BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE APPLICATION OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE MANCOS AND NIOBRARA FORMATIONS, UNNAMED FIELD, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 540
DOCKET NO. 150500284
ORDER NO. 540-56 |
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 vacate an approximate 2560-acre unconventional resource unit established by Order Nos. 540-29 for Sections 15, 16, 21 and 22, Township 8 North, Range 91 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from Mancos and Niobrara Formations and vacate Order No. 540-42 which pooled all interests in an approximate 2560-acre unconventional resource unit established for Sections 15, 16, 21 and 22, Township 8 North, Range 91 West, 6th P.M., for the development and operation of the Mancos and Niobrara Formations.
FINDINGS
The Commission finds as follows:
1. SWN Production Company, LLC (“SWN” 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 28, 2013, the Commission entered Order No. 540-29 which established an approximate 2560-acre unconventional resource unit, for the production of oil, gas and associated hydrocarbons from Mancos and Niobrara Formations, and approved an appropriate number of vertical, directional or horizontal wells, in order to efficiently and economically recover the oil, gas and associated hydrocarbons from the proposed unit.
5. On October 28, 2013, the Commission entered Order No. 540-42 which pooled all interests within an approximate 2560-acre unconventional resource unit established for the Application Lands, to accommodate four initial wells, for the development and operation of Mancos and Niobrara Formations.
6. On March 19, 2015, SWN, by its attorney, filed with the Commission pursuant to § 34-60-116 C.R.S., a verified application (“Application”) for an order to vacate an approximate 2,560-acre Unconventional Resource Unit established by Order Nos. 540-29, for the below-described lands (“Application Lands”), for the production of oil, gas, and associated hydrocarbons in the Mancos and Niobrara Formations and vacate Order No. 540-42 which pooled all interests in the approximate 2,560 acre Unconventional Resource Unit:, for the development and operation of the Mancos and Niobrara Formations:
Township 8 North, Range 91 West, 6th P.M.
Section 15: All
Section 16: All
Section 21: All
Section 22: All
7. On June 29, 2015, SWN, 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.
8. Land Testimony and exhibits submitted in support of the Application by Bryce Moore, Senior Landman for SWN, showed that no drilling activity has been conducted on the Application Lands, and there are no known plans for drilling activity at the time of his testimony, all owners in the Application Lands known to SWN (and who could be located) have been served with the Application and Notice of Hearing, in accordance with the Commission’s rules.
9. The above-referenced testimony and exhibits show that granting the Application would serve the public interest.
10. SWN agreed to be bound by oral order of the Commission.
11. Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Officer’s review of the Application under Rule 511, the Commission should enter an order to vacate an approximate 2560-acre unconventional resource unit established by Order Nos. 540-29 for Sections 15, 16, 21 and 22, Township 8 North, Range 91 West, 6th P.M., for the production of oil, gas and associated hydrocarbons from Mancos and Niobrara Formations and vacate Order No. 540-42 which pooled all interests in an approximate 2560-acre unconventional resource unit established for Sections 15, 16, 21 and 22, Township 8 North, Range 91 West, 6th P.M., for the development and operation of the Mancos and Niobrara Formations.
ORDER
IT IS HEREBY ORDERED:
1. An approximate 2560-acre unconventional resource unit established by Order Nos. 540-29 for the below-described lands, is hereby vacated, for the production of oil, gas and associated hydrocarbons from Mancos and Niobrara Formations:
Township 8 North, Range 91 West, 6th P.M.
Section 15: All
Section 16: All
Section 21: All
Section 22: All
2. Order No. 540-42 which pooled all interests in an approximate 2560-acre unconventional resource unit established for Sections 15, 16, 21 and 22, Township 8 North, Range 91 West, 6th P.M., is hereby vacated, for the development and operation of the Mancos and Niobrara Formations.
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3. The Applications Lands are unspaced lands and shall revert to Rule 318.a.
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 13th day of August 2015, as of July 20, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By:
Julie Murphy, Secretary