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 CANADIAN RIVER FIELD, JACKSON COUNTY, COLORADO

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CAUSE NO. 96

 

ORDER NO. 96-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 9, 1956, at 10 a.m., in Room 243, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Cabeen Exploration Corporation and the Continental Oil Company for an order establishing forty-acre drilling and spacing units for the production of oil from the Dakota-Lakota formation of the Canadian River Field, and providing that the location of wells be established on a flexible basis, each well to be located not less than 200 feet from any property or lease line, and not less than 600 feet from any other producible oil or drilling well in said common source of supply.

 

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 testimony indicates that there is a single oil pool in the Dakota-Lakota formation which constitutes a common source of supply of oil and gas underlying the following described lands in Jackson County, Colorado, to-wit:

 

Township 9 North, Range 78 West, 6th P.M.

 

Sections 2, 3, 10, 11, 12, 13 and 14

 

and such area is referred to as the Canadian River Field.

 

4.      That testimony indicates 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 from the said Dakota-Lakota formation, common source 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 200 feet from any property line, lease line or governmental quarter-quarter section line, and not less than 600 feet from any other producible oil well or drilling well in said common source of supply; provided that this rule should not be applicable where the owners proposing to drill a well file with the Commission a waiver, or consent, in writing, signed by the lease owner toward whom the well location is proposed to be moved, agreeing that said well may be located at the point at which the owner proposes to drill the well.

 

5.      That all available geological and engineering data concerning the Dakota-Lakota formation, common source of supply in said Canadian River 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 Dakota-Lakota formation, common source of supply in said Canadian River Field.

 

6.      That the gas market for said Canadian River Field, as indicated in the testimony, could be supplied from the wells producing predominately oil; and that in order to conserve energy and prevent waste, all wells with a gas-oil ratio in excess of 20,000 to 1 should not be produced.

 

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-Lakota formation underlying the Canadian River 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.    Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Dakota-Lakota formation, common source of supply underlying:

 

Sections Two (2), Three (3), Ten (10), Eleven (11), Twelve (12), Thirteen (13) and Fourteen (14), Township Nine (9) North, Range Seventy-eight (78) West of the 6th P.M., in Jackson County, Colorado,

 

and such area shall henceforth be known as the Canadian River Field.

 

(a)     The permitted well for each unit shall be located not less than Two Hundred (200) feet from any property line, lease line or governmental quarter-quarter section line, and not less than Six Hundred (600) feet from any other producible oil well or drilling well in said common source of supply; provided, however, that this rule shall not be applicable where the owners proposing to drill a well file with the Commission a waiver, or consent, in writing, signed by the lease owner toward whom the well location is proposed to be moved, agreeing that said well may be located at the point at which the owner proposes to drill the well.

 

IT IS FURTHER ORDERED, that all wells with a gas-oil ratio in excess of Twenty Thousand to One (20,000 to 1) shall not be produced.

 

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-Lakota formation, 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 5th day of November, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary