BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF SINCLAIR OIL & GAS COMPANY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSER-VATION COMMISSION PROVIDING FOR TWENTY ACRE (MORE OR LESS) DRILLING AND SPACING UNITS FOR THE FIRST SAND OR "D" SAND COMMON SOURCE OF SUPPLY UNDERLYING THE S/2 OF SECTION 19 AND N/2 OF SECTION 30 - ALL IN TOWNSHIP 7 NORTH, RANGE 54 WEST, LOGAN COUNTY COLORADO

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CAUSE NO. 13

 

ORDER NO. 13-1

APPEARANCES:

G.D. Almen, Jr., Attorney for applicant, Sinclair Oil & Gas Company, Tulsa, Oklahoma

L.J. Forche, Tulsa, Oklahoma

L.L. Ware, Tulsa, Oklahoma

Steve DeVore, Casper, Wyoming

Wilbur Rocchio, Assistant Attorney General; and

J.J. Zorichak, for the Commission.

 

REPORT OF THE COMMISSION

This cause came on for hearing before the Oil and Gas Conservation Commission of the State of Colorado on November 25, 1952, at 10:00 A.M., at 704 State Capitol Annex, Denver, Colorado, after publication of notice of hearing as required by law, on the application of Sinclair Oil & Gas Company for an order from the Commission establishing twenty acre (more or less) drilling and spacing units for the production of oil and gas from the First Sand or "D" Sand, common source of supply underlying the -

South Half (S) of Section 19 and North Half (N) of Section 30 - all in Township 7 North, Range 54 West, Logan County, Colorado.

Applicant, Sinclair Oil & Gas Company, is the owner of oil and gas leases within the above described area and has heretofore completed its W.M. Phillips Nos. 1, 2, 3, 4 and 5 wells, all located in the Southwest quarter (SW) of Section 19, Township 7 North, Range 54 West in the First Sand or "D" Sand common source of supply. The top of the First Sand or "D" Sand is found at the approximate depth of 5080 feet and bottom at the approximate depth of 5130 feet in said wells. The Phillips No. 1 well is capable of producing twenty (20) barrels of oil per day. The Phillips No. 2 well is capable of producing fifteen (15) barrels of oil per day. The Phillips No. 3 well is capable of producing eight (8) barrels of oil per day. The Phillips No. 4 well was completed as a dry hole. The Phillips No. 5 well is capable of producing eight (8) barrels of oil per day. There is a very small amount of gas produced with the oil from the First Sand or "D" Sand and said sand has an approximate porosity of seventeen per cent (17%) and an average permeability of 238 millidarcies. Evidence and testimony presented at the hearing disclosed that one well will adequately drain the recoverable oil underlying twenty acres (more or less) in the First Sand or "D" Sand and that twenty acres (more or less) is not smaller than the maximum area which can be efficiently drained by one well producing from said sand.

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 First Sand or "D" Sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:

South Half (S/2) of Section 19 and North Half (N/2) of Section 30 - all in Township 7 North, Range 54 West.

4. That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing twenty acre (more or less) drilling and spacing units for the production of oil and gas from the First Sand or "D" Sand common source of supply underlying said land, as defined herein; that said units should be formed by a line running east and west through the approximate center of each quarter quarter section, according to the governmental survey thereof, and the permitted wells should be located one in the center of the Northeast ten acres and one in the center of the southwest ten acres of each such quarter quarter section and a tolerance of fifty feet in any direction from the prescribed well location should be permitted to avoid surface hazards and obstructions.

5. That all available geological and engineering data concerning the said First Sand or "D" Sand underlying the above described area indicate that one well should efficiently and economically drain an area of approximately twenty acres and that units of the size and shape herein described are not smaller than the maximum area that can be efficiently drained by one well producing from said sand.

ORDER

IT IS THEREFORE ORDERED that the following rules and regulations shall apply hereafter to wells drilled, completed or recompleted in the First Sand or "D" Sand common source of supply underlying the -

South Half (S) of Section 19 and North Half (N) of Section 30 all in Township 7 North, Range 54 West, Logan County, Colorado,

in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Twenty acre (more or less) drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the First Sand or "D" Sand common source of supply underlying the -

South Half (S/2) of Section 19 and North Half N/2 of Section 30 - Township 7 North, Range 54 West, Logan County, Colorado

all as shown by Exhibit "A", a map attached hereto, which by reference is made a part hereof.

Rule 2. The said units shall be formed by a line running east and west through the approximate center of each governmental quarter quarter section and the permitted wells for each unit shall be located one well in the center of the northeast ten acres and one well in the center of the southwest ten acres of each such quarter quarter section, all as shown by Exhibit "A" hereto attached, and a tolerance of fifty feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

IT IS FURTHER ORDERED that by order of the Commission, after due notice and hearing, the said First Sand or "D" Sand Pool underlying the area herein spaced may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from said First Sand or "D" Sand common source of supply.

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 First Sand or "D" Sand common source of supply, as defined herein, for the purpose of producing oil and gas therefrom at a location other than that authorized by this Order is hereby prohibited.

ORDERED this 25th day of November, 1952, by the Oil and Gas Conservation Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By John E. Cronin, Secretary