BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PETITION OF SHELL OIL COMPANY FOR AN ORDER FROM THE COLO-RADO OIL AND GAS CONSERVATION COMMIS-SION PROVIDING FOR TWENTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE MUDDY SAND, OFTEN REFERRED TO AS THE "D" SAND, COMMON SOURCE OF SUPPLY UNDER-LYING THE W/2 OF SECTION 16 AND ALL OF SECTION 17 AND THE N/2 OF SECTION 20 AND THE NW/4 OF SECTION 21 ALL IN TOWNSHIP 8 NORTH, RANGE 53 WEST OF THE 6TH P.M., IN LOGAN COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE LUFT FIELD.

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CAUSE NO. 14

 

ORDER NO. 14-1

           

            APPEARANCES:

Donn D. Peters, Attorney for applicant, Shell Oil Company, Denver, Colorado

Austin E. Cordray, Shell Oil Company, Denver, Colorado

Walter Wills, The Texas Company, Denver, Colorado

Russell Volk, Plains Exploration Company, Denver, Colorado

Wilbur Rocchio, Assistant Attorney General; and

J.J. Zorichak, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 25, 1952 at ten o'clock A.M., Room 704, State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law on the petition of Shell Oil Company for an order from the Commission establishing twenty (20) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Muddy Sand, often referred to as the "D" sand, common source of supply underlying the W/2 of Section 16 and all of Section 17 and the N/2 of Section 20 and the NW/4 of Section 21, all in Township 8 North, Range 53 West of the 6th Principal Meridian, Logan County, Colorado, which area is referred to in the said petition as the Luft Field.

 

Applicant, Shell Oil Company, is the owner of oil and gas leases within the above described area and has heretofore completed its C. Luft, Jr. wells numbered 1, 2, 3, 4 and 5, which are located as follows:


 

C. Luft, Jr., No. 1 -

Southwest quarter (SW/4) of the North-west Quarter (NW/4) of the Southeast quarter (SE/4) of said Section 17;

 

 

C. Luft, Jr., No. 2 -

Northeast quarter (NE/4) of the South, west Quarter (SW/4) of the Southeast Quarter (SE/4) of said Section 17;

 

 

C. Luft, Jr., No. 3 -

Southwest Quarter (SW/4) of the South-west Quarter (SW/4) of the Southeast quarter (SE/4) of said Section 17;

 

 

C. Luft, Jr., No. 4 -

Northeast quarter (NE/4) of the North-west. Quarter (NW/4) of the Southeast, quarter (SE/4) of said Section 17;

 

 

C. Luft, Jr., No. 5 -

Southwest quarter(SW/4) of the North-east Quarter(NE/4) of the Southeast Quarter (SE/4) of said Section 17;

 

and applicant, Shell Oil Company, is in the process of completing its G. Morris wells numbered 1 and 2, which are located as follows:

 

G. Morris, No. 1 -

Northeast Quarter(NE/4) of the Northeast Quarter (NE/4) of the Northwest Quarter (NW/4) of said Section 20;

 

 

G. Morris, No. 2 -

Northeast Quarter (NE/4) of the North-west Quarter (NW/4) of the Northeast Quarter (NE/4) of said Section 20;

 

all in Township 8 North, Range 53 West, in the Muddy Sand, the top of which is found at the approximate depth of 4852 feet and the bottom at the approximate depth of 4850 feet below the surface. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying 20 acres in the Muddy Sand, and that 20 acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Muddy 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 Muddy Sand Pool, sometimes referred to as the "D" Sand Pool in the Luft Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:

 

Township 8 North, Range 53 West, 6th P.M., Logan County:

 

 

                     W/2 Section 16

N/2 Section 20

                     All Section 17

NW/4 Section 21

 

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 (20) acre drilling and spacing units for the production of oil and gas from the said Muddy Sand Pool, or "D" Sand Pool, common source of supply underlying said land, as defined herein; that said units should be formed by a line running north and south through the 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 10 acres and one in the center of the southwest 10 acres of each quarter quarter section; and a tolerance of 50 feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the said Muddy Sand Pool, or "D" Sand Pool in said Luft Field, indicate that one well should efficiently and economically drain n area of approximately 20 acres, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from the said Muddy Sand Pool, or "D" Sand Pool.

 

ORDER

 

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Muddy Sand Pool, sometimes referred to as the "D" Sand Pool, of the Luft Field, Logan County, as hereinabove defined in the Findings, which, by reference, are made a part hereof, 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 (20) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Muddy Sand Pool, sometimes referred to as the "D" Sand Pool, common source of supply underlying the W/2 of Section 16 and all of Section 17 and the N/2 of Section 20 and the NW/4 of Section 21, all in Township 8 North, Range 53 West of the 6th Principal Meridian, Logan County, Colorado, and such area shall henceforth be known as the Luft Field.

 

Rule 2.    The said units shall be formed by a line running north and south through the 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 10 acres and one well in the center of the southwest 10 acres of each quarter quarter section, and that a tolerance of 50 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 Muddy Sand Pool or "D" Sand Pool, in the Luft Field, Logan County, Colorado, 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 the said Muddy Sand Pool or "D" Sand Pool, 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 Muddy Sand Pool, or "D" Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, except as herein provided, 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