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

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CAUSE NO. 143

 

ORDER NO. 143-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 20, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, on the Commissions [sic] own motion to delete certain lands from the area established by Order No. 143-2 (CORRECTED) and that henceforth such lands would be regulated by the Rules and Regulations of the Commission.

 

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 on November 20, 1989, the Commission authorized Order No. 143-2 (CORRECTED) to be issued which deleted lands from the Divide Creek Federal unit from those lands established by Order No. 143-1.  Subsequent review by the Commission staff has found that irregular shaped units of less than the required 640-acre size have been created, that no drilling activity has been conducted on or production established in large parts of the area currently spaced by Order No. 143-2.

 

4.      That no protests to the application have been received.

 

5.      That the below listed lands should be deleted from the area established by Order No. 143-2 (CORRECTED) for the production of gas from the Cretaceous Mesaverde formations from sections identified as the Upper, Middle, and Lower Divide Creek zones and that henceforth such lands should be regulated by the Rules and Regulations of the Commission:

 

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

Sections:  7, 8, 18, W1/2 of 17, 19, 20, 29, E1/2 of 30 and W1/2 of 32

 

 

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

 

Section 1:

All

Section 19:

All

 

Section 2:

NW1/4, E1/2

Section 29:

NW1/4, S1/2

 

Section 7:

W1/2

Section 30:

All

 

Section 12:

E1/2, NW1/4

Section 31:

All

 

Section 13:

NE1/4

Section 32:

All

 

Section 18:

All

 

 

 

 

 

 

 

 

Township 8 South, Range 92 West, 6th P.M.

 

Sections:  1, 12 and E1/2 of 13

 

 

 

 

 

 

 

Township 9 South, Range 90 West, 6th P.M.

 

Sections:  5 and 8

 

 

 

 

 

 

 

 

Township 9 South, Range 91 West, 6th P.M.

 

Sections:  S1/2 and NW1/4 of 4 and all of 5, 6, 7, 8, and 9

 

6.      That the remaining lands listed herein below should remain as the Divide Creek Field subject to all the rules contained within Cause No. 143, to-wit:

 

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

 

Sections 13 through 30

Section 34:

N1/2, SE/14 [sic]

Section 35

 

Section 36

 

 

 

 

 

 

 

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

 

Sections 13, 24, 25 and 36

 

 

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 the 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 30

Section 34:

N1/2, SE/14 [sic]

Section 35

 

Section 36

 

 

 

 

 

 

 

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

 

Sections 13, 24, 25 and 36

 

 

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 will be located on a designated drilling unit of not less than 640-acres of land, more or less, according to legal subdivisions 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 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 to locate such well at a location 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 [sic] 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 orders.

 

ENTERED this 28th day of February, 1990, as of February 20, 1990.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Dennis R. Bicknell, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203