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 A DRILLING UNIT CONSISTING OF THE NW SE SECTION 5, TOWNSHIP 2 SOUTH, RANGE 56 WEST, 6TH P.M., WASHING-TON COUNTY, COLORADO

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CAUSE NO. 172

 

ORDER NO. 172-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 15, 1980 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion to consider the rescinding of Order No. 172-1 for certain lands in Washington County, Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

2. 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. On August 16, 1963, the Commission issued Order No. 172-1 which established a 40-acre drilling and spacing unit, consisting of the NWSE Section 5, Township 2 South, Range 56 West, 6th P.M., for the production of oil and gas from all sources of supply down to the top of the Skull Creek formation underlying said unit.

 

4. Since the permitted well for said unit was drilled as a dry hole and plugged and abandoned, and in order to promote future development, Order No. 172-1 is no longer necessary and should be vacated and the area described in Finding 3 herein should be governed by the general rules and regulations of the Commission.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit consisting of the NWSE of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado, are hereby pooled for the development and operation of said drilling unit; and the permitted well for said drilling unit shall be located in the Center of the WNWSE of said Section 5, with a tolerance of 100 feet in any direction from said location to avoid surface hazards or obstructions; and that The Cramer Company, Limited, is hereby authorized to drill and operate the permitted well for said drilling unit.

 

IT IS FURTHER ORDERED, that if American Petrofina, Inc. continues to refuse to agree upon the terms for drilling and operating a well upon said drilling unit; and if production of oil or gas, or both oil and gas, is obtained from the permitted well upon said drilling unit, The Cramer Company, Limited, is hereby authorized to recover 1/16th of the cost of drilling and operation of said well, including a reasonable charge for supervision and storage, from the share of such production applicable to the interest of American Petrofina, Inc. in such production.

 

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.

 

IT IS FURTHER ORDERED, that the Commission retain jurisdiction of this matter for the purpose of determining, if necessary, the costs of drilling and operating the permitted well, including reasonable charges for supervision and storage.

 

ORDERED this 16th day of April, 1963.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By

William R. Smith, Secretary