BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF PRIMA EXPLORATION, INC. FOR AN ORDER TO
ESTABLISH AN APPROXIMATE 640-ACRE DRILLING AND SPACING UNIT AND APPROVE UP TO
EIGHT HORIZONTAL WELLS WITHIN THE UNIT, FOR SECTION 35, TOWNSHIP 7 NORTH, RANGE
60 WEST, 6TH P.M., FOR THE NIOBRARA FORMATION, UNNAMED FIELD, WELD
COUNTY, COLORADO |
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CAUSE NO. 535
DOCKET NO. 1305-SP-60
ORDER NO. 535-320
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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 establish an approximate 640-acre drilling and
spacing unit for Section 35, Township 7 North, Range 60 West, 6th
P.M., and approve up to eight horizontal wells within the unit, for the
production of oil, gas and associated hydrocarbons from the Niobrara Formation.
FINDINGS
The Commission finds as follows:
1.
Prima Exploration, Inc. (“Prima” 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.
Section 35, Township 7 North, Range 60 West, 6th P.M.
is subject to this Rule for the Niobrara Formation.
5.
On March 7, 2013, Prima, by its attorneys, filed with the Commission
pursuant to §34-60-116 C.R.S., a verified application (“Application”) for an
order to establish an approximate 640-acre drilling and spacing unit for the
below-described lands (“Application Lands”), and approve up to eight horizontal
wells within the 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 7 North, Range 60 West, 6th P.M.
Section 35:
All
6.
On April 24, 2013, Prima, 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 Homsher, Land Manager for Prima, showed that Prima owns substantial
leasehold interests in the Niobrara Formation underlying the Application Lands.
8.
Geologic testimony and exhibits submitted in support of the Application
by Tom Sperr, Petroleum Geologist for Prima, showed that the Niobrara Formation
underlying the Application Lands is approximately 300 feet thick and a common
source of supply and that the granting of the Application will not adversely
affect the correlative rights of adjacent mineral interest owners.
9.
Engineering testimony and exhibits submitted in support of the
Application by David Rhodes, Petroleum Engineer for Prima, showed that
authorizing up to eight horizontal wells within the Niobrara Formation
underlying the Application Lands will efficiently and economically drain the
reservoir and not adversely impact correlative rights while avoiding waste.
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.
Prima 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 an approximate 640-acre
drilling and spacing unit for Section 35, Township 7 North, Range 60 West, 6th
P.M., and approve up to eight horizontal wells within the unit, for the
production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that an approximate 640-acre drilling and spacing
unit for the below-described lands, is hereby established, and up to eight
horizontal wells within the 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 7 North, Range 60 West, 6th P.M.
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 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