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 FLANK FIELD, BACA COUNTY, COLORADO

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CAUSE NO. 157

 

ORDER NO. 157-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 24, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Kerr-McGee Oil Industries, Inc., for an order establishing 80-acre drilling and spacing units for the production of oil from the Upper Morrow Sand, common source of supply underlying certain lands in Baca County, Colorado; and that each such drilling and spacing unit be the E½ or W½ of a governmental quarter section; and that the permitted well for each such unit be located in the center of the northwest forty acres and the southeast forty acres of each governmental quarter section; and that exceptions be granted for all wells drilled or actually drilling at the time of hearing of this application and not located upon the location prescribed by the Commission in any order issued pursuant to subject application.  At the hearing, subject application was amended as to area.

 

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 Upper Morrow Sand constitutes a common source of supply of oil and gas underlying the following described lands in Baca County, Colorado, to-wit:

 

Township 34 South, Range 42 West, 6th P.M.

 

 

 

Section  5:  S½

Section 16:  All

 

Section  6:  S½

Section 17:  All

 

Section  7:  All

Section 18:  All

 

Section  8:  All

 

 

and that said Upper Morrow Sand is defined as that zone of the Morrow formation found at the depths of 4607 to 4620 feet in drilling the Kerr-McGee No. 1 Pridemore well, located in the NW¼SW¼ of Section 8, Township 34 South, Range 42 West of the 6th P.M., Baca County, Colorado.

 

4.      That in order to prevent waste of oil and gas, as defined in the Colorado Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells an order should be made establishing eighty (80) acre drilling and spacing units for the production of oil from said Upper Morrow Sand, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling and spacing units according to the governmental survey thereof; and that each such drilling and spacing unit should be the E½ or W½ of a governmental quarter-section; and that the permitted oil well for each such unit should be located in the center of the northwest forty (40) acres and the southeast forty (40) acres of each governmental quarter-section; and that a tolerance of One Hundred (100) 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 said Upper Morrow Sand indicate that one well will efficiently and economically drain an area of approximately eighty (80) acres; and that, drilling 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 said Upper Morrow Sand.

 

6.      That all wells drilled; and all locations approved by the Commission prior to October 24, 1961, 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 hereafter to a well drilled, completed, or recompleted in the Upper Morrow Sand underlying the Flank Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the upper Morrow Sand, common source of supply underlying the following described lands in Baca County, Colorado to-wit:

 

Township 34 South, Range 42 West, 6th P.M.

 

 

 

Section  5:  S½

Section 16:  All

 

Section  6:  S½

Section 17:  All

 

Section  7:  All

Section 18:  All

 

Section  8:  All

 

 

and such area shall henceforth be known as the Flank Field.

 

Rule 2.    Said drilling and spacing units shall consist of eighty (80) acres, and each such drilling and spacing unit shall be the E½ or W½ of a governmental quarter-section; and the permitted oil well for each such unit shall be located in the center of the northwest forty (40) acres and the southeast forty (40) acres of each governmental quarter-section; and a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted to avoid surface hazards and obstructions.

 

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to October 24, 1961, 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 Upper Morrow Sand, as defined herein, for the purpose of producing oil therefrom, at a location other than authorized by this order, is hereby prohibited.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves the right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

 

ORDERED, this 24th day of October 1961.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary