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 BIJOU-SOUTH FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 168

 

ORDER NO. 168-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on May 22, 1962, at 10 a.m., in Room 320E, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Monsanto Chemical Company for an order establishing 320-acre drilling units for the production of gas from the "D" sand formation underlying certain lands in Morgan County, Colorado; with the permitted well for any such unit to be located not less than 660 feet from the boundary lines of the unit, and not less than 1980 feet from any other gas well in the Bijou-South "D" Sand Field; and the Monsanto No. 1 Reid well as the permitted gas well for the drilling unit upon which it is located.

 

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 hearing indicates that the "D" sand formation underlying the following described lands in Morgan County, Colorado, constitutes and comprises one separate common source of supply of oil and gas:

 

Township 4 North, Range 59 West, 6th P.M.

 

 

Section 17:  S½

Section 21:  All

Section 20:  All

Section 28:  All

 

and such area is referred to as the Bijou-South Field.

 

4.      That in order to prevent waste of 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 gas resources of the State, an order should be made establishing 320-acre drilling units for the production of gas from the "D" sand formation, common source of supply underlying said lands, as defined herein; that said units should be 320-acre drilling units consisting of normal half sections according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located not less than 660 feet from the boundary lines of such unit, and not less than 1980 feet from any other gas well in the "D" sand formation of the Bijou-South Field, and that the Monsanto No. 1 Reid well, located in the SE¼ NE¼ of Section 20, Township 4 North, Range 59 West, 6th P.M., Morgan County, Colorado, should be the permitted gas well for the drilling unit upon which it is located.

 

5.      That all available geological and engineering data concerning said "D" sand formation indicate that one well will efficiently and economically drain an area of approximately 320 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 "D" sand formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells drilled, completed or recompleted in the "D" sand formation underlying the Bijou-South 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.    Three Hundred Twenty (320) acre drilling units shall be, and the same are hereby established for the production of gas from the "D" sand formation underlying the following described lands in Morgan County, Colorado, to-wit:

 

Township 4 North, Range 59 West, 6th P.M.

 

 

Section 17:  S½

Section 21:  All

Section 20:  All

Section 28:  All

 

and such area shall henceforth be known as the Bijou-South Field.

 

Rule 2.    The following drilling units are hereby established for the production of gas from the "D" sand formation underlying the Bijou-South Field, as defined in Rule 1 hereof:

 

1.

Section 17:

S½

2.

Section 20:

W½

3.

Section 20:

E½

4.

Section 21:

W½

5.

Section 21:

E½

6.

Section 28:

W½

7.

Section 28:

E½

 

and the permitted gas well for each such unit shall be located not less than 660 feet from the boundary lines of such unit, and not less than 1980 feet from any other gas well in the "D" sand formation of the Bijou-South Field; and said Monsanto No. 1 Reid well shall be the permitted well for the drilling unit upon which it is located.

 

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 "D" sand formation of the Bijou-South 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 22nd day of May 1962.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary