except as previously authorized by order of the Commission, wells authorized under Order No. 527-1 (as corrected and amended by this Application) shall be drilled from the surface either vertically or directionally from no more one pad per approximately 40 acres, without exception being granted by the Director.
9. On October 6, 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.
10. 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.
11. The Commission finds that sufficient geological and engineering evidence has been presented previously to support 10-acre bottomhole density for wells drilled in the Williams Fork and Iles Formations of the Piceance Basin.
12. 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.
13. Ursa agreed to be bound by oral order of the Commission.
14. 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 amending Order No. 527-1 so as to add portions of Sections 19 and 30, Township 2 South, Range 97 West, 6th P.M., for the production of gas and associated hydrocarbons from the Williams Fork Formation.
ORDER
IT IS HEREBY ORDERED:
1. Order No. 527-1 is hereby amended to include the following described lands:
Township
2 South, Range 97 West, 6th P.M.
Section 19: Lot 4, SE¼SW¼, S½SE¼ Lots
1-4, E½, E½W½ (a/d/a
ALL)
Section 20: SW¼SW¼
Section 29: NW¼NW¼
Section 30: E½NE¼, NE¼SE¼ Lots 1-4, E½, E½W½ (a/d/a ALL)
Township
2 South, Range 98 West, 6th P.M.
Section 23: S½S½
Section 24: S½S½
Section 26: NW¼NW¼
Section 27: NE¼SW¼, NW¼SE¼, S½NE¼
Section 28: SE¼SE¼
Section 32: S½SE¼, NE¼SE¼
Section 33: S½NW¼, NE¼NW¼, N½NE¼
Township 3 South, Range
98 West, 6th P.M.
Section 5: S½NW¼, NW¼NE¼, NW¼SW¼
Section 6: E½SE¼
Section 7: NE¼NE¼
2. All other terms of Order No. 527-1 shall remain unchanged and in full force and effect.
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 30 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 28th day of December, 2017, as of November 28, 2017.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By_______________________________________
Julie Spence Prine, Secretary