Source: http://cogcc.state.co.us/orders/orders/407/838.html
Timestamp: 2019-02-18 07:54:43
Document Index: 254216038

Matched Legal Cases: ['§34', '§34', '§34', '§34', '§34', '§34']

IN THE MATTER OF THE APPLICATION OF KERR-MCGEE OIL & GAS ONSHORE LP FOR AN ORDER TO POOL ALL INTERESTS IN AN APPROXIMATE 320-ACRE DESIGNATED WELLBORE SPACING UNIT ESTABLISHED FOR SECTIONS 20 AND 21, TOWNSHIP 1 NORTH, RANGE 67 WEST, 6TH P.M. FOR THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO
DOCKET NO. 1307-UP-137
ORDER NO. 407-838
The Commission heard this matter on July 29, 2013, at offices of the Colorado Oil and Gas Conservation Commission, 1120 Lincoln Street, Denver, Colorado, upon application for an order to pool all interests in an approximate 320-acre designated wellbore spacing unit established for Sections 20 and 21, Township 1 North, Range 67 West, 6th P.M., to accommodate the Howard 30N-21HZ Well, for the development and operation of the Niobrara Formation.
4. On February 19, 1992, the Commission entered Order No. 407-87 (amended August 20, 1993) which, among other things, established 80-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. Sections 20 and 21, Township 1 North, Range 67 West, 6th P.M. are subject to this Order for the Niobrara Formation.
5. On April 27, 1988, the Commission adopted Rule 318A which, among other things, allowed certain drilling locations to be utilized to drill or twin a well, deepen a well or recomplete a well and to commingle any or all Cretaceous Age Formations from the base of the Dakota Formation to the surface. Rule 318A supersedes all prior Commission drilling and spacing orders affecting well location and density requirements of Greater Wattenberg Area wells. On December 5, 2005, Rule 318A was amended, among other things, to allow interior infill and boundary wells to be drilled and wellbore spacing units to be established. On August 8, 2011, Rule 318A was again amended, among other things, to address drilling of horizontal wells. Sections 20 and 21, Township 1 North, Range 67 West, 6th P.M. are subject to Rule 318A for the Niobrara Formation.
6. On May 30, 2013, Kerr-McGee, by its attorneys, filed with the Commission pursuant to §34-60-116 C.R.S., a verified application (“Application”) for an order to pool all interests in an approximate 320-acre designated wellbore spacing unit established for the below-described lands (“Application Lands”), for the development and operation of the Niobrara Formation, effective as of the earlier of the date of the Application, or the date that any of the costs specified in C.R.S §34-60-116(7)(b)(II) were first incurred for the drilling of the Howard 30N-21HZ Well (API No. 05-123-36795) (“Well”), and to subject any nonconsenting interests to the cost recovery provisions of C.R.S. §34-60-116(7):
Section 20: E½ E½
Section 21: W½ W½
7. On July 16, 2013, Kerr-McGee, 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.
8. Land testimony and exhibits submitted in support of the Application by Thomas Yaley, Landman for Kerr-McGee, showed that all nonconsenting interest owners were notified of the Application and received and Authority for Expenditure ("AFE") and offer to participate in the Wells. Further testimony concluded that the AFE sent by the Applicant to the interest owners was a fair and reasonable estimate of the costs of the proposed drilling operation and was received at least 30 days prior to the July 29, 2013 hearing date.
9. Land testimony showed the Applicant complied with the requirements of Rule 530, and is entitled to the cost recovery provisions pursuant to §34-60-116(7), C.R.S., for the Howard 30N-21HZ Well.
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 pool all interests in an approximate 320-acre designated wellbore spacing unit established for Sections 20 and 21, Township 1 North, Range 67 West, 6th P.M., to accommodate the Howard 30N-21HZ Well, for the development and operation of the Niobrara Formation.
1. Pursuant to the provisions of §34-60-116, C.R.S., as amended, of the Oil and Gas Conservation Act, all interests in the approximate 320-acre designated wellbore spacing unit established for the below-described lands, are hereby pooled, for the development and operation of the Niobrara Formation, effective as of the earlier of the date of the Application, or the date that any of the costs specified in C.R.S. §34-60-116(7)(b)(II) are first incurred for the drilling of the Howard 30N-21HZ Well: