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 AND NIOBRARA FORMATIONS, UNNAMED FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 535
DOCKET NO. 150400204
ORDER NO. 535-653 |
REPORT OF THE COMMISSION
The Commission heard this matter on April 13, 2015, at the Colorado Oil and Gas Conservation Commission Offices, 1120 Lincoln Street, Suite 801, Denver, CO 80203, upon application for an order to establish an approximate 1280-acre drilling and spacing unit for Sections 26 and 35, Township 9 North, Range 57 West, 6th P.M., and to approve up to thirty-two (32) horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. Whiting Oil and Gas Corporation (Operator No. 96155) (“Whiting” 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 26 and 35, Township 9 North, Range 57 West, 6th P.M. are subject to this Rule for the Codell and Niobrara Formations.
5. On February 12, 2015, Whiting, by its attorneys, filed with the Commission pursuant to §34-60-116, C.R.S., a verified application for an order to establish an approximate 1280-acre drilling and spacing unit for the below described lands (“Application Lands”) and to approve up to thirty-two (32) horizontal wells within the unit, for production of oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations, with the productive interval of the horizontal wellbore to be no closer than 100 feet from the productive interval of any other wellbore producing from the Codell and Niobrara Formations, and no closer than 100 feet from a unit boundary unless such boundary abuts or corners lands for which the Commission has not at the time of the drilling permit application granted the right to locate the productive interval of the wellbore no closer than 100 feet from a unit boundary, without exception being granted by the Director, provided that if the Commission has not at the time of the drilling permit application granted to owners of adjacent or cornering lands the right to locate the productive interval of the wellbore no closer than 100 feet from a unit boundary, then the productive interval of the wellbore shall be located no closer than 300 feet from the unit boundary, without exception being granted by the Director:
Township 9 North, Range 57 West, 6th P.M.
Section 26: All
Section 35: All
Applicant stated that the proposed wells shall be located on a common or existing wellpad or from no more than eight (8) wellpads within the drilling and spacing unit.
6. On March 25, 2015, Whiting, 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 McDaniel, Regional Land Manager for Whiting, showed that Whiting 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 Mark K. Odegard, Senior Geologist for Whiting, showed that the Codell and Niobrara Formations are present throughout the Application Lands, the combined Codell and Niobrara Formations are approximately 333 feet thick and are generally of uniform thickness throughout the Application Lands.
9. Engineering testimony and exhibits submitted in support of the Application by Donald F. Koenig, Senior Reservoir Engineer for Whiting, showed that the drainage areas for analog horizontal Codell and Niobrara Formation wells are estimated at 82 acres, and an approximate 1280-acre drilling and spacing unit is therefore not less than the maximum area than can be efficiently, economically and effectively drained by a horizontal well producing oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
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. Whiting 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 establishing an approximate 1280-acre drilling and spacing unit for Sections 26 and 35, Township 9 North, Range 57 West, 6th P.M., and to approve up to thirty-two (32) horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 1280-acre drilling and spacing unit for the below-described lands is hereby established, and a total of up to thirty-two (32) horizontal wells within the unit is hereby approved for production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations:
Township 9 North, Range 57 West, 6th P.M.
Section 26: All
Section 35: All
2. The productive interval of the wellbore shall be no closer than 100 feet from the productive interval of any other wellbore producing from the Codell and Niobrara Formations, and no closer than 100 feet from a unit boundary unless such boundary abuts or corners lands for which the Commission has not at the time of the drilling permit application granted the right to locate the productive interval of the wellbore no closer than 100 feet from a unit boundary, without exception being granted by the Director. If the Commission has not at the time of the drilling permit application granted to owners of adjacent or cornering lands the right to locate the productive interval of the wellbore no closer than 100 feet from a unit boundary, then the productive interval of the wellbore shall be located no closer than 300 feet from the unit boundary, without exception being granted by the Director.
3. The proposed wells producing from the Codell and Niobrara Formations are to be located on a common or existing wellpad or from no more than eight (8) wellpads 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 April, 2015, as of April 13, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Julie Murphy, Secretary