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 THE DEER TRAIL FIELD, ADAMS COUNTY, COLORADO

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CAUSE NO. 190

 

ORDER NO. 190-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 19, 1966, 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 Petroleum, Inc. for an order establishing 640-acre drilling units for production of gas from the "D" Sand formation under-lying certain lands in Adams 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 Adams County, Colorado, to-wit:

 

Township 2 South, Range 59 West, 6th P.M.

 

             Sections 18, 19, 20 and 30

 

Township 2 South, Range 60 West, 6th P.M.

 

             Sections 13, 24 and 25

 

4.      That in order to prevent waste of gas and associated hydrocarbons; 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 resources of the State, an order should be made establishing drilling units of approximately 640 acres for production of gas and associated hydrocarbons from the "D" Sand formation underlying said lands, as defined herein; that said units should be 640-acre drilling units consisting of complete sections, according to the governmental survey thereof.

 

5.      That the permitted well for each such drilling unit should be located no more than 1320 feet from the center of the drilling unit; and that any well completed and capable of producing with a gas-oil ratio of 15,000 cubic feet per barrel, or more, should be deemed to be the permitted gas well for the unit on which it is located.

 

6.      That all wells previously drilled and capable of producing with a gas-oil ratio of 15,000 cubic feet per barrel, or more should be the permitted wells for the drilling units on which they are located.

 

7.      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 640 acres of land in said 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 "D" Sand formation underlying the Deer Trail 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.    Six Hundred Forty (640) 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 Adams County, Colorado, to-wit:

 

Township 2 South, Range 59 West, 6th P.M.

 

             Sections 18, 19, 20 and 30

 

Township 2 South, Range 60 West, 6th P.M.

 

             Sections 13, 24 and 25

 

and such area shall henceforth be known as the "D" Sand reservoir of the Deer Trail Field.

 

Rule 2.    Said drilling units shall consist of approximately 640 acres, each unit comprising a complete section according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located no more than 1320 feet from the center of the drilling unit; and any well completed and capable of producing with a gas-oil ratio of 15,000 cubic feet per barrel, or more, shall be deemed to be the permitted gas well for the unit on which it is located.

 

IT IS FURTHER ORDERED, that all wells previously drilled and capable of producing with a gas-oil ratio of 15,000 cubic feet per barrel, or more, shall be the permitted wells for the drilling units on which they are 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 Deer Trail Field, as defined herein, for the purpose of producing gas therefrom at a location other than authorized by this order, is hereby prohibited.

 

ORDERED this 19th day of April 1966.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

William R. Smith, Secretary