2 Colo. Code Regs. § 404-1-403

Current through Register Vol. 47, No. 20, October 25, 2024

Section 2 CCR 404-1-403 - YUMA/PHILLIPS COUNTY SPECIAL WELL LOCATION RULE

a. This Special Well Location Rule ("Yuma WLR") governs Wells drilled to and completed in the Niobrara Formation for the following lands:

Township 1 North Range 44 West: Sections 7, 18, 19, 30 through 33 Range 45 West: Sections 7 through 36 Range 46 West: Sections 4 through 9 Range 47 West: All Range 48 West: All

Township 2 North Range 46 West: All Range 47 West: All Range 48 West: All

Township 3 North Range 45 West: Sections 1 through 18 Range 46 West: All Range 47 West: All Range 48 West: All

Township 4 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 5 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 6 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 7 North Range 45 West: All Range 46 West: All Range 47 West: All

Township 8 North Range 45 West: All Range 46 West: All Range 47 West: All

Township 9 North Range 45 West: Sections 19 through 36 Range 46 West: Sections 19 through 36 Range 47 West: Sections 19 through 36

Township 1 South Range 44 West: Sections 3 through 10, 16 through 21, 27 through 34 Range 45 West: Sections 3 through 5 Range 46 West: Sections 4 through 9, 16 through 36 Range 47 West: All Range 48 West: All

Township 2 South Range 44 West: Sections 3 through 6 Range 45 West: Section 7: W1/2, Section 18: W1/2, Section 19: All Range 46 West: Sections 1 through 24 Range 47 West: All Range 48 West: All

Township 3 South Range 48 West: All

Township 4 South Range 48 West: All

b. Within the Yuma WLR area, Operators may conduct drilling operations to the Niobrara Formation as follows:

(1) 4 Niobrara Formation Wells may be drilled in any quarter section;

(2) No more than 1 Well may be located in any quarter quarter section;

(3) No minimum distance will be required between Wells producing from the Niobrara Formation in any quarter section; and

(4) Wells will be located at least 300 feet from the boundary of said quarter section, and Wells located outside any drilling units established by the Commission in the Yuma WLR area prior to July 30, 2006 will, in addition, be located at least 300 feet from any lease line. Further, Wells will be located not less than 900 feet from any producible Well drilled to the Niobrara Formation prior to July 30, 2006, located in a contiguous or cornering quarter section unless an exception is approved by the Director.

c. Any Well drilled to the Niobrara Formation in the Yuma WLR area prior to July 30, 2006, but not located as described in Rule 403.b will be treated as properly located for purposes of this Rule 403.

d. This Yuma WLR does not alter the size or configuration of any drilling units established by the Commission in the Yuma WLR area prior to July 30, 2006.

e. This Yuma WLR will not serve to bar the granting of relief to Owners who file an application alleging abuse of their correlative rights to the extent that such Owners can demonstrate that their opportunity to produce from the Niobrara Formation at locations herein authorized does not provide an equal opportunity to obtain their just and equitable share of oil and gas from such formation.

f. Well exception locations to this Yuma WLR will be subject to the provisions of Rule 401.c.

g. This Yuma WLR is a Well location rule and supersedes existing Commission orders in effect at the time of its adoption only to the extent that the existing orders relate to permissible Well locations and the number of Wells that may be drilled in a quarter section. Commission orders in effect when this Rule is adopted nonetheless apply with respect to the size of drilling units already established by the Commission in the Yuma WLR area. This Yuma WLR is not intended to establish Well spacing. Accordingly, when an area subject to Rule 403 is otherwise unspaced, it does not act to space the area but instead provides the permissible locations for any new Niobrara Formation Wells. Similarly, Rule 403 does not affect production allocation for existing or future Wells. An Operator may allocate production pursuant to the applicable lease, contract terms or established Drilling and Spacing Units recognizing the Owner's right to apply to the Commission to resolve any outstanding correlative rights issues.

2 CCR 404-1-403

37 CR 16, August 25, 2014, effective 9/30/2014

38 CR 01, January 10, 2015, effective 2/14/2015

38 CR 03, February 10, 2015, effective 3/2/2015

38 CR 07, April 10, 2015, effective 4/30/2015

38 CR 16, August 25, 2015, effective 9/14/2015

39 CR 04, February 25, 2016, effective 3/16/2016

41 CR 05, March 10, 2018, effective 4/1/2018

41 CR 06, March 25, 2018, effective 5/1/2018

41 CR 23, December 10, 2018, effective 12/30/2018

42 CR 02, January 25, 2019, effective 2/14/2019

42 CR 17, September 10, 2019, effective 9/30/2019

42 CR 24, December 25, 2019, effective 1/14/2020

43 CR 17, September 10, 2020, effective 9/30/2020

43 CR 13, July 10, 2020, effective 11/2/2020

43 CR 24, December 25, 2020, effective 1/15/2021

45 CR 07, April 10, 2022, effective 4/30/2022

45 CR 09, May 10, 2022, effective 5/30/2022

45 CR 13, July 10, 2022, effective 7/30/2022