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 RED LION FIELD, LOGAN AND SEDGWICK COUNTIES, COLORADO	) ) ) )	CAUSE NO. 179 ORDER NO. 179-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 17, 1964, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Continental Oil Company for an order establishing 320-acre drilling and spacing units for the production of gas from the "D" sand reservoir underlying certain lands in Sedgwick and Logan Counties, Colorado; and providing that each of such drilling units consist of one-half of a section, according to the governmental survey thereof, said half section to be the north half or the south half of any given section; and also providing that allowance be made for possible realignment of edge units due to future development of said reservoir; and providing that the permitted gas well for any drilling unit should be located not less than 660 feet from any boundary thereof and not less than 1980 feet from any gas well capable of producing from said pool; and providing that the Stuarco Oil Company, Inc. et al No. 1 Sprague Brothers well be allowed as an exception for the drilling unit comprised of the S½ of Section 18, Township 10 North, Range 47 West, Sedgwick 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 evidence presented at the hearing indicates that the "D" Sand formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Logan and Sedgwick Counties, Colorado, to-wit:

Township 10 North, Range 47 West, 6th P.M.
Sedgwick County, Colorado
Section	7:	S½	Section	18:	All
Section	8:	S½	Section	19:	All
Section	17:	All	Section	20:	All

Township 10 North, Range 48 West, 6th P.M.
Logan County, Colorado
Section	13:	All	Section	25:	All
Section	23:	All	Section	26:	All
Section	24:	All	Section	35:	N½

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 and associated hydrocarbons 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 one half of a section, according to the governmental survey thereof, said half section to be the north half or the south half of any given section; and that the permitted gas well for any drilling unit should be located not less than 660 feet from any boundary thereof and not less than 1980 feet from any gas well capable of producing from said pool.

5.      That all available geological and engineering data concerning said "D" Sand formation indicate that one well will adequately and efficiently 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.

6.      That in order to prevent the drilling of unnecessary wells; and to properly, efficiently, and economically develop the pool, Applicant should be allowed to realign certain of those drilling and spacing units located on the boundaries of said "D" Sand pool as the exact boundaries of said pool are delineated, if a permitted well has not been drilled thereon, and upon request of Applicant and approval by the Director.

7.      That an exception should be allowed for the Stuarco Oil Company, Inc. et al No. 1 Sprague Brothers well, located in the SE¼SE¼SE¼ of Section 18, Township 10 North, Range 47 West, 6th P.M., Sedgwick County, Colorado, and that said well should be the permitted gas well for the drilling and spacing unit on which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the "D" sand formation, as herein defined, in addition to other rules, regulations and orders of the Commission 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 and associated hydrocarbons from the "D" sand formation, common source of supply underlying the following described lands in Sedgwick and Logan Counties, Colorado, to-wit:

Township 10 North, Range 47 West, 6th P.M.
Sedgwick County, Colorado
Section	7:	S½	Section	18:	All
Section	8:	S½	Section	19:	All
Section	17:	All	Section	20:	All
Township 10 North, Range 48 West, 6th P.M.
Logan County, Colorado
Section	13:	All	Section	25:	All
Section	23:	All	Section	26:	All
Section	24:	All	Section	35:	N½

and such area shall henceforth be known as the Red Lion Field.

Rule 2.    Said drilling units shall consist of 320 acres, and shall be the north half or the south half of any given section, according to the governmental survey thereof; and the permitted gas well for any such drilling unit shall be located not less than 660 feet from any boundary thereof, and not less than 1980 feet from any gas well capable of producing from said "D" sand formation.

Rule 3.    As the exact boundaries of said "D" sand pool are delineated, Applicant may request and shall be allowed to realign certain of those drilling units located on the boundaries of said pool, if a permitted well has not been drilled thereon, and with approval of the Director.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Stuarco Oil Company, Inc. et al No. 1 Sprague Brothers well, located in the SE¼SE¼SE¼ of Section 18, Township 10 North, Range 47 West, 6th P.M., Sedgwick County, Colorado, and that said well shall be the permitted gas well for the drilling unit in which it is located.

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, rules or regulations.

ORDERED this 17th day of March 1964.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	William R. Smith, Secretary