Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 305 - APPLICATION FOR A DRILLING AND SPACING UNIT

Universal Citation: 2 CO Code Regs 404-1 ยง 305

Current through Register Vol. 47, No. 17, September 10, 2024

a. Procedural Requirements.

(1) Operators seeking to create a new Drilling and Spacing Unit, or to modify an existing Drilling and Spacing Unit, will file a Drilling and Spacing Unit pursuant to Rule 503.g.(2). If the proposed Drilling and Spacing Unit is part of an Oil and Gas Development Plan application, the Drilling and Spacing Unit application will be included with the hearing application for that Oil and Gas Development Plan.

(2) All Drilling and Spacing Unit applications will include the following information:
A. Certification that the Operator has complied with the Local Government siting disposition requirements of Rule 302.b.

B. Certification that the operations in the Drilling and Spacing Unit will be conducted in a reasonable manner to protect and minimize adverse impacts to public health, safety, welfare, the environment, and wildlife resources.

C. The unit boundary and interwell completion setback distances.

D. All existing Oil and Gas Locations and associated Wells that are developing the same formation in the application lands. The application will discuss what the Operator intends to do with the existing Oil and Gas Locations and Wells.

E. The wellbore orientation for all horizontal Wells in the proposed unit.

F. Whether there are existing units and Wells within the proposed application lands and what the disposition of those existing units and Wells in those existing units will be under the proposed application.

G. The Oil and Gas Locations that are proposed for the unit. If an Operator has applied for a Form 2A, the Operator will identify its document number. If the Form 2A has already been approved, the Operator will identify its Location ID number.

H. The total number of proposed Wells for the unit.

I. Any additional information as may be required to support the requested prayer for relief.

J. All prior orders that implicate the prayer for relief.

K. Certification that satisfies the requirements of Rule 505.a.

L. For at least one portion of a mineral tract within the proposed unit, documentation showing the applicant's status as an Owner within the unit. Acceptable forms of documentation include, but are not limited to:
i. Mineral deed or memorandum;

ii. Mineral lease or memorandum; or

iii. Any other agreement confirming the applicant's right to drill into and produce from a Pool, or a memorandum of such agreement.

M. For federal minerals, certification that the Operator will comply with any applicable federal unit agreement or communitization agreement requirements.

b. Standards for Approval. In determining whether to recommend that the Commission approve or deny a proposed Drilling and Spacing Unit, the Director will consider whether the proposed Drilling and Spacing Unit:

(1) Protects and minimizes adverse impacts to public health, safety, welfare, the environment, and wildlife resources;

(2) Prevents waste of oil and gas resources;

(3) Avoids the drilling of unnecessary Wells; and

(4) Protects correlative rights.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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