BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE PIERCE FIELD, WELD COUNTY, COLORADO |
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CAUSE NO. 104
ORDER NO. 104-1 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on April 8, 1957, in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The California Company for an order establishing eighty-acre drilling and spacing units for the production of oil and gas from the Lyons reservoir underlying the Pierce Field, Weld County, Colorado. The hearing was continued, upon motion of the Commission, to May 7, 1957, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Continuation of Hearing, in an effort to have interested parties voluntarily meet and agree upon arrangement and alignment of drilling units within the area to be spaced.
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 Lyons reservoir constitutes a common source of supply of oil and gas underlying the following described lands in Weld County, Colorado, to-wit:
Township 8 North, Range 66 West, 6th P.M. |
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Section 14: All |
Section 26: All |
Section 15: All |
Section 27: All |
Section 21: E/2 |
Section 28: E/2 |
Section 22: All |
Section 33: N/2 |
Section 23: All |
Section 34: N/2 |
Section 35: N/2 |
such area is referred to as the Pierce Field.
4. That testimony presented at the hearings indicates that the Lyons reservoir of the Pierce Field is found at an average depth of 9200 feet, has an average effective net pay thickness of 26.6 feet with an average porosity of 11.6%, and an average permeability of 44 md., there is a minimum of reservoir energy available produce the oil, and the field will have very poor recovery efficiency from primary depletion practices.
5. That the geological and engineering data presented to the Commission regarding the Lyons reservoir in the Pierce Field indicate that one well will efficiently and economically drain an area of approximately eighty (80) acres; and that the drilling and spacing units of the size and shape permitted by this order appear not to be smaller than the maximum area that can be efficiently drained by one well.
6. That the geological and engineering data presented to the Commission indicate that the Lyons pool of the Pierce Field is an elongated structure, and that rectangular drilling units best protect correlative rights if aligned with the long axis of the drilling unit parallelling [sic] the major axis of the reservoir.
7. That the drilling and spacing units for the Pierce Field should be eighty (80) acres, consisting of either the west half or the east half of each governmental quarter section, with the exception of the Northwest Quarter (NW/4) of Section Thirty-four, Township Eight (8) North, Range Sixty-six (66) West, in which quarter section one unit should consist of the north half and one unit should consist of the south half.
8. That at the present time, in excess of fifty percent (50%) of the known productive area has been developed on an eighty-acre spacing pattern; and that in conformance with wells already drilled, the permitted well for drilling and spacing units should be located in the approximate center of the north half of the west unit, and the south half of the east unit of each quarter section, but not closer than Six Hundred (600) feet from the outer boundaries of such drilling units.
9. That in this spacing order establishing rectangular drilling units, it is recognized that some wells drilled on pattern may not be productive, and, in such instances, exceptions to the established drilling pattern should be considered at a hearing, upon application of an interested party when field development justifies.
10. That no well, drilled as the authorized well for any drilling or spacing unit, should be produced until pooling of the unit has been accomplished either voluntarily or after notice and 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 Lyons reservoir underlying the Pierce Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:
Rule 1. Drilling and spacing units of approximately eighty (80) acres shall be and the same are hereby established for the production of oil and gas from the Lyons reservoir, common source of supply underlying the following described lands:
Sections Fourteen (14) and Fifteen (15), East Half (E/2) of Section Twenty-one (21), Sections Twenty-two (22), Twenty-three (23), Twenty-six (26) and Twenty-seven (27), East Half (E/2) of Section Twenty-eight (28), North Half (N/2) of Sections Thirty-three (33), Thirty-four (34) and Thirty-five (35), Township Eight (8) North, Range Sixty-six (66) West, 6th P.M., Weld County, Colorado, |
and such area shall henceforth be known as the Pierce Field.
Rule 2. In each quarter section, one drilling unit shall be the East Half and one drilling unit shall be the West Half(W/2), [sic] except that in the North-Quarter (NW/4) of Section Thirty-four (34), Township Eight (8) North, Range Sixty-six (66) West, one unit shall consist of the North Half (N/2) and one unit shall consist of the South Half (S/2). The permitted well for each drilling unit shall be located in the approximate center of the Northwest Quarter (NW/4) or the Southeast Quarter (SE/4) of each quarter section, and shall not be located closer than Hundred (600) feet from the boundary line of such quarter-quarter section.
Rule 3. No well drilled as the authorized well for any drilling or spacing shall be produced until pooling of the unit has been accomplished, either voluntarily or after notice and hearing.
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 Lyons reservoir, common source of supply in the Pierce Field, 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 24th day of May, 1957.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |