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 COUNTY, COLORADO	) ) ) )	CAUSE NO. 112 ORDER NO. 112-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 10, 1959, at 10 a.m., in the Spruce Room of the Albany Hotel, Denver, Colorado, after publication and service of Notice of Hearing, all as required by law, on the application of the Pacific Northwest Pipeline Corporation for an order pooling interests in the 320 acres comprising the E½ of Section 14, Township 33 North, Range 10 West, N.M.P.M., La Plata County, Colorado, for the development and operation of the Mesaverde formation underlying said 320 acres located within the Ignacio-Blanco Field; providing that the drilling and operation of the well so authorized be conducted by Applicant, as operator; and providing that Applicant recover out of production from such unit and allocable to the interest of each owner who refuses to agree upon the terms for drilling said authorized well, an amount equivalent to 150 per cent [sic] of such owner's share of the reasonable actual costs incurred by Applicant in the drilling and completion of such well in equitable compensation to Applicant for having assumed such owner's share in risk that the said well might prove non-productive.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place and purpose of the hearing has been given to parties interested therein in all respects as required by law.

2.      That 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.

3.      That the Mesaverde formation constitutes a common source of supply of gas underlying the E½ of Section 14, Township 33 North, Range 10 West, N.M.P.M., La Plata County, Colorado, and that the lands described herein are within the Ignacio-Blanco Field.

4.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, and to conform with the previously issued order of the Commission establishing 320-acre drilling and spacing units for the production of gas from the Mesaverde formation underlying said lands, an order should be made pooling all working interests in the 320-acre drilling unit as described herein.

5.      That the Pacific Northwest Pipeline Corporation and the Northwest Production Corporation are the owners of the entire working interests in oil and gas leases covering the entire mineral interest under the lands forming the drilling unit described herein, except as to the lease covering the lands within the SE¼ SE¼ of said Section 14; and that reasonable effort has been made to obtain the voluntary pooling of such working interest in the drilling unit for the development and operation thereof.

6.      That the order of the Commission pooling all working interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest within said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

7.      That the Pacific Northwest Pipeline Corporation should be authorized to drill and operate a well to be located in the approximate center of the SE¼ of said Section 14; and that said operator should recover out of production from such unit and allocable to the interest of each owner who refuses to agree upon the terms for drilling said authorized well, an amount equivalent to 100 per cent [sic] of such owner's share of the reasonable actual costs incurred by said operator in the drilling and completion of such well.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all working interests in the drilling unit described as the East Half (E½) of Section Fourteen (14), Township Thirty-three (33) North, Range Ten (10) West of the N.M.P.M., La Plata County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the Pacific Northwest Pipeline Corporation is hereby authorized to drill and operate a well to be located in the approximate center of the Southeast Quarter (SE¼) of Section Fourteen (14), Township Thirty-three (33) North, Range Ten (10) West of the N.M.P.M., La Plata County, Colorado, and to recover out of production from such unit and allocable to the interest of each owner who refuses to agree upon the terms for drilling said authorized well, an amount equivalent to One Hundred (100) per cent, of such owner's share of the reasonable actual costs incurred by said operator in the drilling and completion of such well.

ORDERED this l0th day of December, 1959.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel  Hogsett, Secretary