BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE McCLAVE FIELD, KIOWA COUNTY, COLORADO

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CAUSE NO. 105

 

ORDER NO. 105-36

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 8:30 a.m. on October 21, 1997, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Thomas L. Spring for an order to allow a well to be drilled and completed at an exception location 2,000 feet FSL and 660 feet FEL of Section 31 [sic] Township 20 South, Range 48 West, 6th P.M., for production of gas and associated hydrocarbons from the McClave Sand, for the 640-acre drilling and spacing unit consisting of said Section 31.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Thomas L. Spring, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      The Commission has jurisdiction over the subject matter embraced in said Notice and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

 

4.      On May 15, 1957, the Commission issued Order No. 105-1 which established 640-acre drilling and spacing units for the production of oil and associated hydrocarbons from the McClave Sand underlying certain lands in the McClave Field, with the units to consist of a governmental section, with the permitted well to be located no closer than 990 feet from the center of the drilling and spacing unit upon which it is located.  Subsequent Order No. 105-2 included additional lands under the McClave Field, including Section 31, Township 20 South, Range 48 West, 6th P.M.

 

5.      Evidence and testimony presented at the administrative hearing indicate that the State-Bock Unit No. 1 Well drilled and currently producing from the McClave Sand for the 640-acre drilling and spacing unit consisting of Section 31, Township 20 South, Range 48 West, 6th P.M., has a casing leak and has suffered formation damage, causing significant reduction in productive capability.

 

6.      That in order to protect correlative rights, to prevent waste, and to recover additional reserves, a well should be authorized to be drilled at an exception location 2,000 feet FSL and 660 feet FEL of Section 31, Township 20 South, Range 48 West, 6th P.M., for production of gas and associated hydrocarbons from the McClave Sand, for the 640-acre drilling and spacing unit consisting of said Section 31.

 

7.      That if the proposed well is completed as a commercial producer, then the existing well, which currently produced gas from two different Morrow Sands, would be abandoned.

 

8.      At the time of the hearing, the Applicant agreed to be bound by oral order of the Commission.

 

9.      Based on the facts presented at the administrative hearing, and having received no protests to the application, the Hearing Officer recommends approval of the application.  The Commission should approve the request and amend Order No. 105-1 to allow an exception well to be drilled and completed for production of gas and associated hydrocarbons from the McClave Sand in Section 31, Township 20 South, Range 45 West, 6th P.M.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 105-1 is hereby amended and a well is authorized to be drilled at an exception location 2,000 feet FSL and 660 feet FEL of Section 31, Township 20 South, Range 48 West, 6th P.M., for production of gas and associated hydrocarbons from the McClave Sand, for the 640-acre drilling and spacing unit consisting of said Section 31.

 

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

 

ENTERED this day of November, 1997, as of October 21, 1997.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

November 12, 1997