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. 231-8

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 21, 1986 at 9:00 a.m., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Santa Fe Energy Company for an order to amend Order No. 231-1 and reduce certain 320-acre drilling and spacing units to 160-acres and to add certain lands and establish 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Desert Creek formation; to extend the spaced area as established by Order No. 231-2 by the addition of certain lands in Dolores County for the production of oil and associated hydrocarbons from the oil zone of the Desert Creek formation; and to correct the acreage in the designated unit consisting of the SW1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M.

FINDINGS

The Commission finds as follows:

1.      Santa Fe Energy Company, 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.      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.  The units consist of the E1/2 and W1/2 or the N1/2 and S1/2 with the permitted well located in the NE1/4 and SW1/4 of each section no closer than 990 feet to the boundaries of the quarter section.

On January 19, 1971 the Commission authorized Order No. 231-2 to be issued by which 160-acre drilling and spacing units were established for the production of oil and associated hydrocarbons from the oil zone of the Desert Creek formation underlying certain lands in Montezuma and Dolores Counties.  The units consist of a governmental quarter section with the permitted well located no closer than 990 feet from the boundaries of the quarter section. Subsequent Order No. 231-6 added certain lands to the spaced area.

5.      Based on the fact stated in the verified application and exhibits submitted, and having received no objections, and having been reviewed and recommended by the Director as Hearing Office the Commission should enter an order amending Order No. 231-1 and reduce the following described lands from 320-acre drilling and spacing unit to 160-acres:

Township 39 North, Range 20 West, N.M.P.M.
Section 25:	All, including that part of Resurvey Tract 62 lying west of the center line of Section 25 and excluding that part of Resurvey Tract 64 lying within what was formerly designated as the S1/2 S1/2 of Section 25
Section 26:	E1/2
Section 35:	E1/2

and further to establish 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Desert Creek formation underlying the following additional lands in Dolores County, Colorado:

Township 39 North, Range 19 West, N.M.P.M.
Section	16:	W1/2	Section	21:	All
Section	17:	All	Section	29:	All
Section	20:	All

6.      In addition, the spaced area of 160-acre drilling and spacing units as established by Order No. 231-2 for the production of oil and associated hydrocarbons from the oil zone should be extended to include the following described lands in Dolores County, Colorado:

Township 39 North, Range 19 West, N.M.P.M.

Section 16:  W1/2

Section 21:  W1/2

7.      The acreage in the designated unit consisting of the SW1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 231-1 is hereby amended and the spaced area of the Papoose Canyon Field shall henceforth include the following described lands and the following rules and regulations shall hereafter apply to wells drilled, completed or recompleted for the production of gas and associated hydrocarbons from the Desert Creek formation.

Rule 1.    320-acre drilling and spacing units subject to the provisions of Order NO. 231-1, Montezuma and Dolores Counties:

Montezuma & Dolores Counties
Township 38 North, Range 19 West, N.M.P.M.
Section	5:	All	Section	8:		All
Section	6:	All	Section	17:		N1/2
Section	7:	All	Section	18:		N1/2
Dolores County
Township 38 North, Range 20 West, N.M.P.M.
Section	1:	All	Section	12:		All
Section	2:	E1/2	Section	13:		N1/2
Township 39 North, Range 19 West, N.M.P.M.
Section	18:	All	Section		31:		All
Section	19:	All	Section		32:		All
Section	30:	All
Township 39 North, Range 20 West, N.M.P.M.
Section	24:	All	Section		36:		All

Rule 2.    160-acre drilling and spacing units:

	Township 39 North, Range 20 West, N.M.P.M.
	Section 25:			All, including that part of Resurvey Tract 62 lying west of the center line of Section 25 and excluding that part of Resurvey Tract 64 lying within what was formerly designated as the S1/2 S1/2 of Section 25
	Section 26:			E1/2
	Section 35:			E½
Township 39 North, Range 19 West, N.M.P.M.
Section		16:	W1/2		Section	21:	W1/2
Section		17:	All		Section	29:	All
Section		20:	All

                           (a.)  Units shall consist of 160-acres, more or less and consist of a quarter section according to the governmental survey with the permitted well locations and exceptions in accordance with Order No. 231-1.

IT IS FURTHER ORDERED, that the spaced area of the Papoose Canyon Field as established by Order No. 231-2 for the production of oil and associated hydrocarbons from the oil zone of the Desert Creek formation shall henceforth consist of the following described lands and subject to the provisions of Order No. 231-2 and No. 231-6.

Montezuma & Dolores Counties
Township 38 North, Range 19 West, N.M.P.M.
Section	5:	All	Section	8:		All
Section	6:	All	Section	17:		N1/2
Section	7:	All	Section	18:		N1/2
Dolores County
Township 38 North, Range 20 West, N.M.P.M.
Section	1:	All	Section	12:		All
Section	2:	All	Section	13:		All
Section	3:	All	Section	14:		All
Township 39 North, Range 19 West, N.M.P.M.
Section	7:	All	Section		16:		W1/2
Section	8:	All	Section		17:		All
Section	18:	All	Section		21:		W1/2
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	13:	All	Section		25:		All
Section	14:	All	Section		26:		All
Section	15:	S1/2	Section		27:		N1/2
Section	22:	All	Section		46:		All
Section	23:	All	Section		36:		All
Section	24:	All

IT IS FURTHER ORDERED, that the designated drilling and spacing unit for oil and gas consisting of the SW1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M. include [sic] that portion of Resurvey Tract 62 lying west of the center line of said Section 25 and that Resurvey Tract 64 be excluded from the unit consisting of the SW1/4 of said Section 25.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ENTERED this 16th day of May, 1986, as of April 21, 1986.

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