BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE "D" SAND OF THE BEACON FIELD ADAMS COUNTY, COLORADO

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CAUSE NO. 77

 

ORDER NO. 77-1

APPEARANCES:

John R. Moran, Attorney - for the Progress Petroleum Corporation

Taylor Hancock - for the Superior Oil Company

George Fentress - for the Lion Oil Company

Sam Freeman, Assistant Attorney General, and

A.J. Jersin, Deputy Director - for the Commission

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 11, 1955, at 10:00 a.m., in the House of Representatives, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Progress Petroleum Corporation for an order establishing Forty (40) acre drilling and spacing units for the production of oil and gas from the "D" sand, common source of supply underlying the Beacon Field, 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" sand constitutes a common source of supply of oil and gas underlying the following described lands in Adams County, Colorado to-wit:

Township 1 South, Range 57 West, 6th P.M.

 

 

Section 6:  All

Section 7:  All

 

 

Township 1 South, Range 58 West, 6th P.M.

 

 

Section 1:  All

Section 12:  All

and is referred to as the Beacon Field.

4.      That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act, 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 and gas from the "D" sand, common source of supply underlying the Beacon Field described above that said units should be approximately 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 drilling and spacing unit line, and not less than Nine Hundred Thirty-three (933) feet from any producible or drilling well.

5.      That all available geological and engineering data concerning the said "D" sand, common source of supply in said Beacon Field, indicate that one well will efficiently and economically drain an area of approximately Forty (40) 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 the said "D" sand, common source of supply in said Beacon Field.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand formation underlying the Beacon Field, herein described 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.    Approximately Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "D" sand formation, common source of supply underlying:

Sections Six (6) and Seven (7), Township One (1) South, Range Fifty-seven (57) West of the 6th P.M.; and Sections One (1) and Twelve (12), Township One (1) South, Range Fifty-eight (58) West of the 6th P.M., all in Adams County, Colorado,

and such area shall henceforth be known as the Beacon Field.

Rule 2.    That each governmental quarter-quarter section in the governmental survey shall constitute a drilling and spacing unit, and the permitted well for each unit shall be located not less than Three Hundred Thirty (330) feet from any drilling and spacing unit line, and shall be located not less than Nine Hundred Thirty-three (933) feet from any producible or drilling well.

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" sand, 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 stay and/or all of the above rules and regulations.

ORDERED this 11th day of October, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary