BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE AMENDED APPLICATION OF WHITING OIL AND GAS
CORPORATION for an order TO APPROVE UP TO
A TOTAL OF 16 WELLS WITHIN EACH OF 21 approximate 640 to 960-acre drilling and
spacing units for various sections in township 10 north, RANGE 57 WEST, AND
TOWNSHIP 10 NORTH, RANGE 58 WEST, 6th P.M. for the niobrara
formation, unnamed field, Weld County, Colorado |
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CAUSE NO. 535
DOCKET NO. 1305-AW-20
ORDER NO. 535-314 |
REPORT OF THE COMMISSION
The Commission heard this matter on May 6, 2013, at the Weld County Southwest
Services Complex, 4209 Weld County Road 24 ½, Longmont, Colorado, upon
application for an order to approve up to a total of 16 horizontal wells within
each of 21 approximate 640 to 960-acre drilling and spacing units established
for various sections in Township 10 North, Range 57 West and Township 10 North,
Range 58 West, 6th P.M., 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.
On February 22, 2011, the Commission
entered Order No. 535-3 which established 160 approximate 640-acre drilling and
spacing units, and approved up to one horizontal well within each unit, for the
production of oil, gas and associated hydrocarbons from the Niobrara Formation. Sections 25-28 and 31-35, Township 10
North, Range 58 West, 6th P.M. are subject to this Order for the
Niobrara Formation.
6.
On August 8, 2011, the Commission entered Order No. 535-60 which
established three approximate 960-acre drilling and spacing units, and approved
up to four horizontal wells within each unit, for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation. Sections 7 and 18, Township 10 North,
Range 57 West, 6th P.M. are subject to this Order for the Niobrara
Formation.
7.
On March 5, 2012, the Commission entered Order No. 535-150 which
established three approximate 960-acre drilling and spacing units, and approved
up to four horizontal wells within each unit, for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation. Sections 2, 11, 14, 20 and 29,
Township 10 North, Range 58 West, 6th P.M. are subject to this Order
for the Niobrara Formation.
8.
On July 9, 2012, the Commission entered Order No. 535-178 which vacated
the 640-acre drilling and spacing units established by Order No. 535-5 in
Sections 26 through 28 and 31 through 35, Township 10 North, Range 58 West, 6th
P.M. are subject to this Order for the Niobrara Formation.
9.
On July 9, 2012, the Commission entered Order No. 535-178 which
established eight approximate 960-acre drilling and spacing units, and approved
up to four horizontal wells within each unit, for the production of oil, gas and
other associated hydrocarbons from the Niobrara Formation. Sections 21 through 23, 26 through
29, and 30 through 35, Township 10 North, Range 58 West, 6th P.M. are
subject to this Order for the Niobrara Formation.
10. On
July 9, 2012, the Commission entered Order No. 535-179 which established six
approximate 960-acre drilling and spacing units, and approved up to four
horizontal wells within each unit, for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation.
Sections 6, 7, 19, 20, 29 and 30, Township 10 North, Range 57 West, 6th
P.M., and Sections 1 and 12, Township 10 North, Range 58 West, 6th
P.M. are subject to this Order for the Niobrara Formation.
11. On
July 9, 2012, the Commission entered Order No. 535-180 which established an
approximate 640-acre drilling and spacing unit, and approved up to four
horizontal wells within the unit, for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation. Section 24, Township 10 North, Range
58 West, 6th P.M. is subject to this Order for the Niobrara
Formation.
12. On
October 1, 2012, the Commission entered Order No. 535-204 which established six
approximate 960-acre drilling and spacing units, and approved up to four
horizontal wells within each unit, for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation.
Sections 8, 17, 29 and 32, Township 10 North, Range 57 West, 6th
P.M. are subject to this Order for the Niobrara Formation.
13. On
March 25, 2013, the Commission entered Order No. 535-298 which established an
approximate 640-acre drilling and spacing unit, and approved up to four
horizontal wells within the unit, for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation.
Section 16, Township 10 North, Range 57 West, 6th P.M. is
subject to this Order for the Niobrara Formation.
14. On
March 25, 2013, the Commission entered Order No. 535-296 which approved up to
eight horizontal wells within each of 21 approximate 640 to 960-acre drilling
and spacing units, for the production of oil, gas and associated hydrocarbons
from the Niobrara Formation, with the treated interval of the wellbore to be no
closer than 200 feet from the treated interval of any other wellbore producing
from the Niobrara formation, and no closer than 100 feet from a unit boundary
unless such boundary abuts or corners lands for which the Commission has not at
the time of the drilling permit application granted the right to locate the
treated interval of the wellbore no closer than 100 feet from a unit boundary,
without exception being granted by the Director.
If the Commission has not at the time of the drilling permit application
granted to the owners of the adjacent or cornering lands the right to locate the
treated interval of the wellbore no closer than 100 feet from a unit boundary,
then the treated interval of the wellbore shall be located no closer than the
distance permitted in the adjacent or cornering lands. The below-described Application Lands
are subject to this Order for the Niobrara Formation.
15. On
March 8, 2013 (Amended April 3, 2013), Whiting, by its attorneys, filed with the
Commission pursuant to §34-60-116 C.R.S., a verified amended application
(“Amended Application”) for an order to approve up to a total of sixteen
horizontal wells within each of 21 approximate 640 to 960-acre drilling and
spacing units established for the below-described lands (“Application Lands”),
for the production of oil, gas and associated hydrocarbons from the Niobrara
Formation, with the same treated interval and unit
setbacks as approved in Order No. 535-296:
Township 10 North, Range 57 West, 6th P.M.
(DSU #1, 960-acre)
Section 6: All
(consisting of Lots 1, 2, 3, 4, 5, 6, 7, S½ NE¼, SW¼ NW¼,
E½ SW¼, SE¼)
Section 7:
N½
(consisting of Lots 1, 2, E½ NW¼, NE¼)
Township 10 North, Range 57 West, 6th P.M.
(DSU #2, 960-acre)
Section 7:
S½
(consisting of Lots 3, 4, E½ SW¼, SE¼)
Section 18:
All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
Township 10 North, Range 57 West, 6th P.M.
(DSU #3, 960-acre)
Section 19:
All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
Section 30:
N½
(consisting of
Lots 1, 2, E½ NW¼, NE¼)
Township 10 North, Range 57 West, 6th P.M.
(DSU #4, 960-acre)
Section 8:
S½
Section 17:
All
Township 10 North, Range 57 West, 6th P.M.
(DSU #5, 640-acre)
Section 16:
All
Township 10 North, Range 57 West, 6th P.M.
(DSU #6, 960-acre)
Section 20: All
Section 29:
N½
Township 10 North, Range 57 West, 6th P.M.
(DSU #7, 960-acre)
Section 29:
S½
Section 32:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #8, 960-acre)
Section 1:
All
(consisting of Lots 1, 2, 3, 4, S½ N½, S½)
Section 12:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #9, 960-acre)
Section 2:
All
(consisting of Lots 1, 2, 3, 4, S½ N½, S½)
Section 11:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #10, 960-acre)
Section 11:
S½
Section 14:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #11, 960-acre)
Section 20:
All
Section 29:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #12, 960-acre)
Section 21:
All
Section 28:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #13, 960-acre)
Section 22:
All
Section 27:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #14, 960-acre)
Section 23:
All
Section 26:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #15, 640-acre)
Section 24:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #16, 640-acre)
Section 25:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #17, 960-acre)
Section 26:
S½
Section 35:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #18, 960-acre)
Section 27:
S½
Section 34:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #19, 960-acre)
Section 28:
S½
Section 33:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #20, 960-acre)
Section 29:
S½
Section 32:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #21, 960-acre)
Section 30:
S½
(consisting of
Lots 3, 4, E½ SW¼, SE¼)
Section 31:
All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
16. On
April 23, 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.
17.
Land testimony and exhibits submitted in support of the Application by
Scott McDaniel, Regional Land Manager for Whiting, showed that Whiting owns
significant leasehold interests in the Application Lands, and that all of the
unleased mineral interest owners and mineral lessees within the Application
Lands and lands which are contiguous or corner to the Application Lands received
notice of this Application.
18.
Geologic testimony and exhibits submitted in support of the Application by John
R. Forster, Regional Geologic Manager for Whiting, showed the gross thickness of
the Niobrara Formation under the Application Lands ranges from 300-360 feet, and
averages 328 feet across the Application Lands. Testimony further showed the
Niobrara Formation is present and continuous throughout the Application Lands
and constitutes a common source of supply.
19.
Engineering testimony and exhibits submitted in support of the Application by
Ralph L. Nelms, Senior Reservoir Engineer for Whiting, included a rate transient
analysis (RTA), data from downhole pressure gauge responses, and volumetric and
economic analysis supporting horizontal wellbore density of up to 16 wells per
640 to 960-acre unit. Further
testimony concluded the economics of the project are sound.
20. 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.
21.
Whiting agreed to be bound by oral order of the Commission.
22.
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 approve up to a total of 16
horizontal wells within each of 21 approximate 640 to 960-acre drilling and
spacing units established for various sections in Township 10 North, Range 57
West and Township 10 North, Range 58 West, 6th P.M., for the
production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that up to a total of 16 horizontal wells within
each of 21 approximate 640 to 960-acre drilling and spacing units established
for the below-described lands (“Application Lands”), 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 no closer than 200
feet from the treated interval of any other wellbore producing from the Niobrara
formation, and no closer than 100 feet from a unit boundary unless such boundary
abuts or corners lands for which the Commission has not at the time of the
drilling permit application granted the right to locate the treated interval of
the wellbore no closer than 100 feet from a unit boundary, without exception
being granted by the Director. If
the Commission has not at the time of the drilling permit application granted to
the owners of the adjacent or cornering lands the right to locate the treated
interval of the wellbore no closer than 100 feet from a unit boundary, then the
treated interval of the wellbore shall be located no closer than the distance
permitted in the adjacent or cornering lands:
Township 10 North, Range 57 West, 6th P.M.
(DSU #1, 960-acre)
Section 6: All
(consisting of Lots 1, 2, 3, 4, 5, 6, 7, S½ NE¼, SW¼ NW¼,
E½ SW¼, SE¼)
Section 7:
N½
(consisting of Lots 1, 2, E½ NW¼, NE¼)
Township 10 North, Range 57 West, 6th P.M.
(DSU #2, 960-acre)
Section 7:
S½
(consisting of Lots 3, 4, E½ SW¼, SE¼)
Section 18:
All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
Township 10 North, Range 57 West, 6th P.M.
(DSU #3, 960-acre)
Section 19:
All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
Section 30:
N½
(consisting of
Lots 1, 2, E½ NW¼, NE¼)
Township 10 North, Range 57 West, 6th P.M.
(DSU #4, 960-acre)
Section 8:
S½
Section 17:
All
Township 10 North, Range 57 West, 6th P.M.
(DSU #5, 640-acre)
Section 16:
All
Township 10 North, Range 57 West, 6th P.M.
(DSU #6, 960-acre)
Section 20: All
Section 29:
N½
Township 10 North, Range 57 West, 6th P.M.
(DSU #7, 960-acre)
Section 29:
S½
Section 32:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #8, 960-acre)
Section 1:
All
(consisting of Lots 1, 2, 3, 4, S½ N½, S½)
Section 12:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #9, 960-acre)
Section 2:
All
(consisting of Lots 1, 2, 3, 4, S½ N½, S½)
Section 11:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #10, 960-acre)
Section 11:
S½
Section 14:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #11, 960-acre)
Section 20:
All
Section 29:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #12, 960-acre)
Section 21:
All
Section 28:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #13, 960-acre)
Section 22:
All
Section 27:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #14, 960-acre)
Section 23:
All
Section 26:
N½
Township 10 North, Range 58 West, 6th P.M.
(DSU #15, 640-acre)
Section 24:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #16, 640-acre)
Section 25:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #17, 960-acre)
Section 26:
S½
Section 35:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #18, 960-acre)
Section 27:
S½
Section 34:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #19, 960-acre)
Section 28:
S½
Section 33:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #20, 960-acre)
Section 29:
S½
Section 32:
All
Township 10 North, Range 58 West, 6th P.M.
(DSU #21, 960-acre)
Section 30:
S½
(consisting of
Lots 3, 4, E½ SW¼, SE¼)
Section 31: All
(consisting of Lots 1, 2, 3, 4, E½ W½, E½)
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 Procedures 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 May, 2013, as of May 6, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary