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 IN AN UNNAMED FIELD, WELD AND MORGAN COUNTIES, COLORADO |
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CAUSE NO. 535
ORDER NO. 535-13
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REPORT OF COMMISSION
This cause came on for hearing before the Commission on May 16, 2011, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to establish eleven approximate 640-acre drilling and spacing units for certain lands located in Townships 5 through 9 North, Ranges 60 and 61 West, 6th P.M., and approve up to two horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
FINDINGS
The Commission finds as follows:
1. Carrizo Oil & Gas, Inc. (“Carrizo” 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. The below-listed lands are subject to this Rule for the Niobrara Formation:
Township 5 North, Range 60 West, 6th P.M.
Sections 5, 6, 7, and 8: |
All |
Township 6 North, Range 60 West, 6th P.M.
Section 31: |
All |
Township 7 North, Range 60 West, 6th P.M.
Sections 20, 21, 22, and 28: |
All |
Township 9 North, Range 60 West, 6th P.M.
Section 17: |
All |
Township 8 North, Range 61 West, 6th P.M.
Section 27: |
All |
5. On March 17, 2011, Carrizo, by its attorneys, filed with the Commission a verified application (the “Application”) for an order to establish eleven approximate 640-acre drilling and spacing units for the below-listed lands (the “Application Lands”), and approve of up to two horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, with the treated interval of the wellbore to be located no closer than 600 feet from the boundary of the unit without exception being granted by the Director of the Commission:
Township 5 North, Range 60 West, 6th P.M.
Sections 5, 6, 7, and 8: |
All |
Township 6 North, Range 60 West, 6th P.M.
Section 31: |
All |
Township 7 North, Range 60 West, 6th P.M.
Sections 20, 21, 22, and 28: |
All |
Township 9 North, Range 60 West, 6th P.M.
Section 17: |
All |
Township 8 North, Range 61 West, 6th P.M.
Section 27: |
All |
6. On May 3, 2011, Carrizo, by its attorney, 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. 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 gas, and will not violate correlative rights.
11. Carrizo 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 establishing eleven approximate 640-acre drilling and spacing units for certain lands located in Townships 5 through 9 North, Ranges 60 and 61 West, 6th P.M., and approve up to two horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that an eleven approximate 640-acre drilling and spacing units for the below-listed lands are established, and up to two horizontal wells within each unit are approved, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:
Township 5 North, Range 60 West, 6th P.M.
Sections 5, 6, 7, and 8: |
All |
Township 6 North, Range 60 West, 6th P.M.
Section 31: |
All |
Township 7 North, Range 60 West, 6th P.M.
Sections 20, 21, 22, and 28: |
All |
Township 9 North, Range 60 West, 6th P.M.
Section 17: |
All |
Township 8 North, Range 61 West, 6th P.M.
Section 27: |
All |
IT IS FURTHER ORDERED, that the treated interval of the wellbore shall be located no closer than 600 feet from the boundary of the unit without exception being granted by the Director of the Commission.
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 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.
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 23rd day of May, 2011, as of May 16, 2011.
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
May 23, 2011