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 NINE MILE FIELD, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 201

 

ORDER NO. 201-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 15, 1975, at 9 a.m. in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Fuel Resources Development Company for an order to either (1) delete from the spaced area of Nine Mile Field all of Sections 2, 3, 10 and 11, Township 2 North, Range 93 West, 6th P.M.; or (2) amend Rule 2 of Order No. 201-1 to allow the drilling of the permitted well in any quarter quarter section as far as it concerns said Sections 2, 3, 10 and 11; or (3) grant an exception to Order No. 201-1 for a well to be drilled in the NE¼SW¼ of said Section 2.  The application was amended at the time of hearing and the request to delete said Sections 2, 3, 10 and 11 from the spaced area was withdrawn.

 

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 on November 16, 1966, the Commission issued its Order No. 201-1 which, among other things, established 80-acre drilling and spacing units for the production of oil and gas from the Dakota formation, with the permitted well located in the center: of the NW¼ or SE¼ of each quarter section with a tolerance of 200 feet to avoid Surface hazards or obstructions.

 

4.      That evidence presented at the hearing indicates that consideration to an exception to the spacing pattern should be given at this time, and that a hearing should be held, when more information is available, to determine more accurately the limits of the common source of supply of oil and gas from the Dakota formation underlying the Nine Mile Field.

 

5.      That an exception should be granted for a well to be drilled in the NE/4 SW/4 Section 2, Township 2 North, Range 93 West, 6th P.M. (2950 feet from the North line and 3205 feet from the East line of said section); however, if a commercial well is drilled on the location set forth herein instead of a location as provided for in Order No. 201-1, the Commission should, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

 

 

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled in the NE¼SW¼ Section 2, Township 2 North, Range 93 West, 6th P.M., 2950 feet from the North line and 3205 feet from the East line of said Section 2, and that it be the permitted well for the unit upon which it is located; however, if a commercial well is drilled on the location as set forth above, instead of on a location as provided for in Order No. 201-1, the Commission shall, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective herewith.

 

ORDERED this 15th day of July 1975.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary