Source: http://cogcc.state.co.us/orders/orders/547/6.html
Timestamp: 2019-02-23 17:21:45
Document Index: 554581495

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

IN THE MATTER OF THE APPLICATION OF WPX ENERGY ROCKY MOUNTAIN, LLC FOR AN ORDER TO POOL ALL INTERESTS WITHIN AN APPROXIMATE 2499.80-ACRE DRILLING AND SPACING UNIT ESTABLISHED FOR SECTIONS 31 AND 32, TOWNSHIP 6 SOUTH, RANGE 95 WEST, 6TH P.M., AND SECTIONS 5 AND 6, TOWNSHIP 7 SOUTH, RANGE 95 WEST, 6TH P.M., FOR THE MANCOS, NIOBRARA, FRONTIER, MOWRY AND DAKOTA FORMATIONS, UNNAMED FIELD, GARFIELD COUNTY, COLORADO
DOCKET NO. 1312-UP-253
ORDER NO. 547-6
The Commission heard this matter on December 16, 2013, at the Ralph L. Carr Colorado Judicial Center, 1300 Broadway, 1st Floor, Room 1E, Denver, Colorado, upon application for an order to pool all interests within an approximate an approximate 2499.80-acre drilling and spacing unit established for Sections 31 and 32, Township 6 South, Range 95 West, 6th P.M., and Sections 5 and 6, Township 7 South, Range 95 West, 6th P.M. to accommodate the PA 701-32-HN1 Well, for the development and operation of the Mancos Group Formations.
1. WPX Energy Rocky Corporation, LLC (“WPX” or “Applicant”), as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
4. On June 17, 2013, the Commission entered Order No. 440-68 which, among other things, established an approximate 2499.80-acre drilling and spacing unit, and approved up to eight horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Mancos, Niobrara, Frontier, Mowry, and Dakota Formations (collectively, the “Mancos Group”). Sections 31 and 32, Township 6 South, Range 95 West, 6th P.M., and Sections 5 and 6, Township 7 South, Range 95 West, 6th P.M. are subject to this Order for the Mancos Group Formations.
5. On October 17, 2013, WPX, 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 within an approximate 2499.80-acre drilling and spacing unit established for the below-described lands (“Application Lands”), for the development and operation of the Mancos Group Formations, 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 PA 701-32-HN1 Well (API No. 05-045-22158) (“Well”) and to subject any nonconsenting interests to the cost recovery provisions of C.R.S. §34-60-116(7):
Section 31: Lots 1-12, SE¼ (All)
Lots 1-11, SE¼ SW¼, SE¼ (All)
Lots 1-11, SE¼ NW¼, S½ NE¼, E½ SW¼, NW¼ SE¼ (All)
6. On December 3, 2013, WPX, 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 Maxwell Faith, Senior Landman for WPX, showed that all nonconsenting interest owners were notified of the Application and received an Authority for Expenditure ("AFE") and offer to participate in the Well. 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 December 16, 2013 hearing date.
8. 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 PA 701-32-HN1 Well, but did not provide testimony for any subsequent wells.
11. 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 within an approximate an approximate 2499.80-acre drilling and spacing unit established for Sections 31 and 32, Township 6 South, Range 95 West, 6th P.M., and Sections 5 and 6, Township 7 South, Range 95 West, 6th P.M. to accommodate the PA 701-32-HN1 Well, for the development and operation of the Mancos Group Formations.
1. Pursuant to the provisions of §34-60-116, C.R.S., as amended, of the Oil and Gas Conservation Act, all interests in an approximate 2499.80-acre drilling and spacing unit established for the below-described lands, are hereby pooled, for the development and operation of the Mancos Group Formations, 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 PA 701-32-HN1 Well:
ENTERED this _____ day of January, 2014, as of December 16, 2013.