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 FORT HAYES, CARLILE, CODELL AND NIOBRARA FORMATIONS, UNNAMED FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 535

 

DOCKET NO. 170600380

 

TYPE: SPACING

 

ORDER NO. 535-823

REPORT OF THE COMMISSION

 

The Commission heard this matter on June 12, 2017, at the Rio Blanco County Courthouse, 555 Main St., Meeker, Colorado upon application for an order to declare Order No. 535-763 applicable to previously unnoticed parties in an approximate 640-acre drilling and spacing unit previously established for Sections 25 and 36, Township 8 North, Range 67 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Fort Hayes, Carlile, Codell and Niobrara Formations.

 

FINDINGS

 

The Commission finds as follows:

 

1.         Enerplus Resources (USA) Corporation (Operator No. 10177) (“Enerplus” 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 January 30, 2017, the Commission entered Order No. 535-763 which, among other things, established a 640-acre drilling and spacing unit for Sections 25 and 36, Township 8 North, Range 67 West, 6th P.M., and approved four horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Fort Hayes, Carlile, Codell and Niobrara Formations.

 

5.         On April 13, 2017, Applicant, by its attorneys, filed with the Commission a verified application (“Application”) pursuant to §34-60-116 C.R.S., for an order to declare Order No. 535-763 applicable to previously unnoticed parties in an approximate 640-acre drilling and spacing unit previously established for the below described lands (“Application Lands”), for the production of oil, gas, and associated hydrocarbons from the Fort Hayes, Carlile, Codell and Niobrara Formations:

 

 

 

Township 8 North, Range 67 West, 6th P.M.

Section 25:      W˝

Section 36:      W˝

  

6.         On May 22, 2017, Applicant, 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.         Testimony and exhibits submitted in support of the Application by Sean Gallagher, Senior Landman for Enerplus, showed that certain interested parties within the established drilling and spacing unit were inadvertently not provided notice of the underlying application pursuant to § 34-60-108, C.R.S. and Commission Rule 507.b.(1).  Based upon the examination of the relevant documents and records, the previously unnoticed interested parties within the drilling and spacing unit (those being JP Morgan Chase, formerly known as Cache National Bank, Cache National Bank, and PDC Energy, Inc.) have now been duly served with the Application and associated Notice of Hearing

                                                 

8.         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.

 

9.         Enerplus agreed to be bound by oral order of the Commission.

 

10.       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 declare Order No. 535-763 applicable to previously unnoticed parties in an approximate 640-acre drilling and spacing unit previously established for Sections 25 and 36, Township 8 North, Range 67 West, 6th P.M., for the production of oil, gas, and associated hydrocarbons from the Fort Hayes, Carlile, Codell and Niobrara Formations.

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         Order No. 535-763 is hereby made applicable to previously unnoticed interested parties (those being JP Morgan Chase, formerly known as Cache National Bank, Cache National Bank, and PDC Energy, Inc.) in the an approximate 640-acre drilling and spacing unit previously established for the below-described lands, for the production of oil, gas, and associated hydrocarbons from the Fort Hayes, Carlile, Codell and Niobrara Formations:

 

Township 8 North, Range 67 West, 6th P.M.

Section 25:      W˝

Section 36:      W˝

 

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 21st day of June, 2017, effective as of June 12, 2017.

           

OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

By: ____________________________________     

                                                                                    Peter Gowen, Acting Secretary