BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
|
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 |
) ) ) ) ) ) ) |
CAUSE No. 540
DOCKET NO. 161200512
TYPE: SPACING
ORDER NO. 540-66 |
|
|
|
|
REPORT OF THE COMMISSION
The Commission heard this matter on December 12, 2016, at the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Suite 801, Denver, Colorado, upon application for an order to: 1) vacate the unconventional resource units (URU #1–URU #12) established by Order Nos. 540-12, 540-18; 540-13, 540-19; 540-15, 540-21; 540-16, 540-22; 540-17, 540-23; 540-24, 540-38; 540-28, 540-41; 540-30, 540-40; 540-32, 540-43; 540-33, 540-44; 540-34, 540-45; 540-35, and 540-47 for the Application Lands as set forth below, effective upon the date of hearing wherein the Order is approved, as a full termination of URU #1–URU #12; and 2) the Application Lands shall revert to unspaced lands pursuant to Rule 318.a.
FINDINGS
The Commission finds as follows:
1. SWN Production Company, LLC (Operator No. 10396) (“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. 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.
5. On March 25, 2013, the Commission entered Order No. 540-12 which established an approximate 2613.44-acre unconventional resource unit for the Application Lands in URU #1, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of eight horizontal well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
6. On March 25, 2013, the Commission entered Order No. 540-18 which, among other things, pooled all interests in the approximate 2613.44-acre unconventional resource unit established for the Application Lands in URU #1, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first eight wells drilled and completed within the unit.
7. On March 25, 2013, the Commission entered Order No. 540-13 which established an approximate 2280.00-acre unconventional resource unit for the Application Lands in URU #2, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of eight horizontal wells pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
8. On March 25, 2013, the Commission entered Order No. 540-19 which, among other things, pooled all interests in the approximate 2280.00-acre unconventional resource unit established for the Application Lands in URU #2, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first eight wells drilled and completed within the unit.
9. On March 25, 2013, the Commission entered Order No. 540-15 which established an approximate 2463.28-acre unconventional resource unit for the Application Lands in URU #3, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of eight horizontal wells pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
10. On March 25, 2013, the Commission entered Order No. 540-21 which, among other things, pooled all interests in the approximate 2463.28-acre unconventional resource unit established for the Application Lands in URU #3, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first eight wells drilled and completed within the unit.
11. On March 25, 2013, the Commission entered Order No. 540-16 which established an approximate 2608.80-acre unconventional resource unit for the Application Lands in URU #4, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of eight horizontal wells pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
12. On March 25, 2013, the Commission entered Order No. 540-22 which, among other things, pooled all interests in the approximate 2608.80-acre unconventional resource unit established for the Application Lands in URU #4, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first eight wells drilled and completed within the unit.
13. On March 25, 2013, the Commission entered Order No. 540-17 which established an approximate 2572.41-acre unconventional resource unit for the Application Lands in URU #5, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of eight horizontal wells pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
14. On March 25, 2013, the Commission entered Order No. 540-23 which, among other things, pooled all interests in the approximate 2572.41-acre unconventional resource unit established for the Application Lands in URU #5, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first eight wells drilled and completed within the unit.
15. On October 28, 2013, the Commission entered Order No. 540-24 which established an approximate 2608.32-acre unconventional resource unit for the Application Lands in URU #6, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
16. On October 28, 2013, the Commission entered Order No. 540-38 which, among other things, pooled all interests in the approximate 2608.32-acre unconventional resource unit established for the Application Lands in URU #6, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
17. On October 28, 2013, the Commission entered Order No. 540-28 which established an approximate 2607.87-acre unconventional resource unit for the Application Lands in URU #7, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
18. On October 28, 2013, the Commission entered Order No. 540-41 which, among other things, pooled all interests in the approximate 2607.87-acre unconventional resource unit established for the Application Lands in URU #7, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
19. On October 28, 2013, the Commission entered Order No. 540-30 which established an approximate 2584.52-acre unconventional resource unit for the Application Lands in URU #8, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
20. On October 28, 2013, the Commission entered Order No. 540-40 which, among other things, pooled all interests in the approximate 2584.52-acre unconventional resource unit established for the Application Lands in URU #8, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
21. On October 28, 2013, the Commission entered Order No. 540-32 which established an approximate 2560.00-acre unconventional resource unit for the Application Lands in URU #9, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
22. On October 28, 2013, the Commission entered Order No. 540-43 which, among other things, pooled all interests in the approximate 2560.00-acre unconventional resource unit established for the Application Lands in URU #9, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
23. On October 28, 2013, the Commission entered Order No. 540-33 which established an approximate 2517.80-acre unconventional resource unit for the Application Lands in URU #10, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
24. On October 28, 2013, the Commission entered Order No. 540-44 which, among other things, pooled all interests in the approximate 2517.80-acre unconventional resource unit established for the Application Lands in URU #10, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
25. On October 28, 2013, the Commission entered Order No. 540-34 which established an approximate 2360.00-acre unconventional resource unit for the Application Lands in URU #11, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
26. On October 28, 2013, the Commission entered Order No. 540-45 which, among other things, pooled all interests in the approximate 2360.00-acre unconventional resource unit established for the Application Lands in URU #11, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
27. On October 28, 2013, the Commission entered Order No. 540-35 which established an approximate 2592.58-acre unconventional resource unit for the Application Lands in URU #12, and approved an appropriate number of horizontal wells to efficiently and economically recover the oil, gas, and associated hydrocarbons within the unit, for the production of oil, gas, and associated hydrocarbons from the Mancos and Niobrara Formations, with a limit of four multi-well pads per section on the Application Lands, or located on adjacent lands, with the treated interval of any horizontal well to be no closer than 600 feet from the unit boundaries, without exception being granted by the Director.
28. On October 28, 2013, the Commission entered Order No. 540-47 which, among other things, pooled all interests in the approximate 2592.58-acre unconventional resource unit established for the Application Lands in URU #12, and applied the nonconsent penalties set forth in §34-60-116(7), C.R.S., to the nonconsenting parties’ interests in the first four wells drilled and completed within the unit.
29. On October 13, 2016, SWN, by its attorneys, filed with the Commission pursuant to §34-60-116, C.R.S., a verified application for an order to (1) vacate the unconventional resource units (URU #1–URU #12) established by Order Nos. 540-12, 540-18; 540-13, 540-19; 540-15, 540-21; 540-16, 540-22; 540-17, 540-23; 540-24, 540-38; 540-28, 540-41; 540-30, 540-40; 540-32, 540-43; 540-33, 540-44; 540-34, 540-45; 540-35, 540-47 for the Application Lands; (2) be effective upon the date of Hearing wherein the Order is approved, and shall be a full termination of URU #1–URU #12; and (3) revert the Application Lands to unspaced lands pursuant to Rule 318.a.
(URU #1): Township 8 North, Range 90 West, 6th P.M.
Section 3: All
Section 4: All
Section 9: All
Section 10: All
Approx. 2,613.44 acres, Order Nos. 540-12 and 540-18 (URU #1)
(URU #2):
Township 8 North, Range 91 West, 6th P.M.
Section 27: All
Section 28: N½, NE¼SW¼, S½SW¼, SE¼
Section 33: N½, N½S½
Section 34: N½, N½S½, S½SE¼
Approx. 2,280.00 acres, Order Nos. 540-13 and 540-19 (URU #2)
(URU #3):
Township 8 North, Range 92 West, 6th P.M.
Section 23: SE¼NW¼, E½SW¼, E½
Section 24: W½, NW¼NE¼, S½SE¼
Section 25: All
Section 26: W½, NE¼, W½SE¼, NE¼SE¼
Section 36: N½
Township 8 North, Range 91 West, 6th P.M.
Section 31: W½W½
Approx. 2,463.28 acres, Order Nos. 540-15 and 540-21 (URU #3)
(URU #4):
Township 7 North, Range 91 West, 6th P.M.
Section 2: S½SW¼, SE¼
Section 3: W½, S½NE¼, SE¼
Section 10: All
Section 11: All
Section 14: N½
Section 15: N½N½
Approx. 2,608.80 acres, Order Nos. 540-16 and 540-22 (URU #4)
(URU #5):
Township 8 North, Range 90 West, 6th P.M.
Section 15: All
Section 16: All
Section 21: All
Section 22: All
Approx. 2,572.41 acres, Order Nos. 540-17 and 540-23 (URU #5)
(URU #6):
Township 7 North, Range 91 West, 6th P.M.
Section 17: All
Section 18: All
Section 19: All
Section 20: All
Approx 2,608.32 acres, Order Nos. 540-24 and 540-38 (URU #6)
(URU #7):
Township 7 North, Range 90 West, 6th P.M.
Section 21: All
Section 22: All
Section 27: All
Section 28: All
Approx. 2,607.87 acres, Order Nos. 540-28 and 540-41 (URU #7)
(URU #8):
Township 8 North, Range 91 West, 6th P.M.
Section 29: All
Section 30: All
Section 31: All
Section 32: All
Approx. 2,584.52 acres, Order Nos. 540-30 and 540-40 (URU #8)
(URU #9):
Township 7 North, Range 92 West, 6th P.M.
Section 11: All
Section 12: All
Section 13: All
Section 14: All
Approx. 2,560.00 acres, Order Nos. 540-32 and 540-43 (URU #9)
(URU #10):
Township 8 North, Range 90 West, 6th P.M.
Section 1: All
Section 2: All
Section 11: All
Section 12: All
Approx. 2,517.80 acres, Order Nos. 540-33 and 540-44 (URU #10)
(URU #11):
Township 8 North, Range 93 West, 6th P.M.
Section 13: All
Section 14: N½, N½SW¼, SE¼SW¼, SE¼
Section 23: E½W½, E½
Section 24: All
Approx. 2,360.00 acres, Order Nos. 540-34 and 540-45 (URU #11)
(URU #12):
Township 7 North, Range 90 West, 6th P.M.
Section 23: All
Section 24: All
Section 25: All
Section 26: All
Approx. 2,592.58 acres, Order Nos. 540-35 and 540-47 (URU #12)
30. On November 18, 2016, 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.
31. Land Testimony and exhibits submitted in support of the Application by Leanne T. Hicks, Landman, for SWN, showed that SWN is an owner in the Application Lands, and that all parties that were known to SWN (and who could be located) were properly noticed of the Application. Further testimony showed that no drilling activity has been conducted on the Application Lands since the URUs were established and there are no known plans for drilling activity at the time of this statement.
32. The above-referenced testimony and exhibits show that no drilling activity has been conducted on the Application Lands, that there are no known plans for drilling activity at the time of this statement, and that by granting the Application the relief requested would serve the public interest by releasing the Application Lands for future drilling.
33. SWN agreed to be bound by oral order of the Commission.
34. 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: 1) vacate the unconventional resource units (URU #1–URU #12) established by Order Nos. 540-12, 540-18; 540-13, 540-19; 540-15, 540-21; 540-16, 540-22; 540-17, 540-23; 540-24, 540-38; 540-28, 540-41; 540-30, 540-40; 540-32, 540-43; 540-33, 540-44; 540-34, 540-45; 540-35, 540-47 for the Application Lands, effective upon the date of Hearing wherein the Order is approved as a full termination of URU #1–URU #12; and 2) revert the Application Lands to unspaced lands pursuant to Rule 318.a.
ORDER
IT IS HEREBY ORDERED:
1. The unconventional resource units (URU #1–URU #12) established by Order Nos. 540-12, 540-18; 540-13, 540-19; 540-15, 540-21; 540-16, 540-22; 540-17, 540-23; 540-24, 540-38; 540-28, 540-41; 540-30, 540-40; 540-32, 540-43; 540-33, 540-44; 540-34, 540-45; 540-35, 540-47 are vacated for the below-described lands, effective upon the date of the hearing, and shall be a full termination of URU #1–URU #12.
(URU #1): Township 8 North, Range 90 West, 6th P.M.
Section 3: All
Section 4: All
Section 9: All
Section 10: All
Approx. 2,613.44 acres, Order Nos. 540-12 and 540-18 (URU #1)
(URU #2):
Township 8 North, Range 91 West, 6th P.M.
Section 27: All
Section 28: N½, NE¼SW¼, S½SW¼, SE¼
Section 33: N½, N½S½
Section 34: N½, N½S½, S½SE¼
Approx. 2,280.00 acres, Order Nos. 540-13 and 540-19 (URU #2)
(URU #3):
Township 8 North, Range 92 West, 6th P.M.
Section 23: SE¼NW¼, E½SW¼, E½
Section 24: W½, NW¼NE¼, S½SE¼
Section 25: All
Section 26: W½, NE¼, W½SE¼, NE¼SE¼
Section 36: N½
Township 8 North, Range 91 West, 6th P.M.
Section 31: W½W½
Approx. 2,463.28 acres, Order Nos. 540-15 and 540-21 (URU #3)
(URU #4):
Township 7 North, Range 91 West, 6th P.M.
Section 2: S½SW¼, SE¼
Section 3: W½, S½NE¼, SE¼
Section 10: All
Section 11: All
Section 14: N½
Section 15: N½N½
Approx. 2,608.80 acres, Order Nos. 540-16 and 540-22 (URU #4)
(URU #5):
Township 8 North, Range 90 West, 6th P.M.
Section 15: All
Section 16: All
Section 21: All
Section 22: All
Approx. 2,572.41 acres, Order Nos. 540-17 and 540-23 (URU #5)
(URU #6):
Township 7 North, Range 91 West, 6th P.M.
Section 17: All
Section 18: All
Section 19: All
Section 20: All
Approx 2,608.32 acres, Order Nos. 540-24 and 540-38 (URU #6)
(URU #7):
Township 7 North, Range 90 West, 6th P.M.
Section 21: All
Section 22: All
Section 27: All
Section 28: All
Approx. 2,607.87 acres, Order Nos. 540-28 and 540-41 (URU #7)
(URU #8):
Township 8 North, Range 91 West, 6th P.M.
Section 29: All
Section 30: All
Section 31: All
Section 32: All
Approx. 2,584.52 acres, Order Nos. 540-30 and 540-40 (URU #8)
(URU #9):
Township 7 North, Range 92 West, 6th P.M.
Section 11: All
Section 12: All
Section 13: All
Section 14: All
Approx. 2,560.00 acres, Order Nos. 540-32 and 540-43 (URU #9)
(URU #10):
Township 8 North, Range 90 West, 6th P.M.
Section 1: All
Section 2: All
Section 11: All
Section 12: All
Approx. 2,517.80 acres, Order Nos. 540-33 and 540-44 (URU #10)
(URU #11):
Township 8 North, Range 93 West, 6th P.M.
Section 13: All
Section 14: N½, N½SW¼, SE¼SW¼, SE¼
Section 23: E½W½, E½
Section 24: All
Approx. 2,360.00 acres, Order Nos. 540-34 and 540-45 (URU #11)
(URU #12):
Township 7 North, Range 90 West, 6th P.M.
Section 23: All
Section 24: All
Section 25: All
Section 26: All
Approx. 2,592.58 acres, Order Nos. 540-35 and 540-47 (URU #12)
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 22nd day of December, 2016, as of December 12, 2016.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By__________________________________
Julie Murphy, Secretary