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 GREENHORN AND GRANEROS FORMATIONS, UNNAMED FIELD, ARAPAHOE COUNTY, COLORADO

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CAUSE NO. 563

 

DOCKET NO. 170900549

 

TYPE:  SPACING

 

ORDER NO. 563-1

 

 

REPORT OF THE COMMISSION

 

            The Commission heard this matter on September 11, 2017, at the Durango Public Library, Program Room #2, 1900 E. 3rd Avenue, Durango, Colorado upon application for an order to establish an approximate 640-acre exploratory drilling and spacing unit for Section 28, Township 4 South, Range 65 West, 6th P.M., and approve one vertical well within the unit, for the production of oil, gas, and associated hydrocarbons from the Greenhorn and Graneros Formations.

FINDINGS

 

The Commission finds as follows:

 

1.         ConocoPhillips Company (Operator No. 19160) (“COPC” 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.  Section 28, Township 4 South, Range 65 West, 6th P.M., is subject to this Rule for production of oil, gas, and associated hydrocarbons from the Greenhorn and Graneros Formations.

 

5.         On July 13, 2017, COPC, by its attorneys, filed with the Commission a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to establish an approximate 640-acre exploratory drilling and spacing unit for the below-described lands (“Application Lands”) and to approve one vertical well within the unit, for the production of oil, gas and associated hydrocarbons from the Greenhorn and Graneros Formations, with the productive interval of the wellbore to be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit, unless an exception is granted by the Director:

 

Township 4 South, Range 65 West, 6th P.M.

Section 28:      All

 

6.         On August 18, 2017, COPC, 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.         Land testimony and exhibits submitted in support of the Application by Jake Stephensen, Associate Landman for COPC, showed that COPC holds oil and gas leasehold interests and has a right to drill in the Application Lands.

 

8.         Geologic testimony and exhibits submitted in support of the Application by Adam Mullins, Staff Geologist for COPC, showed that the Graneros Formation is present throughout the Application Lands, is approximately 92 feet thick, and is generally of uniform thickness throughout the Application Lands. Further testimony showed that the Graneros Formation is a sequence of chalks, marls, limestones, and shales, and is a common source of supply.  Geologic testimony further showed that the Greenhorn Formation is present throughout the Application Lands, is approximately 201 feet thick, and is generally of uniform thickness throughout the Application Lands. Further testimony showed that the Greenhorn Formation is a sequence of chalks, marls, limestones, and shales, and is a common source of supply. 

 

9.         Engineering testimony and exhibits submitted in support of the Application by Jessica Martinez, Reservoir Engineer for COPC, showed that the establishment of an approximate 640-acre exploratory drilling and spacing unit for the Greenhorn and Graneros Formations and the drilling of one vertical well to be completed in the Greenhorn and Graneros Formations within the unit will allow for the acquisition of data which will be used to promote efficient drainage, protect correlative rights, and prevent waste.   

 

10.       The above-referenced testimony and exhibits show that granting the Application will allow the obtaining of evidence as to the existence of a pool, and the appropriate size of and shape of drilling and spacing units to be applied to the pool, as authorized by §34-60-116(2), C.R.S.

 

11.       COPC agreed to be bound by oral order of the Commission.

 

12.       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 establish an approximate 640-acre exploratory drilling and spacing unit for Section 28, Township 4 South, Range 65 West, 6th P.M., and approve one vertical well within the unit, for the production of oil, gas, and associated hydrocarbons from the Greenhorn and Graneros Formations.

 

ORDER

 

IT IS HEREBY ORDERED:

 

1.         An approximate 640-acre exploratory drilling and spacing unit for the below-described lands, is hereby established, and one vertical well within the unit is hereby approved, for the production of oil, gas and associated hydrocarbons from the Greenhorn and Graneros Formations:

 

Township 4 South, Range 65 West, 6th P.M.

Section 28:      All

 

2.         The productive interval of the wellbore will be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore producing from the same source of supply 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 28th day of September, 2017, as of September 11, 2017.

           

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

By____________________________________

James P. Rouse, Acting Secretary