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 FORT UNION FORMATION POWDER WASH FIELD, MOFFAT COUNTY, COLORADO

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CAUSE NO. 207

 

ORDER NO. 207-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 19, 1967 at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Pan American Petroleum Corporation for an order establishing 160-acre drilling and spacing units for the production of oil and gas from the Fort Union formation underlying certain lands in Moffat County, 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 herein after prescribed order.

 

3.      That evidence presented at the hearing indicates that the Fort Union formation constitutes a common source of supply of oil and gas underlying the following described lands in Moffat County, Colorado to-wit:

 

Township 11 North, Range 97 West, 6th P.M.

 

Sections 16, 17, 18, 19, 20, 21 and 22

 

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 160-acre drilling units for the production of oil and gas from the Fort Union formation, common source of supply underlying the lands defined herein; that said units should be 160-acre drilling units consisting of a 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 NE¼ or SW¼ of each quarter section, with a tolerance of 200 feet in any direction for surface hazards.

 

5.      That all available geological and engineering data concerning said Fort Union formation indicate that one well, will, efficiently and economically drain an area of approximately 160 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 Fort Union formation.

 

6.      That any producing well drilled prior to December 19, 1967 should be the permitted well for the drilling unit upon which it is located.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Fort Union formation underlying the herein described lands, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    One hundred sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Fort Union formation underlying the following described lands in Moffat County, Colorado, to-wit:

 

Township 11 North, Range 97 West, 6th P.M.

 

Sections 16, 17, 18, 19, 20, 21 and 22

 

Rule 2.    Said drilling units shall consist of one hundred sixty (160) acres, and each such drilling unit shall be a 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 NE¼ or SW¼ of each quarter section, with a tolerance of 200 feet in any direction from the prescribed location permitted to avoid surface hazards.

 

IT IS FURTHER ORDERED, that any producing well drilled prior to December 19, 1967 shall be the permitted well for the drilling unit upon which it is located.

 

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 and regulations.

 

ORDERED this 16th day of January 1968.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary