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 PAPOOSE CANYON FIELD, MONTEZUMA AND DOLORES COUNTIES, COLORADO

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CAUSE NO. 231

 

ORDER NO. 231-11

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on June 15, 1990 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 verified application of Celsius Energy Company for an order amending Order No. 231-10 and establishing 320-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Desert Creek Formation and to extend the spaced area previously established in Cause No. 231 by the addition of certain lands in Dolores and Montezuma Counties for the production of oil and associated hydrocarbons from the Desert Creek Stage of the Paradox Formation.

 

FINDINGS

 

The Commission finds as follows:

 

1.      That Celsius Energy, 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.      That William R. Thurston, Trustee, on behalf of Walter K. Arbuckle, trustee, Bayne Oil Company, Laurel Hill Trust; William A. Boyd, trustee and Elliott A. Riggs filed with the Commission a protest to the granting of the application and requested that 160-acre drilling and spacing units be established and that the protestants were not present at the time of hearing.

 

5.      That on November 17, 1970, the Commission authorized Order No. 231-1 to be issued by which 320-acre drilling and spacing units were established for the production of gas and associated hydrocarbons from the Desert Creek formation underlying certain lands in Montezuma and Dolores Counties, Colorado.  On January 19, 1971, the Commission authorized Order No. 231-2 to be issued which established 160-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Desert Creek formation.  Subsequent Order No. 231-6 added certain lands to the spaced area.

 

6.      That on November 16, 1987, the Commission authorized Order No. 231-10 which deleted the below listed lands in the Papoose Canyon Field from the provisions of Order No. 231-1 and 231-2 as such lands were to be included in a federal unit known as the Island Butte Unit, to-wit:

 

Spacing Order No. 231-2

Spacing Order No. 231-1

Desert Creek Formation/Oil

Desert Creek Formation/Gas

T38N, R19W, N.M.P.M.

T38N, R19W, N.M.P.M.

Section 7:  SW1/4

Section 7:  SW1/4

Section 17:  S1/2

Section 17:  S1/2

Section 18:  All

Section 18:  All

 

 

T38N, R20W, N.M.P.M.

T38N, R20W, N.M.P.M.

Section 12:  W1/2, SE1/4

Section 12:  W1/2, SE1/4

Section 13:  All

Section 13:  N1/2

 

7.      That Celsius Energy Company has requested an order amending Order No. 231-10 by establishing 320-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Desert Creek Stage of the Paradox formation with the designated well to be located no closer than 600 feet from the boundaries of the unit tract for the below listed lands, to-wit:

 

Township 38 North, Range 19 West, N.M.P.M.

 

Section

7:

W1/2, E1/2

 

 

Section

18:

N1/2

 

 

 

 

 

 

 

Township 38 North, Range 20 West, N.M.P.M.

 

 

Section

12:

E1/2

 

 

8.      That the above listed lands are not presently included within a federal unit known as the Island Butte Unit.

 

9.      That testimony given at the time of hearing indicated that 320-acre drilling and spacing units should be established for the production of oil and associated hydrocarbons from the Desert Creek Stage of the Paradox Formation which has been shown to be a common source of supply, and that 320-acre units are the maximum area that can be efficiently, economically and effectively drained by a single well producing in said unit, and that the permitted well should be located no closer than 600 feet from the boundaries of the 320-acre tracts.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following described lands in Dolores and Montezuma Counties, Colorado are hereby included with the provisions of Order Nos. 231-1 and 232-2 and 231-8 for the production of oil and associated hydrocarbons from the Desert Creek Formation, to-wit: 

 

Township 38 North, Range 19 West, N.M.P.M.

 

Section

7:

W1/2, E1/2

 

 

Section

18:

N1/2

 

 

 

 

 

 

 

Township 38 North, Range 20 West, N.M.P.M.

 

 

Section

12:

E1/2

 

 

IT IS FURTHER ORDERED, that 320-acre drilling and spacing units are hereby established which shall consist of one half of a section according to the governmental survey, and the units shall be:

 

Township 38 North, Range 19 West, N.M.P.M.

 

Section

7:

W1/2, E1/2

 

 

Section

18:

N1/2

 

 

 

 

 

 

 

Township 38 North, Range 20 West, N.M.P.M.

 

 

Section

12:

E1/2

 

 

and that the permitted well for each unit shall be located anywhere within the unit no closer than 600 feet from the boundaries of the 320-acre unit tract.

 

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 2nd day of  July, 1990, as of June 15, 1990.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Dennis R. Bicknell, Secretary

Dated at Suite 380

580 Logan Street

Denver, Colorado  80203

June 25, 1990