112-36

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 AND ARCHELETA COUNTIES, COLORADO

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CAUSE NO. 112

ORDER NO. 112-36

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 15, 1978 at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Atlantic Richfield Company, for an order authorizing the drilling of an additional well for the production of gas from the Mesaverde formation in each of the drilling and spacing units consisting of the S½ Section 6, W½ Section 7 and the S½ Section 18, Township 32 North, Range 7 West, N.M.P.M.; the E½ and W½ Section 1 and the W½ Section 2, Township 32 North, Range 8 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado.

FINDINGS

The Commission finds as follows:

1. Atlantic Richfield Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. 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.

4. On November 9, 1959, the Commission issued its Order No. 112-6 which, among other things, established 320-acre drilling and spacing units for the production of gas from the Mesaverde formation. The units consist of the N½ and S½ or the E½ and W½ of each full section, with the permitted well located in the NE¼ and the SW¼ of the section, when south of the north line of Township 32 North.

5. There is a well producing gas from the Mesaverde formation at the permitted well locations on each of the units consisting of the S½ Section 6, W½ Section 7 and the S½ Section 18, Township 32 North, Range 7 West, N.M.P.M.; the E½ and W½ Section 1 and the W½ Section 2, Township 32 North, Range 8 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado.

6. Evidence presented at the hearing indicated that one well is insufficient to adequately drain the gas from that part of the reservoir underlying the units described herein and the drilling of an additional well on each such drilling and spacing unit will result in greater ultimate recovery of the gas reserves and prevent waste; therefore, the application requests authorization to drill additional wells on the following area:

La Plata County
	Township 32 North, Range 7 West, N.M.P.M.
	SE¼ Section 6, 990 ft. from south line, 990 ft.
		from east line (Unit S½)
	NW¼ Section 7, 1200 ft. from north line, 1250
		ft. from west line (Unit W½)
	SE¼ Section 18, 990 ft. from south line, 990 ft.
		from east line (Unit S½)

	Township 32 North, Range 8 West, N.M.P.M.
	NW¼ Section 1, 1250 ft. from north line, 990 ft.
		from west line (Unit W½)
	SE¼ Section 1, 1600 ft. from south line, 990 ft.
		from east line (Unit E½)
	NW¼ Section 2, 990 ft. from north line, 1100 ft.
		from west line (Unit W½)

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well, for the production of gas from the Mesaverde formation, is hereby authorized to be drilled on each drilling and spacing unit at locations described as follows:

La Plata County
	Township 32 North, Range 7 West, N.M.P.M.
	SE¼ Section 6, 990 ft. from south line, 990 ft.
		from east line (Unit S½)
	NW¼ Section 7, 1200 ft. from north line, 1250
		ft. from west line (Unit W½)
	SE¼ Section 18, 990 ft. from south line, 990 ft.
		from east line (Unit S½)

	Township 32 North, Range 8 West, N.M.P.M.
	NW¼ Section 1, 1250 ft. from north line, 990 ft.
		from west line (Unit W½)
	SE¼ Section 1, 1600 ft. from south line, 990 ft.
		from east line (Unit E½)
	NW¼ Section 2, 990 ft. from north line, 1100 ft.
		from west line (Unit W½)

IT IS FURTHER ORDERED, that the above order shall become effective forthwith.

ORDERED this 15th day of May, 1978.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary