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-GARFIELD, LA PLATA AND ARCHULETA COUNTIES, COLORADO

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CAUSE NO. 112

 

ORDER NO. 112-48

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 15, 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 Chester A. Beaston and Mary E. Beaston for an order to reduce the size of the drilling and spacing units for the S½ Section 29, Township 84 North, Range 9 West, N.M.P.M., or in the alternative, allocate production among the separate tracts in a manner which will protect Applicant’s [sic] correlative rights and prevent confiscation of Applicant's [sic] property on such terms and conditions as the Commission may deem to be just and reasonable.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Charles A. Beaston and Mary E. Beaston, as applicants herein, are interested parties 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. 112-8 which among other things, established 320-acre drilling and spacing units for the production of gas from the Fruitland-Pictured Cliffs and Mesaverde formations.  The W½ and E½ of Section 29, Township 34 North, Range 9 West, N.M.P.M. were each established as a drilling unit and a well was drilled at the permitted location in the NW¼ of said section and plugged and abandoned as a dry hole, and a well was drilled in the SW¼SE¼ of said section and completed as a producer of gas from the Mesaverde formation.

 

5.      On July 16, 1979, the Commission issued Order No. 112-47 which denied the application of Supron Energy Corporation to delete the NW¼ Section 29, Township 34 North, Range 9 West, N.M.P.M. from the 320-acre drilling and spacing unit consisting of the W½ of said Section 29, and designate only the SW¼ of said section as a 160-acre drilling and spacing unite In addition, the Commission by Order No. 112-46, has authorized the drilling of an additional well on each 320-acre drilling and spacing unit for the production of gas from the Fruitland-Pictured Cliffs and Mesaverde formations.

 

6.      Testimony as to the location of productive horizons underlying Section 29 was in conflict.  On the basis of all the evidence presented, the Commission finds that the NE¼ of said section is not entirely non-productive and that the well located in the SE¼ of said section would in time drain gas underlying the NE¼ further, that a well located in the SW¼ of said section would in time drain gas underlying the NW¼.  In addition, there is a voluntary pooling agreement that has been in existence for several years, covering the E½ of said Section 29.

 

7.      In view of the above, the application off Chester A. Beaston and Mary E. Beaston should therefore be denied.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the application of Chester A. Beaston and Mary E. Beaston, filed with the Commission on August 9, 1979 is hereby denied.

 

ORDERED this 15th day of October, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary