The URL can be used to link to this page

Browse Search

Home My WebLink About20144008.tiff BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 535 ESTABLISHMENT OF FIELD RULES TO GOVERN ) OPERATIONS FOR THE NIOBRARA FORMATION, ) DOCKET NO. 1407-SP-2081 UNNAMED FIELD, WELD COUNTY, COLORADO NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township 8 North, Range 61 West, 6th P.M. Section 26: All Section 35: N1/2 APPLICATION On May 29, 2014 (amended July 2, 2014), Carrizo Oil and Gas, Inc. ("Carrizo" or "Applicant") filed a verified application pursuant to §34-60-116, C.R.S., for an order to: 1) Vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-1 as to Section 26, Township 8 North, Range 61 West, 6th P.M., 2) Vacate an approximate 640-acre drilling and spacing unit established by Order No. 535-69 as to Section 35, Township 8 North, Range 61 West, 6th P.M.; 3) Vacate Order No. 535-139 in its entirety; 4) Vacate Order No. 535-238 as it applies to Section 26, Township 8 North, Range 61 West, 6th P.M., 5) Establish an approximate 960-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; 6) Approve up to 16 horizontal wells for the approximate 960-acre drilling and spacing unit to be established for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation; and 7) Require the productive interval of the wellbore to be located no closer than 300 feet from the unit boundaries, and no closer than 300 feet from the productive interval of any other wellbore located in the unit. 8) Applicant states that upon vacating the approximate 640-acre drilling and spacing unit for Section 35, Township 8 North, Range 61 West, 6th P.M., the S'/2 of Section 35, Township 8 North, Range 61 West, 6th P.M. will no longer be subject to a spacing order and will revert to Rule 318.a. Page 1 of 3 (1407-SP-2081) AOly-`'-IOO LE0a7(o 'f 9) Applicant requests that all proposed wells be located on no more than one well pad per quarter section within the unit. PRIOR RULES AND ORDERS (available online at: http://cogcc.state.co.us, under"ORDERS") • 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. • On August 12, 2010, Order No. 535-1 established four approximate 640-acre drilling and spacing units, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6`h P.M. is subject to this Order. • On September 19, 2011, Order No. 535-69 established 40 approximate 640-acre drilling and spacing units and approved two horizontal wells within each unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation. Section 35, Township 8 North, Range 61 West, 6th P.M. is subject to this Order. • On January 23, 2013, Order No. 535-139 pooled all interests in Section 35, Township 8 North, Range 61 West, 6th P.M. to accommodate the Politzer 1-35H Well (API No. 05-123-34858), and subjected any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the development and operation of the Niobrara Formation. • On January 7, 2013, Order No. 535-238 approved up to six horizontal wells within each of 10 approximate 640-acre drilling and spacing units, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6th P.M. is subject to this Order. NOTICE IS HEREBY GIVEN, pursuant to: 1) the general jurisdiction granted to the Oil and Gas Conservation Commission of the State of Colorado under §34-60-105 C.R.S.; 2) specific powers granted pursuant to §34-60-106 C.R.S.; 3) the State Administrative Procedures Act at §24-4-105 C.R.S.; and 4) the Commission's Series 500 Rules at 2 CCR 404-1, that the Commission has scheduled the above-entitled matter for hearing on: Date: Monday, July 28, 2014 Tuesday, July 29, 2014 Time: 9:00 a.m. Place: Weld County Administration Building Events Center 1150 "O" Street Greeley, CO 80631 Page 2 of 3 (1407-SP-2081) In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Margaret Humecki at (303) 894-2100 ext. 5139, prior to the hearing and arrangements will be made. At hearing, the Commission will consider the Application and enter an order pursuant to its authority under the statute. Any interested party desiring to protest or intervene should file with the Commission a written protest or intervention in accordance with Rule 509., no later than July 14, 2014. Such interested party shall, at the same time, serve a copy of the protest or intervention to the person filing the application. One electronic (cogcc.hearings_unit@state.co.us), one original and two copies shall be filed with the Commission. Anyone who files a protest or intervention must be able to participate in a prehearing conference during the week of July 14, 2014. Pursuant to Rule 511., if the matter is uncontested, it may be approved without a hearing. OIL AND GAS CONSERVATION COMMISSION OF THE ST T LORADO By Rom J. Frick, Secretary Dated: July 2, 2014 Colorado Oil and Gas Conservation Commission Attorney for Applicant 1120 Lincoln Street, Suite 801 Elizabeth Y. Spencer Denver, Colorado 80203 Holland & Hart LLP Website: http://cogcc.state.co.us 555 17th Street, Suite 3200 Phone: (303) 894-2100 Denver, Colorado 80202 Fax: (303) 894-2109 (303) 295-8367 eyspencer@hollandhart.com Page 3 of 3 (1407-SP-2081) Rj BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE AMENDED ) APPLICATION OF CARRIZO OIL AND GAS, ) INC., FOR AN ORDER VACATING TWO 640- ) Cause No. 535 ACRE DRILLING AND SPACING UNITS, AND ) ESTABLISHING A 960-ACRE DRILLING AND ) Docket No. 1407-SP-2081 SPACING UNIT, WITH UP TO SIXTEEN ) HORIZONTAL WELLS, LOCATED IN ) SECTION 26 AND THE NY2 OF SECTION 35, ) RECEIVED TOWNSHIP 8 NORTH, RANGE 61 WEST, ) 6TH P.M., IN WELD COUNTY, COLORADO ) JUL 0 7 2014 WELD COUNTY AMENDED APPLICATION COMMISSIONERS Carrizo Oil and Gas, Inc. ("Applicant"), by and through its attorneys, Holland & Hart, LLP respectfully submits this Amended Application ("Application") to the Oil and Gas Conservation Commission of the State of Colorado (the "Commission") for an order vacating two 640-acre drilling and spacing units and establishing a 960-acre drilling and spacing unit, for the production and operation of the Niobrara Formation, on the following described lands: Township 8 North, Range 61 West, 6th P.M. Section 26: All Section 35: N% Weld County, Colorado (the "Application Lands"). A map of the Application Lands is attached as Exhibit A. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a corporation duly authorized to conduct business in the State of Colorado and is an operator in good standing with the Commission. 2. Applicant owns substantial leasehold interests in the Application Lands and is therefore eligible to apply for the relief requested herein pursuant to Rule 503.b. 3. Rule 318.a. of the Rules and Regulations of the Oil and Gas Conservation Commission requires that 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. Upon approval of this Application, the S1/2 4 of Section 35, Township 8 North, Range 61 West, 6th P.M. will be subject to this Rule for the Niobrara Formation. 4. On August 12, 2010 the Commission issued Order No. 535-1 which, among other things, established four approximate 640-acre drilling and spacing units for certain lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 5. On September 19, 2011, the Commission issued Order No. 535-69 which, among other things, established forty approximate 640-acre drilling and spacing units for certain lands and approved two horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 35, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 6. On January 23, 2013, the Commission issued Order No. 535-139 which, among other things, pooled all interests in the approximate 640-acre drilling and spacing unit for the development and operation of the Niobrara Formation. Section 35, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 7. On January 7, 2013, the Commission issued Order No. 535-238 which, among other things, approved up to six horizontal wells within each of 10 approximate 640-acre drilling and spacing units for the development and operation of the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 8. Applicant requests that Order Nos. 535-1 and 535-238 be vacated as to Section 26, Township 8 North, Range 61 West, 6th P.M.; that Order No. 535-69 be vacated as to Section 35, Township 8 North, Range 61 West, 6th P.M.; and that Order No. 535-139 be vacated in its entirety. 9. Applicant requests that the Commission establish a 960-acre drilling and spacing unit comprised of the Application Lands and allow up to 16 wells in the unit, with the productive interval of each wellbore no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the drilling and spacing unit. 10. Applicant requests authorization to locate surface facilities on no more than one wellpad per quarter section within the drilling and spacing unit, unless an exception is granted by the Director. 11. Applicant asserts that the requested drilling and spacing unit and wells are necessary to prevent waste, protect correlative rights, and ensure the maximum efficient 2 y recovery of oil, gas and associated hydrocarbons from the Niobrara Formation on the Application Lands. 12. The Orlando Hill #26-44-8-61 Well, API No. 05-123-33558 is a producing well in the 640-acre drilling and spacing unit currently comprising Section 26, Township 8 North, Range 61 West, 6th P.M. Upon approval of this Application at the July 28, 2014 Commission Hearing, Applicant shall allocate production from the Orlando Hill #26-44-8-61 Well on a 960-acre basis effective with September 1, 2014 production. 13. To promote efficient drainage of the Niobrara Formation underlying the Application Lands, prevent waste, and protect correlative rights, the Commission should establish the requested 960-acre drilling and spacing unit with up to 16 wells in the unit, with the productive interval of each wellbore located no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit. The specified size and configuration of the requested drilling and spacing unit is not smaller than the maximum area that can be economically and efficiently drained by the requested wells. 14. Pursuant to Rule 503.e, the undersigned certifies that copies of this Application shall be served on each interested party, as established by Rules 507.b.(1) and (4), no later than seven days after this Application is filed. 15. Applicant agrees to be bound by the oral order of the Commission. WHEREFORE, Applicant respectfully requests that this matter be set for hearing, notice be given as required by law and that upon such hearing this Commission enter its order: A. Vacating Order Nos. 535-1 and 535-238 as to Section 26, Township 8 North, Range 61 West, 6th P.M.; Order No. 535-69 as to Section 26, Township 8 North, Range 61 West, 6th P.M.; and Order No. 535-139 in its entirety. B. Establishing a 960-acre drilling and spacing unit and authorizing up to sixteen wells in the unit, with the productive interval of each wellbore located no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of each unit on the Application Lands. C. Authorizing applicant to locate surface facilities on no more than one wellpad per quarter section within the drilling and spacing unit, unless an exception is granted by the Director. D. For such other findings and orders as the Commission may deem proper or advisable in the matter. 3 Dated: July 2, 2014 By: El' ab! .;:pe f oll d art r / 5 th Stre:a, Suite 3200 Denver, CO 80202 (303) 295-8367 eyspencer@hollandhart.com Address of Applicant Carrizo Oil & Gas, Inc. Attn: Craig Wiest 500 Dallas Street, 2300 Houston, TX 77002 4 J , j ♦ VERIFICATION STATE OF TEXAS ) ) ss. COUNTY OF HARRIS ) Craig Wiest, of lawful age, being first duly sworn upon oath, deposes and says that he is a Land Manager for Carrizo Oil & Gas, Inc. and that he has read the for ing Application and that the matters therein contained are true to the best of his wledge ' ormat''on and belief. a,( Craig Wiest Subscribed and sworn to before me this 1 sr- day of July, 2014. Witness my hand and official seal. My commission expires: "I I ., Da., b-lv,-)(dLo-A,-- - Notary Public il ,,,'::"p:s DARLA K. WISHKOSKI )1.,,,,,,...!,?!p../s, :' ,Notary Public,State of Texas Atf, My Commission Expires I '.Z.11 Y'` January 26, 2016 I Exhibit A Weld County, Colorado T8N-R61 W Sec 26 : All & Sec 35: N2 $ 10 � 11 12 7 1 #� 15 14 13 1S t i 1 21 23 - 19 8N 61W. „' ' Tar • r 0— . 'y( r :fix ii ' 32 29 ,.,. do - I 4 2 5- -73 — 17 - — 1 $ 16 1-5 Jr 14 1 1 — 17 �: 21 ' �' 1 ITIECEIVED BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO MAY 2 9 Z014 IN THE MATTER OF THE APPLICATION OF ) COGCC CARRIZO OIL AND GAS, INC., FOR AN ) ORDER VACATING TWO 640-ACRE ) Cause No. DRILLING AND SPACING UNITS, AND ) ESTABLISHING A 960-ACRE DRILLING AND ) Docket No. SPACING UNIT, WITH UP TO SIXTEEN ) HORIZONTAL WELLS, LOCATED IN ) RECEIVED SECTION 26 AND THE NY/2 OF SECTION 35, ) TOWNSHIP 8 NORTH, RANGE 61 WEST, ) 6TH P.M., IN WELD COUNTY, COLORADO ) JUN 0 4 2014 WELD COUNTY COMMISSIONERS APPLICATION Carrizo Oil and Gas, Inc. ("Applicant"), by and through its attorneys, Holland & Hart, LLP respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado (the "Commission") for an order vacating two 640- acre drilling and spacing units and establishing a 960-acre drilling and spacing unit, for the production and operation of the Niobrara Formation, on the following described lands: Township 8 North, Range 61 West, 6th P.M. Section 26: All Section 35: N' Weld County, Colorado (the "Application Lands"). A map of the Application Lands is attached as Exhibit A. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a corporation duly authorized to conduct business in the State of Colorado and is an operator in good standing with the Commission. 2. Applicant owns substantial leasehold interests in the Application Lands and is therefore eligible to apply for the relief requested herein pursuant to Rule 503.b. 3. On August 12, 2010 the Commission issued Order No. 535-1 which, among other things, established four approximate 640-acre drilling and spacing units for certain lands, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. LEO2740- + • 4. On September 19, 2011, the Commission issued Order No. 535-69 which, among other things, established forty approximate 640-acre drilling and spacing units for certain lands and approved two horizontal wells within each unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Section 35, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 5. On January 23, 2013, the Commission issued Order No. 535-139 which, among other things, pooled all interests in the approximate 640-acre drilling and spacing unit for the development and operation of the Niobrara Formation. Section 35, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 6. On January 7, 2013, the Commission issued Order No. 535-238 which, among other things, approved up to six horizontal wells within each of 10 approximate 640-acre drilling and spacing units for the development and operation of the Niobrara Formation. Section 26, Township 8 North, Range 61 West, 6th P.M. is subject to this Order for the Niobrara Formation. 7. Applicant requests that Order Nos. 535-1 and 535-238 be vacated as to Section 26, Township 8 North, Range 61 West, 6th P.M.; that Order No. 535-69 be vacated as to Section 35, Township 8 North, Range 61 West, 6th P.M.; and that Order No. 535-139 be vacated in its entirety. 8. Applicant requests that the Commission establish a 960-acre drilling and spacing unit comprised of the Application Lands and allow up to 16 wells in the unit, with the productive interval of each wellbore no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the drilling and spacing unit. 9. Applicant asserts that the requested drilling and spacing unit and wells are necessary to prevent waste, protect correlative rights, and ensure the maximum efficient recovery of oil, gas and associated hydrocarbons from the Niobrara Formation on the Application Lands. 8. To promote efficient drainage of the Niobrara Formation underlying the Application Lands, prevent waste, and protect correlative rights, the Commission should establish the requested 960-acre drilling and spacing unit with up to 16 wells in the unit, with the productive interval of each wellbore located no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of the unit. The specified size and configuration of the requested drilling and spacing unit is not smaller than the maximum area that can be economically and efficiently drained by the requested wells. 2 9. Pursuant to Rule 503.e, the undersigned certifies that copies of this Application shall be served on each interested party, as established by Rules 507.b.(1) and (4), no later than seven days after this Application is filed. 10. Applicant agrees to be bound by the oral order of the Commission. WHEREFORE, Applicant respectfully requests that this matter be set for hearing, notice be given as required by law and that upon such hearing this Commission enter its order: A. Vacating Order Nos. 535-1 and 535-238 as to Section 26, Township 8 North, Range 61 West, 6th P.M.; Order No. 535-69 as to Section 26, Township 8 North, Range 61 West, 6th P.M.; and Order No. 535-139 in its entirety. B. Establishing a 960-acre drilling and spacing unit and authorizing up to sixteen wells in the unit, with the productive interval of each wellbore located no closer than 300 feet from the productive interval of any other wellbore producing from the Niobrara Formation, and no closer than 300 feet from the boundaries of each unit on the Application Lands. C. For such other findings and orders as the Commission may deem proper or advisable in the matter. Dated: Ma , 2014 B . liz pencer Hart LLP 555 17th Street, Suite 3200 Denver, CO 80202 (303) 295-8367 eyspencer@hollandhart.com Address of Applicant Carrizo Oil & Gas, Inc. Attn: Craig Wiest 500 Dallas Street, 2300 Houston, TX 77002 3 y 4 VERIFICATION STATE OF TEXAS ) ss. COUNTY OF HARRIS ) . Craig Wiest, of lawful age, being first duly sworn upon oath, deposes and says that he is a Land Manager for Carrizo Oil & Gas, Inc. and that he has read the foregoing Application and that the matters therein contained are true to the best of h. nowledge information and belief. Craig Wiest Subscribed and sworn to before me this #day of May, 2014. Witness my hand and official seal. My commission expires: 7/7.4 Gh . 7,:24;' 4tn°'"c TRACY S.SNYDER _° p' Notary Public.Stale of Texas Notary ublic «: My Cornmiss!on Expires "4'` '`` ' Mown 05, 2016 r Exhibit A Weld County, Colorado T8N-R61W Sec 26: All & Sec 35: N2 10 -III 12 o 4 19 3 N 1 _ sr L 5x3 -. 1 a+ 1 - 7 N 1 . 4 I i• - 19 1 1, 41 24 • 7/aW/Lf 40 anlld, CLERK TO THE BOARD PHONE: (970) 336-7215, EXT. 5226 1861 FAX: (970) 352-0242 1150 O STREET A 1 "...MI GREELEY, COLORADO 80632 GOUNTYrI TO: Stephanie Arries FROM: Karla Ford DATE: June 6, 2014 RE: COGCC Application - Carrizo Oil and Gas, Inc. LEGAL: All of S26, T8N, R61W I talked with Craig West of Carrizo and he confirmed that we have a lease for 3.64 acres in this S/T/R. The Lease file is LE0276-1. (ARXOO4L Lease in Place: YES sc. NO O Lease#LF Dal to'I Acres 3• lv�{ Keep for Hearing Outcome/Minutes File-No Action Needed Hello