BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMUIGATION OF FIELD RULES TO GOVERN THE SPACING AND DENSITY OF OIL AND GAS WELLS IN THE ADENA, SOUTH FIELD, MORGAN AND ADAMS COUNTIES, COLORADO.

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CAUSE NO. 33

 

ORDER NO. 33-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 20, 1954, at 10:00 A.M., Room 704, State Capitol Annex, Sherman Street and l4th Avenue, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of the Lion Oil Company for an extension to include Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township One (1) North, Range Fifty-eight (58) West, and the South Half (S½) of Section Thirty (30), and all of Section Thirty-one (31), Township One (1) North, Range Fifty-seven (57) West, all in Morgan County, Colorado; and all of Sections One (1), Two (2), Three (3), and Four (4), Township One (1) South, Range Fifty-eight (58) West, and all of Section Six (6), Township One (1) South, Range Fifty-seven (57) West, all in Adams County, Colorado.

 

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 "D" and "J" sand formations of the Dakota Series in the Adena, South Field constitute common sources of supply, but are not connected to the common sources of supply underlying the Adena Field located in Morgan County, Colorado.

 

4.      That the "D" and "J" sand formations of the Dakota Series in the Adena, South Field constitute common sources of supply underlying the following described lands:

 

Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township One (1) North Range Fifty-eight (58) West, and the South Half (S½) of Section Thirty (30) and all of Section Thirty-one (31), Township One (1) North, Range Fifty-seven (57) West, all in Morgan County, Colorado; and all of Sections One (1), Two (2), Three (3), and Four (4), Township One (1) South, Range Fifty-eight (58) West, and all of Section Six (6), Township One (1) South, Range Fifty-seven (57) West, all in Adams County, Colorado.

 

5.      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 Forty (40) acre drilling and spacing units for the production of oil from the said "D" and "J" sand formations of the Dakota Series, common sources of supply underlying said land, as defined herein; that said units should be Forty (40)acre drilling and spacing units according to the governmental survey thereof, and that the permitted oil well for each unit should be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and should be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.

 

6.      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 One Hundred Sixty (160) acre drilling and spacing units for the production of gas from the said "D" and "J" sand formations of the Dakota Series, common sources of supply underlying said land, as defined herein; that said units should be One Hundred Sixty (160) acre drilling and spacing units according to the governmental survey thereof, and that the permitted gas well should be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line contained in each said One Hundred Sixty (160) acre unit according to the governmental survey thereof; and should be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.

 

7.      That all available geological and engineering data concerning the said "D" and "J" sand formations of the Dakota Series in said Adena, South Field indicate that one well should efficiently and economically drain an area of approximately Forty (40) acres as to oil, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one oil well producing from the said "D" and "J" sand formations of the Dakota Series.

 

8.      That all available geological and engineering data concerning the said "D" and "J" sand formations of the Dakota Series in said Adena, South Field indicate that one well should efficiently and economically drain an area of approximately One Hundred Sixty (160) acres as to gas, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one gas well producing from the said "D" and "J" sand formations of the Dakota Series.

 

9.      That an exception should be allowed for the Forty (40) acre drilling and spacing unit designated as the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35) [sic] Township One (1) North, Range Fifty-eight (58) West, Morgan County, Colorado in that prior to the petition filed herein two wells had been commenced upon said Forty (40) acre drilling and spacing unit, to-wit:

 

(1)

Eddie Fisher 1 [sic] State, located in the Center of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35);

(2)

Eddie Fisher #2 State, located in the Center of the Southwest Quarter (SW¼) of the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35);

    

and that each of said wells should be the permitted oil or gas well for the specific drilling and spacing unit upon which it is located.

 

10.    That this cause should be hereafter referred to as Cause No. 33.

 

ORDER

 

IT IS THEREFORE ORDERED that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" and "J" sand formations of the Dakota Series of the Adena, South Field, in Morgan and Adams Counties, Colorado, as hereinabove defined in the Findings, which by 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.

 

Rule 1. The following drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "D" and "J" sands of the Dakota Series, common sources or supply underlying:

 

Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township One (1) North, Range Fifty-eight (58) West, and the South Half (S½) of Section Thirty (30), and all of Section Thirty-one (31), Township One (1) North, Range Fifty-seven (57) West, all in Morgan County, Colorado; and all of Sections One (1), Two (2), Three (3), and Four (4), Township One (1) South, Range Fifty-eight (58) West, and all of Section Six (6), Township One (1) South, Range Fifty-seven (57) West, all in Adams County, Colorado.

 

(a)     Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil. The permitted well for each unit shall be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and shall be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.

 

(b)     One Hundred Sixty (160) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas. The permitted gas well shall be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line contained in each said One Hundred Sixty (160) acre unit according to the governmental survey thereof; and shall be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.

 

Rule 2.    That an exception shall be allowed for the Forty (40) acre drilling and spacing unit designated as the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35), Township One (1) North, Range Fifty-eight (58) West, Morgan County, Colorado, in that prior to the petition filed herein two wells had been commenced upon said Forty (40) acre drilling and spacing unit, to-wit:

(1)

Eddie Fisher 1 [sic] State, located in the Center of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35);

(2)

Eddie Fisher #2 State, located in the Center of the Southwest Quarter (SW¼) of the Northeast Quarter (NE¼) of the Southwest Quarter (SW¼) of Section Thirty-five (35);

 

and that each of said wells shall be the permitted oil or gas well for the specific drilling and spacing unit upon which it is located.

 

Rule 3.    That this cause shall be hereafter referred to as Cause No. 33.

 

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 "D" and "J" sand formations of the Dakota Series, as defined herein, for the purpose of producing oil and gas therefrom, at a location other than authorized by this Order, is hereby prohibited.

 

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 6th day of May, 1954, 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, Assistant Secretary