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 NIOBRARA FORMATION, UNNAMED FIELD, ARAPAHOE COUNTY, COLORADO |
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CAUSE NO. 535 DOCKET NO. 150700456 TYPE: ADDITIONAL WELLS
ORDER NO. 535-685 |
REPORT OF THE COMMISSION
The Commission heard this matter on July 20, 2015, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to approve an additional two horizontal wells, for a total of up to four horizontal wells, within an approximate drilling and spacing unit established for Sections 1 and 2, Township 4 South, Range 65 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
FINDINGS
The Commission finds as follows:
1. ConocoPhillips Company (“Conoco” 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 October 31, 2011, the Commission entered Order No. 535-97 which established 25 approximate 640-acre drilling and spacing units for lands in Townships 4 and 5 South, and Ranges 64 and 65 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation. Order No. 535-97 has since been vacated as it applies to the Application Lands.
5. On December 12, 2011, the Commission entered Order No. 535-100 which, among other things, approved the request for an order to allow: 1) the lateral of a given horizontal well to enter the Niobrara Formation no closer than 300 feet from the section line; 2) the treated interval within the Niobrara Formation to be located not closer than 460 feet from the section line; and 3) the distance between the treated interval of Niobrara wells shall not be less than 920 feet; for lands in Township 4 South and Ranges 64 and 65 West, 6th P.M. Order No. 535-100 has since been vacated as it applies to the Application Lands.
6. On January 27, 2014, the Commission entered Order No. 535-461, which among other things, approves the request for an order to 1) vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-97 for Section 2, Township 4 South, Range 65 West, 6th P.M.; 2) vacate the well exception location established by Order No. 535-100 for Section 1, Township 4 South, Range 65 West, 6th P.M.; and 3) establish an approximate an approximate 1280-acre exploratory drilling and spacing unit for consisting of Sections 1 and 2, Township 4 South, Range 65 West, 6th P.M., and approve up to two horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
7. On June 17, 2014, the Commission entered Order No. 535-486, which among other things, approves the request for an order to pool all interests in an approximate 1280-acre exploratory drilling and spacing unit for the development and operation of the Niobrara Formation.
Township 4 South, Range 65 West, 6th P.M.
Section 1: All
Section 2: All
9. On June 29, 2015, Conoco, 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.
10. Land testimony and exhibits submitted in support of the Application by Lance Young, Associate Landman for Conoco, showed that the mineral interest in the Application Lands is owned in fee and that Conoco owns a leasehold ownership interest in the Application Lands.
11. Geoscience testimony and exhibits submitted in support of the Application by Kristie Ramlal, Geologist for Conoco, showed the Niobrara Formation is present throughout the Application Lands, and is approximately 324 feet thick.
12. Engineering testimony and exhibits submitted in support of the Application by Stephanie LaCour, Reservoir Engineer for Conoco, demonstrated that the drainage area for analogue horizontal wells in the Niobrara Formation of the Application Lands is not greater than 407.3 acres, and that the 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 Niobrara Formation.
13. 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.
14. Conoco agreed to be bound by oral order of the Commission.
15. 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 approve an additional two horizontal wells, for a total of up to four horizontal wells, within an approximate drilling and spacing unit established for Sections 1 and 2, Township 4 South, Range 65 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
IT IS HEREBY ORDERED:
1. An additional two horizontal wells, for a total of up to four horizontal wells, are hereby approved in an approximate 1280-acre drilling and spacing unit for the below-described lands, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation:.
Township 4 South, Range 65 West, 6th P.M.
Section 1: All
Section 2: All
2. The productive interval of the wellbore shall be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit, without exception 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 30 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 4th day of August , 2015, as of July 20, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By: ____________________________________
Julie Murphy, Secretary