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 KNOLL FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO.   107

 

ORDER NO.   107-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 20, 1957, at 10:00a.m, in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Ralph C. Halbert and William D. Jennings, doing business as Halbert and Jennings, for an order from the Commission established a drilling and spacing unit in Section 35, Township 8 North, Range 51 West, 6th P.M., and requiring the pooling of a tract of land lying within a drilling unit covering the SW/4 and W/2 SE/4 of Section 35, Township 8 North, Range 51 West, 6th P.M., for the development of the “J” sand formation lying beneath said land and within the Knoll Field, Logan County, Colorado; and for an order permitting the applicant to reimbursement of all sums advanced by it for the benefit of the working interest owners who have not paid their share of the drilling and completion costs.

 

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 “J” sand formation constitutes a common source of supply of gas

underlying the following described lands in Logan County, Colorado, to-wit:

 

                                    Township 8 north, Range 51 West, 6th P.M.

Section 35: SW/4, W/2 SE/4

And is referred to as the Knoll Field.

 

4.        That in order to prevent waste of oil and gas, as defined in the Oil and Gas

Conservation Act, and to prevent the drilling of unnecessary wells, an order should be made establishing a Two Hundred Forty (240) acre drilling and spacing unit for the production of gas from the “J” sand, common source of supply underlying said land, as defined herein; that said unit should be Two Hundred Forty (240) acre drilling and spacing unit according to the governmental survey thereof, and that the West Half of the Southeast Quarter (W/2 SE/4) and Southwest Quarter (SW/4) of said Section Thirty-five (35) should constitute a drilling unit; and that the Halbert and Jennings State No. 1 well located 660 feet North of the South line, and 1980 feet East of the West line of said Section 35, should be the permitted gas well for said drilling and spacing unit.

 

5.        That all available geological and engineering data concerning the said “J” sand

formation in said Knoll Field indicates that one will should efficiently and economically drain an area of approximately Two Hundred Forty (240) acres as to gas, and that the unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one gas well producing from the said “J” sand, common source of supply.

 

6.        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, an order should be made pooling all interests in the 240- acre drilling unit described as the SW/4 and W/2 SE/4 of Section 35, Township 8 North, Range 51 West, 6th P.M., Logan County, Colorado.

 

7.        That the 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 even though evidence was introduced at the hearing regarding the cost of

drilling the well now located on the lands, that subsequent to the hearing agreement was reached between the interested parties as the settlement and disposition of all issues raised with relation to such costs, and that it is not necessary for this Commission to now make any findings or orders with relation to such costs or costs of operation of the well.

 

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the “J” sand formation underlying the Knoll Field, herein described in the Findings, which, by reference, are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any heretofore adopted and not in conflict herewith:

 

1.    The “J” sand formation is the common source of supply of gas underlying the following described lands in Logan County, Colorado, to-wit:

Southwest Quarter (SW/4) and West Half of

Southwest Quarter (W/2 SE/) of Section

Thirty-five (35), Township Eight (8) North,

Range Fifty-one (51) West of the 6th P.M.,

And such area shall henceforth be known as the Knoll Field.

 

2.    The following drilling and spacing unit shall be and the same is hereby established for the production of gas from the “J” sand, common source of supply underlying the Knoll Field as defined herein:

a.    A Two Hundred Forty (240) acre drilling and spacing unit, according to the governmental survey thereof, for the production of gas from the “J” sand; and the SW/4 and W/2 SE/4 of said Section 35, Township 8 North, Range 51 West shall constitute a drilling unit.

b.    The permitted gas well on said unit shall be the well identified as the Halbert and Jennings State No. 1 well, located 660 feet North of the South line, and 1980 feet East of the West line of said Section 35.

 

IT IS FURTHER ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and

Gas Conservation Act of the State of Colorado, a;; interests in the drilling unit described as the Southwest Quarter (SW/4) and West Half of the southeast Quarter (W/2 SE/4) of Section 35, Township Eight (8) North, Range Fifty-one (51) West; 6th P.M., Logan County, Colorado, is 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 the rules and regulations contained herein 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 rules and regulations.

 

ORDERED this 17th day of September, 1957.

 

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By

: Annabel Hogsett, Secretary