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 DAKOTA D-SAND FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 557

 

DOCKET NO. 161000464

 

TYPE: SPACING

 

ORDER NO. 557-1

 

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 establish an approximate 960-acre drilling and spacing unit for Sections 29 and 32, Township 10 North, Range 57 West, 6th P.M., and approve up to four horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Dakota D-Sand Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.         Whiting Oil and Gas Corporation (Operator No. 96155) (“Whiting” or “Applicant”) 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 29 and 32, Township 10 North, Range 57 West, 6th P.M., are subject to this Rule for production of oil, gas, and associated hydrocarbons from the Dakota D-Sand Formation.

 

5.         On September 8, 2016, amended November 2, 2016, Whiting, by its attorneys, filed a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to establish an approximate 960-acre drilling and spacing unit for the below-described lands (“Application Lands”), and approve up to four horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Dakota D-Sand Formation, with the productive interval of the wellbore to be located no closer than 100 feet from the unit boundaries, and no closer than 600 feet from the productive interval of any other wellbore located in each unit:

 

 

Township 10 North, Range 57 West, 6th P.M.

Section 29:      S½

Section 32:      All

 

6.         On October 3, 2016, amended November 21, 2016, Whiting, 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.         On October 7, 2016, Calier DP, LLC, Chatfield DP, LLC, and Hymco DP, LLC each filed a Protest.  On November 7, 2016, the Protests were withdrawn.

 

            8.         Land testimony and exhibits submitted in support of the Application by Scott McDaniel, Land Manager for Whiting, showed that Whiting holds oil and gas leasehold interests and has a right to drill in the Application Lands.  Land testimony further showed that Whiting is requesting that productive interval of the wellbore to be located no closer than 600 feet from the unit boundaries, and no closer than 100 feet from the productive interval of any other wellbore located in the proposed unit, without exception being granted by the Director.

 

8.         Geologic testimony and exhibits submitted in support of the Application by Mark K. Odegard, Senior Geologist for Whiting, showed that the Dakota D-Sand Formation is present throughout the Application Lands, is approximately 30 feet thick, and is generally of uniform thickness throughout the Application Lands. 

 

9.         Engineering testimony and exhibits submitted in support of the Application by Donald F. Koenig, Reservoir Engineering Manager for Whiting, showed that the drainage area for analog vertical Dakota D-Sand Formation wells is estimated at one acre, and an approximate 960-acre drilling and spacing unit is not less than the maximum area than can be efficiently, economically and effectively drained by a horizontal well producing oil, gas and associated hydrocarbons from the Dakota D-Sand Formation.

 

10.       Applicant states that the wells will be drilled from no more than one multi-well pad within the unit, unless the director grants an exception.

 

11.       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.

 

12.       Whiting agreed to be bound by oral order of the Commission.

 

13.       Based on the facts stated in the verified Application, the protests having been withdrawn, and based on the Hearing Officer review of the Application under Rule 511, the Commission should enter an order to establish an approximate 960-acre drilling and spacing unit for Sections 29 and 32, Township 10 North, Range 57 West, 6th P.M., and approve up to four horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Dakota D-Sand Formation.

 


 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         An approximate 960-acre drilling and spacing unit for the below-described lands, is hereby established, and a total of up to four horizontal wells within the unit are hereby approved, for the production of oil, gas and associated hydrocarbons from the Dakota D-Sand Formation:

 

Township 10 North, Range 57 West, 6th P.M.

Section 29:      S½

Section 32:      All

 

2.         The productive interval of the wellbore will be located no closer than 600 feet from the unit boundaries, and no closer than 100 feet from the productive interval of any other wellbore producing in the unit, unless the Director grants an exception.

 

3.         The approved wells shall be drilled from no more than one multi-well pad within the unit, 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 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 20th day of December, 2016, as of December 12, 2016.   

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

                                                                        By__________________________________

Julie Murphy, Secretary