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 IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO

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CAUSE NO. 112

 

ORDER NO. 112-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 15, 1957, at 10 a.m., in Room 243 State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion to consider extension of field limits for the Blanco Field, Cause No. 45, and the Ignacio Field, Cause No. 3.

 

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 evidence presented at the above hearing indicates that the Mesaverde formation of the Ignacio and Blanco fields constitutes a common source of supply of gas underlying, in addition to the area set forth in Order No. 3-29, Cause No. 3, and Order No. 45-5, Cause No. 45, the following lands in La Plata County, Colorado, to-wit:

 

Township 32 North, Range 7 West, N.MP.M.

 

 

Sections 1 through 24

 

 

Township 32 North, Range 8 West, N.MP.M.

 

 

Sections 1 through 24

 

 

Township 32 North, Range 9 West, N.M.P.M.

 

 

Sections

1, 2, 3, 10, 11, 12, 13, 14, 15, E/2 of 20, 21, 22, 23, and 24

 

 

Township 33 North, Range 7 West, N.M.P.M.

 

 

Sections

1, 2, 3, 4, 5, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, and 36

 

 


 

Township 33 North, Range 8 West, N.M.P.M.

 

 

Sections

25, 26, 27, 28, 29, 32, 33, 34, 35 and 36

 

and the entire area should be considered as one field.

 

4.      That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to insure proper and efficient development, and to promote conservation of the gas resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas from the Mesaverde formation, common source of supply underlying said land, as defined herein.

 

5.      That all available geological and engineering data concerning the said Mesaverde formation in the Ignacio and Blanco fields, and in the additional area hereinabove described, indicate that one well will adequately and efficiently drain an area of at least 320 acres of land in said formation.

 

6.      That all wells drilled, and all locations approved by the Commission prior to October 15, 1957, should be the permitted wells or locations for the respective drilling units.

 

7.      That hereafter, the area described herein should be known as the Ignacio-Blanco Field, Cause No. 112; and that Orders No. 45-1, 45-2, 45-4 and 45-5 in Cause No. 45, Blanco Field, and Orders No. 3-14, 3-28 and 3-29, which pertain to the Mesaverde formation in Cause No. 3, Ignacio Field, should be vacated.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulation shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Mesaverde pool of the Ignacio-Blanco Field, as herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith.

 

Rule 1.    Three Hundred Twenty (320) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the Mesaverde formation, common source of supply underlying the following described lands in La Plata County, Colorado, which include said formation formerly defined in Order No. 3-29, Ignacio Field, and Order No. 45-5, Blanco Field, and the additional area here-in [sic] described in the Findings:

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township Thirty-two (32) North, Range Seven (7) West, N.M.P.M., and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township Thirty-two (32) North, Range Eight (8) West, N.M.P.M., and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), and Twenty-four (24) Township Thirty-two (32) North, Range Nine (9) West, N.M,P.M.; and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township Thirty-two (32) North, Range Ten (10) West, N.M.P.M.; and

 

Sections One (1), Two (2), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), East Half of East Half (E/2 E/2) of Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township Thirty-two (32) North, Range Eleven (11) West, N.M.P.M.; and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-three (33) North, Range Seven (7) West, N.M.P.M.; and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-three (33) North, Range Eight (8) West, N.MP.M.; and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18), Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-three (33) North, Range Nine (9) West, N.M.P.M.; and

 

Sections One (1), Two (2), Three (3), Four (4), Five (5), Eight (8), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Sixteen (16), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-three (33) North, Range Ten (10) West, N.M.P.M.; and

 

Sections Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-four (34) North, Range Eight (8) West, N.M.P.M.; and

 

Sections Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-four (34) North., Range Nine (9) West, N.M.P.M.; and

 

Sections Nineteen (19), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Thirty-four (34)North, Range Ten (10) West, N.M.P.M.,

 

and such area shall hereafter be known as the Ignacio-Blanco Field.

 

Rule 2.    No well shall be drilled or completed in the Ignacio-Blanco Field, and no notice of intention to drill shall be approved by the Commission unless:

 

         (a)  Such well be located on a designated drilling unit of not less than 320 acres of land, more or less, according to legal subdivisions of the United States Land Surveys in which unit all of the interests of owners are consolidated by a pooling agreement or otherwise, and on which no other well is completed or approved for completion in the same pool.

 


 

         (b)  Such drilling unit be in the shape of a rectangle, except for normal variations in legal subdivisions of the United States Land Surveys, the North Half (N/2), South Half (S/2), East Half (E/2), or West Half (W/2) of each full section (i.e., a section containing Six Hundred Forty (640) acres, more or less) to constitute a drilling unit; and the following legal subdivisions to constitute the drilling units in the cases of the fractional sections in Ranges Seven (7), Eight (8), Nine (9), Ten (10) and Eleven (11) West of the New Mexico Principal Meridian lying immediately adjacent to the Colorado-New Mexico state boundary:

 

Township Thirty-two (32) North, Range Seven (7) West of the

New Mexico Principal Meridian

 

West Half (W/2) and West Half of East Half (W/2 E/2), Section Nineteen (19)

 

East Half of East Half (E/2 E/2) of Section Nineteen (19) and West Half (W/2) of Section Twenty (20)

 

East Half (E/2) of Section Twenty (20) and West Half of West Half (W/2 W/2) of Section Twenty-one (21)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-one (21)

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Twenty-two (22)

 

East Half of East Half (E/2 E/2) of Section Twenty-two (22) and West Half (W/2) of Section Twenty-three (23)

 

East Half (E/2) of Section Twenty-three (23) and West Half of West Half (W/2 W/2) of Section Twenty-four (24)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-four (24)

 

Township Thirty-two (32) North, Range Eight (8) West of the

New Mexico Principal Meridian

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Nineteen (19)

 

East Half of East Half (E/2 E/2) of Section Nineteen (19) and West Half (W/2) of Section Twenty (20)

 

East Half (E/2) of Section Twenty (20) and West Half of West Half (W/2 W/2) of Section Twenty-one (21)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-one (21)

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Twenty-two (22)

 


 

East Half of East Half (E/2 E/2) of Section Twenty-two (22) and West Half (W/2) of Section Twenty-three (23)

 

East Half (E/2) of Section Twenty-three (23) and West Half of West Half (W/2 W/2) of Section Twenty-four (24)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty- four (24)

 

Township Thirty-two (32) North, Range Nine (9) West of the

New Mexico Principal Meridian

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Nineteen (19)

 

East Half of East Half (E/2 E/2) of Section Nineteen (19) and West Half (W/2) of Section Twenty (20)

 

East Half (E/2) of Section Twenty (20) and West Half of West Half (W/2 W/2) of Section Twenty-one (21)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-one (21)

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Twenty-two (22)

 

East Half of East Half (E/2 E/2) of Section Twenty-two (22) and West Half (W/2) of Section Twenty-three (23)

 

East Half (E/2) of Section Twenty-three (23) and West Half of West Half (W/2 W/2) of Section Twenty-four (24)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-four (24)

 

Township Thirty-two (32) North, Range Ten (10) West of the

New Mexico Principal Meridian

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Nineteen (19)

 

East Half of East Half (E/2 E/2) of Section Nineteen (19) and West Half (W/2) of Section Twenty (20)

 

East Half (E/2) of Section Twenty (20) and West Half of West Half (W/2 W/2) of Section Twenty-one (21)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-one (21)

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Twenty-two (22)

 

East Half of East Half (E/2 E/2) of Section Twenty-two (22) and West Half (W/2) of Section Twenty-three (23)

 


 

East Half (E/2) of Section Twenty-three (23) and West Half of West Half (W/2 W/2) of Section Twenty-four (24)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-four (24)

 

Township Thirty-two (32) North, Range Eleven (11) West of the

New Mexico Principal Meridian

 

East Half of East Half (E/2 E/2) of Section Nineteen (19) and West Half (W/2) of Section Twenty (20)

 

East Half (E/2) of Section Twenty (20) and West Half of West Half (W/2 W/2) of Section Twenty-one (21)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty-one (21)

 

West Half (W/2) and West Half of East Half (W/2 E/2) of Section Twenty-two (22)

 

East Half of East Half (E/2 E/2) of Section Twenty-two (22) and West Half (W/2) of Section Twenty-three (23)

 

East Half (E/2) of Section Twenty-three (23) and West Half of West Half (W/2 W/2) of Section Twenty-four (24)

 

East Half of West Half (E/2 W/2) and East Half (E/2) of Section Twenty- four (24)

 

(c)  Such well, if to be drilled within a full section, be either in the Northeast Quarter (NE/4) or Southwest Quarter (SW/4) of the section when the location falls south of the north line of Township Thirty-two (32) North; and be either in the Northwest Quarter (NW/4) or Southeast Quarter (SE/4) when the location falls north of the north line of Township Thirty-two (32) North, and no closer than Nine Hundred Ninety (990) feet to the boundaries of the quarter section upon which it is located.

 

(b)  Such drilling unit be in the shape of a rectangle, except for normal variations in legal subdivisions of the United States Land Surveys, the North Half (N/2), South Half (S/2), East Half (E/2), or West Half (W/2) of each full section (i.e., a section containing Six Hundred Forty (640) acres, more or less) to constitute a drilling unit; and the following legal subdivisions to constitute the drilling units in the cases of the fractional sections in Ranges Seven (7), Eight (8), Nine (9), Ten (10) and Eleven (11) West of the New Mexico Principal Meridian lying immediately adjacent to the Colorado-New Mexico state boundary:

 

(d)  Such well, if to be drilled within a fractional section, be no closer than Nine Hundred Ninety (990) feet to the boundaries of the drilling unit upon which it is located.

 

Rule 3.    The Commission may, by order entered after due notice and hearing, and to prevent waste or confiscation of property, or to prevent inclusion of unproductive land in a drilling unit, grant exceptions to the provisions of Rule 2 above; and the Commission may, without additional notice and hearing, grant exceptions to Rule 2(c) and (d) above, when, because of topographical reasons, it is necessary to locate such well closer than Nine Hundred Ninety (990) feet to any applicable boundary referred to in such rules.

 

Rule 4.    The casing program of all wells hereafter drilled in the Mesaverde pool of the Ignacio-Blanco 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 at a point such that all fresh water and water of present or probable value for domestic, commercial or stock purposes shall be confined to their respective strata and shall be adequately protected against contamination by objectionable water, oil or gas, provided that the point at which the surface casing shall be set and cemented shall in no case be less than 200 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 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 shut-off.  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.

 

Rule 5.    Hereafter, the area described herein shall be known as the Ignacio-Blanco Field, Cause No. 112; and Orders No. 45-1, 45-2, 45-4 and 45-5 in Cause No. 45, Blanco Field, and Orders No. 3-14, 3-28 and 3-29, which pertain to the Mesaverde formation in Cause No. 3, Ignacio Field, are hereby vacated.

 

IT IS FURTHER PROVIDED, that any operator or operators owning oil and gas leases upon lands contained within the boundaries hereinabove defined, and desiring to drill a well or wells thereon shall, by pooling agreement or otherwise, form a 320-acre unit, or units, in conformity with the spacing pattern herein established, provided that the rights of all parties affected hereby to apply to the Commission for the formation of a 320-acre unit or units under the provisions of Chapter 208 of the 1955 Session Laws of the State of Colorado shall not be prejudiced by the entry of this order; and provided that, in the event of the proposed formation of a 320-acre to conform with the spacing pattern herein established which contains patented and Indian lands, if the Department of the Interior fails to approve such unit, the patented lands therein shall not be affected by the terms and requirements this order, other than Rule 4 above.

 

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved the Commission prior to October 15, 1957, shall be the permitted wells or locations for the respective drilling units.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein become effective forthwith, and henceforth the commencement of the drilling any well or wells in the Mesaverde formation of the Ignacio-Blanco Field, as de-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 after notice and hearing, to alter, amend or repeal any and/or all of the above and regulations.

 

ORDERED this 15th day of October, 1957.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary