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 ARCEHELETA COUNTIES, COLORADO

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CAUSE NO. 112

 

ORDER NO. 112-40

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 16, 1979 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Penrose-Zachary Company, for an order authorizing the drilling of additional wells for the production of gas from the Mesaverde formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Penrose-Zachary 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 NW¼ and the SE¼ of the section, when north of the north line of Township 32 North.

 

5.      There is a well producing gas from the Mesaverde formation at the permitted well location on each of the units described as the W½ and the E½ Section 27, Township 33 North, Range 8 West, N.M.P.M.

 

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 is necessary to effectively and efficiently drain that part of the unit and will result in greater ultimate recovery of the gas reserves and prevent waste; therefore, the Applicant requests authorization to drill additional wells for the production of gas from the Mesaverde formation on each said drilling and spacing units at locations as follows:

 

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

Section 27:  SW¼; NE¼

 

and that such additional wells be located no closer than 990 feet to the boundaries of the quarter section upon which each is located.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, 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:

 

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

Section 27:  SW¼; NE¼

 

and that such additional wells be located no closer than 990 feet to the boundaries of the quarter section upon which each is located.

 

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

 

ORDERED this 16th day of April, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary