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

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CAUSE NO. 112

 

ORDER NO. 112-47

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 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 Supron Energy Corporation for an order granting an exception to the provisions of Order No. 112-6, and establish the SW¼ Section 29, Township 34 North, Range 9 West, N.M.P.M. as a 160-acre drilling and spacing unit, and allow the drilling of a well thereon for production of gas from the Mesaverde formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Supron Energy Corporation, 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 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 W½ Section 29, Township 34 North, Range 9 West, N.M.P.M. was established as a drilling unit and a well was drilled at the permitted well location in the NW¼ of said section and was plugged and abandoned as a dry hole.

 

5.      By Order No. 112-46, which authorizes the drilling of an additional well in each undrilled quarter section, a well can therefore be drilled in the SW¼ of said section.

 

6.      Evidence presented at the hearing was insufficient to indicate that the productive zone does not underlie a portion of the NW¼ of said Section 19.  In addition, said NW¼ is part of a lease held by the Applicant by production of a marginal well located in the SE¼ of said section.  Applicant has stated that if its request is granted it will continue to hold the acreage by virtue of said well, therefore if the acreage is excluded, it would not only deprive the mineral owners of the NW¼ a share of the production from a well drilled in the SW¼, but said mineral owners could also be prevented from further development of their lands which would be an abuse of correlative rights.  Therefore, the request by Supron Energy Corporation to reduce the drilling and spacing unit to consist only of the SW¼ of said Section 29, should be denied.

 

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the application of Supron Energy Corporation requesting the SW¼ Section 29, Township 34 North, Range 9 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado, be established as a 160-acre drilling and spacing unit for the production of gas from the Mesaverde formation is hereby denied.

 

ORDERED this 16th day of July, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary