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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE NINE MILE FIELD, RIO BLANCO COUNTY, COLORADO |
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CAUSE NO. 201
ORDER NO. 201-1 |
REPORT OF THE COMMISSION
On September 27, 1966, Cobra Oil & Gas Corporation filed with the Commission an application for an order establishing 80-acre drilling and spacing units for the production of oil and gas from the Dakota formation underlying certain lands in Rio Blanco County, Colorado. Subsequently, on November 3, 1966, an application for permit to drill the No. 1 Jensen well in the approximate center of the NE¼ NE¼ of Section 12, Township 2 North, Range 93 West, 6th P.M., Rio Blanco County, Colorado, was received from R.G. Boekel. Since this application for permit to drill was in conflict with the application filed by Cobra Oil & Gas Corporation, the permit was held in abeyance pending outcome of Cobra's application. Hearing in this cause was set for October 18, 1966, and upon request of Applicant was continued to November 15, 1966, on which date this cause came on for hearing before the Commission at 5 p.m., in Room 132, State Services Building, Denver, 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 Dakota formation constitutes a common source of supply of oil and gas underlying the following described lands in Rio Blanco County, Colorado, to-wit:
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Township 2 North, Range 92 West, 6th P.M. |
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Sections 5, 6, 7 and 8 |
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Township 2 North, Range 93 West, 6th P.M. |
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Sections 1, 2, 3, 10, 11, 12 |
4. That 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 of the State, an order should be made establishing 80-acre drilling units for the production of oil and gas from the Dakota formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units consisting of one-half of each quarter section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the center of the northwest quarter or southeast quarter of each such quarter section; and that a tolerance of 200 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 said Dakota formation indicate that one well will efficiently and economically drain an area of approximately eighty (80) 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 Dakota formation.
6. That in order to protect the correlative rights of owners of the E½ of the NE¼ of Section 12, Township 2 North, Range 93 West an exception should be granted for a well to be drilled in the NE¼NE¼ of said Section 12, not further than 300 feet from the south line of said quarter quarter section, with the location in an east-west direction to conform to Finding 4 above.
7. That any well drilled, and any location approved by the Commission prior to November 15, 1966, should be the permitted well or location for the respective drilling unit.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Dakota formation underlying the Nine Mile 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. Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Dakota formation underlying the following described lands in Rio Blanco County, Colorado, to-wit:
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Township 2 North, Range 92 West, 6th P.M. |
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Sections 5, 6, 7 and 8 |
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Township 2 North, Range 93 West, 6th P.M. |
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Sections 1, 2, 3, 10, 11, 12 |
and such area shall henceforth be known as the Nine Mile Field.
Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be one-half of each quarter section, according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located in the center of the northwest quarter or southeast quarter of each such quarter section; and a tolerance of 200 feet in any direction from the prescribed location shall be permitted to avoid surface hazards and obstructions.
IT IS FURTHER ORDERED, that an exception is hereby allowed for a well to be drilled in the NE¼NE¼ of Section 12, Township 2 North, Range 93 West, 6th P.M., Rio Blanco County, Colorado, such well to be drilled not further than 300 feet from the south line of said quarter-quarter section, with the location in an east-west direction to conform with Rule 2 hereof.
IT IS FURTHER ORDERED, that any well drilled, and any location approved by the Commission prior to November 16, 1966, shall be the permitted well or location for the respective drilling unit.
IT IS FURTHER ORDERED, that the rules and regulations contained herein 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, rules or regulations.
ORDERED this 16th day of November 1966.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By |
William R. Smith, Secretary |