BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PETITION OF DENVER BASIN OIL COMPANY, SUNBEAM OIL COMPANY, RECO OIL COMPANY, GUY SHABLE, THELMA COOPER AND MILLARD I. HUEY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSER-VATION COMMISSION PROVIDING FOR TWENTY-ACRE DRILLING AND SPACING UNITS ACCORD-ING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE MUDDY SAND, OFTEN REFERRED 70 AS THE "D" SAND, COMMON SOURCE OF SUPPLY UNDERLYING:  SECTIONS 5, 6, 7 AND 8 IN TOWNSHIP 2 SOUTH, RANGE 56 AND SEC-TIONS 31 AND 32, TOWNSHIP 1 SOUTH, RANGE 56 WEST OF THE 6TH P.M. IN WASHINGTON COUNTY, COLORADO; SECTION 36, TOWNSHIP 1 SOUTH, RANGE 57 WEST AND SECTIONS 1 AND 12, TOWNSHIP 2 SOUTH, RANGE 57 WEST OF THE 6TH P.M. IN ADAMS COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE LITTLE BEAVER FIELD

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CAUSE NO. 15

 

ORDER NO. 15-1

           

            APPEARANCES:

C. Henry Anderson, Attorney for applicants, Brush, Colorado.

John E. Bell, Attorney for Frank W. Young, Trustee, Brush, Colorado.

Wilbur Rocchio, Assistant Attorney General; and

J.J. Zorichak, Director, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 27. 1953 at ten o'clock a.m., Room 704 State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law, on the petition of Denver Basin Oil Company Sunbeam Oil Company, Reco Oil Company, Guy Shable, Thelma Cooper and Millard I. Huey, for an order from the Commission establishing twenty (20) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Muddy Sand, often referred to as the "D" Sand common source of supply underlying Sections 5, 6, 7 and 8 in Township 2 South, Range 56, and Sections 31 and 32, Township 1 South, Range 56 West of the 6th P.M., in Washington County, Colorado; Section 36, Township 1 South, Range 57 West, and Sections 1 and 12, Township 2 South, Range 57 West of the 6th P.M., in Adams County, Colorado, which area is referred to in said petition as the Little Beaver Field.

 

The applicant, Denver Basin Oil Company, is the owner of oil and gas leases within the above described area, and has heretofore completed its Hubbird wells numbered 2, 3 and 5, which are located as follows:


 

 

Hubbird No. 2 -

SW¼ SE¼ NE¼ of Section 6;

 

 

Hubbird No. 3 -

NE¼ SE¼ NE¼ of Section 6;

 

 

Hubbird No. 5 -

NE¼ NE¼ NE¼ of Section 6;

 

all in Township 2 South, Range 56 West, in the Muddy or "D" Sand, the top of which is found at the approximate depth of 5160 feet below the surface.  Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying 20 acres in the Muddy Sand, and that 20 acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Muddy Sand.

 

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 Muddy Sand Pool, sometimes referred to as the "D" Sand Pool, in the Little Beaver Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Washington and Adams counties, Colorado:

 

Sections 5, 6, 7 and 8, in Township 2 South, and Sections 31 and in Township 1 South, Range 56 West of the 6th P.M., Washington County;

 

Section 36, in Township 1 South; Sections 1 and 12, in Township 2 South, Range 57 West of the 6th P.M., in Adams County.

 

4.      That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing twenty (20) acre drilling and spacing units for the production of oil and gas from the said Muddy Sand Pool, or "D" Sand Pool, common source of supply underlying said land, as defined herein; that said units should be formed by a line running north and south through the center of each quarter quarter section, according to the governmental survey thereof, and the permitted wells should be located one in the center of the northeast 10 acres and one in the center of the southwest 10 acres of each quarter quarter section; and a tolerance or 50 feet in may direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the said Muddy Sand Pool, or "D" Sand Pool, in the said Little Beaver Field, indicate that one well should efficiently and economically drain an area of approximately 20 acres, and that 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 the said Muddy Sand Pool, or "D" Sand Pool.

 

ORDER

 

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled completed, or recompleted in the Muddy Sand Pool, sometimes referred to as the "D" Sand Pool, of the Little Beaver Field, in Washington and Adams counties, as hereinabove defined in the Findings, which reference are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith; [sic]

 

Rule 1.    Twenty (20) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Muddy Sand Pool, sometimes referred to as the "D" Sand Pool, common source of supply underlying Sections 5, 6, 7 and 8, in Township 2 South, Range 56, and Sections 31 and 32, Township 1 South, Range 56 West of the 6th P.M., in Washington County, Colorado; Section 36, Township 1 South, Range 57 West, and Sections 1 and 12, Township 2 South, Range 57 West of the 6th P.M. in Adams County, Colorado, and such area shall henceforth be known as the Little Beaver Field.

 

Rule 2.    The said units shall be formed by a line running north and south through the center of each governmental quarter quarter section, and the permitted wells for each unit shall be located one well in the center of the northeast 10 acres and one well in the center of the southwest 10 acres of each quarter quarter section, and a tolerance of 50 feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said Muddy Sand Pool or "D" Sand Pool, in the Little Beaver Field, Washington and Adams counties, Colorado, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the said Muddy Sand Pool or "D" Sand Pool, common source of supply.

 

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 Muddy Sand Pool, or "D" Sand pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, except as herein provided, is hereby prohibited.

 

ORDERED this 27th day of January, 1953, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary