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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 OF WELLS DRILLED FOR OR PRODUCING FROM THE "D" SAND FORMATION OF THE DAKOTA SERIES UNDERLYING THE NORTHWEST GRAYLIN AREA, LOGAN COUNTY, COLORADO. |
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CAUSE NO. 25
ORDER NO. 25-1 |
APPEARANCES:
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John R. Moran, Attorney, Denver, Colorado and |
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T. Murray Robinson, Attorney, Oklahoma City, Oklahoma, |
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for the British-American Oil Producing Company, |
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J. Ray McDermott, Inc. and Paul F. Barnhart, |
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Charles Kreager, Attorney, Sterling, Colorado, |
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representing royalty interests, |
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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 17, 1953, at ten o’clock A.M., 704 State Capitol Annex, Sherman Street and l4th Avenue, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of the British-American Oil Producing Company, J. Ray McDermott, Inc., 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 "D" Sand of the Dakota Series, common source of supply underlying all of Section One (1), except Lots One (1), Two (2), Three (3) and Four (4); the North Half (N½) of Section Twelve (12), except the Southwest Quarter of the Northwest Quarter (SW¼ NW¼) and the Southeast Quarter of the Northeast Quarter (SE¼ NE¼), in Township Eight (8) North, Range Fifty-four (54) West of the 6th Principal Meridian; and that portion of Section Six (6), Township Eight (8) North, Range Fifty-three (53) West of the 6th Principal Meridian, described as follows:
Commencing at a point located at the Northwest corner of Lot Four (4) of Section Six (6); thence east on a line to the Northeast corner of Lot Two (2); thence south to the southeast corner of the Northwest Quarter of the Southeast Quarter (NW¼ SE¼); thence west to the center of the Southwest Quarter (SW¼); thence south to the south line of the section; thence west to the southwest corner of the Section; thence north to the point of beginning,
all in Logan County, Colorado, and all as described on Exhibit "A" attached hereto and made a part hereof; which area is referred to in the said petition as the Northwest Graylin area.
The applicants are the owners of oil and gas leases within the above-described area, and have heretofore completed their Monroe-Rieke No. 2 well which is located in the Southwest Quarter of the Southeast Quarter of the Southeast Quarter (SW¼ SE¼ SE¼) of Section One (1), Township Eight (8) North, Range Fifty-four (54) West of the 6th Principal Meridian, in the "D" Sand of the Dakota series, the top of which is found at the approximate depth of 4935 feet below the surface. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying forty (40) acres in the "D" Sand of the Dakota series, and that forty (40) acres is not smaller than the maximum area which can be efficiently drained by one well producing from the "D" Sand of the Dakota series.
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 "D" Sand of the Dakota series in the Northwest Graylin Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:
All of Section One (1), except Lots One (1), Two (2), Three (3) and Four (4); the North Half (N½) of Section Twelve (12), except the Southwest Quarter of the Northwest Quarter (SW¼ NW¼) and the Southeast Quarter of the Northeast Quarter (SE¼NE¼), in Township Eight (8) North, Range Fifty-four (54) West of the 6th Principal Meridian; and that portion of Section Six (6), Township Eight (8) North, Range Fifty-three (53) West of the 6th Principal Meridian, described as follows:
Commencing at a point located at the Northwest Corner of Lot Four (4) of Section Six (6); thence east on a line to the Northeast corner of Lot Two (2); thence south to the southeast corner of the Northwest Quarter of the Southeast Quarter (NW¼ SE¼); thence west to the center of the Southwest Quarter (SW¼); thence south to the south line of the section; thence west to the southwest corner of the Section; thence north to the point of beginning.
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 "D" Sand 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 the Southwest Quarter of each forty (40) acre unit, 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 "D" Sand of the Dakota series, in the said Northwest Graylin 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 maximum area that can be efficiently drained by one well producing from the said "D" Sand of the Dakota series.
ORDER
IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" Sand of the Dakota series of the Northwest Graylin Field, in Logan County, 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 the production of oil and gas from the "D" Sand orf the Dakota series, common source of supply underlying:
All of Section One (1), except Lots One (1), Two (2), Three (3) and Four (4); the North Half (N½) of Section Twelve (12), except the Southwest Quarter of the Northwest Quarter (SW¼ NW¼) and the Southeast Quarter of the Northeast Quarter (SE¼ NE¼), in Township Eight (8) North, Range Fifty-four (54) West of the 6th Principal Meridian; and that portion of Section Six (6), Township Eight (8) North, Range Fifty-three (53) West of the 6th Principal Meridian, described as follows:
Commencing at a point located at the Northwest corner of Lot Four (4) of Section Six (6); thence east on a line to the Northeast corner of Lot Two (2); thence south to the southeast corner of the Northwest Quarter of the Southeast Quarter (NW¼ SE¼); thence west to the center of the Southwest Quarter (SW¼); thence south to the south line of the section; thence west to the southwest corner of the Section; thence north to the point of beginning, all in Logan County, Colorado, and such area shall henceforth be known as the "D" Sand Pool of the Northwest Graylin Field.
Rule 2. Each governmental quarter quarter section, or equivalent thereof, as compared with a regular governmental survey, and consisting of approximately forty (40) acres, shall constitute a drilling and spacing unit and the permitted well for each unit shall be located in the center of the Southwest Quarter of each such unit, and that a tolerance of fifty (50) feet in any direction from the prescribed location shall be permitted only where surface hazards or obstructions make it unduly hazardous or expensive to drill at the prescribed location.
IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said "D" Sand Pool of the Northwest Graylin Field, in 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 said "D" Sand Pool of the Northwest Graylin Field, common source of supply.
IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the "D" Sand Pool of the Northwest Graylin Field, 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 2nd day of December, 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, Secretary |