BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE CODELL FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 535
DOCKET NO. 1409-SP-2124
ORDER NO. 535-541 |
REPORT OF THE COMMISSION
The Commission heard this matter on September 15, 2014, at the offices of the Colorado Oil and Gas Conservation Commission, 1120 Lincoln St., Suite 801, Denver, CO, upon application for an order to establish an approximate 1,296-acre drilling and spacing unit for Sections 13, 24, and 25, Township 12 North, Range 66 West, 6th P.M., and approve up to four horizontal wells within the unit, the production of oil, gas, and associated hydrocarbons from the Codell Formation.
FINDINGS
The Commission finds as follows:
1. Cirque Resources LP (“Cirque” 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, on unspaced lands, 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 13, 24, and 25, Township 12 North, Range 66 West, 6th P.M. are subject to Rule 318.a. for the Codell Formation.
5. On July 17, 2014, Cirque, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116 C.R.S. for an order to establish an approximate 1,296-acre drilling and spacing unit for the below-described lands (“Application Lands”) and to approve up to four horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell Formation, with the productive interval of the wellbore to be located no closer than 300 feet from the unit boundaries, and no closer than 660 feet from the productive interval of any other wellbore located in the unit, without exception being granted by the Director:
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Township 12 North, Range 66
West, 6th P.M. (portions
lying within Colorado) |
6. On September 2, 2014, Cirque, 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 William R. Givan, Regional Land Manager for Cirque, showed that Cirque holds oil and gas leasehold interests and has a right to drill in the Application Lands.
8. Geologic testimony and exhibits submitted in support of the Application by Robert H. Sterling, Senior Geologist for Cirque, showed that the Codell Formation is underlying the entirety of the Application Lands and ranges from approximately 18 to 19 feet thick. Further testimony showed the Codell Formation is a series of siltstones and sandstones deposited in the Western Interior Seaway and is a common source of supply.
9. Engineering testimony and exhibits submitted in support of the Application by Barry Voigt, Reservoir Engineer for Cirque, showed that the estimated drainage area for analog horizontal Codell wells are estimated at 291 acres, and 1,280-acre drilling and spacing unit would accommodate up to four horizontal Codell wells.
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. Cirque 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 1,296-acre drilling and spacing unit for Sections 13, 24, and 25, Township 12 North, Range 66 West, 6th P.M. and to approve up to four horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell Formation.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 1,296-acre drilling and spacing unit for the below-described lands, is hereby established, and a total of up to four horizontal wells within the unit, are hereby approved, for the production of oil, gas and associated hydrocarbons from the Codell Formation:
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Township 12 North, Range 66
West, 6th P.M. (portions
lying within Colorado) |
2. The productive interval of the wellbore shall be located no closer than 300 feet from the unit boundaries, and no closer than 660 feet from the productive interval of any other wellbore located in the unit, without exception being granted by the Director
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 22nd day of September, 2014, as of September 15, 2014.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary