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 ALKALI GULCH FIELD, LA PLATA COUNTY, COLORADO

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CAUSE NO. 106

 

ORDER NO. 106-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 20, 1957, at 10 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the General Petroleum Corporation for an order establishing drilling units for the production of gas from the Paradox Member of the Hermosa formation of Pennsylvanian Age in the Alkali Gulch Field, La Plata 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 Paradox Member of the Hermosa formation of Pennsylvanian Age constitutes a common source of supply of gas underlying the following described lands in La Plata County, Colorado, to-wit:

 

Township 33 North, Range 12 West, N.MP.M.

 

 

Section 5:  All

Section 6:  All

 

 

Township 33 North, Range 13 West, N.MP.M.

 

 

Section 1:  All

 

Township 34 North, Range 12 West, N.MP.M.

 

 

Section 16:  All

Section 28:  All

Section 19:  All

Section 29:  All

Section 20:  All

Section 30:  All

Section 21:  All

Section 31:  All

Section 22:  All

Section 32:  All

Section 27:  All

Section 33:  All

Section 34:  All

 

 

 

Township 34 North, Range 13 West, N.MP.M.

 

 

Section 25:  All

Section 36:  All

 

and is referred to as the Alkali. Gulch Field.

 

4.      That in order to prevent waste, as defined in the Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells; and in order to efficiently and economically develop said pool, an order should be made establishing drilling and spacing units of approximately 640 acres for the production of gas from the Paradox Member of the Hermosa formation of Pennsylvanian Age, common source of supply underlying said lands, as defined herein; that said units should be 640-acre drilling and spacing units consisting of complete sections according to the governmental survey thereof; and that the permitted gas well for each such drilling unit should be located not closer than 1320 feet from any section line, and not closer than 330 feet from the quarter lines of each such section.

 

5.      That all the geological and engineering data submitted to the Commission concerning the said Paradox Member of the Hermosa formation of Pennsylvanian Age in said Alkali Gulch Field indicates that one well should efficiently and economically drain an area of approximately 640 acres as to gas; and that drilling and operating units of the size herein described are not smaller than the maximum area that can be efficiently drained by one well producing from said Paradox Member of the Hermosa formation of Pennsylvanian Age, 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.

 

6.      That the casing program for all wells hereafter drilled in the Alkali Gulch Field should include at least two strings of casing, which should be set in accordance with the standards set forth in Rule 2 hereof.

 

7.      That an exception should be allowed for the General Petroleum Corporation #F 11-32 Cater well located in the Center of the Northwest Quarter of the Northwest Quarter (C NW/4 NW/4) of Section Thirty-two (32), Township 34 North, Range 12 West, N.M.P.M, and that said well should be the permitted gas well for the drilling and spacing unit upon which it is located.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the Paradox Member of the Hermosa formation of Pennsylvanian Age underlying the Alkali Gulch 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.    [sic] Drilling units of approximately Six Hundred Forty (640) acres consisting of complete sections, according to the governmental survey thereof, shall be, and the same are hereby established for the production of gas from the Paradox Member of the Hermosa formation of Pennsylvanian Age, common source of supply underlying the following described lands in La Plata County, Colorado, to-wit:

 

Sections Five (5) and Six (6), Township Thirty-three (33) North, Range Twelve (12) West N.M.P.M; Section One (1), Township Thirty-three (33) North, Range Thirteen (13) West, N.M.P.M; Sections Sixteen (16), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), and Thirty-four (34), Township Thirty-four (34) North, Range Twelve (12) West, N.M.P.M.; and Sections Twenty-five (25) and Thirty-six (36), Township Thirty-four (34) North, Range Thirteen (13) West, N.M.P.M.,

 

and such area shall henceforth be known as the Alkali Gulch Field.

 

(a)

The permitted well for each such unit shall be located not closer than Thirteen Hundred Twenty (1320) feet from any section line, and not closer than Three Hundred Thirty (330) feet from the quarter lines of each such section.

 

Rule 2.    The casing program of all wells hereafter drilled in and productive from the Paradox Member of the Hermosa formation within the Alkali Gulch Field shall include at least two (2) strings of casing which shall, be set in accordance with the following:

 

(a)

The surface casing shall consist of new or reconditioned pipe with the original mill test of not less than 1200 psi and shall be set and cemented below the base of the Pictured Cliffs formation and into the Lewis Shale formation (at a depth of approximately 1000 feet below the surface of the earth).  Cementing shall be by the pump and plug method, and sufficient cement shall be used to fill the annular space behind the pipe to the surface of the ground or the bottom of the cellar.  Cement shall be allowed to stand a minimum of 24 hours before drilling the plug or initiating tests.  Before drilling the plug, a pump pressure of at least 1000 psi shall be applied.  If at the end of 30 minutes, the pressure shows a drop of 100 psi or more, the casing shall be condemned.  In lieu of the foregoing test, the surface casing shall be tested after drilling the plug by bailing the hole dry.  The hole shall remain dry for one (1) hour to constitute satisfactory proof of a water shutoff.  In event the casing is condemned, it shall again be tested in the same manner after corrective operations are completed, and this string shall stand the required test before compliance with this rule shall have been made.

 

 

(b)

The producing or oil string shall consist of new or reconditioned pipe with an original mill test of not less than 2000 psi.  This string of casing shall be set and cemented at such a point that all oil, gas and water encountered above the producing formation and below the surface casing shall be adequately confined to their respective strata.  The cement shall be allowed to stand a minimum of 24 hours before drilling the plug or initiating tests.  Before drilling the plug, a pump pressure of at least 1500 psi shall be applied.  If at the end of 30 minutes, the pressure shows a drop of 150 psi or more, the casing shall be condemned.  In lieu of the foregoing test, the production casing shall be tested after drilling the plug by bailing the hole dry.  The hole shall remain dry for one (1) hour to constitute satisfactory proof of a water shutoff.  In event the casing is condemned, it shall again be tested in the same manner after corrective operations are completed, and this string shall stand the required tests before compliance with this rule shall have been made.

 

IT IS FURTHER ORDERED, that an exception shall be allowed for the General Petroleum Corporation #F 11-32 Cater well located in the Center of the Northwest Quarter of the Northwest Quarter (C NW/4 NW/4) of Section Thirty-two (32), Township Thirty-four (34) North, Range Twelve (12) West, N.M.P.M., and that said well shall be the permitted gas well for the drilling and spacing unit upon which it is located.

 

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 Paradox Member of the Hermosa formation of Pennsylvanian Age in the Alkali Gulch 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 20th day of August, 1957.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary