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 DAKOTA D-2 SAND OF THE DIPPER GAP FIELD, LOGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 137 ORDER NO. 137-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 18, 1959, 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 the Cabeen Exploration Corporation for an order establishing two 320-acre drilling and spacing units for the production of gas from the Dakota D-2 sand of the Dipper Gap Field, Logan County, Colorado; and providing that no more than one gas well be drilled to or produced from the D-2 sand on each of said drilling units, and that the Cabeen Exploration Corporation's Sun-Cerveny #1 well be the permitted well for Drilling Unit No. 1; and that the proposed Cabeen Exploration Corporation's Cerveny #2 well be the per-mitted well for Drilling Unit No. 2.

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 D-2 sand constitutes a common source of supply of gas underlying the following described lands in Logan County, Colorado, to-wit:

Township 11 North, Range 55 West, 6th P.M.
Section 29:	S½NW¼, SW¼
Section 30:	S½NE¼, SE¼
Section 31:	N½NE¼
Section 32:	N½NW¼

and that such area is referred to as the Dipper Gap Field.

4.      That in order to prevent waste, as defined in the Colorado Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells, an order should be made establishing two 320-acre drilling and spacing units for the production of gas from said Dakota D-2 sand, common source of supply underlying said land, as defined herein; that said units should be 320-acre drilling and spacing units according to the governmental survey thereof, as herein described in the following order; and that the permitted gas well for Drilling Unit No. 1 should be the Cabeen Exploration Corporation's Sun-Cerveny No. 1 well, located on the SW¼ NW¼ of Section 29; and that the permitted gas well for Drilling Unit No. 2 should be the Cabeen Exploration Corporation’s Cerveny No. 2 well, to be located on the SW¼ SW¼ of said Section 29, Township 11 North, Range 55 West of the 6th P.M., Logan County, Colorado.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the Dakota D-2 sand formation underlying the Dipper Gap 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.    Two Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the Dakota D-2 sand formation, common source of supply underlying the following described lands in Logan County, Colorado, to-wit:

South Half of the Northwest Quarter (S½NW¼) and Southwest Quarter (SW¼) of Section Twenty-nine (29); South Half of the Northeast Quarter (S½NE¼) and Southeast Quarter (SE¼) of Section Thirty (30); North Half of the Northeast Quarter (N½NE¼) of Section Thirty-one (31), and North Half of the Northwest Quarter (N½NW¼) of Section Thirty-two (32), Township Eleven (11) North, Range Fifty-five (55) West of the 6th P.M.,

and such area shall henceforth be known as the Dipper Gap Field.

Rule 2.    The following drilling and spacing units are hereby established for the production of gas from the Dakota D-2 sand formation of the Dipper Gap Field, Logan County, Colorado, as defined in Rule 1 hereof:

Drilling Unit No. 1 - South Half of the Northwest Quarter (S½NW¼) and North Half of the Southwest Quarter (N½SW¼) of Section Twenty-nine (29), and South Half of the Northeast Quarter (S½NE¼) and North Half of the Southeast Quarter (N½SE¼) of Section Thirty (30), Township Eleven (11) North, Range Fifty-five (55) West, 6th P.M.

Drilling Unit No. 2 - South Half of the Southwest Quarter (S½SW¼) of Section Twenty-nine (29); South Half of the Southeast Quarter (S½SE¼) of Section Thirty (30); North Half of the Northeast Quarter (N½NE¼) of Section Thirty-one (31), and North Half of the Northwest Quarter (N½NW¼) of Section Thirty-two (32), Township Eleven (11) North, Range Fifty-five (55) West, 6th P.M.,

and the permitted gas well for Drilling Unit No. 1 shall be the Cabeen Exploration Corporation's Sun-Cerveny No. 1 well, located on the Southwest Quarter of the Northwest Quarter (SW¼NW¼) of Section Twenty-nine (29); and the permitted gas well for Drilling Unit No. 2 shall be the Cabeen Exploration Corporation's Cerveny No. 2 well, to be located on the Southwest Quarter of the Southwest Quarter (SW¼SW¼) of said Section Twenty-nine (29), Township Eleven (11) North, Range Fifty-five (55) West.

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 Dakota D-2 sand formation, common source of supply underlying the Dipper Gap Field, 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 18th day of August, 1959.

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