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	) ) ) )	CAUSE NO. 112 ORDER NO. 112-12

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 3, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Delhi-Taylor Oil Corporation for an order authorizing Applicant to drill and, if indicated, complete wells for the production of gas in the Mesaverde formation in each of two drilling and spacing units designated as the E½ of Section 7 and the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado; authorizing the approval of notices of intention to drill said wells, even though all interests of owners in such units are not consolidated by a pooling agreement or otherwise, as specified in Rule 2a of Order No. 112-6.

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 Rule 2a of Order No, 112-6 provides that no well shall be drilled or completed, and no notice or intention shall be approved by the Commission for any 320-acre drilling and spacing unit for the production of gas from the Mesaverde formation underlying the Ignacio-Blanco Field, as described in Order No. 112-6, unless all of the interests of owners within such units are consolidated by pooling agreement or otherwise.

4.      That the E½ of Section 7 and the S½ of Section 5 in Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado, lie within the Ignacio-Blanco Field as defined in Order No. 112-6.

5.      That, the Delhi-Taylor Oil Corporation is the owner of all operating rights in 230 acres more or less out of the 320-acre drilling and spacing unit embracing the E½ of Section 7, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado, and that the requested location of the well for said drilling and spacing unit is situated on the 230 acres of land referred to above and controlled by Applicant.

6.      That the Delhi-Taylor Oil Corporation is the owner of 13/16 of the operating rights in all of the 320 acres in the 320-acre drilling and spacing unit embracing the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado.

7.      That equipment is presently available to drill said wells; and that no waste or violation of correlative rights will occur by virtue of permitting said welts to be drilled immediately, provided that the wells are not produced and production marketed until all interests in said drilling and spacing units have been pooled either voluntarily or by order of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED that the Delhi-Taylor Oil Corporation is hereby relieved from the provisions of Rule 2a of Order No. 112-6, insofar as they pertain to the drilling and spacing units defined as the E½ of Section 7 and the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado.

IT IS FURTHER ORDERED, that no gas shall be produced or marketed from any well or wells drilled and completed within the above described drilling and spacing units until all interests in such drilling and spacing units have been pooled voluntarily or by order of the Commission as a result of an application by any owner of interest.

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.

ORDERED this 3rd day of October 1961.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D.V. Rogers, Secretary