BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF WHITING OIL AND GAS CORPORATION FOR AN ORDER
TO ESTABLISH TWELVE APPROXIMATE 960-ACRE DRILLING AND SPACING UNITS AND APPROVE
UP TO FOUR HORIZONTAL WELLS WITHIN EACH UNIT FOR SECTIONS 1-3, 6-7, 9-14, 16,
18, 21, 23-26, 28, AND 35, TOWNSHIP 11 NORTH, RANGE 57 WEST, 6TH P.M.
FOR THE NIOBRARA FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 535
DOCKET NO. 1302-SP-20
ORDER NO. 535-267 |
REPORT OF THE COMMISSION
The Commission heard this matter on February 11, 2013, at the offices of the
Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801,
Denver, Colorado, upon application for an order to
establish twelve approximate 960-acre
drilling and spacing units for Sections 1-3, 6-7, 9-14, 16, 18, 21, 23-26, 28,
and 35, Township 11 North, Range 57 West, 6th P.M. and approve up to
four 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.
Whiting Oil and Gas Corporation (“Whiting” 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. Sections 1-3, 6-7, 9-14, 16, 18, 21,
23-26, 28, and 35, Township 11 North, Range 57 West, 6th P.M. are
subject to Rule 318.a. for the Niobrara Formation.
5.
On December 13, 2012, Whiting, by its attorneys, filed with the
Commission pursuant to §34-60-116 C.R.S., a verified application (“Application”)
for an order to establish 12 approximate 960-acre drilling and spacing units for
the below-described lands (“Application Lands”), and approve up to four
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 unit boundaries, and no
closer than 150 feet from the treated interval of any other wellbore located in
the unit, without exception being granted by the Director:
Township 11 North, Range 57 West, 6th P.M.
(DSU #1)
Section 1:
All (comprised of
Lots 1, 2, 3, 4, S½ N½, S½)
Section 12:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #2)
Section 2:
All (comprised of Lots 1, 2, 3, 4, S½ N½, S½)
Section 11:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #3)
Section 3:
All (comprised of Lots 1, 2, 3, 4, S½ N½, S½)
Section 10:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #4)
Section 6:
All (comprised of Lots 1, 2, 3, 4, 5, 6, 7, SE¼ NW¼, S½ NE¼, E½ SW¼, SE¼)
Section 7:
N½ (comprised of Lots 1, 2, E½ NW¼, NE¼)
Township 11 North, Range 57 West, 6th P.M.
(DSU #5)
Section 12:
S½
Section 13:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #6)
Section 11:
S½
Section 14:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #7)
Section 9:
S½
Section 16:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #8)
Section 7:
S½ (comprised of Lots 3, 4, E½ SW¼, SE¼)
Section 18:
All (comprised of Lots
1, 2, 3, 4, E½ W½, E½)
Township 11 North, Range 57 West, 6th P.M.
(DSU #9)
Section 21:
All
Section 28:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #10)
Section 23:
All
Section 26:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #11)
Section 24:
All
Section 25:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #12)
Section 26:
S½
Section 35:
All
Applicant requests that the surface location of the permitted wells be located
anywhere on the surface within the proposed unit.
6.
On January 29, 2013, Whiting, 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
Scott McDaniel, Regional Land Manager for Whiting, showed that Whiting owns a
significant leasehold in the Application Lands.
8.
Geologic testimony and exhibits submitted in support of the Application
by Mark K. Odegard, Senior Geologist for Whiting, showed the gross thickness of
the Niobrara Formation under the Application Lands ranges from 280-370 feet
thick, and averages 300 feet across the Application Lands.
Across the Application lands, the
Niobrara generally dips down to the west at approximately 40 – 60 feet per mile.
Testimony further showed the Niobrara Formation is present and continuous
throughout the Application Lands and shares a common source of supply.
9.
Engineering testimony and exhibits submitted in support of the
Application by Ralph L. Nelms, Senior Reservoir Engineer for Whiting, showed
estimated ultimate recovery (“EUR”) from the Niobrara Formation to be 378,203
stock tank barrels (“STB”) per horizontal well for a total of 1,512,810 STB. Additional testimony estimated a
recovery factor of 5.0% from the Niobrara Formation. The drainage area for each of the
four horizontal wells is 240 acres per well. Further
testimony concluded the economics of the project were sound.
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.
Whiting 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 12 approximate 960-acre drilling and spacing unit for Sections 1-3,
6-7, 9-14, 16, 18, 21, 23-26, 28, and 35, Township 11 North, Range 57 West, 6th
P.M. and approve up to four 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 12
approximate 960-acre drilling and spacing units for the below-described lands,
is hereby established, and up to four
horizontal wells within each unit, are hereby approved, 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 unit boundaries, and no closer than 150 feet from the treated interval of
any other wellbore located in the unit, without exception being granted by the
Director:
Township 11 North, Range 57 West, 6th P.M.
(DSU #1)
Section 1:
All (comprised of
Lots 1, 2, 3, 4, S½ N½, S½)
Section 12:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #2)
Section 2:
All (comprised of Lots 1, 2, 3, 4, S½ N½, S½)
Section 11:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #3)
Section 3:
All (comprised of Lots 1, 2, 3, 4, S½ N½, S½)
Section 10:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #4)
Section 6:
All (comprised of Lots 1, 2, 3, 4, 5, 6, 7, SE¼ NW¼, S½ NE¼, E½ SW¼, SE¼)
Section 7:
N½ (comprised of Lots 1, 2, E½ NW¼, NE¼)
Township 11 North, Range 57 West, 6th P.M.
(DSU #5)
Section 12:
S½
Section 13:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #6)
Section 11:
S½
Section 14:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #7)
Section 9:
S½
Section 16:
All
Township 11 North, Range 57 West, 6th P.M.
(DSU #8)
Section 7:
S½ (comprised of Lots 3, 4, E½ SW¼, SE¼)
Section 18:
All (comprised of Lots
1, 2, 3, 4, E½ W½, E½)
Township 11 North, Range 57 West, 6th P.M.
(DSU #9)
Section 21:
All
Section 28:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #10)
Section 23:
All
Section 26:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #11)
Section 24:
All
Section 25:
N½
Township 11 North, Range 57 West, 6th P.M.
(DSU #12)
Section 26:
S½
Section 35:
All
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 _____ day of February, 2013, as of February 11, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary