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 "J" SAND OF THE TWOMILE FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 100

 

ORDER NO. 100-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 19, 1957, at 10:00 a.m., in the Game Room, Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order from the Commission establishing 640-acre drilling and spacing units for the production of gas from the "J" sand of the Twomile Field, Weld 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 "J" sand formation constitutes a common source of supply of gas underlying the following described lands in Weld County, Colorado, to-wit:

 

 Township 11 North, Range 56 West, 6th P.M.

 

                   Sections 32 and 33:  S/2

 

Township 10 North, Range 56 West, 6th P.M.

 

                   Sections 4 and 5:  All

                   Sections 8 and 9:  N/2

 

and is referred to as the Twomile 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, it appears to the Commission from the geological and engineering data presently available, that an order should be made establishing Six Hundred Forty (640) acre drilling and spacing units for the production of gas from the "J" sand, common source of supply underlying said land, as defined herein; that said units should be Six Hundred Forty (640) acre drilling and spacing units according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located not closer than Six Hundred Sixty (660) feet from any boundary line of each such drilling unit.

 

5.      That all available geological and engineering data presently available to the Commission concerning the said "J" sand formation in said Twomile Field seems to indicate that one well will be able to efficiently and economically drain an area of approximately 640 acres as to gas; and that drilling and operating units of the size herein described in the following order appear not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said "J" sand, common source of supply.  This Finding is based on the present geological and engineering data available, and it is recognized that as the field becomes more developed, more complete data will be available to the Commission which could alter this Finding.

 

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 formation underlying the Twomile Field, herein defined, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    Six Hundred Forty (640) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the "J" sand formation, common source of supply underlying the following described lands in Weld County, Colorado:

 

South Half (S/2) of Sections Thirty-two (32) and Thirty-three (33), Township Eleven (11) North, Range Fifty-six (56) West, 6th P.M.; and Sections Four (4) and Five (5), and the North Half (N/2) of Sections Eight (8) and Nine (9), Township Ten (10) North, Range Fifty-six (56) West, 6th P.M.,

 

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

 

Rule 2.    The following drilling and spacing units are hereby established for the production of gas from the "J" sand formation, common source of supply underlying the Twomile Field, as defined in Rule 1 hereof:

 

DRILLING UNIT I

 

South Half (S/2) of Section Thirty-two (32), Town-ship Eleven (11) North, Range Fifty-six (56) West, 6th P.M., and North Half of Section Five (5), Township Ten (10) North, Range Fifty-six (56) West, 6th P.M., Weld County, Colorado;

 

DRILLING UNIT II

 

South Half (S/2) of Section Thirty-three (33), Town-ship Eleven (11) North, Range Fifty-six (56) West, 6th P.M., and North Half (N/2) of Section Four (4), Township Ten (10) North, Range Fifty-six (56) West, 6th P.M., Weld County, Colorado;

 


 

DRILLING UNIT III

 

South Half (S/2) of Section Five (5), and North Half (N/2) of Section Eight (8), Township Ten (10) North, Range Fifty-six (56) West, 6th P.M., Weld County, Colorado;

 

DRILLING UNIT IV

 

South Half (S/2) of Section Four (4), and North Half (N/2) of Section Nine (9), Township Ten (10) North, Range Fifty-six (56) West, 6th P.M., Weld County, Colorado,

 

and the permitted gas well for each such unit shall be located not closer than Six Hundred Sixty (660) feet from any boundary line of such Six Hundred Forty (640) acre drilling and spacing unit.

 

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 "J" sand formation, common source of supply in the Twomile Field, as defined herein, for the purpose of producing 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 19th day of February, 1957.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary