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 CAVALRY FIELD (GAS AREA), KIOWA COUNTY, COLORADO

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CAUSE NO. 213

 

ORDER NO. 213-6

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 20, 1978 at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Chemco, Inc., for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Morrow formation underlying certain lands in Kiowa County, Colorado.  The application was amended at the time of the hearing to delete the SW¼ Section 26, Township 18 South, Range 45 West, 6th P.M. from the area requested to be spaced.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Chemco, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      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.

 

4.      Evidence presented at the hearing indicates that the Morrow formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Kiowa County, Colorado, to-wit:

 

Township 18 South, Range 45 West, 6th P.M.

Section 25:

All

Section 26:

N½, SE¼

 

5.      In order to prevent the waste of 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 gas resources of the State, an order should be made establishing 160-acre drilling and spacing units for the production of gas from the Morrow formation, common source of supply underlying the lands defined herein; that said units should be 160-acre drilling units, and consist of a quarter section of land according to the governmental survey thereof, and that the permitted well for each such drilling unit should be located in the NE¼ of each quarter section and no closer than 600 feet from the boundary of the unit and no closer than 1200 feet from another permitted well.  Well No. 3-2 Wear, located in the NE¼SE¼ of said Section 26 should be considered the permitted well for the unit upon which it is located.

 

6. All available geological and engineering data concerning said Morrow 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 Morrow formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Morrow formation underlying the Cavalry 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.    One hundred-sixty [sic] (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Morrow formation underlying the following described lands in the Cavalry Field, Kiowa County, Colorado, to-wit:

 

Township 18 South, Range 45 West, 6th P.M.

Section 25:

All

Section 26:

N½, SE¼

 

Rule 2.    Said drilling units shall consist of one hundred-sixty [sic] (160) acres, and each such drilling unit shall consist of a quarter section of land, according to the governmental survey thereof, and the permitted well for each such drilling unit shall be located in the NE¼ of each quarter section and no closer than 600 feet from the boundary of the unit and no closer than 1200 feet from another permitted well.  Well No. 3-2 Wean located in the NE¼SE¼ Section 26, Township 18 South, Range 45 West, shall be the permitted well for the unit upon which it is located.

 

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 and regulations.

 

ORDERED this 20th day of November, 1978.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary