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 McCLAVE FIELD, BENT AND KIOWA COUNTIES, COLORADO

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CAUSE NO. 105

 

ORDER NO. 105-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 26, 1960, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after service of Notice of Hearing or appropriate waiver thereof, all as required by law, on the application of the Frankfort Oil Company, authorized to do business in the State of Colorado, for an order from the Commission requiring the pooling of tracts of land lying within Section 14, Township 20 South, Range 49 West, 6th P.M., for the development of the McClave sand lying beneath said lands and within the McClave Field, Bent and Kiowa Counties, Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1.      That due notice of the time, place and purpose of the hearing has been given to parties interested therein 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 McClave sand of the McClave Field constitutes a common source of supply of gas underlying lands described in Order No, 105-1, issued by the Commission under date of May 15, 1957, and that Section 14, Township 20 South, Range 49 West, 6th P.M. Kiowa County, Colorado, is an established drilling and spacing unit of approximately 640 acres which is included in said McClave Field.

 

4.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, and to conform with the previously issued order of the Commission establishing 640-acre drilling and spacing units for the production of gas from the McClave sand underlying said lands, an order should be made pooling all interests in the 640-acre drilling unit as described herein.

 

5.      That the Frankfort Oil Company is the owner of the entire working interest in oil and gas leases covering the entire mineral interest under the tracts of land forming the drilling unit described herein, subject to certain contracts and agreements, and that said leases are presently in full force and effect.

 

6.      That the owners of royalty interests in said tracts of land have voluntarily agreed to the pooling of their interests in said drilling unit except for Harry R. Abrams and Eva Abrams, as joint tenants and owners of interests in the portions of the land within said drilling unit described as the NEĽ of Section 14, Township 20 South, Range 49 West, 6th P.M., and that reasonable effort has been made to obtain the voluntary pooling of such interests in the drilling unit for the development and operation thereof.

 

7.      That an order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest within said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

 

8.      That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

 

9.      That the McClave sand of the McClave Field is now in the process of being developed, and that, for all practical purposes, wells completed in said sand are shut in pending a gas market.

 

10.      That since there is no market, there is no drainage; and that when a market becomes available, reasonably avoidable drainage which is not equalized by counter-drainage should be adjusted and corrected upon application to the Commission.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as Section Fourteen (14), Township Twenty (20) South, Range Forty-nine (49) West of the 6th P.M., Kiowa County, Colorado, are hereby pooled for the development and operation of said drilling unit.

 

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located or to be located on said drilling unit applicable to his interest in said drilling unit.

 

IT IS FURTHER ORDERED, that this Order shall become effective forthwith.

 

ORDERED this 26th day of April, 1960.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary