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 MAM [sic] CREEK FIELD, GARFIELD COUNTY, COLORADO

)

)

)

)

CAUSE NO. 191

 

ORDER NO. 191-3         (Corrected)

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 19, 1982 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application, as amended, of Koch Industries, Inc., for an order establishing 640-acre drilling units for the production of gas from the Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, underlying certain lands in Garfield County, Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Koch Industries, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

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

 

3.      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.

 

4.      The Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Garfield County, Colorado, to-wit:

 

Township 6 South, Range 92 West, 6th P.M.

Section 22:  All

Section 26:  All

Section 23:  All

Section 27:  All

 

5.      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 640-acre drilling and spacing units for the production of gas from the Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, a common source of supply underlying the lands defined herein; that said units should be 640-acres, more or less, and consist of a section of land according to the governmental survey, and the permitted well for such unit should be at a location no closer than 990 feet to the boundaries of the unit; however, the Director may, without additional notice and hearing, grant exceptions, providing the offset operators, toward which the location is moved, file a waiver or consent in writing.

 

6.      All geological and engineering data concerning the Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, indicate that one well will efficiently and economically drain an area of approximately 640-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 Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos 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 Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, underlying the Mam [sic] 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.     Six Hundred Forty (640) acre drilling and spacing units shall be and the same is [sic] hereby established for the production of gas from the Mesaverde formation and the Cozzette and Corcoran members, considered to be part of the Upper Mancos formation, underlying the following described lands in the Mam [sic] Creek Field, Garfield County, Colorado, to-wit:

 

Township 6 South, Range 92 West, 6th P.M.

Section 22:  All

Section 26:  All

Section 23:  All

Section 27:  All

 

Rule 2.     The permitted well for the above-described units shall be at a location  no closer than 990 feet to the boundaries of the unit; however, the Director may, without additional notice and hearing, grant exceptions, providing the offset operators, toward which the location is moved, file a waiver or consent in writing.

 

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.

 

ENTERED this 18th day of August 1982, as of July 19, 1982.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary