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 "D" SAND OF THE CANAL FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 142

 

ORDER NO. 142-1

 

REPORT OF THE COMMISSION

 

Pursuant to an application filed March 4, 1960, by the Skelly Oil Company, requesting establishment of two 600-acre drilling and spacing units for the production of gas from the "D" sand formation underlying the Canal Field, the Commission set a hearing for March 29, 1960, at 10:00 a.m., in the Spruce Room of the Albany Hotel, Denver, Colorado, at which time the Skelly Oil Company presented its testimony.  At the request of interested parties, hearing in this matter was continued to April 26, 1960, when interested parties presented statements concerning subject matter.

 

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 the Dakota "D" sand constitutes a common source of supply of gas underlying the following described lands in Morgan County, Colorado, to-wit:

 

Township 3 North, Range 59 West, 6th P.M.

 

Section

3:

NW¼

Section

4:

NE¼, E½NW¼

 

 

 

Township 4 North, Range 59 West, 6th P.M.

 

Section

33:

E½, E½W½

Section

34:

W½

 

4.      That in order to prevent waste and prevent the drilling of unnecessary wells, an order should be made establishing two 600-acre drilling and spacing units for the production of gas from said Dakota "D" sand, common source of supply underlying said land, as defined herein; that said unit should be 600-acre drilling and spacing units as herein described in the following order; and that the permitted gas well for Unit No. 1 should be Skelly Oil Company Challis No. 1, located SW SW of Section 34, Township 4 North, Range 59 West, which unit should be described as follows:

 

 

UNIT NO. 1 -

Challis Gas, NW¼, Section 3; NE¼ and E½NW¼, Section 4, Township 3 N, Range 59 W; and S½SE¼ and SE¼SW¼, Section 33; S½SW¼, Section 34, Township 4 N, Range 59 W, 6th P.M.

 

and that Unit No. 2 should be described as follows:

 

UNIT NO. 2 -

NE¼ and E½NW¼, N½SE¼, and NE¼SW¼, Section 33; NW¼ and N½SW¼, Section 34, Township 4 N, Range 59 W, 6th P.M.

 

5.      That all available geological and engineering data presently known to the Commission concerning said Dakota "D" sand in the Canal Field indicates that one well will efficiently and economically drain an area of approximately 600 acres as to gas; and that drilling and spacing units of the size and shape herein described appear not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said Dakota "D" sand, common source of supply.

 

6.      That no well should be drilled closer than 660 feet from its unit lines unless otherwise ordered by the Commission after notice and hearing.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the Dakota "D" sand formation underlying the Canal Field, herein defined, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1. Two 600-acre drilling and spacing units shall be and the same are hereby established for the production, of gas from the Dakota "D" sand formation, common source of supply underlying the following described lands in Morgan County, Colorado, to-wit:

 

Township 3 North, Range 59 West, 6th P.M.

 

 

Section 3:

NW¼

Section 4:

NE¼, E½NW¼

 

 

Township 4 North, Range 59 West, 6th P.M.

 

 

Section 33:

E½, E½W½

Section 34:

W½

 

and such area shall henceforth, be known as the Canal Field.

 

Rule 2.    The following drilling and spacing units are hereby established for the production of gas from the Dakota "D" sand formation of the Canal Field, Morgan County, Colorado, as defined in Rule 1 hereof:

 

UNIT NO. 1 -

Challis Gas, NW¼, Section 3; NE¼ and E½NW¼, Section 4, Township 3 N, Range 59 W; and S½SE¼ and SE¼SW¼, Section 33; S½SW¼, Section 34, Township 4 N, Range 59 W, 6th P.M.

 

and that Unit No. 2 should be described as follows:

 

UNIT NO. 2 -

NE¼ and E½NW¼, N½SE¼, and NE¼SW¼, Section 33; NW¼ and N½SW¼, Section 34, Township 4 N, Range 59 W, 6th P.M.

 

and the permitted gas well for drilling Unit No. 1 shall be the Skelly Oil Company Challis No. 1 well located in the SW SW of Section 34, Township 3 North, Range 59 West.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Dakota "D" sand formation, common source of supply, as defined herein, for the purpose of producing gas therefrom at a location other than authorized by this order is hereby prohibited, which location is fixed at not less than 660 feet from any unit line.

 

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 26th day of April 1960.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary