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 PICEANCE CREEK FIELD, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 161

 

ORDER NO. 161-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 18, 1975 at 9 a.m., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Fuel Resources Development Company, for an order establishing a 330.05-acre drilling unit for the production of oil and gas From the Wasatch formation underlying certain lands in Rio Blanco 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 Wasatch formation constitutes a common source of supply of oil and gas underlying the following described lands in Rio Blanco County, Colorado, to-wit:

 

Township 2 South, Range 97 West, 6th P.M.

Section 23:  W½

 

4.     That in order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing a 330.05-acre drilling and spacing unit for the production of oil and gas from the Wasatch formation, a common source of supply underlying the lands defined herein; that said unit should be 330.05-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 23-1 Federal well, located 1637 feet from the north line and 1076 feet from the west line of said Section 23.

 

5.     That all geological and engineering data concerning the Wasatch formation indicate that one well will efficiently and economically drain an area of approximately 330.05-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said Wasatch formation.

 

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Wasatch formation underlying that portion of the Piceance Creek 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.    A Three Hundred Thirty and Five Hundredths (330.05) acre drilling and spacing unit shall be and the same is hereby established for the production of oil and gas from the Wasatch formation underlying the following described lands in the Piceance Creek Field, Rio Blanco County, Colorado, to-wit:

 

Township 2 South, Range 97 West, 6th P.M.

Section 23:  W½

 

Rule 2.    The permitted well for the above described unit shall be the No. 23-1 Federal Well, located 1637 feet from the north line and 1076 feet from the west line of said Section 23.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

 

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.

 

ORDERED this 18th day of February, 1975.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary