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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN THE SPACING AND DENSITY OF WELLS IN THE LEWIS CREEK FIELD, LOGAN COUNTY, COLORADO. |
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CAUSE NO. 23
ORDER NO. 23-1 |
APPEARANCES:
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John R. Moran, Attorney for Petitioners, Denver, Colorado. |
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Wilbur Rocchio, Assistant Attorney General, |
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A.J. Jersin, Deputy Director, and |
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D.V. Rogers, Petroleum Engineer, for the Commission. |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on November 3, 1953, at ten o'clock A.M., Room 704, State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of the British-American Oil Producing Company, R. Thomas McDermott and Paul F. Barnhart for an order from the Commission establishing forty (40) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the "J" sand formation of the Dakota Series, common source of supply underlying the South Half of the North Half (S/2N/2) and the South Half of Section Seven (7), the Northwest Quarter (NW¼) and the Northwest Quarter of the Southwest Quarter (NW¼SW¼) of Section Eighteen (18), Township Eleven (11) North, Range Fifty-two (52) West, the South Half of the North Half (S½N½) and the South Half (S½) of Section Twelve (12), the North Half (N/2) and the North Half of the South Half (N½S½) of Section Thirteen (13), Township Eleven (11) North, Range Fifty-three (53) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, which area is referred to in said petition as the Lewis Creek Field.
The applicants are the owners of oil and gas leases within the above described area, and have heretofore completed their Jorristsma No. 1 well in the center of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter (NE¼SW¼SE¼) of Section Twelve (12), Township Eleven (11) North, Range Fifty-three (53) West of the Sixth (6th) Principal Meridian, the top of which is found at the approximate depth of 5,424 feet below the surface. Evidence and testimony presented in the hearing disclosed that one well will efficiently drain the recoverable oil underlying forty (40) acres in the "J" sand formation of the Dakota Series in said Lewis Creek Field, and that forty (40) acres is not smaller than the maximum area which can be efficiently drained by one well producing from said "J" sand.
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 the "J" sand formation of the Dakota Series in the Lewis Creek Field as used herein, constitutes a common source of supply of oil and gas, both underlying the following described lands in Logan County, Colorado:
The South Half of the North half (S½N½) South Half (S½) of Section Seven (7); the Northwest Quarter (NW¼) and the Northwest Quarter of the Southwest Quarter (NW¼SW¼) of Section (18), Township Eleven (11) North, Range Fifty-two (51) West; the South Half of the North Half (S½N½) and the South Half (S½) of Section Twelve (12), the North Half (N/2) and the North Half of the South Half (N½S½) of Section Thirteen (13), Township Eleven (11) North, Range Fifty-three (53) West of the Sixth (6th) Principal Meridian, Logan County, Colorado.
4. That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing forty (40) acre drilling and spacing units for the production of oil and gas from the said "J" sand formation of the Dakota Series, common source of supply underlying said land, as defined herein; that said units should be forty (40) acre drilling and spacing units according to the governmental survey thereof, and the permitted well for each unit should be located in the center of each quarter quarter section according to the governmental survey thereof; and a tolerance of fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.
5. That all available geological and engineering data concerning the said "J" sand formation of the Dakota Series in said Lewis Creek Field indicate that one well should efficiently and economically drain an area of approximately forty (40) acres and that units of the size and shape hereinabove described are not smaller than the said "J" area that can be efficiently drained by one well producing from the said "J" sand formation of the Dakota Series.
6. That exceptions should be allowed for the following wells al1 of which are operated by the British-American Oil Producing Company:
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#1 Jorritsma, |
Center of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter (NE¼SW¼SE¼) of Section Twelve (12), Township Eleven (11) North, Range Fifty-three (53) West. |
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#2 Jorritsma, |
Center of the Northeast Quarter of the Northeast Quarter of the Southwest Quarter (NE¼NE¼SW¼) of Section Twelve (12) Township Eleven (11) North, Range Fifty-three (53) West. |
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#3 Jorritsma, |
Center of the Northeast Quarter of the Southeast Quarter of the Southeast Quarter (NE¼SE¼SE¼) of Section Eleven (12) Township Eleven (11) North, Range Fifty-three (53) West. |
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#1 Narjes, |
Center of the Southwest Quarter of the Southwest Quarter of the Southwest Quarter (SW¼SW¼SW¼) of Section Seven (7), Township Eight (8) North, Range Fifty-two (52) West. |
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#1 John Nelson, |
Center of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW¼NW¼NW¼) of Section Eighteen (18), Township Eight (8) North, Range Fifty-two (52) West. |
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#1 U.P. |
Center of the Northeast Quarter of the Northwest Quarter of the Northeast Quarter (NE¼NW¼NE¼) of Section Thirteen (l3), Township Eleven (11) North, Range Fifty-three (53) West. |
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#2 U.P. |
Center of the Northeast Quarter of the Northeast Quarter of the Northeast Quarter (NE¼NE¼NE¼) of Section Thirteen (13), Township Eleven (11) North, Range Fifty-three (53) West. |
And that each of said wells should be the permitted well for each forty (40) acre drilling and spacing unit on which it is located, and no other well should be drilled to the "J" sand, common source of supply, on said units.
ORDER
IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "J" sand formation of the Dakota Series of the Lewis Creek Field, in Logan County, Colorado, as hereinabove defined in the findings, which by reference are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.
Rule 1. Forty (40) acre drilling and spacing units shall be and the same are hereby established for production of oil and gas from the "J" sand of the Dakota Series, common source of supply underlying the:
South Half of the North Half (S½N½) and the South Half (S½) of Section Seven (7), the Northwest Quarter (NW¼) and the Northwest Quarter of the Southwest Quarter (NW¼SW¼) of Section Eighteen (18), Township Eleven (11) North, Range Fifty-two (52) West; the South Half of the North Half (S½N½) and the South Half (S½) of Section Twelve (12), the North Half (N½) and the North Half of the South Half (N½S½) of Section Thirteen (13), Township Eleven (11) North, Range Fifty-three (53) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, and such area shall henceforth be known as the Lewis Creek Field.
Rule 2. That each governmental quarter quarter section shall constitute a drilling and spacing unit and the permitted well for each unit shall be located one well in the center of each quarter quarter section according to the governmental survey thereof, and that a tolerance of fifty (50) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill in the prescribed location.
IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said "J" sand formation of the Dakota Series in the Lewis Creek Field, Logan County, Colorado, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the "J" sand formation of the Dakota Series, common source of supply.
IT IS FURTHER ORDERED, that exceptions are hereby allowed for the following wells, all of which are operated by the British-American Oil Producing Company:
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#1 Jorritsma, |
Center of the Northeast Quarter of the Southwest Quarter of the Southeast Quarter (NE¼SW¼SE¼) of Section Twelve (12), Township Eleven (11) North, Range Fifty-three (53) West. |
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#2 Jorritsma, |
Center of the Northeast Quarter of the Northeast Quarter of the Southwest Quarter (NE¼NE¼SW¼) of Section Twelve (12) Township Eleven (11) North, Range Fifty-three (53) West. |
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#3 Jorritsma, |
Center of the Northeast Quarter of the Southeast Quarter of the Southeast Quarter (NE¼SE¼SE¼) of Section Eleven (12) Township Eleven (11) North, Range Fifty-three (53) West. |
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#1 Narjes, |
Center of the Southwest Quarter of the Southwest Quarter of the Southwest Quarter (SW¼SW¼SW¼) of Section Seven (7), Township Eight (8) North, Range Fifty-two (52) West. |
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#1 John Nelson, |
Center of the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW¼NW¼NW¼) of Section Eighteen (18), Township Eight (8) North, Range Fifty-two (52) West. |
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#1 U.P. |
Center of the Northeast Quarter of the Northwest Quarter of the Northeast Quarter (NE¼NW¼NE¼) of Section Thirteen (l3), Township Eleven (11) North, Range Fifty-three (53) West. |
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#2 U.P. |
Center of the Northeast Quarter of the Northeast Quarter of the Northeast Quarter (NE¼NE¼NE¼) of Section Thirteen (13), Township Eleven (11) North, Range Fifty-three (53) West. |
And that each of said wells shall be the permitted well for each forty (40) acre drilling and spacing unit upon which it is located and that no other well shall be drilled to the "J" sand, common source of supply, on said units.
IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of drilling of any well or wells in the "J" sand formation of the Dakota Series as defined herein for the purpose of producing oil and gas therefrom at a location other than authorized by this order, is hereby prohibited.
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 rules and regulations.
ORDERED this 3rd day of November 1953, by the Oil and Gas Conservation Commission of the State of Colorado.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Ass’t. Secretary |