BEFORE THE OIL AND GAS
CONSERVATION COMMISSION.
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 219
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS IN THE LADDER CREEK ) ORDER NO. 219-5
FIELD, CHEYENNE COUNTY, COLORADO ) CORRECTED
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on November 18, 1991 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Kent L. Gilbert, Scott R. Stewart, Inc., and Intermountain Oil Company for an order amending Order No. 219-1 to segregate 80-acre drilling and spacing units and allow a well to be drilled on each 40-acre tract on the below-listed lands for the production of oil and associated hydrocarbons from the Mississippian Formation underlying individual drilling and spacing units. In addition, the order should establish rules to allow the Director to grant exceptions to the permitted well location and to delete certain lands in Ladder Creek Field.
FINDINGS
The Commission finds as follows:
1. Kent L. Gilbert and Scott R. Stewart, Inc., and Intermountain Oil Company, as applicants herein, are interested parties 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. On October 21, 1969, the Commission authorized Order No. 219-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Mississippian Formation underlying the below-listed lands. The units consist of the W½ and the E½ of each quarter section and the permitted well for each spacing unit shall be located in the center of the SE¼ and NW¼ of each quarter section with a tolerance of 150 feet in any direction to avoid surface conditions:
Township 14 South, Range 44 West, 6th P.M.
Section 31
Township 14 South, Range 45 West, 6th P.M.
Sections 35 and 36
Township 15 South, Range 44 West, 6th P.M.
Sections 6, 7, 18 and 19
Township 15 South, Range 45 West, 6th P.M.
Sections 1, 2, 11, 12, 13, 14, 23 and 24
5. That in order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; and to insure the proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be entered to segregate the 80-acre drilling and spacing units for the below-listed lands for the production of oil and associated hydrocarbons from the Mississippian Formation underlying individual drilling and spacing units:
(1) W½ SW¼ Section 6, Township 15 South, Range 44 West for units consisting of NW¼ SW¼ and SW¼ SW¼ Section 6;
(2) E½ SW¼ Section 6, Township 15 South, Range 44 West for units consisting of NE¼ SW¼ and SE¼ SW¼ Section 6;
(3) W½ NW¼ Section 7, Township 15 South, Range 44 West for units consisting of NW¼ NW¼ and SW¼ NW¼ Section 7;
(4) E½ NW¼ Section 7, Township 15 South, Range 44 West for units consisting of NE¼ NW¼ and SE¼ NW¼ Section 7;
(5) W½ SW¼ Section 7, Township 15 South, Range 44 West for units consisting of NW¼ SW¼ and SW¼ SW¼ Section 7;
(6) E½ SW¼ Section 7, Township 15 South, Range 44 West for units consisting of NE¼ SW¼ and SE¼ SW¼ Section 7;
(7) W½ NE¼ Section 1, Township 15 South, Range 45 West for units consisting of NW¼ NE¼ and SW¼ NE¼ Section 1;
(8) E½ NE¼ Section 1, Township 15 South, Range 45 West for units consisting of NE¼ NE¼ and SE¼ NE¼ Section 1;
(9) E½ SW¼ Section 1, Township 15 South, Range 45 West for units consisting of NE¼ SW¼ and SE¼ SW¼ Section 1;
(10) W½ SE¼ Section 1, Township 15 South, Range 45 West for units consisting of NW¼ SE¼ and SW¼ SE¼ Section 1;
(11) E½ SE¼ Section 1, Township 15 South, Range 45 West for units consisting of NE¼ SE¼ and SE¼ SE¼ Section 1;
(12) W½ NE¼ Section 12, Township 15 South, Range 45 West for units consisting of NW¼ NE¼ and SW¼ NE¼ Section 12;
(13) E½ NE¼ Section 12, Township 15 South, Range 45 West for units consisting of NE¼ NE¼ and SE¼ NE¼ Section 12;
(14) W½ SE¼ Section 12, Township 15 South, Range 45 West for units consisting of NW¼ SE¼ and SW¼ SE¼ Section 12;
(15) E½ SE¼ Section 12, Township 15 South, Range 45 West for units consisting of NE¼ SE¼ and SE¼ SE¼ Section 12;
6. That the Director may grant exceptions to the well location where the owners proposing to drill a well, file with the Commission a waiver or consent signed by the lease owner toward whom the well location is proposed to be moved, agreeing that said well may be located at the point at which the owner proposes to drill the well and where correlative rights are protected; provided that if the owner of the proposed well is also the owner of the lease on the property toward which the well is proposed to be moved, a waiver should be obtained from the mineral interest owner of the lands covered by the offset lease.
7. That upon the Commission's review of the exploration and production in the lands established by Order No. 219-1 for the development of the Mississippian Formation in Ladder Creek Field and having found no production and limited exploration, the Commission, should rescind the rules and regulations of Order No. 219-1 for the below-listed lands, to wit:
Township 14 South, Range 44 West, 6th P.M.
Section 31: All
Township 14 South, Range 45 West, 6th P.M.
Sections 35 and 36: All
Township 15 South, Range 44 West, 6th P.M.
Sections 18 and 19: All
Township 15 South, Range 45 West, 6th P.M.
Sections 2, 11, 13, 14, 23 and 24: All
8. Based on the facts stated in the verified application, receiving no protests and having been heard by the Director as Hearing Officer on November 14, 1991 and recommended for approval, the Commission should enter an order amending Order No. 219-1 to segregate 80-acre drilling and spacing units on the lands described in Finding 5, and allow a well to be drilled on each 40-acre tract for the production of oil and associated hydrocarbons from the Mississippian Formation underlying individual drilling and spacing units. In addition, rules should be established to allow the Director to grant exceptions to the permitted well location established by Order No. 219-1. Further, certain lands in Ladder Creek Field should be deleted from the provisions of Order No. 219-1 and be subject to the provisions of the general rules and regulations of the Colorado Oil and Gas Conservation Commission.
ORDER
NOW, THEREFORE IT IS ORDERED, that Order No. 219-1 is hereby amended to segregate 80-acre drilling and spacing units on the lands described in Finding 5, and to allow a well to be drilled on each 40-acre tract for the production of oil and associated hydrocarbons from the Mississippian Formation underlying said individual drilling and spacing units.
IT IS FURTHER ORDERED, that the Director shall grant exceptions to the well location where the owners proposing to drill a well, file with the Commission a waiver or consent signed by the lease owner toward whom the well location is proposed to be moved, agreeing that said well may be located at the point at which the owner proposes to drill the well and where correlative rights are protected; provided that if the owner of the proposed well is also the owner of the lease on the property toward which the well is proposed to be moved, a waiver shall be obtained from the mineral interest owner of the lands covered by the offset lease.
IT IS FURTHER ORDERED, that the lands described in Finding 7 shall be deleted from the spacing provisions of Order No. 219-1 and said lands shall henceforth be subject to the provisions of the general rules and regulations of the Colorado Oil and Gas Conservation Commission.
IT IS FURTHER ORDERED, that the below-described lands shall be subject to the spacing provisions for the Ladder Creek Field, as provided for in Order No. 219-1, for the production of oil and associated hydrocarbons from the Mississippian Formation:
Township 15 South, Range 44 West, 6th P.M.
Sections 6 and 7
Township 15 South, Range 45 West, 6th P.M.
Sections 1 and 12
IT IS FURTHER ORDERED, that the provisions contained in the above order 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.
ENTERED this 16th day of December, 1991, as of November 18, 1991.
CORRECTED this _______ day of October, 2008 as of November 18, 1991.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Patricia C. Beaver, Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
October 14, 2008