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	) ) ) ) )	CAUSE NO. 231 ORDER NO. 231-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 19, 1971, at 10 a.m., in the Consul Room, quality Hotel, 1840 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of the Cherokee and Pittsburg Coal and Mining Company for an order establishing 160-acre drilling and spacing units for the production of oil from an oil zone in the Desert Creek formation underlying certain lands in Montezuma and Dolores Counties, 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 in addition to a common source of supply of gas from a zone in the Desert Creek formation, there is also a zone in the Desert Creek formation which constitutes a common source of supply of oil underlying the following described lands in Montezuma and Dolores Counties, Colorado, to-wit:

Montezuma County
Township 38 North, Range 19 West, N.M.P.M.
Section	5:	All	Section	8:	All
Section	6:	All	Section	17:	All
Section	7:	All	Section	18:	All
Township 38 North, Range 20 West, N.M.P.M.
Section	1:	All	Section	12:	All
Section	2:	All	Section	13:	All
Section	11:	All	Section	14:	All

Township 39 North, Range 19 West, N.M.P.M.
Section	19:	All	Section	30:	All
Section	20:	All	Section	31:	All
Section	29:	All	Section	32:	All
Township 39 North, Range 20 West, N.M.P.M.
Section	23:	All	Section	26:	All
Section	24:	All	Section	35:	All
Section	25:	All	Section	36:	All
Dolores County
Township 39 North, Range 19 West, N.M.P.M.
Section	7:	All	Section	17:	All
Section	8:	All	Section	18:	All
Township 39 North, Range 20 West, N.M.P.M.
Section	13:	All	Section	14:	All

4.      That in order to prevent the waste of oil and 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 oil and gas resources of the State, an order should be made establishing 160-acre drilling and spacing units for the production of oil from an oil zone in the Desert Creek formation, a common source of supply underlying the lands defined herein; that said units should be 160-acres, more or less, and consisting of a quarter section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located no closer than 990 feet to the boundaries of the quarter section upon which it is located.

5.      That the Commission may grant exceptions to the permitted well locations without notice and hearing, provided the owners of the contiguous and cornering 160-acre drilling units, file with the Commission a waiver or consent in writing agreeing to said locations.

6.      That the Well No. 1 Huskey Unit, located 660 feet from the South line and 2209 feet from the West line, Section 30, Township 39 North, Range 19 West, N.M.P.M. be considered an exception and be the permitted well for the drilling unit upon which it is located.

7.      That all available geological and engineering data concerning said oil zone in the Desert Creek formation indicate that one well will efficiently and economically drain an 8th of approximately 160 acres, and that drilling units of the size and shape herein-above described are not smaller than the maximum area that can be efficiently drained by one well producing from said oil zone in the Desert Creek formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the oil zone in the Desert Creek formation underlying the Papoose Canyon Field herein described, in addition to other rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the oil zone in the Desert Creek formation underlying the following described lands in the Papoose Canyon Field, Montezuma and Dolores Counties, Colorado, to-wit:

Montezuma County
Township 38 North, Range 19 West, N.M.P.M.
Section	5:	All	Section		8:		All
Section	6:	All	Section		17:		All
Section	7:	All	Section		18:		All
Township 38 North, Range 20 West, N.M.P.M.
Section	1:	All	Section		12:		All
Section	2:	All	Section		13:		All
Section	11:	All	Section		14:		All
Township 39 North, Range 19 West, N.M.P.M.
Section	19:	All	Section	30:		All
Section	20:	All	Section	31:		All
Section	29:	All	Section	32:		All
Township 39 North, Range 20 West, N.M.P.M.
Section	23:	All	Section	26:		All
Section	24:	All	Section	35:		All
Section	25:	All	Section	36:		All
Dolores County
Township 39 North, Range 19 West, N.M.P.M.
Section	7:	All	Section	17:		All
Section	8:	All	Section	18:		All
Township 39 North, Range 20 West, N.M.P.M.
Section	13:	All	Section	14:		All

Rule 2.    Said drilling units shall consist of one hundred sixty (160) acres, more or less, and each such drilling unit shall be a quarter of each section, according to the governmental survey thereof, and the permitted well for each drilling unit shall be located no closer than 990 feet to the boundaries of the quarter section upon which it is located; provided that exceptions may be granted to the provisions of this rule for well locations if the owners of the contiguous and cornering 160-acre units file with the Com-mission a waiver or consent in writing, agreeing to said locations.

IT IS FURTHER ORDERED that an exception is hereby granted for the Well No. 1 Huskey Unit, located 660 feet from the South line and 2209 feet from the West line, Section 30, Township 39 North, Range 19 West, N.M.P.M. and that such well be the permitted well for the drilling unit upon which it is 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 19th day of January 1971.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary