|IN THE MATTER OF DETERMINATION OF THE NIOBRARA FORMATION UNDERLYING CERTAIN LANDS IN ADAMS AND WELD COUNTIES, COLORADO, AS A "TIGHT FORMATION" PURSUANT TO REGULATIONS OF THE FEDERAL ENERGY REGULATORY COMMISSION||Cause No. NG-45 Order No. NG-45-2|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on January 21, 1985 at 9:00 a.m. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required, on the application of Byron Oil Industries, Inc. for an order recommending the Niobrara formation, which has been previously recommended to the FERC by Order No. NG-45-1 to include additional lands in Adams and Weld Counties, Colorado, pursuant to Se ction 107(b) of the Natural Gas Policy Act of 1.978 (15 U.S.C. 3317) and the regulations thereunder. The applicant, having appeared in support of their application, and no one having appeared in opposition, and the Commission having heard the testimony and evidence presented;
The Commission finds as follows:
1. Notice of the time, place and purpose of the hearing has been given as required.
2. The Commission is the jurisdictional agency pursuant to the rules in Docket No. RM 79-76 of the Federal Energy Regulatory Commission, and has jurisdiction over the subject matter of the application.
3. The area is an extension of the area in which the Niobrara formation has been recommended a "Tight Formation" by Order No. NG-44-1 and is presently under review by the FERC for final approval. The additional lands are located contiguous to the previously recommended area to the southeast. No Federal lands are included.
4. Geological testimony presented at the hearing indicates that the Niobrara formation in the additional area is of the same characteristics as that ii the previously recommended area as described in Order No. NG-45-1.
5. Engineering testimony presented at the hearing indicates that:
a. The average in-situ gas permeability is not expected to exceed .1 millidarcy for the formation.
b. The stabilized production rate, against atmospheric pressure of wells completed from said Niobrara formation at the producing depths, without stimulation, is not expected to exceed a maximum allowable production rate defined by depth in Section 271.705 (b) (ii) for any completion location in said Niobrara formation.
c. Hydrocarbons usually do not exist as liquid in said Niobrara formation reservoir, and no well is expected to more than five 5 barrels of crude oil per day.
6 . Typical casing design of wells drilled in the area protects fresh water aquifers in the area as required by the rules and regulations of the Oil and Gas Conservation Commission of the State of Colorado.
7. In view of the above findings, all the criteria required by the Federal Energy Regulatory Commission pursuant to the rules in Docket No. 79-76 have been met; therefore, a recommendation should be made that the Niobrara formation, underlying the area below described should be designated a "tight formation" and included in the area previously recommended area by Order No. NG-45-1.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation Commission recommends that the area in which the Niobrara formation has previously been recommended a "Tight Formation" by Order No. NG-45-1 be extended to include the following described lands in Adams and Weld Counties, Colorado.
Township 1 South, Range 67 West, 6th P.M. All
Township 1 South, Range 68 West, 6th P.M. Sections 25 thru 36
Township 1 North, Range 67 West, 6th P.M. Section 32: S1/2 ENTERED this 4th day of February, 1985, as of January 21, 1985.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary