BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF SHELL OIL COMPANY FOR AN ORDER FROM THE COLO-RADO OIL AND GAS CONSERVATION COMMIS-SION PROVIDING FOR TWENTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE DAKOTA SAND, OFTEN REFERRED TO AS THE "J" SAND, COMMON SOURCE OF SUPPLY UNDER-LYING THE SECTIONS 16, 17, 20 AND 21, ALL IN TOWNSHIP 9 NORTH, RANGE 53 WEST OF THE 6TH PRINCIPAL MERIDIAN - ALL IN LOGAN COUNTY, COLORADO, WHICH AREA IS PRE-SENTLY REFERRED TO AS THE WALKER FIELD.

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CAUSE NO. 9

 

ORDER NO. 9-1

 

APPEARANCES:

M.D. Dunlop and Donn D. Peters, Attorneys for applicant Shell Oil Company, Tulsa, Oklahoma and Denver, Colorado

 

A.H. Wieder, Shell Oil Company, Denver, Colorado

 

Robert L. Penner, British American Oil Producing Company, Casper, Wyoming

 

George W. Selinger, Skelly Oil Company, Tulsa, Oklahoma

 

Cliff J. Nolte, Skelly Oil Company, Tulsa, Oklahoma

 

Mrs. Cecil F. Schaer, 2950 Fairfax Street, Denver, Colorado

 

Wilbur Rocchio, Assistant Attorney General, Denver, Colorado

 

J.J. Zorichak, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 7, 1952, at ten o'clock A.M., 330 State Office Building, Denver, Colorado, after publication of notice of hearing as required by law on the application of Shell Oil Company 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 Dakota Sand, often referred to as the "J" Sand, common source of supply underlying Sections 16, 17, 20 and 21, all in Township 9 North, Range 53 West of the 6th Principal Meridian, Logan County, Colorado, which area is referred to in the said application as the Walker Field.

 

Applicant, Shell Oil Company, is the owner of oil and gas leases within the above described area and has heretofore completed its J.F. Kirk Nos. 1, 2, and 5 wells, which are located as follows:

 

 

No. 1 -

Southeast quarter (SE¼) of the Southeast Quarter (SE¼) of the Southeast Quarter (SE¼) of Section 17;

 

No. 2 -

Southeast Quarter (SE¼) of the Southwest quarter (SW¼) of the Southeast quarter (SE¼) of Section 17;

 

No. 3 -

Northwest Quarter (NW¼) of the Northwest quarter (NW¼) of the Southeast quarter (SE¼) of Section 17;

 

No. 4 -

Northwest Quarter (NW¼) of the Southeast Quarter (SE¼) of the Southeast Quarter (SE¼) of Section 17;

 

No. 5 -

Southeast Quarter (SE¼) of the Northeast Quarter (NE¼) of the Southeast Quarter (SE¼) of Section 17;

 

all in Township 9 North, Range 53 West, in the Dakota Sand, the top of which is found at the approximate depth of 4900 feet and the bottom at the approximate depth of 5000 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 Dakota Sand, and that 20 acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Dakota Sand.

 

The Skelly Oil Company requested that an exception be granted to form its twenty (20) acre drilling and spacing units described as follows:

 

The N½ NW¼ NE¼ Sec. 20, Twp. 9N, Range 53W, and the S½ NW¼ NE¼ Sec. 20, Twp. 9N, Range 53W.

 

The Skelly Oil Company further requested that its No. 4 Green well be drilled in the center of the N½ NW/2 NE¼ Sec. 20, Twp. 9N Range 53W, instead of the pattern location described as the center of the NW¼ NW¼ NE¼ Sec. 20, Twp. 9N, Range 53W, and that its No. 3 well be the pattern location for twenty (20) acre unit described as the S½ NW¼ Sec. 20, Twp. 9N, Range 53W.

 

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 Sand Pool, sometimes referred to as the "J" Sand Pool in the Walker Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:

 

 

Township 9 North, Range 53 West, 6th P.M., Logan County:

Section 16

Section 20

Section 17

Section 21

 

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 Dakota Sand Pool, or "J" 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 southeast 10 acres and one in the center of the northwest 10 acres of each quarter quarter section; and a tolerance of 50 feet in any 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 Dakota Sand Pool, or "J" Sand Pool in said Walker 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 Dakota Sand Pool, or "J" Sand Pool.

 

6.      The Commission finds that productive wells have been drilled at a datum on structure equal to the pattern location, and that deviation from the pattern location described as the center of the NW¼ NW¼ NE¼ Sec. 20 Twp. 9N Range 53W, as requested by the Skelly Oil Company, is not reasonably necessary, equitable or reasonable, from all of the evidence presented at this 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 Sand Pool, sometimes referred to as the, "J" Sand Pool, of the Walker Field, Logan County, 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 Commissions if any, heretofore adopted and not in conflict herewith:

 

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 Dakota Sand Pool, sometimes referred to as the "J" Sand Pool, common source of supply underlying Sections 16, 17, 20 and 21, Township 9 North, Range 53 West, 6th P.M., all in Logan County Colorado, and such area shall henceforth be known as the Walker 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 southeast 10 acres and one well in the center of the northwest 10 acres of each quarter quarter section, and that 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 the deviation or exception requested by the Skelly Oil Company to move the location of No. 4 Green well 330 feet east of the pattern location on a proposed unit designated as the N½ NW¼ NE¼ Sec. 20, Twp. 9N, Range 53W, and the same is, hereby denied.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said Dakota Sand Pool or "J" Sand Pool, in the Walker Field, Logan County, 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 Dakota Sand Pool or "J" 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 Dakota Sand Pool, or "J" Sand Pools 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 7th day of July, 1952, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  John E. Cronin, Secretary