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 IN THE TOM CAT FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 536

 

ORDER NO. 536-1

 

 

REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on June 27, 2011, Elbert County Fairgrounds, Ag Building, 95 Ute Avenue, Kiowa, Colorado, for an order to grant a well location exception to vary the 600 foot setback requirement of Rule 318.a. for the McKay AB #02-14 Well, located in the SE¼ SW¼ of Section 2, Township 7 North, Range 64 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Lyons Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.    Noble Energy, Inc. (“Noble” 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 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. Section 2, Township 7 North, Range 64 West, 6th P.M. is subject to this Rule for the Lyons Formation.

 

5.    On April 28, 2011, Noble, by its attorneys, filed with the Commission a verified application (the “Application”) for an order to grant a well location exception for the McKay AB #02-14 Well (the “Well”), API #05-123-31495, a vertical well, with the intended bottomhole location of ­­­­­610 feet FSL and 2,140 feet FWL in the SE¼ SW¼ of Section 2, Township 7 North, Range 64 West, 6th P.M.  The actual bottomhole location of the Well is located at approximately 554 feet West of the lease line for Federal Oil and Gas Lease COC-67169, which is a federal lease held by GADECO as lessee.  Noble seeks an exception from Rule 318.a., in that Noble seeks to retain the current bottomhole location of the Well, which is approximately 46 feet out of conformance with the 600 foot setback requirement of Rule 318.a.

 

6.    On June 15, 2011, Noble, 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 P. David Padgett, Land Director for Noble, described the well location of the drilled and completed the Well, a vertical well, with the intended bottomhole location: ­­­­­610 feet FSL, 2140 feet FWL in the SE¼ SW¼ of Section 2, Township 7 North, Range 64 West, 6th P.M.  Noble is seeking a Rule 318.a. because the current bottomhole location of the Well is located at approximately 554 feet West of the lease line for Federal Oil and Gas Lease COC-67169, a federal lease held by GADECO, as lessee.  The testimony also included a signed waiver by impacted leased mineral owner, GADECO, consenting to the requested location exception.

 

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 gas, and will not violate correlative rights.

 

9.    Noble 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 granting a well location exception to vary the 600 foot setback requirement of Rule 318.a. for the Well, located in the SE¼ SW¼ of Section 2, Township 7 North, Range 64 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from the Lyons Formation.

 

ORDER

 

                        NOW, THEREFORE IT IS ORDERED, that a well location exception from the 600 foot setback requirement of Rule 318.a. is hereby granted for the Well, a vertical well located in the SE¼ SW¼ of Section 2, Township 7 North, Range 64 West, 6th P.M., with a bottomhole approximately 554 feet West of the lease line for Federal Oil and Gas Lease COC-67169, a federal lease held by GADECO, as lessee, for the production of oil, gas and associated hydrocarbons from the Lyons Formation

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective immediately.

           

                        IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

 

                        IT IS FURTHER ORDERED, that 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.

                       

                        IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.

 

                        ENTERED this ___30th__ day of June, 2011, as of June 27, 2011.

           

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By____________________________________         

                                                                                    Robert  A. Willis, Acting Secretary

 

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

June 30, 2011