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. 1410-GA-07

 

ORDER NO. 535-554

 

REPORT OF THE COMMISSION

 

            The Commission heard this matter on October 27, 2014 at the Durango Public Library, 1900 E. 3rd Avenue, Durango, CO  81301, upon its own Motion, pursuant to Rule 502.a. for an order to vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-69 for Section 31, Township 8 North, Range 61 West, 6th P.M. for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

FINDINGS

 

The Commission finds as follows:

 

1.         Commission Staff (“Staff” or “Applicant”) 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 August 8, 2011, the Commission entered Order No. 535-51 which established four approximate 1,280-acre drilling and spacing units and nine approximate 640-acre drilling and spacing units for the Application Lands and approved one horizontal well within each unit, for the production of oil and gas, and associated hydrocarbons from the Niobrara Formation.

 

5.         On September 19, 2011, the Commission entered Order No. 535-69 which established 40 approximate 640-acre drilling and spacing units for certain lands located in the Application Lands, and approved two horizontal wells within each unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

6.         On January 23, 2012, the Commission entered Order No. 535-132 which pooled all interests in an approximate 1280-acre drilling and spacing unit established for Section 6, Township 7 North, Range 61 West, 6th P.M., and Section 31, Township 8 North, Range 61 West, 6th P.M., for the development and operation of the Niobrara Formation. 

 

7.         On June 17, 2014, the Commission entered Order No. 535-491 which approved up to 15 horizontal wells within an approximate 1,280-acre drilling and spacing unit established by Order No. 535-51 for Section 6, Township 7 North, Range 61 West, 6th P.M., and Section 31, Township 8 North, Range 61 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

8.         On June 17, 2014, the Commission entered Order No. 535-502 which pooled all interests, including previously unnoticed interests, in an approximate 1,280-acre drilling and spacing unit established for the Section 6, Township 7 North, Range 61 West, 6th P.M., and Section 31, Township 8 North, Range 61 West, 6th P.M. by Order No. 535-51, for the drilling of the Baldon 6-1H Well and the development and operation of the Niobrara Formation.

 

9.         On August 28, 2014, Staff filed a verified application (“Application”) upon its own Motion, pursuant to Rule 502.a. for an order to vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-69 for the below-described lands (“Application Lands”) for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

Township 8 North, Range 61 West, 6th P.M.

Section 31:      All

 

            10.       The Application Lands have been spaced, and all of the interests within the unit pooled, as part of an approximate 1280-acre drilling and spacing unit; however, the approximate 640-acre drilling and spacing unit established by Order No. 535-89 was never vacated. 

 

            11.       The above-referenced testimony 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.

 

12.       Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Unit review of the Application under Rule 511., the Commission should enter an order to vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-69 for Section 31, Township 8 North, Range 61 West, 6th P.M. for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         An approximate 640-acre drilling and spacing unit established by Order No. 535-69 for the below-described lands, is hereby vacated, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation.

 

Township 8 North, Range 61 West, 6th P.M.

Section 31:      All

 

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 18th day of November, 2014, as of October 27, 2014.        

 

 

                                                                    OIL AND GAS CONSERVATION COMMISSION

                                                                    OF THE STATE OF COLORADO

 

 

                                                                    By__________________________________

Robert J. Frick, Secretary