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 COUNTY, COLORADO

)

)

)

)

CAUSE NO. 105

 

ORDER NO. 105-37

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 8:30 a.m. on November 25, 1997, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Thomas L. Spring, to amend Order No. 105-6 to allow the drilling of an additional well in certain 640-acre drilling and spacing units at various locations in McClave Field, for production of gas and associated hydrocarbons from the McClave Sand.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Thomas L. Spring, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      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.

 

4.      On May 15, 1957, the Commission issued Order No. 105-1 which established 640-acre drilling and spacing units for the production of oil and associated hydrocarbons from the McClave Sand underlying certain lands in the McClave Field, with the units to consist of a governmental section, with the permitted well to be located no closer than 600 feet from the exterior boundary of the drilling and spacing unit upon which it is located.  Subsequent Orders included additional lands under the provisions of the McClave Field, and allowed the permitted well in certain lands to be located no closer than 990 feet from the boundary of the unit.

 

5.      The Applicant now wishes to designate the State Bock No. 2 Well and the approved in Order No. 105-36, as an additional well for the 640-acre drilling and spacing unit located in Section 31 for production of gas and associated hydrocarbons from the McClave Sand.

 

6.      Geologic and engineering evidence presented at the administrative hearing indicated one well will not efficiently and economically drain certain 640-acre drilling and spacing units, and that in order to prevent waste and protect correlative rights, an additional well should be allowed to drilled on the below-listed lands to recover additional reserves in the McClave Sand:

 

Township 20 South, Range 48 West, 6th P.M.

Section 31:  All

Section 33:  All

 

7.      That at the time of the administrative hearing, Thomas L. Spring, [sic] agreed to be bound by oral order of the Commission.

 

8.      Based on the facts stated in the application, having received no protests, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should approve the request and amend Order No. 105-6 to allow the drilling of an additional well in certain 640-acre drilling and spacing units at various locations in McClave Field, for production of gas and associated hydrocarbons from the McClave Sand.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 105-6 shall be amended to allow the drilling of an additional well in the below-listed 640-acre drilling and spacing units for production of gas and associated hydrocarbons from the McClave Sand:

 

Township 20 South, Range 48 West, 6th P.M.

Section 31:  All

Section 33:  All

 

IT IS FURTHER ORDERED, that the State Bock No. 2 Well, located in the NE¼ SE¼ of Section 31, Township 20 South, Range 48 West, 6th P.M., is hereby designated as the additional well for the 640-acre drilling and spacing unit consisting of said Section 31.

 

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

 

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 orders.

 

ENTERED this day of December, 1997, as of November 25, 1997.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

December 18, 1997