BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF AN EXCEPTION TO ) CAUSE NO. 1
THE WELL LOCATION REQUIREMENTS OF )
RULE 316 OF THE RULES AND REGULATIONS ) ORDER NO. 1‑58
OF THE OIL AND GAS CONSERVATION ) (1-213)
COMMISSION, RIO BLANCO COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on October 17, 1995 at 8:30 a.m. in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Riata Energy, Inc. for an order granting an exception to the permitted well location as provided for in Rule 316 of the Colorado Oil and Gas Conservation Commission Rules and Regulations, for production from the Wasatch Formation.
The Commission finds as follows:
1. Riata Energy, Inc., 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.
4. Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission requires that wells drilled to a depth of 2,500 feet or deeper be located no closer than 600 feet from any lease line, and not less than 1,200 feet from any other producible or drilling oil or gas well drilling to the same common source of supply, unless authorized by order of the Commission or unless waivers are obtained from those parties who will be affected by the exception location. The NW¼ SW¼ of Section 24, Township 2 South, Range 98 West, 6th P.M., lies within the area covered by this rule.
5. Riata Energy, Inc. requested waivers as provided for in Rule 316, from the three mineral owners offsetting the proposed exception location 1,640 feet FSL and 469 feet FWL in the NW¼ SW¼ of Section 24, Township 2 South, Range 98 West, 6th P.M. Waivers were only obtained from two mineral owners.
6. This matter was heard by the Hearing Officer who recommends approval based upon testimony describing the difficulty in locating a well at the permitted location due to rough topography, a power line located just east of the permitted location which would have to be removed, and a water well located just north of the permitted well location.
7. No protests to the application were received and an order of the Commission should be entered allowing the well to be drilled at the above-described exception location.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Rule 316 of the Colorado Oil and Gas Conservation Commission Rules and Regulations, is hereby granted for the Federal 298 No. 24-1 Well to be drilled 1,640 feet FSL and 469 feet FWL in the NW¼ SW¼ of Section 24, Township 2 South, Range 98 West, 6th P.M., for production from the Wasatch Formation.
IT IS FURTHER ORDERED, that if a commercial well shall be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantages which the person securing the exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the well drilled as an exception of more than its just and equitable share of the oil and gas in the pool.
IT IS FURTHER ORDERED, that the provision in the above order shall become effective forthwith.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
Entered this day of , 1995, as of October 17, 1995.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
Patricia C. Beaver, Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
October 27, 1995