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 DIVIDE CREEK FIELD, MESA AND GARFIELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 143 ORDER NO. 143-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 26, 1960, 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 Sun Oil Company, a New Jersey corporation, for an order from the Commission establishing 640-acre drilling and spacing units for the production of gas from the Cretaceous Mesaverde formation from sections identified as the Upper, Middle and Lower Divide Creek pay zones underlying certain lands in Mesa and Garfield Counties, 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 evidence presented at the above hearing indicates that the Mesaverde formation constitutes a common source of supply of gas underlying the following described lands in Mesa and Garfield Counties, Colorado, to-wit:

Township 7 South, Range 91 West, 6th P.M.

Sections 13 through 36

Township 7 South, Range 92 West, 6th P.M.

Sections 13, 24-25 and 36

*Township 8 South, Range 90 West, 6th P.M.

Sections  7, 8, 18, W½ of 17, 19, 20, 29, 30, 31 and W½ of 32

Township 8 South, Range 91 West, 6th P.M.

Sections 1 through 36 (except Section 31 E½, only)

Township 8 South, Range 92 West, 6th P.M.
Sections 1, 12, and E½ of 13
*Township 9 South, Range 90 West, 6th P.M.
Sections 5, 6, 7 and 8
Township 9 South, Range 91 West, 6th P.M.
Sections 1 through 12
(*)	Unsurveyed lands which when surveyed will probably be as above described.

4.      That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to insure proper and efficient development, and to promote conservation of the gas resources of the State, an order should be made establishing 640-acre drilling and spacing units for the production of gas from the Mesaverde formation, common source of supply underlying said land as defined herein.

5.      That all available geological and engineering data concerning said Mesaverde formation indicate that one well will adequately and efficiently drain an area of at least 640 acres of land in said formation.

6.      That all wells drilled, and all locations approved by the Commission prior to April 26, 1960, should be the permitted wells or locations for the respective drilling units.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Mesaverde pool of the Divide Creek Field, as herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1.    Six Hundred Forty (640) acre drilling and spacing units shall be, and the same are hereby established for be production of gas from the Mesaverde formation, common source of supply underlying the following described lands in Mesa and Garfield Counties, Colorado:

Township 7 South, Range 91 West, 6th P.M.
Sections 13 through 36
Township 7 South, Range 92 West, 6th P.M.
Sections 13, 24-25 and 36
*Township 8 South, Range 90 West, 6th P.M.
Sections  7, 8, 18, W½ of 17, 19, 20, 29, 30, 31 and W½ of 32
Township 8 South, Range 91 West, 6th P.M.
Sections 1 through 36 (except Section 31 E½, only)
Township 8 South, Range 92 West, 6th P.M.
Sections 1, 12, and E½ of 13
*Township 9 South, Range 90 West, 6th P.M.
Sections 5, 6, 7 and 8
Township 9 South, Range 91 West, 6th P.M.
Sections 1 through 12
(*)	Unsurveyed lands which when surveyed will probably be as above described.

Rule 2.    No well shall be drilled or completed in the Divide Creek Field, and no notice of intention to drill shall be approved by the Commission unless:

a.      Such well be located on a designated drilling unit of not less than 640 acres of land more or less, according to legal sub-divisions of the United States Land Surveys in which unit all of the interests of owners are consolidated by a pooling agreement, or otherwise, and on which no other well is completed or approved for completion in the same pool.

b.   Such drilling unit be a normal section, except for the following described units:

Township 8 South, Range 90 West, 6th P.M.
1.	Section 17:	W½	and	Section 18:	E½ ;
2.	Section 32:	W½	and	Section 31:	E½ ;
3.	Section 18: W½, Township 8 South, Range 90 West and Section 13: E½, Township 8 South, Range 91 West;
4.	Section 31; W½, Township 8 South, Range 90 West and Section 36: E½, Township 8 South, Range 91 West;
Township 8 South, Range 91 West, 6th P.M.
5.	Section 13:	W½	and	Section 14:	E½
6.	Section 14:	W½	and	Section 15:	E½
7.	Section 15:	W½	and	Section 16:	E½
8.	Section 16:	W½	and	Section 17:	E½
9.	Section 17:	W½	and	Section 18:	E½
10.	Section 36:	W½	and	Section 35:	E½
11.	Section 35:	W½	and	Section 34:	E½
12.	Section 34:	W½	and	Section 33:	E½
13.	Section 33:	W½	and	Section 32:	E½
14.	Section 32:	W½	and	Section 31:	E½
15.	Section 18: W½, Township 8 South, Range 91 West and Section 13: E½, Township 8 South, Range 92 West.

c.      Such well to be drilled not closer than 3750 feet to the nearest well drilling to or capable of production from the Mesaverde formation, and not closer than 900 feet to the boundaries of the drilling unit upon which it is located.

Rule 3.    The Commission may, without additional notice and hearing, grant exceptions to Rule 2c above, when, because of topographical reasons, it is necessary locate such well at allocation other than that required by said Rule 2c.

Rule 4.    The surface casing program of all wells hereafter drilled in the Divide Creek Field, Mesaverde Gas Pool, shall be in accordance with the following standards:

The surface pipe shall be set to a minimum depth of 250 feet, and where shallow potable water-bearing beds are present, the surface pipe shall be set through such shallow potable water-bearing beds and a sufficient amount of cement shall be used to circulate the cement behind the pipe to the bottom of the cellar.  This surface casing shall stand cemented for at least twelve (12) hours before drilling plug or initiating tests.  The surface casing shall be tested after drilling plug by bailing the hole dry.  The hole shall remain dry for one hour to constitute satisfactory proof of a water shut-off.  In lieu of the foregoing test, the cement job may be tested by building up a pressure of 500 psi, closing the valves and allowing to stand thirty (30) minutes.  If the pressure does not drop more than 100 pounds during that period, the test shall be considered satisfactory. This test shall be made both before and after drilling the plug.

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to April 26, 1960, shall be the permitted wells or locations for the respective drilling units.

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 Mesaverde formation of the Divide Creek 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 26th day of April 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	D.V. Rogers, Secretary