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. 105-6

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on May 21, 1963, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Frankfort Oil Company, a Division of Joseph E. Seagram & Sons, for an order establishing drilling units of approximately 640 acres for production of gas from the Upper Morrow Sand underlying certain lands in the McClave Field, Bent and Kiowa Counties, Colorado.  At the hearing, the Frankfort Oil Company amended its application as to area and the size of the drilling unit comprised of Section 5, so as to delete the south 320 acres from said Section 5, Township 21 South, Range 48 West, 6th P.M., Bent County.

 

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 evidence presented at the hearing indicates that the Upper Morrow Sand constitutes a common source of supply of gas underlying the following described lands in Bent and Kiowa Counties, Colorado, to-wit:

 

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

Kiowa County, Colorado

 

Section 31:  All

Section 33:  All

Section 32:  All

Section 34:  All

 

Township 21 South, Range 48 West, 6th P.M.

Bent County, Colorado

 

 

Section 1:  S½  (South 320 acres)

Section 2:  All

Section 9:  All

Section 3:  All

Section 10:  All

Section 4:  All

Section 11:  All

Section 5:  Lots 1 through 10, inclusive

 

4.      That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells; and to insure proper and efficient development and promote conservation of the gas resources of the State, an order should be made establishing drilling units of approximately 640 acres for the production of gas from the Upper Morrow Sand, that sandstone member of the Morrow formation of Pennsylvanian Age correlative with that found between 4685 feet and 4703 feet in the State-Bock #1 Well, located in the SW¼NE¼ of Section 31, Township 20 South, Range 48 West, 6th P.M., Kiowa County, Colorado, common source of supply underlying the lands as defined herein; that said units should be approximately 640 acres consisting of complete sections according to the governmental survey thereof, except that in the irregular Sections 1, 2, 3, 4 and 5 of Township 21 South, Range 48 West, Bent County, Colorado, the drilling units should be comprised as set forth in the following order; and that the permitted well for each such drilling unit should be located within a radius of 990 feet from the center of the drilling unit upon which it is located, except with respect to the drilling unit comprising the S½ of Sections 1 and 2, in which the permitted well should be located not less than 990 feet from the boundary lines thereof.

 

5.      That all available geological and engineering data concerning said Upper Morrow Sand indicate that one well will adequately and efficiently drain an area of approximately 640 acres of land in said formation.

 

6.      That all wells drilled, and all locations approved by the Commission prior to May 21, 1963, should be the permitted wells or locations for the respective drilling units.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Upper Morrow Sand of the McClave Field, as defined herein, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

 

Rule 1.    Drilling units of approximately 640 acres shall be, and the same are hereby established for the production of gas from said Upper Morrow Sand, common source of supply underlying the following described lands in Bent and Kiowa Counties, Colorado, to-wit:

 

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

Kiowa County, Colorado

 

Section 31:  All

Section 33:  All

Section 32:  All

Section 34:  All

 

Township 21 South, Range 48 West, 6th P.M.

Bent County, Colorado

 

 

Section 1:  S½  (South 320 acres)

Section 2:  All

Section 9:  All

Section 3:  All

Section 10:  All

Section 4:  All

Section 11:  All

Section 5:  Lots 1 through 10, inclusive

 

Rule 2.    Said units shall consist of approximately 640 acres, comprising a complete section according to the governmental survey thereof, except that in the irregular Sections 1, 2, 3, 4 and 5 of Township 21 South, Range 48 West, 6th P.M., Bent County, Colorado, the drilling units shall be comprised as follows:

 

(a)

Lots 1 through 10, inclusive, as to each of Sections 2, 3, 4 and 5.

 

 

(b)

The S/2 of Section 1 and the S/2 of Section 2.

 

 

(c)

The S/2 of Section 3 and the S/2 of Section 4.

 

and the permitted well for each such drilling unit shall be located within a radius of 990 feet from the center of the drilling unit upon which it is located, except with respect to the drilling unit comprising the S½ of Sections 1 and 2, in which the permitted well shall be located not less than 990 feet from the boundary lines thereof.

 

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to May 21, 1963, shall be the permitted wells or locations for the respective drilling units.

 

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 Upper Morrow Sand, 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 orders, rules or regulations.

 

ORDERED this 21st day of May 1963.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  William R. Smith, Secretary