BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PETITION OF SHELL OIL COMPANY AND MIDWEST OIL CORPORATION FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION PROVIDING FOR FORTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE DAKOTA SAND, THE "J" SAND, COMMON SOURCE OF SUPPLY UNDERLYING SECTIONS 15, 16, 21 AND 22, ALL IN TOWNSHIP 11 NORTH, RANGE 56 WEST OF THE 6TH P. M., IN WELD COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE BATTLE CANYON FIELD

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CAUSE NO. 20

 

ORDER NO. 20-1

 

APPEARANCES:

Donn D. Peters,

Attorney for applicant, Shell Oil Company, Denver, Colorado

E.S. Godwin -

Austen, Attorney, Denver, Colorado

Wilbur Rocchio

Attorney, and

D.V. Rogers,

Petroleum Engineer, for the Commission

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 8, 1953 at ten o'clock A.M., Room 704, State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law on the petition of Shell Oil Company and Midwest Oil Corporation for an order from the Commission establishing forty (40) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Dakota Sand, often referred to as the "J" Sand, common source of supply underlying Sections Fifteen (15), Sixteen (16), Twenty-one (21) and Twenty-two (22), all in Township Eleven (11) North, Range Fifty-six (56) West of the 6th Principal Meridian, Weld County, Colorado, which area is referred to in the said petition as the Battle Canyon Field.

 

Applicant, Shell Oil Company, is the owner of oil and gas leases within the above described area and applicant, Midwest Oil Corporation, is the owner of oil and gas leases within the above described area and Midwest Oil Corporation has heretofore completed its Uhl No. l well, which is located as follows:

 

Uhl No. 1 -

Located in the center of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW/4 NW/4 NW/4 NW/4) of said Section Twenty-two (22);

 

in Township Eleven North (11N), Range Fifty-six West (56W) of the 6th Principal Meridian, in the Dakota Sand, often referred to as the "J" Sand, the top of which is found at the approximate depth of 6116 feet below the surface.  Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying Forty (40) acres in the Dakota Sand, and that Forty (40) acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Dakota Sand.

 

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 the Dakota Sand Pool, sometimes referred to as the "J" Sand Pool in the Battle Canyon Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Weld County, Colorado:

 

Township Eleven (11) North, Range Fifty-six (56) West, 6th P.M.:

 

 

All of Sections Fifteen (15), Sixteen (16), Twenty-one (21) and Twenty-two ( 22 ).

 

4.      That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing forty (40) acre drilling and spacing units for the production of oil and gas from the said Dakota Sand Pool, or "J" Sand Pool, common source of supply underlying said land, as defined herein; that said units should be forty (40) acre drilling and spacing units according to the governmental survey thereof and the permitted well for each unit should be located in the center of each quarter quarter section according to the governmental survey thereof; and a tolerance of fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the said Dakota Sand Pool, or "J" Sand Pool in said Battle Canyon Field, indicate that one well should efficiently and economically drain an area of approximately forty (40) acres, and that 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 the said Dakota Sand Pool, or "J" Sand Pool.

 

6.      That an exception should be allowed for the Midwest Oil Corporations Uhl No. 1 well located in the center of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW/4 NW/4 NW/4) of Section Twenty-two (22), Township Eleven (11) North, Range Fifty-six (56) West of the 6th Principal Meridian, Weld County, and that said well should be the permitted well for the unit on which it is located.

 

ORDER

 

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Dakota Sand Pool, sometimes referred to as the "J" Sand Pool, of the Battle Canyon Field, Weld County, as hereinabove defined in the Findings, which, by reference, are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith;

 

Rule 1.    Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Dakota Sand Pool, sometimes referred to as the "J" Sand Pool, common source of supply underlying all of Sections Fifteen (15), Sixteen (16), Twenty-one (21) and Twenty-two (22), all in Township Eleven (11) North, Range Fifty-six (56) West of the 6th Principal Meridian, Weld County, Colorado, and such area shall henceforth be known as the "J" Sand Pool of the Battle Canyon Field.

 

Rule 2.    That each governmental quarter quarter section shall constitute a drilling and spacing unit and the permitted well for each unit shall be located one well in the center of each quarter quarter section according to the governmental survey thereof and that a tolerance of fifty (50) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said Dakota Sand Pool or "J" Sand Pool, in the Battle Canyon Field, Weld County, Colorado, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the said Dakota Sand Pool or "J" Sand Pool, common source of supply.

 

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Midwest Oil Corporation's Uhl No. 1 well located in the center of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW/4 NW/4 NW/4) of said Section Twenty-two (22), Township Eleven (11) North, Range Fifty-six (56) West of the 6th Principal Meridian and said well shall be the permitted well for the unit on which it is located and no other well shall be drilled to said sand on said unit.

 

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 Dakota Sand Pool, or "J" Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, except as herein provided, is hereby prohibited.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after Notice of Hearing, to alter, amend, or repeal any and/or all of the above rules and regulations.

 

ORDERED this 8th day of September, 1953, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Assistant Secretary.