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. 161000413
TYPE: SPACING
ORDER: 535-742
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REPORT OF THE COMMISSION
The Commission heard this matter on October 24, 2016, at the Northeastern Junior College, Hayes Student Center Ballroom, 100 College Avenue, Sterling, Colorado, upon application for an order to establish an approximate 1,280-acre drilling and spacing unit for Sections 14 and 15, Township 3 South, Range 65 West, 6th P.M., and to approve two horizontal wells in the unit, 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. 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 14 and 15, Township 3 South, Range 65 West, 6th P.M. are subject to Rule 318.a. for the Niobrara Formation.
Township 3 South, Range 65 West, 6th P.M.
Section 14: All
Section 15: All
Applicant states that the proposed wells will be located on no more than two well pads in the unit, or on adjacent lands, unless an exception is granted by the Director.
6. On October 3, 2016, 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.
7. Land testimony and exhibits submitted in support of the Application by Marie Giuffreda, Associate Landman for Conoco, showed that both the mineral and surface interests in the Application Lands is owned in majority by the state, and that Conoco owns a majority partial undivided leasehold ownership interest in the Application Lands.
8. Geoscience testimony and exhibits submitted in support of the Application by Danielle Cavender, Geologist for Conoco, showed the Niobrara Formation is present throughout the Application Lands and averages approximately 325 feet thick.
9. Engineering testimony and exhibits submitted in support of the Application by Christopher Isenberger, Principal Reservoir Engineer for Conoco, demonstrated that the hydrocarbons under the Application Lands would not be fully recovered without the application of horizontal well technology, that the horizontal well drainage area for the two (2) proposed horizontal wells is estimated to be approximately 407.3-acres per well, and that the proposed 1,280-acre drilling and spacing unit, with the requested setbacks, and with the requested number of horizontal wells in the Niobrara Formation in the Application Lands, will promote efficient drainage, protect correlative rights, and prevent waste.
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. Conoco 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 establish an approximate 1,280-acre drilling and spacing unit for Sections 14 and 15, Township 3 South, Range 65 West, 6th P.M., and approve two horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 1,280-acre drilling and spacing unit for the below-described lands, is hereby established, and two horizontal wells, are hereby approved, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation, with the productive interval of the wellbore of each well to 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, unless the Director grants an exception:
Township 3 South, Range 65 West, 6th P.M.
Section 14: All
Section 15: All
2. The proposed wells shall be located on no more than two well pads, unless the Director grants an exception.
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 November, 2016, as of October 24, 2016.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By: ____________________________________
Julie Murphy, Secretary