118-1

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN OPERATIONS IN THE "D" AND "J" SANDS Of THE LITTLE HOOT FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 118

ORDER NO. 118-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 27, 1958, at 10:00 a.m., in the Auditorium of the Petroleum Club Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The British-American Oil Producing Company for an order establishing 640-acre drilling and spacing units for the production of gas from the "D" and "J" sand reservoirs of the Little Hoot Field, Logan County, Colorado, and approving the multiple zone completions of the Elwood A-1 well and the Fogale No. 1 well for production of gas from both the "D" and the "J" sand formations, without commingling.

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 Applicant is the owner of oil and gas leases which cover, among other lands, the major portions of the following described lands in Logan County, Colorado, to-wit:

Township 10 North, Range 54 West, 6th P.M.

Sections 1, 2, 3, 4. 9, 10, 11, 12, 13, 14, 15 and 16

Township 11 North, Range 54 West, 6th P.M.

Sections 33, 34, 35 and 36

which area is referred to as the Little Hoot Field.

4. That geological testimony presented indicates that the "D" and "J" sand reservoirs in the above described sections constitute common sources of supply, and that the reservoirs indicated contain gas without oil.

5. That in order to prevent waste of oil and gas, as defined in the Colorado Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells, an order should be made establishing Six Hundred Forty (640) acre drilling and spacing units for the production of gas from the "D" and "J" sands, common sources of supply underlying said land, as defined herein; that said units should be Six Hundred Forty (640) acre drilling and spacing units consisting of complete sections according to governmental survey thereof; and that the permitted gas well for each such drilling unit should be located not closer than Six Hundred (600) feet from free boundary line of each such drilling unit, and not less than Twelve Hundred (1200) feet from any other producible or drilling gas well being drilled to the "D" or "J" sand formations; and that the wells previously drilled and capable of producing from the "D" or "J" sand reservoirs should be the permitted gas wells for the units on which they are located.

6. That all available geological and engineering data presently available to the Commission concerning the "D" and "J" sand formations in said Little Hoot Field seems to indicate that one well will be able to efficiently and economically drain an area of approximately 640 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 "D" and "J" sands, common sources of supply.

7. That The British-American Oil Producing Company's Fogale No. 1 well located in the NW¼ SE¼, Section 35, Township 11 North, Range 54 West of the 6th P.M., and Elwood A-1 well located in the SW¼ NE¼, Section 15, Township 10 North, Range 54 West of the 6th P.M., are capable of producing gas from the "D" and "J" sand reservoirs simultaneously.

8. That all available geological and engineering data concerning the above wells indicate that said wells can be completed as multiple zone producers, and can be produced from each of said sands to the surface separately and without commingling in the well bore.

9. That the granting of Applicant's request as it pertains to spacing and to the multiple zone completions of said "D" and "J" sand reservoirs will not result in waste, and that no damage will result to either formation because of such multiple zone completions.

ORDER

NOW, THEREFORE, IT IS ORDERED, the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" or "J" sand reservoirs underlying the Little Hoot Field, herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Drilling units of approximately Six Hundred Forty (640) acres consisting of complete sections, according to the governmental survey thereof, shall be and the same are hereby established for the production of gas from the "D" and "J" sand reservoirs, common sources of supply underlying the following described lands in Logan County, Colorado, to-wit:

Sections One (1), Two (2), Three (3), Four (4), Nine (9), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15) and Sixteen (16), Township Ten (10) North, Range Fifty-four (54) West of the 6th P.M.; and Sections Thirty-three (33), Thirty-four (34), Thirty-five (35) and Thirty-six (36), Township Eleven (11) North, Range Fifty-four (54) West of the 6th P.M.

and such area shall henceforth be known as the Little Hoot Field.

Rule 2 (a). The permitted well for each such drilling unit shall be located not closer than Six Hundred (600) feet from the boundary line of each such drilling unit, and not less than Twelve Hundred (1200) feet from any other producible or drilling gas well being drilled to the "D" or "J" sand formations.

Rule 2(b). Wells previously drilled and capable of producing from the "D" or "J" sand reservoirs shall be the permitted gas wells for the units on which they are located.

Rule 3. Authority is hereby granted The British-American Oil Producing Company for the multiple zone completions of their Fogale No. 1 well located in the Northwest Quarter of the Southeast Quarter (NW¼ SE¼) of Section Thirty-five (35), Township Eleven (11) North, Range Fifty-four (54) West; and their Elwood No. A-1 well located in the Southwest Quarter of the Northeast Quarter (SW¼ NE¼) of Section Fifteen (15), Township Ten (10) North, Range Fifty-four (54) West, in the "D" and "J" sand reservoirs, without commingling in the well bore.

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 27th day of May, 1958.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Annabel Hogsett, Secretary by Cecile Morris