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 PRAIRIE CANYON FIELD, GARFIELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 122 ORDER NO. 122-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 26, 1958, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of American Metal Climax, Inc. for an order establishing a 640-acre drilling and spacing unit for the production of gas from the Dakota sand underlying the Prairie Canyon Field, Garfield 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 the Dakota sand constitutes a common source of supply of gas underlying the following described lands in Garfield County, Colorado, to-wit:

Township 7 South, Range 104 West, 6th P.M.

Section 33:  All

and that such area is referred to as the Prairie Canyon Field.

4.      That in order to prevent waste, as defined in the Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing a 640-acre drilling and spacing unit for the production of gas from said Dakota sand, common source of supply underlying said land, as defined herein; that said unit should be a 640-acre drilling and spacing unit according to the governmental survey thereof, and that such unit should be a full section, as herein described; and that the permitted gas well for such drilling unit should be the American Metal Climax, Inc. Government No. 1 well, located in the SW¼ NW¼ of Section 33, Township 7 South, Range 104 West, 6th P.M., Garfield County, Colorado.

5.      That all available geological and engineering data presently known to the Commission concerning said Dakota sand in said Prairie Canyon Field seems to indicate that one well will efficiently and economically drain an area of approximately 640 acres as to gas; and that a drilling and operating unit of the size and shape herein described appears not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said Dakota sand, common source of supply.

ORDER

NOW, THEREFORE, IT IS ORDERED, that a Six Hundred Forty (640) acre drilling and spacing unit, according to the governmental survey thereof, shall be and the same is hereby established for the production of gas from the Dakota sand, common source of supply underlying:

Section Thirty-three (33), Township Seven (7) South, Range One Hundred Four (104) West, 6th P.M., Garfield County, Colorado,

and such area shall henceforth be known as the Prairie Canyon Field.

(a)  The permitted gas well for said unit shall be the American Metal Climax, Inc. Government No. 1 well, located in the Southwest, Quarter of the Northwest Quarter (SW¼ NW¼) of Section Thirty-three (33), Township Seven (7) South, Range One Hundred Four (104) West, 6th P.M., Garfield County, Colorado.

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 order.

ORDERED this 26th day of August, 1958.

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