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 DEER TRAIL FIELD, ADAMS COUNTY, COLORADO

)

)

)

)

CAUSE NO. 190

 

ORDER NO. 190-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 19, 1984 at 1:30 p.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Gary-Williams Oil Producer, Inc., for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams County, Colorado.  The application was amended at the hearing to allow 1980 feet between wells.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Gary-Williams Oil Producer, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

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.      Evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:

 

Township 2 South, Range 59 West, 6th P.M.

Section 18:  SW1/4

Section 19:  W1/2

Section 30:  W1/2

 

Township 2 South, Range 60 West, 6th P.M.

Section 23:  E1/2

Section 24:  All

Section 25:  All

Section 26:  SE1/4

 

5.      In order to prevent waste of oil and 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 oil and gas resources, an order should be made establishing 160-acres and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, a common source of supply underlying the lands defined herein; that said units should be 160-acres, more or less, and consist of a quarter section, according to the governmental survey, and the permitted well for each unit should be located no closer than 600 feet from the boundaries of the unit, and no closer than 1980 feet from any other well producing or capable of production from the same formation.  Wells presently producing or capable of production, or permitted within the spaced area for production from said "J" Sand should be considered the permitted well for the unit upon which it is located.

 

6.      All available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 160-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "J" Sand.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" Sand underlying the Deer Trail 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.    One hundred sixty (160) acre drilling and spacing units shall be and the same is hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Deer Trail Field Adams County, Colorado, to-wit:

 

Township 2 South, Range 59 West, 6th P.M.

Section 18:  SW1/4

Section 19:  W1/2

Section 30:  W1/2

 

Township 2 South, Range 60 West, 6th P.M.

Section 23:  E1/2

Section 24:  All

Section 25:  All

Section 26:  SE1/4

 

Rule 2.    Said drilling units shall consist of 160-acres, more or less, and consist of a quarter section, according to the governmental survey, and the permitted well for each unit shall be located no closer than 600 feet from the boundaries of the unit, and no closer than 1980 feet from any other well producing or capable of production from the same formation.  Wells presently producing or capable of production or permitted within the spaced area for production from said "J" Sand shall be considered the permitted well for the unit upon which it is located.

 

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 11th day of April 1984, as of March 29, 1984.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary