113-1

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 CRAIG-NORTH FIELD, MOFFAT COUNTY, COLORADO

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CAUSE NO. 113

ORDER NO. 113-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 26, 1957, at 10 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the United States Smelting, Refining and Mining Company for an order establishing 320-acre drilling and spacing units for the production of gas from a stray sand member of the Upper Lewis shale formation known locally as the Basal Lance, in the Craig-North Field, Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place and purpose of the hearing has been given 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 a stray sand member of the Upper Lewis shale formation known locally as the Basal Lance constitutes a common source of supply of gas underlying the following described lands in Moffat County, Colorado, to-wit:

Township 8 North, Range 90 West, 6th P.M.

Sections 28, 29, 32 and 33

and such area is referred to as the Craig-North Field.

4. That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from said stray sand member of the Upper Lewis shale formation known locally as the Basal Lance, common source of supply underlying said land, as defined herein; that said units should be Three Hundred Twenty (320) acre drilling and spacing units according to the governmental survey thereof, and that each such unit should be a normal half section, as herein described in the following order; and that the permitted gas well for each such drilling unit should be located in the Northeast Quarter (NE/4) or Southwest Quarter (SW/4) of each section, and not closer than Six Hundred Sixty (660) feet from any boundary line of each such drilling unit.

5. That all available geological and engineering data presently known to the Commission concerning the said Basal Lance Section in said Craig-North Field seems to indicate that one well will be able to efficiently and economically drain an area of approximately 320 acres as to gas; and that drilling and operating units of the size and shape herein described in the following order appear not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said Basal Lance Sand, common source of supply.

6. That all wells previously drilled should be the permitted wells for each drilling unit upon which they are located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in a stray member of the Upper Lewis shale formation known locally as the Basal Lance underlying the Craig-North Field, herein defined, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas from a stray member of the Upper Lewis shale formation known locally as the Basal Lance, common source of supply underlying:

Sections Twenty-eight (28), Twenty-nine (29), Thirty-two (32) and Thirty-three (33), Township Eight (8) North, Range Ninety (90) West of the 6th P.M., Moffat County, Colorado,

and such area shall henceforth be known as the Craig-North Field.

Rule 2. The following drilling and spacing units are hereby established for the production of gas from said Basal Lance Sand, common source of supply underlying the Craig-North Field, as defined in Rule 1 hereof:

East Half (E/2) and West Half (W/2), or North Half (N/2) and South Half (S/2) of Section Twenty-eight (28), Township Eight (8) North, Range Ninety (90) West, 6th P.M., Moffat County, Colorado;

East Half (E/2) and West Half (W/2) of Sections Twenty-nine (29), Thirty-two (32) and Thirty-three (33), Township Eight (8) North, Range Ninety (90) West, 6th P, M., Moffat County, Colorado,

and the permitted gas well for each such unit shall be located in the Northeast Quarter (NE/4) or Southwest Quarter (SW/4) of each section, and not closer than Six Hundred Sixty (660) feet from any boundary line of each such drilling unit.

IT IS FURTHER ORDERED, that all wells previously drilled shall be the per-mitted wells for each drilling unit upon which they are located.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Basal Lance Sand, as defined herein, for the purpose of producing gas therefrom, at a location other than authorized by this order, is hereby prohibited.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above rules and regulations.

ORDERED this 26th day of November, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Annabel Hogsett, Secretary