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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE RULISON FIELD, GARFIELD COUNTY, COLORADO |
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CAUSE NO. 139
ORDER NO. 139-8 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 16, 1979 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Northwest Exploration Company for in order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch formation, and 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying lands in a portion of the Rulison Field, Garfield County, Colorado.
FINDINGS
The Commission finds as follows:
1. Northwest Exploration Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. 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.
4. Evidence presented at the hearing indicates that the Wasatch formation and the Mesaverde formation each constitutes a supply of gas and associated hydrocarbons underlying the following described lands in a portion of the Rulison Field, Garfield County, Colorado, to-wit:
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Township 6 South, Range 93 West, 6th P.M. |
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Sections |
5 thru 8: |
All |
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Sections |
17 thru 20: |
All |
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Township 6 South, Range 94 West, 6th P.M. |
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Sections |
1 thru 3: |
All |
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Sections |
8 thru 17: |
All |
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Sections |
19 thru 24: |
All |
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Sections |
27 thru 33: |
All |
5. In order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be made to, (1) establish 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch formation underlying the lands herein defined; that said units should be 160-acres, more or less, and consist of a quarter section according to the governmental survey thereof, with the permitted well located no closer than 600 feet to the boundaries of the unit and no closer than 1200 feet from another producing or producible well in the same formation, and that Well No. 1 Clough, SE¼SE¼ Section 15, Township 6 South, Range 94 West, 6th P.M. should be considered the permitted well for the unit upon which it is located and, (2) establish 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying the lands herein defined; that said units should be 320-acres, more or less, and consist of the E½ and W½ or the N½ and S½ of each section according to the governmental survey thereof, with the permitted well located in the NE¼ and SW¼ of each section and no closer than 600 feet to the boundaries of the quarter section upon which it is located, and no closer than 1200 feet from another producing or producible well in the same formation, and Well No. 2 Clough, SE¼SW¼ Section 21, Township 6 South, Range 94 West, 6th P.M. should be considered the permitted well for the unit upon which it is located.
6. All available geological and engineering data concerning said Wasatch and Mesaverde formations indicate that one well will efficiently and economically drain an area of approximate 160-acres for the Wasatch formation and approximately 320-acre [sic] for the Mesaverde formation and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from each said formation.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or re-completed in the Wasatch and Mesaverde formations underlying that portion of the Rulison Field, Garfield County, Colorado described as follows, in addition to other applicable rules and regulations and orders of the Commission of any heretofore adopted and not in conflict herewith:
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Township 6 South, Range 93 West, 6th P.M. |
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Sections |
5 thru 8: |
All |
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Sections |
17 thru 20: |
All |
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Township 6 South, Range 94 West, 6th P.M. |
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Sections |
1 thru 3: |
All |
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Sections |
8 thru 17: |
All |
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Sections |
19 thru 24: |
All |
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Sections |
27 thru 33: |
All |
Wasatch Formation [sic]
Rule 1. One hundred sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Wasatch formation underlying that portion of the Rulison Field hereinabove described.
Rule 2. Said drilling units for the Wasatch formation shall consist of 160-acres, more or less, and each shall consist of a quarter section according to the governmental survey thereof with the permitted well located no closer than 600 feet to the boundaries of the unit and no closer than 1200 feet from another producing or producible well in the same formation and Well No. 1 Clough, SE¼SE¼ Section 15, Township 6 South, Range 94 West, 6th P.M. shall be considered the permitted well for the unit upon which it is located.
Mesaverde Formation [sic]
Rule 3. Three hundred twenty (320) drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Mesaverde formation underlying that portion of the Rulison Field hereinabove described.
Rule 4. Said drilling units for the Mesaverde formation shall consist of 320-acres more or less and shall consist of the E½ and W½ or the N½ and S½ of a section according to the governmental survey thereof (the drilling unit shall be designated at the time of filing the permit to drill) with the permitted well located in the NE¼ and SW¼ of each section and no closer than 600 feet to the boundaries of the quarter section upon which it is located and no closer than 1200 feet from another producing or producible well in the same formation and Well No. 2 Clough, SE¼SW¼ Section 21, Township 6 South, Range 94 West, 6th P.M. shall be considered the permitted well for the unit upon which it is located.
IT IS FURTHER ORDERED, that the provisions contained in the above order and rules and regulations shall become effective forthwith.
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 and rules and regulations.
ORDERED this 16th day of July, 1979.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By |
Frank J. Piro, Secretary |