BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN OPERATIONS IN THE "D" SAND OF THE ADENA FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 26 ORDER NO. 26-47

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 21, 1959, at 10: 00 a.m., in the Green Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Pure Oil Company for an order (a) amending Order No. 26-37 by increasing the maximum "D" sand allowable to 300,000 cubic feet of gas per day for each drilling and spacing "D" sand gas unit located within the tracts in the Adena Field described as the W½ of Section 6, Township 1 North, Range 57 West, and Sections 1 and 12, Township 1 North, Range 58 West; (b) making applicable the six-months allowable balancing periods heretofore prescribed by Rules (b), (c), (d) and (e) of Order No. 26-37; and (c) amending Rule 3 of Order No, 26-32 by substituting the phrase “the daily gas allowable for such well” in lieu of the phrase “One Hundred Fifty Thousand (150,000) cubic feet of gas” now contained in such rule; and that such other and further rules as the Commission shall deem proper be promulgated regarding such gas production.

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 Order No, 26-37 issued by the Commission on January 28, 1958, provided, among other things, that the maximum "D" sand allowable for any one 160-acre drilling and spacing gas unit shall be 150,000 cubic feet of gas per day.

4.      That the maximum "D" sand allowable for each drilling and spacing "D" sand gas unit should be increased to 300,000 cubic feet of gas per day; and that the granting of such increased allowable should not cause waste and will promote the ultimate recovery of gas in said Adena "D" sand field without adversely affecting the correlative rights of persons interested in said field.

ORDER

NOW, THEREFORE, IT IS ORDERED, that paragraph (a) of Order No. 26-37, issued January 28, 1958, shall be and the same is hereby revised as follows:

(a)     The maximum "D" sand allowable for any one 160-acre drilling and spacing gas unit located within the area as defined in Rule 1 of Order No. 26-32 shall be Three Hundred Thousand (300,000) cubic feet of gas per day, except as otherwise provided.

IT IS FURTHER ORDERED, that Rule 3 of Order No, 26-32 shall be and the same is hereby revised as follows:

Rule 3.  Acreage shall be a factor in fixing allowables for gas production from the source of supply covered hereby. If all the operators and owners of "D" sand oil and gas leases, royalties and minerals in any two or more, but not exceeding four contiguous 160-acre gas spacing units, which shall extend not more than two units in any direction, shall by voluntary agreement or designation, unitize or consolidate such tracts for the production of gas; or if the "D" sand gas leases, royalties and minerals within such tracts are held in uniform ownership:, and in the event a natural gas well has heretofore been or hereafter shall be drilled or completed on a regular location, or pursuant to an exception regularly granted, in any such voluntarily unitized or consolidated tract, a gas well on such voluntary unitized or consolidated tract shall be entitled to an allowable equal to the daily gas allowable for such well multiplied by the number of 160-acre gas spacing units (not to exceed four) included in such consolidated or unitized tract; provided, however, that there shall be only one (1) gas well producing from said zone in such voluntarily unitized or consolidated tract, and no oil well spacing unit on which there shall be located a producing "D" sand oil well shall be included in calculating such increased allowable for gas production.

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,

ORDERED this 21st day of July, 1959.

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