BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE NORTHWEST GRAYLIN FIELD, LOGAN COUNTY, COLORADO.	) ) ) )	CAUSE NO. 25 ORDER NO. 25-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 6, 1955, at 10:00 A.M., in the Colorado Room of the Shirley Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the application of the Shell Oil Company for an order from the Commission to extend the area of the Northwest Graylin Field, Logan County, 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 the "D" sand of the Northwest Graylin Field constitutes a common source of supply of oil and gas underlying, in addition to the area set forth in Cause No. 25, Order No. 25-1, the following described lands in Logan County, Colorado, to-wit:

The E/2 SE/4 of Section 36, Township 9N, Range 54W; the S/2 of Section 31, Township 9N, Range 53W; the NW/4 of Section 5; the E/2 NE/4 of Section 6, Township 8N, Range 53; and that tract of land described as follows:  Beginning at the NE corner of Lot 3, Section 5, Township 8N, Range 53W; thence, West along the North Line of Lots 3 and 4, Section 5; and Lots 1, 2, 3, and 4 Section 6, Township 8N, Range 53W to the NW corner of Lot 4, Section 6, Township 8N, Range 53W; thence, North to the NE corner of Lot 1, Section 1, Township 8N, Range 54W; thence, East along the South line of a portion of Section 36, Township 9N, Range 54W, and Section 31, Township 9N, Range 53W, to the SE corner of Section 31, Township 9N, Range 53W; thence, South 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 on 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 Northwest Graylin Field and in the additional area hereinabove described, 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, common source of supply.

6.      That an exception requested by the British-American Oil Producing Company should be allowed for its well to be located 990 feet North of the South line of the Northeast Quarter (NE/4), and 330 feet West of the East line of the Northeast Quarter (NE/4), Section Six (6), Township Eight (8) North, Range Fifty-three (53) West 6th P.M., and that said well should be the permitted oil or gas well for the drilling and spacing unit upon which it is located.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this Order, and to those lands set forth in Cause No. 25, Order No. 25-1, referred to as the Northwest Graylin Field, in Logan County, Colorado, in addition to other applicable rules, regulations, and orders of the Commission 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 of the Dakota Series, common source of supply underlying the following described lands in Logan County, Colorado, which include the original Northwest Graylin Field and the additional area herein described in the Findings:

Lots Three (3) and Four (4), South Half of Northwest Quarter (S/2 NW/4) of Section Five (5); Lots One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), South Half of Northeast Quarter (S/2 NE/4), Southeast Quarter of Northwest Quarter (SE/4 NW/4), Northeast Quarter of Southwest Quarter (NE/4 SW/4), and Northwest Quarter of Southeast Quarter (NE/4 SE/4) of Section Six (6), all in Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M.; and that tract of land described as follows:  Beginning at the Northeast corner of Lot Three (3), Section Five (5), Township Eight (8) North, Range Fifty-three (53) West of 6th P.M.; thence, North to the intersection with the South line of Section Thirty-one (31), Township Nine (9) North, Range Fifty-three (53) West of 6th P.M.; thence, West along the South line of Section Thirty-one (31), Township Nine (9) South, Range Fifty-three (53) West, 6th P.M., and Section Thirty-six (36), Township Nine (9) North, Range Fifty-four (54) West, 6th P.M., to the Northeast corner of Lot One (1), Section One Township Eight (8) North, Range Fifty-four (54) West of 6th P.M.; thence, South to the Northwest corner of Lot Four (4), Section six (6), Township Eight (8) North, Range Fifty-three (53) West of 6th P.M.; thence, East along the North line of Lots One (1), Two (2), Three (3), and Four (4), Section Six (6), and Lots Three (3) and Four (4), Section Five (5), Township Eight (8) North, Range Fifty-three (53) West of 6th P.M., to the point off beginning.

Lots Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), and South Half (S/2) of Section One (1); and North Half of North Half (N/2 N/2), Southwest Quarter of Northeast Quarter (SW/4 NE/4), and Southeast Quarter of Northwest Quarter (SE/4 NW/4) of Section Twelve (12), Township Eight (8) North, Range Fifty-four (54) West of 6th P.M.; Lots Three (3), Four (4), East Half of Southwest Quarter (E/2 SW/4), and Southeast Quarter (SE/4) of Section Thirty-one (31), Township Nine (9) North, Range Fifty-three (53) West of 6th P.M.; and the East Half of Southeast Quarter (E/2 SE/4) of Section Thirty-six (36), Township Nine (9) North, Range Fifty-four (54) West of the 6th P.M.,

and such area shall henceforth be known as 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 an exception shall be granted for the British-American Oil Producing Company's well to be located 990 feet North of the South line of the Northeast Quarter, and 330 feet West of the East line of the Northeast Quarter Section Six (6), Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., and that said well shall be the permitted oil or gas well for the drilling and spacing unit upon which it is located.

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 Fields 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 6th day of January, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary