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 RUSH CREEK FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 108 ORDER NO. 108-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 28, 1958, at 10:00 A.M., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Ohio Oil Company and Pan American Petroleum Corporation for an order establishing, with one exception, 320-acre drilling and spacing units for the development and production of gas from the "D" sand, common source of supply underlying the Rush Creek Field, Weld 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 "D" sand formation constitutes a common source of supply of gas underlying the following described lands in Weld County, Colorado, to-wit:

Township 12 North, Range 56 West, 6th P.M.
Drilling Unit No. 1	Drilling Unit No. 2
Section 35:  S/2	Section 36:  S/2
Township 11 North, Range 56 West, 6th P.M.
Drilling Unit No. 3	Drilling Unit No. 4
Section 2:  N/2	Section 1:  NW/4

and is referred to as the Rush Creek Field.

4.      That in order to prevent waste of gas and oil as defined in the Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells, an order should be made establishing three drilling and spacing units of 320-acres each and one drilling and spacing unit of 160-acres for the production of gas from the "D" sand, common source of supply underlying said land, as defined herein; that each unit should be a normal half section, as herein described in the following order; and that the permitted well for each such drilling unit should be located not closer than Six Hundred sixty (660) feet from any boundary line of each such drilling unit.

5.      That all available geological and engineering data presently available to the Commission concerning the said "D" sand formation in said rush Creek field seems to indicate that one well will efficiently and economically drain an area of approximately 320 acres as to gas; and that drilling and operating units of the size and shape herein described in the following order appear not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said "D" sand, 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 all wells drilled, and all locations approved by the Commission prior to January 28, 1958, should be the permitted wells or locations for the repective drilling units.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" sand formation underlying the Rush Creek 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.    Three drilling and spacing units of Three Hundred Twenty (320) acres each, and one drilling and spacing unit of One Hundred Sixty (160) acres shall be, and the same are hereby established for the production of gas from the "D" sand formation, common source of supply underlying the following described lands in Weld County, Colorado, to-wit:

South Half (S/2) of Section Thirty-five (35), and South Half (S/2) of Section Thirty-six (36), Township Twelve (12) North, Range Fifty-six (56) West, North Half (N/2) of Section Two (2), and Northwest Quarter (NW/4) of Section One (1), Township Eleven (11) North, Range Fifty-six (56) West, 6th P.M.,

and such area shall henceforth be known as the Rush Creek Field.

Rule 2.    The following drilling and spacing units are hereby established for the production of gas from the "D" sand formation, common source of supply underlying Rush Creek Field, as defined in Rule 1 hereof:

Drilling Unit No. 1

South Half (S/2) of Section Thirty-five (35), Township Twelve (12) North, Range Fifty-six (56) West, Weld County, Colorado;

Drilling Unit No. 2

South Half (S/2) of Section Thirty-six (36), Township Twelve (12) North, Range Fifty-six (56) West, Weld County, Colorado;

Drilling Unit No. 3

North Half (N/2) of Section Two (2), Township Eleven (11) North, Range Fifty-six (56) West, Weld County, Colorado;

Drilling Unit No. 4

Northwest Quarter (NW/4) of Section One (1), Township Eleven (11) North, Range Fifty-six (56) West, Weld County Colorado;

and the permitted gas well for each such unit shall be located not closer than Six Hundred Sixty (660) feet from any boundary line of each such drilling and spacing unit.

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to January 28, 1958, 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 "D" sand formation, common source of supply in the Rush Creek 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 28th day of January, 1958

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary