118-3

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 LITTLE HOOT FIELD, LOGAN COUNTY, COLORADO

)

CAUSE NO. 118

ORDER NO. 118-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1974 at 9 a.m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Kenneth D. Luff, for an order amending Rule 1 of Order No. 118-1 and re-establishing 320-acre drilling and spacing units for the production of gas from the "D" and "J" Sands underlying the Little Hoot Field, Logan County, Colorado, and further to allow wells to be dually completed with commingling in the well bore.

FINDINGS

The Commission finds as follows:

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

2. That 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.

3. That on May 27, 1958, the Commission issued its Order No. 118-1 which, among other things, established 640-acre drilling and spacing units for the production of gas from the "D" and "J" Sands underlying lands in the Little Hoot Field. Each unit consists of a governmental section with the permitted well located 600 feet from the boundary of each unit and no closer than 1200 feet to another producible well or well being drilled for gas into the "D" or "J" Sands. Order No. 118-2 allowed dual completion with commingling in the well bore for certain wells in said field, as well as for additional wells upon application to the Commission.

4. That evidence presented at the hearing indicates that 320-acre drilling and spacing units, instead of 640-acres, should be established for the production of gas from the "D" and "J" Sands, common sources of supply underlying the following described lands in the Little Hoot Field, Logan County, Colorado:

Township 10 North, Range 54 West, 6th P.M.

Sections 1, 2, 3, 4, 9, 10, 11, 12, 13, 14, 15 and 16.

Township 11 North, Range 54 West, 6th P, M.

Sections 33, 34, 35 and 36

5. That in order to prevent the waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the gas resources of the State, an order should be made amending Rule 1 of Order No. 118-1, and establish 320-acre drilling units for the production of gas from the "D" and "J" Sands, common sources of supply underlying the lands defined herein; that said units should be 320-acres consisting of the N½ and the S½ or the E½ and the W½ of a governmental section, and that the permitted well for each such unit should be located no closer than 600 feet from the boundaries of the unit and no closer than 1200 feet from another producible well or well being drilled for gas to the "D" and "J" Sands.

6. That all available geological and engineering data concerning said "D" and "J" Sands indicate that one well will efficiently and economically drain an area of approximately 320-acres; and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said "D" and "J" Sands.

7. That Well No. 1 Reike, located in the NW¼NE¼ Section 10, Township 10 North, Range 54 West, 6th P.M. should be allowed to be dually completed with commingling in the well bore for the production of gas from the "D" and "J" Sands; however, request for approval to dually complete and commingle in one well bore for all wells hereafter drilled in the spaced area should be made in accordance with Rule 320 of ;he Rules and Regulations of the Commission (July 1, 1973).

ORDER

NOW, THEREFORE, IT IS ORDERED, that Rule 1 of Order No. 118-1 is hereby amended and the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" and/or "J" Sands underlying the Little Hoot Field, herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the "D" and "J" Sands underlying the following described lands in the Little Hoot Field, Logan County, Colorado, to-wit:

Township 10 North, Range 54 West, 6th P.M.

Sections 1, 2, 3, 4, 9, 10, 11, 12, 13, 14, 15 and 16.

Township 11 North, Range 54 West, 6th P, M.

Sections 33, 34, 35 and 36

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, and each unit shall be the N½ and the S½ or the E½ and the W½ of a governmental section (which units shall be designated at the time of filing the permit to drill), and the permitted well shall be located no closer than 600 feet from the boundaries of the unit and no closer than 1200 feet from another producible well or well being drilled for gas to the "D" and "J" Sands.

IT IS FURTHER ORDERED, that approval is hereby granted to dually complete and commingle production in the well bore in Well No. 1 Reike, located in the NW¼NE¼ Section 10, Township 10 North, Range 54 West, 6th P.M.; however, request for approval to dually complete and commingle in one well bore for all wells hereafter drilled in the spaced area, shall be made in accordance with Rule 320 of the Rules and Regulations of the Commission (July 1, 1973).

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 rules and regulations.

ORDERED this 18th day of June 1974.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary