|
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 NILE FIELD ("J" SAND GAS), ADAMS COUNTY, COLORADO |
) ) ) ) |
CAUSE NO. 216
ORDER NO. 216-3 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on January 16, 1973, at 9 a.m., in the Auditorium, Social Services Building, 1575 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sundance Oil Company, which application was amended at the time of the hearing, for an order establishing 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams 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 hereinafter prescribed order.
3. That evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:
|
Township 1 South, Range 60 West, 6th P.M. |
|||||
|
Section |
16: |
All |
Section |
21: |
All |
|
Section |
17: |
All |
Section |
29: |
All |
|
Section |
20: |
All |
Section |
30: |
All |
4. That in order to prevent the waste of gas and oil, 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 and oil resources of the State, an order should be made establishing 640-acre drilling an d [sic] spacing units for the production of gas and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 640-acres, more or less, and consisting of a governmental section; that the permitted well for each unit be located no closer than 990 feet from the boundaries of the section upon which it is located, and that the Well No. 3-20 Ehn, located in the NEžNEž Section 20, and the Well No. 1-30 Baughman Farms, located in the NEžSEž Section 30, Township 1 South, Range 60 West, 6th P.M., should be considered exceptions and be the permitted wells for the units upon which they are located.
5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 640-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "J" Sand.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Nile Field ("J" Sand Gas) 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. Six Hundred Forty (640) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Nile Field ("J" Sand Gas), Adams County, Colorado, to-wit:
|
Township 1 South, Range 60 West, 6th P.M. |
|||||
|
Section |
16: |
All |
Section |
21: |
All |
|
Section |
17: |
All |
Section |
29: |
All |
|
Section |
20: |
All |
Section |
30: |
All |
Rule 2. Said drilling units shall consist of six hundred forty (640) acres, more or less, and each such drilling unit shall be a governmental section; that the permitted well for each unit be located no closer than 990 feet from the boundaries of the section upon which it is located, and that the Well No. 3-20 Ehn, located in the NEžNEž Section 20, and the Well No. 1-30 Baughman Farms, located in the NEžSEž Section 30, Township 1 South, Range 60 West, 6th P.M., shall be considered exceptions and be the permitted wells for the units upon which they are located.
IT IS FURTHER ORDERED, that the provisions contained in the above orders 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 16th day of January, 1973.
|
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
By |
Frank J. Piro, Secretary |