BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN THE SPACING AND DENSITY OF OIL AND GAS WELLS IN THE ADENA FIELD, MORGAN COUNTY, COLORADO

)

)

)

)

CAUSE NO. 26

 

ORDER NO. 26-23

 

REPORT OF THE COMMISSION

 

This Cause came on for further hearing before the Commission on August 24, 1955, at 2 p.m., in Room 704 State Capitol Annex, 14th Avenue and Sherman Street Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission’s own motion to consider an extension of the area of the Adena Field, Morgan 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" and "J" sands of the Adena Field constitute common sources of supply of oil and gas underlying, in addition to the area set forth in Cause No. 26, Order No. 26-16, the following described lands in Morgan County, Colorado, to-wit:

 

Township 1 North, Range 57 West, 6th P.M.

 

 

Section 4:  E/2

Section 16:  E/2

Section 9:  E/2

Section 21:  E/2

 

 

Township 2 North, Range 57 West, 6th P.M.

 

 

Section 28:  E/2

Section 33:  E/2

 

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 from the said "D" and "J" sand formations of the Dakota Series, common sources 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 oil well for each unit should be located in the center of the Southeast Quarter of each quarter quarter section according to the governmental survey thereof, and that a tolerance of Fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      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 One Hundred Sixty (160) acre drilling and spacing units for the production of gas from the said "D" and "J" sand formations of the Dakota Series, common sources of supply underlying said land, as defined herein, that said units should be One Hundred Sixty (160) acre drilling and spacing units according to the governmental survey thereof, and that the permitted gas well for each unit should be located in the center of the Southeast Quarter of any quarter quarter section contained in each said One Hundred Sixty (160) acre unit according to the governmental survey thereof; and that a tolerance of Fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

6.      That all available geological and engineering data concerning the said "D" and "J" sand formations of the Dakota Series in said Adena Field indicate that one well should efficiently and economically drain an area of approximately Forty (40) acres as to oil, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one oil well producing from the said "D" and "J" sand formations of the Dakota Series.

 

7.      That all available geological and engineering data concerning the said "D" and "J" sand formations of the Dakota Series in said Adena Field indicate that one well should efficiently and economically drain an area of approximately One Hundred Sixty (160) acres as to gas, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one gas well producing from the said "D" and "J" sand formations of the Dakota Series.

 

ORDER

 

NOW, THEREFORE, IT IS 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. 26, Order No. 26-16, referred to as the Adena Field, in Morgan 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" and "J" sands of the Dakota Series, common sources of supply underlying the following described lands in Morgan County, Colorado, which include the Adena Field as described in Order No. 26-16 and the additional area herein described in the Findings:

 

Sections Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Sixteen (16), Seventeen (17), Eighteen (183, Nineteen (19), Twenty (20), and Twenty-one (21), and the Northwest Quarter (NW/4) of Section Twenty-eight (28), North Half (N/2) of Section Twenty-nine (29), and all of Section Thirty (30), Township One (1) North, Range Fifty-seven (57) West of the 6th P.M; and

 

Sections One (1) Two (2), Three (3), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14) Fifteen (15), Twenty-two (22), Twenty-three (23), Twenty-four (24), Twenty-five (25), Twenty-six (26), and Twenty-seven (27), Township One (1) North, Range Fifty-eight (58) West of the 6th P.M; and

 

Sections Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), and Thirty-three (33), Township Two (2) North, Range Fifty-seven (57) West of the 6th P.M; and

 

Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Two (2) North, Range Fifty-eight (58) West of the 6th P.M.,

 

which area is known as the Adena Field.

 

(a)     Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil. The permitted oil well for each unit shall be located one (1) well in the center of the Southeast Quarter of each quarter quarter section according to the governmental survey thereof, and that a tolerance of fifty (50) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill in the prescribed location.

 

(b)     One Hundred Sixty (160) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas. The permitted gas well for each unit shall be located one well in the center of the Southeast Quarter of any quarter quarter section contained in each said One Hundred Sixty (160) acre unit according to the governmental survey thereof, and that a tolerance of Fifty (50) feet in any direction from the prescribed location shall be permitted only where surface obstruction or hazards make it unduly hazardous or expensive to drill in the prescribed location.

 

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" and "J" sand formations of the Adena Field, as defined herein, 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 24th day of August, 1955.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary