112-41

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 ARCHULETA COUNTIES, COLORADO

)

CAUSE NO. 112

ORDER NO. 112-41

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 Murchison Brothers, for an order authorizing the drilling of additional wells for the production of gas from the Mesaverde and Pictured Cliffs formations.

FINDINGS

The Commission finds as follows:

1. Murchison Brothers, 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 N½ Section 16, Township 32 North, Range 10 West; N½ Section 31, Township 33 North, Range 8 West; N½ and S½ Section 32, Township 33 North, Range 8 West, and from the Pictured Cliffs formation at the permitted location on the unit described as the S½ Section 31, 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 on each of the above-described units for the production of gas from both the Pictured Cliffs and Mesaverde formations and that said wells be allowed to be dually completed in said Pictured Cliffs and Mesaverde formations, without commingling. The additional wells are to be located as follows:

Township 32 North, Range 10 West, N.M.P.M.
Section 16:	NW¼ (Unit N½)

Township 33 North, Range 8 West, N.M.P.M.
Section 31:	NE¼ (Unit N½),
	SW¼ (Unit S½)
Section 32:	NE¼ (Unit N½),
	SW¼ (Unit S½)

and that such additional wells be located no closer than 990 feet to the boundary 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 Pictured Cliffs and Mesaverde formations is hereby authorized to be drilled on each drilling and spacing unit at locations described as follows:

Township 32 North, Range 10 West, N.M.P.M.
Section 16:	NW¼ (Unit N½)

Township 33 North, Range 8 West, N.M.P.M.
Section 31:	NE¼ (Unit N½),
	SW¼ (Unit S½)
Section 32:	NE¼ (Unit N½),
	SW¼ (Unit S½)

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

IT IS FURTHER ORDERED, that said additional wells shall be allowed to be dually completed, without commingling, for production of gas from the Pictured Cliffs and Mesaverde formations.

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

ORDERED this 16th day of April, 1979.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary