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

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CAUSE NO. 108

 

ORDER NO. 108-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 17, 1974, at 9 a.m. in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Lynco Oil Corporation for an order to rescind the provisions of Order No. 108-2 and substitute in lieu thereof 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" Sand underlying certain lands in 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 Commission on January 28, 1958 issued its Order No. 108-2 which, among other things, established three 320-acre and one 160-acre drilling and spacing units for the production of gas from the "D" Sand underlying the following described lands in Weld County, Colorado, to-wit:

 

Township 11 North, Range 56 West, 6th P.M.

Section 1:  NW¼                     Section 2:  N½

 

Township 12 North, Range 56 West, 6th P.M.

Section 35:  S½                     Section 36:  S½

 

4.      That since production of gas from that part of the reservoir underlying the S½  Section 35 and the S½ Section 36, Township 12 North, Range 56 West, 6th P.M., reached its economic limit and the wells located thereon have been plugged and abandoned, said area should be deleted from the spaced area and henceforth governed by the general rules and regulations of the Commission.

 

5.      That evidence presented at the hearing indicates that the "D" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Weld County, Colorado, to-wit:

 

Township 11 North, Range 56 West, 6th P.M.

Section 1:  NW¼                       Section 2:  All

 

6.      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, to insure proper and efficient development, and to promote conservation of the gas resources of the State.  Order No. 108-2 should be rescinded and in lieu thereof, an order should be made establishing 160-acre drilling and spacing units for the production of gas from the "D" Sand, common source of supply underlying the lands described in Finding 5 herein; that each unit should consist of a quarter section according to the governmental survey and the permitted well for each unit be located not less than 660 feet from the boundaries of each such unit, and that Well No. 1 Peavy, located in the NW¼NW¼NW¼ Section 1, Township 11 North, Range 56 West, 6th P.M., be the permitted well for the unit consisting of the NW¼ of said Section 1.

 

7.      That all available geological and engineering data concerning said "D" Sand indicate that one well will efficiently and economically drain an area of approximately 160-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said "D" Sand.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, general rules and regulations of the Commission; and the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" Sand underlying the Rush Creek Field, as described in Finding 5 herein, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "D" Sand underlying the following described lands in the Rush Creek Field, Weld County, Colorado, to-wit:

 

Township 11 North, Range 56 West, 6th P.M.

Section 1:  NW¼                     Section 2:  N½

 

Rule 2.    Said drilling units shall consist of One Hundred Sixty (160) acres, and each unit shall be a quarter section, according to the governmental survey thereof, and the permitted well for each such drilling shall be located not less than 660 feet from the boundaries of each such unit, and the Well No. 1 Peavy located in the NW¼NW¼NW¼ Section 1, Township 11 North, Range 56 West, 6th P.M. shall be the permitted well for the unit consisting of the NW¼ of said Section 1.

 

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, rules and regulations.

 

ORDERED this 17th day of September, 1974.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary