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 FOR THE NIOBRARA FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 535
DOCKET NO. 1404-SP-2034
ORDER NO. 535-476 |
REPORT OF THE COMMISSION
The Commission heard this matter on April 28, 2014, at the offices of the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver, Colorado, upon application for an order to: 1) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-102 for Section 32, Township 11 North, Range 57 West, 6th P.M., 2) vacate two approximate 960-acre drilling and spacing units established by Order No. 535-267 for Sections 18, 21, and 28, Township 11 North, Range 57 West, 6th P.M.; 3) vacate two approximate 640-acre drilling and spacing units established by Order No. 535-269 for Sections 27 and 34, Township 11 North, Range 57 West, 6th P.M; 4) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-326 for Section 31, Township 11 North, Range 57 West, 6th P.M.; 5) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-355 for Section 9, Township 10 North, Range 57 West, 6th P.M.; 6) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-370 for Section 31,Township 11 North, Range 57 West, 6th P.M.; 7) approve an additional three horizontal wells, for a total of up to 16 horizontal wells, within an approximate 640-acre drilling and spacing unit established for the Application Lands in DSU#1; and 8) establish 11 approximate 960- to 1280-acre drilling and spacing units, and approve up to 16 wells within DSU #2, DSU #5, DSU #7, DSU #8 and DSU #9, and up to 15 horizontal wells in DSU #3, DSU #4, DSU #6, DSU #10, DSU #11 and DSU #12; 9) for the production of oil, gas and associated hydrocarbons for all proposed units from the Niobrara Formation, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit.
FINDINGS
The Commission finds as follows:
1. Carrizo Oil and 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. Section 4, Township 10 North, Range 57 West, 6th P.M., (DSU#2), Sections 17 (DSU#5), 19 (DSU#6), 20 (DSU#6 and #7), 29 (DSU#8 and #9), 30 (DSU#8), and 33 (DSU#11), Township 11 North, Range 57 West, 6th P.M., and Sections 13 (DSU#4), 24 (DSU#3), and the N˝ of 25 (DSU#3), Township 11 North, Range 58 West, 6th P.M. are subject to Rule 318.a. for the Niobrara Formation.
5. On December 12, 2011, the Commission entered Order No. 535-102 which, among other things, established three approximate 640-acre drilling and spacing units for certain lands and approved up to two horizontal wells within each unit, with the productive interval of the wellbores to be located no closer than 600 feet from the boundaries of the unit, and no closer than 1,200 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 32, Township 11 North, Range 57 West, 6th P.M. (DSU#10 and DSU#11) is subject to this Order for the Niobrara Formation.
6. On July 9, 2012, the Commission entered Order No. 535-179 which, among other things, established six approximate 960-acre drilling and spacing units, and approved up to four horizontal wells within each unit, with the productive interval of the wellbores to be located no closer than 600 feet from the boundaries of the unit, and no closer than 1,200 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 5, Township 10 North, Range 57 West, 6th P.M. (DSU#1) is subject to this Order for the Niobrara Formation.
7. On February 11, 2013, the Commission entered Order No. 535-267 which, among other things, established 12 approximate 960-acre drilling and spacing units for various sections in Township 11 North, Range 57 West, 6th P.M., and approved up to four horizontal wells within each unit, the productive interval of the wellbore to be located no closer than 600 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Sections 18 (DSU#4), 21 (DSU#7), and 28 (DSU#9), Township 11 North, Range 57 West, 6th P.M. are subject to this Order for the Niobrara Formation.
8. On February 11, 2013, the Commission entered Order No. 535-269 which, among other things, established two approximate 640-acre drilling and spacing units for certain lands, and approved up to four horizontal wells within each unit, with the productive interval of the wellbores to be located no closer than 600 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Sections 27 and 34, Township 11 North, Range 57 West, 6th P.M. (DSU#12) are subject to this Order for the Niobrara Formation.
9. On March 25, 2013, the Commission entered Order No. 535-280 which, among other things, approved up to six horizontal wells within various approximate 640-acre exploratory drilling and spacing units, with the productive interval of the wellbore to be located no closer than 600 feet from the unit boundaries, and no closer than 600 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 5, Township 10 North, Range 57 West, 6th P.M. (DSU#1) is subject to this Order for the Niobrara Formation.
10. On March 25, 2013, the Commission entered Order No. 535-284 which, among other things, established an approximate 640-acre drilling and spacing unit and approved one horizontal well within the unit, with the productive interval of the wellbore to be located no closer than 600 feet from the unit boundaries, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 5, Township 10 North, Range 57 West, 6th P.M. (DSU#1) is subject to this Order for the Niobrara Formation.
11. On March 25, 2013, the Commission entered Order No. 535-289 which, among other things, pooled all interests within four approximate 640-acre drilling and spacing units for the development and operation of the Niobrara Formation. Section 5, Township 10 North, Range 57 West, 6th P.M. (DSU#1) is subject to this Order for the Niobrara Formation.
12. On May 6, 2013, the Commission entered Order No. 535-326 which, among other things, established an approximate 640-acre drilling and spacing unit and approved up to six horizontal wells within the unit, with the productive interval of the horizontal wellbore to be no closer than 600 feet from the unit boundaries, and no closer than 600 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 31, Township 11 North, Range 57 West, 6th P.M. (DSU#10) is subject to this Order for the Niobrara Formation.
13. On June 17, 2013, the Commission entered Order No. 535-338 which, among other things, approved up to thirteen horizontal wells within an approximate 640-acre drilling and spacing unit, with the productive interval of the horizontal wellbore to be no closer than 600 feet from the unit boundaries, and no closer than 300 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 5, Township 10 North, Range 57 West, 6th P.M. (DSU#1) is subject to this Order for the Niobrara Formation.
14. On June 17, 2013, the Commission entered Order No. 535-355 which, among other things, approved an approximate 640-acre drilling and spacing unit and approve up to thirteen horizontal wells within the unit, with the productive interval of the horizontal wellbore to be no closer than 600 feet from the unit boundaries, and no closer than 300 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 9, Township 10 North, Range 57 West, 6th P.M. (DSU#2) is subject to this Order for the Niobrara Formation.
15. On July 29, 2013, the Commission entered Order No. 535-370 which, among other things, approved up to thirteen horizontal wells within an established approximate 640-acre drilling and spacing unit, with the productive interval of the horizontal wellbore to be no closer than 600 feet from the unit boundaries, and no closer than 300 feet from the productive interval of any other wellbore located in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 31, Township 11 North, Range 57 West, 6th P.M. (DSU#10) is subject to this Order for the Niobrara Formation.
16. On February 26, 2014, Carrizo, 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 an approximate 640-acre drilling and spacing unit established by Order No. 535-102 for Section 32, Township 11 North, Range 57 West, 6th P.M., 2) vacate two approximate 960-acre drilling and spacing units established by Order No. 535-267 for Sections 18, 21, and 28, Township 11 North, Range 57 West, 6th P.M.; 3) vacate two approximate 640-acre drilling and spacing units established by Order No. 535-269 for Sections 27 and 34, Township 11 North, Range 57 West, 6th P.M; 4) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-326 for Section 31, Township 11 North, Range 57 West, 6th P.M.; 5) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-355 for Section 9, Township 10 North, Range 57 West, 6th P.M.; 6) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-370 for Section 31,Township 11 North, Range 57 West, 6th P.M.; 7) approve an additional three horizontal wells, for a total of up to 16 horizontal wells, within an approximate 640-acre drilling and spacing unit established for the below-described lands (“Application Lands”) in DSU#1, with the productive interval of the wellbore no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit; and 8) establish 11 approximate 960- to 1280-acre drilling and spacing units for the Application Lands in DSU #2 – DSU#12, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, and approve up to 16 wells within each unit, with the productive interval of the wellbore no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit, without exception being granted by the Director:
Township 10 North, Range 57 West, 6th P.M.
Section 5: All (“DSU#1” – 640 acre unit).
Township 10 North, Range 57 West, 6th P.M.
Section 4: All
Section 9: All (“DSU#2” – 1,280 acre unit)
Township 11 North, Range 58 West, 6 th P.M.
Section 24: All
Section 25: N ˝ (“DSU#3” – 960 acre unit)
Township 11 North, Range 58 West, 6 th P.M.
Section 13: All
Township 11 North, Range 57 West, 6 th P.M.
Section 18: All (“DSU#4: – 1280 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 8: S˝ (“DSU#5” – 960 acre unit)
Section 17: All
Township 11 North, Range 57 West, 6 th P.M.
Section 19: All
Section 20: W˝ (“DSU#6” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 20: E˝
Section 21: All (“DSU#7” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 30: All
Section 29: W˝ (“DSU#8” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 29: E˝
Section 28: All (“DSU#9” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 31: All
Section 32: W˝ (“DSU#10” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 32: E˝
Section 33: All (“DSU#11” – 960 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 27: All
Section 34: All (“DSU#12” – 1,280 acre unit).
Applicant further stated that the proposed wells shall be located from no more than one wellpad per quarter section, unless an exception is granted by the Director.
17. On April 14, 2014, the Bureau of Land Management (“BLM”) filed a Protest to the Application (“Protest”), alleging that the request for 300-foot setbacks along exterior unit boundaries would negatively impact the BLM’s correlative rights in lands adjacent to the proposed unit, and that the request for reduced setbacks was unsupported by the submitted testimony. The BLM also alleged that federal communitization agreements had not been established for certain of Carrizo’s proposed drilling and spacing units that contain leased and/or unleased Federal mineral estate.
18. On April 15, 2014, Carrizo withdrew its requests for 300-foot unit boundary setbacks on and requested 600-foot unit boundary setbacks in the DSUs and corresponding section lines described below.
19. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#1:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the north line of Section 5, Township 11 North, Range 57 West, 6th P.M. which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
20. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#3:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the south line of the N/2 of Section 25, Township 11 North, Range 58 West, and along the east line of Section 24 and the N/2 of the east line of Section 25, Township 11 North, Range 58 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
21. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#4:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the west line of Section 13, Township 11 North, Range 58 West, 6th P.M. and the south lines of both Section 13, Township 11 North, Range 8 West, 6th P.M. and Section 18, Township 11 North, Range 57 West, 6th P.M.; without exception being granted by the Director.”
22. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#5:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along north line of the S/2 of Section 8, Township 11 North, Range 57 West 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
23. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#6:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along north line of Section 19 and the north line of the W/2 of Section 20, Township 11 North, Range 57 West 6th P.M. and the east line of the W/2 of Section 20, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
24. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#7:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the west line of the E/2 of Section 20, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
25. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#8:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the west line of Section 30, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
26. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#10:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the south line of Section 31 and the south line of the W/2 of Section 32, Township 11 North, Range 57 West, 6th P.M, which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
27. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#11:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the south line of the E/2 of Section 32 and the south line of Section 33, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
28. On April 16, 2014, Carrizo and the BLM agreed to the following language with regard to exterior boundary setbacks in DSU#12:
“with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the east line of both Section 27 and Section 34, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director.”
29. On April 16, 2014, Carrizo also agreed submit a Communitization Agreement to the BLM for the drilled O’Hare 1-5-10-57 Well (API No. 05-123-36578) within 60 days of the entry of this Order. Carrizo also agreed to submit a CA to the BLM within 90 days of the spud of the first well in a DSU that contains leased and/or unleased Federal minerals. DSU#1, DSU#2, and DSU#6 through DSU#12 each contain leased and/or unleased Federal minerals.
30. On April 17, 2014 BLM withdrew its Protest to the Application.
31. On April 17, 2014, Carrizo, 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.
32. Land testimony and exhibits submitted in support of the Application by Craig E. Wiest, Land Manager for Applicant showed that the Applicant is an owner with the right to drill wells in the Application Lands.
33. Geologic testimony and exhibits submitted in support of the Application by Paul Fears, Geologist for Applicant, showed that the Niobrara Formation underlies the Application Lands. An isopach map of the interval from the top of the Niobrara Formation to the top of the Codell Formation showed the total thickness of the Niobrara averages approximately 350 feet. A type log of the Niobrara Formation showed resistivity and density values similar to logs from analogous wells producing from the Niobrara Formation. Stratigraphic cross-sections and gross thickness isopach tests show the Niobrara to be consistent, continuous, and underlying all the Application Lands.
34. Engineering testimony and exhibits submitted in support of the Application by Stephen C. Peters, Reservoir Engineering Manager for Carrizo, showed that using reservoir properties determined from performance of actual wells drilled by Carrizo as a basis for modeling, analog development scenarios resulted in efficient drainage of an area of approximately 32 acres per wellbore. This 32 acres is the approximate area per wellbore that would result from 16 wellbores within a 640-acre unit with 300 feet offset from unit and interwell boundaries. It was also shown that similar drainage efficiencies are anticipated from the area within the 12 proposed DSU’s, said area per wellbore ranging from 30 to 69 acres depending on wellbore lateral length. Testimony also showed that the modeled production anticipated to be recovered by each well indicated sound economics and would therefore serve to protect correlative rights and avoid waste.
35. Engineering testimony further showed that applying reasonable resource recovery and price projections to the Application wells generates a positive rate of return sufficient for economic investment.
36. 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.
37. Applicant agreed to be bound by oral order of the Commission.
38. 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 an approximate 640-acre drilling and spacing unit established by Order No. 535-102 for Section 32, Township 11 North, Range 57 West, 6th P.M., 2) vacate two approximate 960-acre drilling and spacing units established by Order No. 535-267 for Sections 18, 21, and 28, Township 11 North, Range 57 West, 6th P.M.; 3) vacate two approximate 640-acre drilling and spacing units established by Order No. 535-269 for Sections 27 and 34, Township 11 North, Range 57 West, 6th P.M; 4) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-326 for Section 31, Township 11 North, Range 57 West, 6th P.M.; 5) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-355 for Section 9, Township 10 North, Range 57 West, 6th P.M.; 6) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-370 for Section 31,Township 11 North, Range 57 West, 6th P.M.; 7) approve an additional three horizontal wells, for a total of up to 16 horizontal wells, within an approximate 640-acre drilling and spacing unit established for the Application Lands in DSU#1; and 8) establish 11 approximate 960- to 1280-acre drilling and spacing units, and approve up to 16 wells within DSU #2, DSU #5, DSU #7, DSU #8 and DSU #9, and up to 15 horizontal wells in DSU #3, DSU #4, DSU #6, DSU #10, DSU #11 and DSU #12; 9) for the production of oil, gas and associated hydrocarbons for all proposed units from the Niobrara Formation, with the productive interval of the wellbore no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 640-acre drilling and spacing unit established by Order No. 535-102 for Section 32, Township 11 North, Range 57 West, 6th P.M. is hereby vacated.
2. Two approximate 960-acre drilling and spacing units established by Order No. 535-267 for Sections 18, 21, and 28, Township 11 North, Range 57 West, 6th P.M. are hereby vacated.
3. Two approximate 640-acre drilling and spacing units established by Order No. 535-269 for Sections 27 and 34, Township 11 North, Range 57 West, 6th P.M. are hereby vacated.
4. An approximate 640-acre drilling and spacing unit established by Order No. 535-326 for Section 31, Township 11 North, Range 57 West, 6th P.M. is hereby vacated.
5. An approximate 640-acre drilling and spacing unit established by Order No. 535-355 for Section 9, Township 10 North, Range 57 West, 6th P.M. is hereby vacated.
6. An approximate 640-acre drilling and spacing unit established by Order No. 535-370 for Section 31,Township 11 North, Range 57 West, 6th P.M. is hereby vacated.
7. An additional three horizontal wells, for a total of up to 16 horizontal wells, within an approximate 640-acre drilling and spacing unit established for the below-described lands (“Application Lands”) in DSU#1, are hereby approved, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation:
Township 10 North, Range 57 West, 6th P.M.
Section 5: All (“DSU#1” – 640 acre unit).
8. The productive interval of the wellbore shall be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit, without exception being granted by the Director:
9. An approximate 1,280 and an approximate 960-acre drilling and spacing unit for the below-described lands, are hereby established, with up to 16 horizontal wells authorized in each drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, without exception being granted by the Director:
Township 10 North, Range 57 West, 6th P.M.
Section 4: All
Section 9: All (“DSU#2” - 1,280 acre unit)
Township 11 North, Range 57 West, 6 th P.M.
Section 29: E˝
Section 28: All (“DSU#9” – 960 acre unit).
10. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior boundaries of the unit, except along the south line of the N˝ of Section 25, Township 11 North, Range 58 West, 6th P.M. and the east line of Section 24 and the N˝ of the east line of Section 25, Township 11 North, Range 58 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 58 West, 6 th P.M.
Section 24: All
Section 25: N˝ (“DSU#3” – 960 acre unit).
11. An approximate 1,280-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the west line of Section 13, Township 11 North, Range 58 West, 6th P.M. and the south lines of both Section 13, Township 11 North, Range 58 West, 6th P.M. and Section 18, Township 11 North, Range 57 West, 6th P.M.; without exception being granted by the Director:
Township 11 North, Range 58 West, 6 th P.M.
Section 13: All
Township 11 North, Range 57 West, 6 th P.M.
Section 18: All (“DSU#4”: - 1280 acre unit)
12. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 16 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the north line of the S˝ of Section 8, Township 11 North, Range 57 West 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 8: S˝
Section 17: All (“DSU#5” – 960 acre unit)
13. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along north line of Section 19 and the north line of the W˝ of Section 20, Township 11 North, Range 57 West 6th P.M., and the east line of the W˝ of Section 20, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 19: All
Section 20: W˝ (“DSU#6” – 960 acre unit)
14. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 16 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the west line of the E˝ of Section 20, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 20: E˝
Section 21: All (“DSU#7” – 960 acre unit)
15. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 16 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the west line of Section 30, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 30: All
Section 29: W˝ (“DSU#8” – 960 acre unit)
16. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the south line of Section 31 and the south line of the W˝ of Section 32, Township 11 North, Range 57 West, 6th P.M, which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 31: All
Section 32: W˝ (“DSU#10” – 960 acre unit)
17. An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except along the south line of the E˝ of Section 32 and the south line of Section 33, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 32: E˝
Section 33: All (“DSU#11” – 960 acre unit)
18. An approximate 1,280-acre drilling and spacing unit for the below-described lands, is hereby established, with up to 15 horizontal wells authorized in the drilling and spacing unit, with the intrawell distance to be no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the exterior unit boundaries, except the east line of both Section 27 and Section 34, Township 11 North, Range 57 West, 6th P.M., which shall be no closer than 600 feet from the exterior unit boundary, without exception being granted by the Director:
Township 11 North, Range 57 West, 6 th P.M.
Section 27: All
Section 34: All (“DSU#12” – 1,280 acre unit).
19. The proposed wells shall be located from no more than one wellpad per quarter section within the drilling and spacing unit.
IT IS FURTHER ORDERED:
1. The provisions contained in the above order shall become effective immediately.
2. The Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
3. Under the State Administrative Procedure Act the Commission considers this Order to be final agency action for purposes of judicial review within 35 days after the date this Order is mailed by the Commission.
4. 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, 2014, as of April 28, 2014.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary