BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PETITION OF SHELL OIL COMPANY FOR AN ORDER FROM THE COLO-RADO OIL AND GAS CONSERVATION COMMIS-SION PROVIDING FOR TWENTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE DAKOTA SAND, OFTEN REFERRED TO AS THE "J" SAND, COMMON SOURCE OF SUPPLY UNDER-LYING THE SE/4 OF SECTION 11 AND THE SW/4 OF SECTION 12 AND W/2 OF SECTION 13 AND ALL OF SECTION 14 AND THE E/2 OF SECTION 15 AND THE E/2 OF SECTION 22 AND ALL OF SECTION 23 AND W/2 OF SECTION 24, ALL IN TOWNSHIP 8 NORTH, RANGE 53 WEST OF THE 6TH P.M., IN LOGAN COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE DALE FIELD

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CAUSE NO. 11

 

ORDER NO. 11-1

 

            APPEARANCES:

           

Donn D. Peters, Attorney for Applicant, Shell Oil Company, Denver, Colorado

A.H. Wieder, Shell, Oil Company, Denver, Colorado

Tom Gaines, The Texas Company, Denver, Colorado

Wilbur Rocchio, Assistant Attorney General; and

J.J. Zorichak, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 29, 1952, at ten o'clock A.M., 330 State Office Building, Denver, Colorado, after publication of notice of hearing as required by law on the petition of Shell Oil Company for an order from the Commission establishing twenty (20) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Dakota Sand, often referred to as the "J" Sand, common source of supply underlying the SE/4 of Section 11 and the SW/4 of Section 12 and W/2 of Section 13 and all of Section 14 and the E/2 of Section 15 and the E/2 of Section 22 and all of Section 23 and the W/2 of Section 24, all in Township 8 North, Range 53 West of the 6th Principal Meridian, Logan County, Colorado, which area is referred to in the said petition as the Dale Field.

 

Applicant, Shell Oil Company, is the owner of oil and gas leases within the above described area and has heretofore completed its J. Knifton "A" No. 1 well and its M. Haywood "A" No. 1 well, which are located as follows:

 


 

J. Knifton "A" No. 1 -

Northwest Quarter (NW/4) of the Northeast quarter (NE/4) of the Northwest Quarter (NW/4) of said Section 23;

 

 

M. Haywood "A" No. 1 -

Northwest Quarter (NW/4) of the Northeast quarter (NE/4) of the Northwest Quarter (NW/4) of said Section 23;

 

all in Township 8 North, Range 53 West, in the Dakota Sand, the top of which is found at the approximate depth of 4756 feet and the bottom at the approximate depth of 4800 feet below the surface. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying 20 acres in the Dakota Sand, and that 20 acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Dakota Sand.

 

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 Dakota Sand Pool, sometimes referred to as the "J" Sand Pool in the Dale Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:

 

Township 8 North, Range 53 West, 6th P.M., Logan County:

 

 

 

 

W/2 Section 13

E/2 Section 22

       SE/4 Section 11

All Section 14

All Section 23

       SW/4 Section 12

E/2 Section 15

W/2 Section 24

 

4.      That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing twenty (20) acre drilling and spacing units for the production of oil and gas from the said Dakota Sand Pool, or "J" Sand Pool, common source of supply underlying said land, as defined herein; that said units should be formed by a line running north and south through the center of each quarter quarter section, according to the governmental survey thereof, and the permitted wells should be located one in the center of the southeast 10 acres and one in the center of the northwest 10 acres of each quarter quarter section; and a tolerance of 50 feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the said Dakota Sand Pool, or "J" Sand Pool in said Dale Field, indicate that one well should efficiently and economically drain an area of approximately 20 acres, and that 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 the said Dakota Sand Pool, or "J" Sand Pool.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Dakota Sand Pool, sometimes referred to as the "J" Sand Pool, of the Dale Field, Logan County, as hereinabove defined 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:

 

Rule 1.    Twenty (20) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Dakota Sand Pool, sometimes referred to as the "J" Sand Pool, common source of supply underlying the SE/4 of Section 11 and the SW/4 of Section 12 and W/2 of Section 13 and all of Section 14 and the E/2 of Section 15 and the E/2 of Section 22 and all of Section 23 and W/2 of Section 24, all in Township 8 North, Range 53 West of the 6th Principal Meridian, Logan County, Colorado, and such area shall henceforth be known as the Dale Field.

 

Rule 2.    The said units shall be formed by a line running north and south through the center of each governmental quarter quarter section, and the permitted wells for each unit shall be located one well in the center of the southeast 10 acres and one well in the center of the northwest 10 acres of each quarter quarter section, and that a tolerance of 50 feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED that by order of the Commission, after due notice and hearing, the said Dakota Sand Pool or "J" Sand Pool, in the Dale Field, Logan County, Colorado, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the said Dakota Sand Pool or "J" Sand Pool, common source of supply.

 

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 Dakota Sand Pool, or "J" Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, except as herein provided, is hereby prohibited.

 

ORDERED this 29th day of October, 1952, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Assistant Secretary