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 VILAS FIELD, BACA COUNTY, COLORADO

)

)

)

)

CAUSE NO. 197

 

ORDER NO. 197-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 16, 1971, at 9 a.m., in Room 132, State Services Building, Denver, Colorado, which was a continuation of the hearing held on February 16, 1971, after giving Notice of Hearing as required by law, on the application of MacDonald Oil Corporation for an order extending the area of the Vilas Field; and further providing that all interests in the drilling unit comprising Section 1, Township 32 South, Range 45 West, 6th P.M., be pooled.

 

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 testimony at the hearing indicates that the Topeka Limestone formation probably constitutes a common source of supply of gas underlying, in addition to the area set forth in Order No. 197-1, the following described lands in Baca County, Colorado, to-wit:

 

Township 32 South, Range 45 West, 6th P.M.

 

Sections 1 through 24

 

and that such area should be subject to the provisions of Order No. 197-1.

 

4.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, an order should be made pooling all interests in the drilling unit described as Section 1, Township 32 South, Range 45 West, 6th P.M., Baca County, Colorado.

 

5.      That reasonable effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but Applicant has been unable to secure the voluntary consent of all interested parties.

 

6.      That an order of the Commission pooling all interests in said drilling unit is necessary, just, and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of gas from the common source of supply underlying said drilling unit.

 

7.      That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

 

8.      That since said drilling unit is a complete governmental-surveyed section, but larger than the normal 640 acres, the gas should be taken ratably from the permitted well on the drilling unit on the basis of the proportion of the total number of acres that said drilling unit bears to the normal 640-acre sections within the spaced area.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 3 herein shall be subject to the provisions of Order No. 197-1, and the Vilas Field shall henceforth include the following described lands in Baca County, Colorado, to-wit:

 

Township 30 South, Range 44 West, 6th P.M.

 

All Sections

 

Township 30 South, Range 45 West, 6th P.M.

 

All Sections

 

Township 31 South, Range 44 West, 6th P.M.

 

Sections 1 through 24

Sections 26 through 33

 

Township 31 South, Range 45 West, 6th P.M.

 

All Sections

 

Township 32 South, Range 45 West, 6th P.M.

 

Sections 1 through 24

 

IT IS FURTHER 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 described as Section 1, Township 32 South, Range 45 West, 6th P.M., Baca County, Colorado, are hereby pooled for the development and operation of said drilling unit.

 

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit applicable to his interest in said drilling unit.

 

IT IS FURTHER ORDERED, that the gas shall be taken ratably from the permitted well on said drilling unit on the basis of the proportion of the total number of acres that the drilling unit bears to the normal 640-acre sections within the spaced area.

 

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.

 

ORDERED this 16th day of March, 1971.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary