BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA INTERIM ORDER

Transcription

1 r a BEFORE THE CORPORATION COMMISSION OF THE STATE OF OKLAHOMA APPLICANT : ST. MARY LAND & EXPLORATION COMPAN Y RELIEF SOUGHT : LOCATION EXCEPTION ) ) LEGAL DESCRIPTION : THE E/2 OF SECTION 17, ) TOWNSHIP I NORTH, ) RANGE 10 EAST, COAL ) COUNTY, OKLAHOMA ) CAUSE CD NO ORDER NO INTERIM ORDER This Cause came on for hearing before Paul Porter, Administrative Law Judge for the Oklahoma Corporation Commission, on the 20th day of November, 2007, at 8 :30 a.m., in the Commission's Courtroom, Jim Thorpe Building, Oklahoma City, Oklahoma, pursuant to notice given as required by law and by the rules of the Commission, for the purpose of hearing, taking testimony and reporting his findings and recommendations to the Commission. John C. Moricoli, Jr., Attorney, appeared for the Applicant, St. Mary Land & Exploration Company; and Sally Shipley, Deputy General Counsel for Conservation, filed a Notice of Appearance. The Administrative Law Judge heard the Cause and filed his report with the Commission, which report has been considered and the Commission therefore finds as follows : FINDING S 1. That this is the application ofst. Mary Land & Exploration Company to grant a well location exception for a well to be drilled and produce from the Wapanucka Formation, Cromwell Formation, Caney and Woodford common sources of supply underlying the unit comprised of the E/2 of Section 17, Township 1 North, Range 10 East, Coal County, Oklahoma. Said well to be drilled at the following locations : SURFACE LOCATION : 1,600' North of the South line and no closer than 330' East of the West line of the E/2 of Section 17, Township I North, Range 10 East, Coal County, WAPANUCKA FORMATION : TOP: 1,600' North of the South line and no closer than BASE : 1,600' North of the South line line and no closer than

2 CAUSE CD NO APPLICANT: ST. MARY LAND & EXPLORATION COMPAN Y CROMW ELL FORMATION : TOP : 1,640' North of the South line and no closer than CANEY: 330' East of the West line of the F/2 of Section 17, Oklahoma WOODFORD : BASE : HORIZONTAL IN WOODFOR D BOTTOM HOLE LOCATION: No closer than 330' South of the North line and no closer than 330' East of the West line of the E/2 of Section 17, Township 1 North, Range 10 East, Coal County, as an exception to Order No , as corrected by Order No and Order No That Applicant owns oil and gas interests in the area covered by the Application in this cause which entitle Applicant to drill for and produce oil and gas from the lands covered by the application. 2. That the Commission has jurisdiction over the subject matter and of the persons interested herein. That notice has been given in all respects as required by law and the rules of the Commission. 3. That heretofore, by Order No , as corrected by Order No and Order No , this Commission established 320 acre drilling and spacing units covering the lands and common sources of supply described and named in paragraph 1 above, and the permitted well for drilling and spacing units is required by said Orders to be drilled not less than 660 feet from the boundary of the E/2 of said Section

3 CAUSE CD NO APPLICANT: ST. MARY LAND & EXPLORATION COMPAN Y 4. That Applicant proposes to drill a well to test the Wapanucka Formation, Cromwell Formation, Caney and Woodford common sources of supply, and propose to produce a full allowable from each common source of supply through the proposed well. 5. That on the 31st day of October, 2007, the Commission issued Emergency Order No , granting Applicant permission to drill said off-pattern well at the location set out in paragraph I above, and said Emergency Order No should be made final in the determination of this cause. 6. That from all the evidence, it appears to be in the interest of producing the greatest ultimate recovery of hydrocarbons from such common sources of supply, the prevention of waste and the protection of correlative rights, that Applicant should be permitted to drill a well at the location requested. 7. That the proposed well, at the location requested by Applicant, is necessary to effectively and efficiently drain a portion of the common sources of supply (reservoir) covered by a drilling and spacing units comprised of the lands set out in paragraph I above, which cannot be adequately and efficiently drained by a well drilled at the permitted well location described in paragraph 3 above. The evidence showed that multiple wells are going to be necessary to be drilled in order to efficiently maximize the recovery of hydrocarbons from the Wapanucka Formation, Cromwell Formation, Caney and Woodford common sources of supply underlying the subject unit. The evidence also established that the location for which drilling authority is sought in this case will place the proposed well at a location within the subject unit which will lend itself to the most efficient placement of additional wells within the unit as it is developed in the future so as to minimize, to the greatest extent possible, interference between wells to the end that each well will not adversely impact the drainage area of others. Absent the relief being requested in this case, substantial reserves of hydrocarbons will remain unrecovered that cannot be produced by a well drilled at a location currently authorized by Order No , as corrected by Order No and Order No That in the interest of securing the greatest ultimate recovery of petroleum hydrocarbons from said common sources of supply (reservoir), the prevention of waste and the protection of correlative rights, this application should be granted. ORDE R IT IS THEREFORE ORDERED by the Oklahoma Corporation Commission, as follows : 1. That Order No , as corrected by Order No and Order No be, and they are hereby amended, to grant permission and authority to Applicant, St. Mary Land & Exploration Company, to drill an off-pattern well at the following locations : -3-

4 CAUSE CD NO APPLICANT: ST. MARY LAND & EXPL ORATION COMPAN Y SURFACE LOCATION : 1,600' North of the South line and no closer than 330' East of the West line of the E/2 of Section 17, Township I North, Range 10 East, Coal County, WAPANUCKA FORMATIO N : BASE : 1,600' North of the South line line and no closer than CROMWELL FORMATION : CANEY: Oklahoma WOODFORD : BASE : HORIZONTAL IN WOODFORD -4-

5 CAUSE CD NO APPLICANT : ST. MARY LAND & EXPLORATION COMPAN Y BOTTOM HOLE LOCATION: No closer than 330' South of the North line and no closer than 330' East of the West line of the E/2 of Section 17, Township I North, Range 10 East, Coal County, to test the Wapanucka Formation, Cromwell Formation, Caney and Woodford separate common sources of supply. 2. Provided that the ultimate bottom hole location is no closer than that specified in paragraph 1 above, then in the event said well is productively completed in the Wapanucka Formation, Cromwell Formation, Caney and Woodford separate common sources of supply, they shall each be given a normal allowable. 3. That Emergency Order No is hereby made final in the determination of this cause. 4. That the well authorized to be drilled by this Order at the location set forth in paragraph I above is necessary to effectively and efficiently drain a portion of the common sources of supply (reservoir) covered by a drilling and spacing units comprised of the lands set out in paragraph 1 above, which cannot be effectively and efficiently drained by a well drilled at the permitted well location set forth in said Orders listed in paragraph I above. That this Order is entered as an exception to Order No , as corrected by Order No and Order No as subsequently amended and extended, and other applicable well spacing rules. 5. That the captioned cause is hereby continued to January 8, 2008, for the presentation of additional evidence concerning the bottom hole location of the well. DONE AND PERFORMED this ~ day of December, OKLAHOMA C ORPORA ON COMMISSION ti y~ 9 ~ --~;y JF.~'F CL~ ` D, Ch< BOB ANTI~yV ~,~~ -Chairman ATTEST : JIM ROTH, Commissione~... ~....,. ~,..,~:~ ~~ ~ mmission Secretary -5-

6 CAUSE CD NO APPLICANT: ST. MARY LAND & EXPLORATION COMPAN Y REPORT OF THE ADMINISTRATIVE LAW JUDGE The foregoing Findings and Order are the report and recommendation of the Administrative Law Judge. Paul Porter, Administrative Law Judge... C ~ ) (1, L Review MND/8371 Date Date O Z-oo J -6-