157-3

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

)

CAUSE NO. 157

ORDER NO. 157-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1963, at 10 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing and service or appropriate waiver thereof, on the application of the Horizon Oil & Gas Company for an order granting an exception to Order No. 157-1, for its Perkins No. 1 well to be located 990 feet from the west line and 330 feet from the north line of Section 17, Township 34 South, Range 42 West, 6th P.M., Baca County, 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 the Commission, by its Order No. 157-1, established 80-acre drilling units for the production of oil from the Upper Morrow Sand underlying the Flank Field, and that the W½NW¼ of Section 17, Township 34 South, Range 42 West, 6th P.M., Baca County, Colorado, constitutes one of said units.

4. That Shell Oil Company drilled a well in the center of the N½ of the aforementioned drilling unit as the permitted well for said unit, and that the well was plugged and abandoned as a dry hole.

5. That geological and engineering testimony presented at the hearing indicates that said unit is located partly outside the pool, and is adjacent to a producing unit; and that therefore, in order to protect correlative rights, an exception to Order No. 157-1 should be granted for a well to be drilled 990 feet from the west line and 330 feet from the north line of said Section 17.

6. That if a commercial well is completed at the location set forth above, upon application of any interested party and after notice and hearing, the Commission should take such action as will offset any advantage the operator of such exception may have over other producers by the drilling of the well as an exception, and should include in the order suitable provisions for prevention of production from said drilling unit of more than its just and equitable share of the oil and gas in said pool.

7. That the operator of a well drilled as an exception to said Order No. 157-1 should take cores, analyze same, and make logs which are necessary in the determination of reservoir data relating to the Upper Morrow Sand underlying the W½NW¼ of said Section 17.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled 990 feet from the west line and 330 feet from the north line of Section 17, Township 34 South, Range 42 West, 6th P.M., Baca County, Colorado; and that said well shall be the permitted well for the drilling unit upon which it is located; however, if a well capable of producing oil and gas is completed on such location instead of on the location provided in Rule 2 of Order No. 157-1, the Commission, at the request of any interested person, may after notice and hearing, take such action as will offset any advantage the operator of such exception may have over other producers by reason of the drilling of said well as an exception.

IT IS FURTHER ORDERED, that he operator of a well drilled as an exception to said Order No. 157-1, shall take cores, analyze same, and make logs which are necessary in the determination of reservoir data relating to the Upper Morrow Sand underlying the W½NW¼ of said Section 17.

ORDERED this 21st day of June 1963.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

William R. Smith, Secretary