Effect of proposed rule change - Dorcheat-Macedonia field in Columbia County, AR

Anyone have any comments on the potential effect of this change in field rules on royalty owners and surface owners? 

Full application is at:  http://www.aogc2.state.ar.us/Hearing%20Applications%20Archive/2014/April/117-2014-04.pdf

Docket Reference 117-2014-04:  NOTICE is hereby given that Bonanza Creek Energy Resources, Applicant, has filed an Application with the Arkansas Oil and Gas Commission (AOGC) for an Order amending and extending the field rules for the Dorcheat-Macedonia Field, Columbia County, Arkansas, as they apply to the Cotton Valley formation. The Dorcheat-Macedonia Field is comprised of approximately 13,760 acres of land more particularly described on Exhibit “L-I” attached hereto. As a part ofthe amendment to such field rules, applicant requests the authority (1) to drill and produce from as many as eight well bores in an 80 acre production unit consisting of either the North Half or the South Half of a governmental quarter section; (2) to permit the commingling of all Cotton Valley Sandstone series within such well bore without the necessity for subsequent administrative approval from the Arkansas Oil and Gas Commission; (3) the “grandfathering” of any existing 80 acre production unit which currently has more than eight (8) producing wellbores without “shutting-in” or reducing the allowable of any wellbore within such unit; (4) to permit an allowable of up to 150 barrels of oil per day (I50 BOPD) per wellbore; (5) to amend the existing field rules to incorporate any changes required to conform to the current rules and requirements of the AOGC related to surface casing, allocation of production, change of well classification, metering, test procedures, tank batteries, fire hazards, and reporting that would be required of a new well under the current general field rules promulgated by the Arkansas Oil and Gas Commission.

Tags: Dorcheat-Macedonia, allowable wells, field rule change

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Bonanza Creek has been drilling on 10 acre spacing and they are testing 5 acre spacing. I am sure the AOGC will grant them approval. I don't know how it could hurt the mineral owners. BCEI has said the 10 acre and 5 acre spacing is not creating any interference with the existing wells in the unit. I would be happy to have BCEI drilling my minerals. 150 wells in 4 years with no dry holes. Pretty good past results.

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