BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF NOBLE ENERGY, INC. FOR AN ORDER TO VACATE
TWO APPROXIMATE 640-ACRE DRILLING AND SPACING UNITS ESTABLISHED BY ORDER 535-3,
AND ESTABLISH AN APPROXIMATE 1280-ACRE DRILLING AND SPACING UNIT FOR SECTIONS 5
AND 6, TOWNSHIP 9 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-SP-80
ORDER 535-335 |
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: 1) vacate two
approximate 640-acre drilling and spacing units established by Order No. 535-3
for Sections 5 and 6, Township 9 North, Range 58 West, 6th P.M.;
and 2) establish an approximate 1280-acre
drilling and spacing unit for Sections 5 and 6, Township 9 North, Range 58 West,
6th P.M., and approve one horizontal well within the unit, for
the production of oil, gas and associated hydrocarbons from the Niobrara
Formation.
FINDINGS
The Commission finds as follows:
1.
Noble Energy, LLC (“Noble” 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, among
other things, established 160 approximate 640-acre drilling and spacing units,
and approved one horizontal well within each unit, for the production of oil,
gas and associated hydrocarbons from the Niobrara Formation.
Sections 5 and 6, Township 9 North, Range 58 West, 6th P.M. are
subject to this Order for the Niobrara Formation.
5.
On April 3, 2013, Noble, by its attorneys, filed with the Commission
pursuant to §34-60-116 C.R.S., a verified application (“Application”) for
an order to: 1) vacate two approximate
640-acre drilling and spacing units established by Order No. 535-3 for the
below-described lands (“Application Lands”); and 2) establish an approximate 1280-acre drilling
and spacing unit for the below-described Application Lands, and approve
one horizontal well 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,
without exception being granted by the Director:
Township 9 North, Range 58 West, 6th P.M.
Section 5:
All
Section 6:
All
6.
On April 12, 2013, Noble, 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
Joseph H. Lorenzo, Senior Land Manager for Noble, showed that the surface of the
Application Lands is comprised of fee ownership, the mineral ownership of the
Application Lands is comprised of fee, and that Noble owns a partial leasehold
ownership interest in the Application Lands.
8.
Geologic testimony and exhibits submitted in support of the Application
by Alicia Branch, Senior Geologist for Noble showed an analysis of
cross-sections from nearby Niobrara Formation type wells, demonstrating the
Niobrara Formation underlies, and is generally of uniform thickness (260 Feet)
throughout the Application Lands.
9.
Engineering testimony and exhibits submitted in support of the
Application by Chandler Newhall, Senior Production Engineer for Noble, showed a
single horizontal well would have a recovery factor of .30%, with an estimated
ultimate recovery (“EUR”) of 276,000 barrels of oil and 414,000 MCF of gas.
Testimony concluded the use of horizontal well technology would significantly
increase recovery from the reservoir and thereby prevent waste, minimize surface
disturbance, and protect correlative rights.
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.
Noble 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: 1) vacate two approximate 640-acre drilling and spacing units established by
Order No. 535-3 for Sections 5 and 6, Township 9 North, Range 58 West, 6th
P.M.; and 2) establish an approximate
1280-acre drilling and spacing unit for Sections 5 and 6, Township 9 North,
Range 58 West, 6th P.M., and approve one horizontal well
within the unit, for the production of oil, gas and associated hydrocarbons from
the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that two
approximate 640-acre drilling and spacing units established by Order No. 535-3
for Sections 5 and 6, Township 9 North, Range 58 West, 6th P.M., are
hereby vacated.
IT IS FURTHER ORDERED, that an approximate
1280-acre drilling and spacing unit for the below-described lands, is
hereby established, and one horizontal well within the unit, is 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, without exception being granted by the
Director:
Township 9 North, Range 58 West, 6th P.M.
Section 5:
All
Section 6:
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