BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PETITION OF SHELL OIL COMPANY FOR AN ORDER VACATING ORDER NO. 14-1 IN CAUSE NO. 14, IN THE LUFT FIELD INSOFAR AS IT PERTAINS TO THE MUDDY OR "D" SAND IN THE W½ OF SECTION 16 AND THE NW¼ OF SECTION 21, EXCEPT THE W½ OF THE SW¼ OF THE SW¼ OF SAID SECTION 16 AND EXCEPT THE W½ OF THE NW¼ OF THE NW¼ AND THE SW¼ OF THE NW¼ OF SECTION 21, TOWNSHIP 8 NORTH, RANGE 53 WEST, LOGAN COUNTY, COLORADO: [sic] FOR AN ORDER VACATING ORDER NO. 11-1 IN CAUSE NO. 11, IN THE DALE FIELD, INSOFAR AS IT PERTAINS TO THE DAKOTA OR "J" SAND IN THE W½ OF THE NE¼ OF SECTION 15, TOWNSHIP 8 NORTH, RANGE 53 WEST, LOGAN COUNTY, COLORADO; FOR AN ORDER VACATING ORDER NO. 12-1 IN CAUSE NO. 12, IN THE DALE FIELD, INSOFAR AS IT PERTAINS TO THE MUDDY OR "D" SAND IN THE W½ OF THE NE¼ OF SECTION 15, TOWNSHIP 8 NORTH, RANGE 53 WEST, LOGAN COUNTY, COLORADO; FOR AN ORDER CREATING DRILLING AND SPACING UNITS FOR THE MUDDY SAND, OFTEN REFERRED TO AS THE "D" SAND, COMMON SOURCE OF SUPPLY UNDERLYING ALL OF SECTION 16 EXCEPT THE W½ OF THE SW¼ OF THE SW¼ OF SAID SECTION 16, THE WEST ½ AND THE W½ OF THE NE¼ OF SECTION 15, THE E½ OF THE NW¼ OF SECTION 21, AND THE E½ OF THE NW¼ OF THE NW¼ OF SECTION 21, ALL IN TOWNSHIP 8 NORTH, RANGE 53 WEST, LOGAN COUNTY, COLORADO; AND FOR AN ORDER CREATING DRILLING AND SPACING UNITS IN THE DAKOTA SAND, OFTEN REFERRED TO AS THE "J" SAND, COMMON SOURCE OF SUPPLY UNDERLYING ALL OF SECTION 16 EXCEPT THE W½ OF THE SW¼ OF THE SW¼ OF SAID SECTION 16, THE W½ AND THE W½ OF THE NE¼ OF SECTION 15, THE E½ OF THE NW¼ OF SECTION 21, AND THE E½ OF THE NW¼ OF THE NW¼ OF SECTION 21, ALL IN TOWNSHIP 8 NORTH, RANGE 53 WEST, LOGAN COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE SPRINGDALE FIELD.

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CAUSE NO. 29

 

 

ORDER NO. 29-1

 

 

(AMENDING ORDERS NOS. 11-1, 12-1, AND 14-1)

 

 

APPEARANCES:

 

DONN D. PETERS, Attorney, Billings, Montana, and

 

N.J. MATTHEWS, 921 Ursula Street, Denver, Colorado,

            both representing Shell Oil Company

 

D.V. ROGERS, Petroleum Engineer, and

 

WILBUR ROCCHIO, Assistant Attorney General,

            both representing the Commission

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 23, 1954, at 10:00 A.M., Room 704, State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law on the petition of Shell Oil Company for the following orders from the Commission:

 

1.      An order vacating Order No. 14-1 in Cause No. 14 in the Luft Field insofar as it pertains to the West Half (W½) of Section Sixteen (16) and the Northwest Quarter (NW¼) of Section Twenty-one (21), except the West Half (W½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of Section Sixteen (16), and except the West Half (W½) of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) and the Southwest Quarter (SW¼) of the Northwest Quarter (NW¼) of Section Twenty-one (21), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado.

 

2.      An order vacating Order No. 11-1 in Cause No. 11 in the Dale Field insofar as it pertains to the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado.

 

3.      An order vacating Order No. 12-1 in Cause No. 12 in the Dale Field insofar as it pertains to the West Half (W½).of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado.

 

4.      An order creating drilling and spacing units for the Dakota Sand, often referred to as the "J" Sand, common source of supply, in accordance with the prayer of the amended petition of Shell Oil Company in this cause and in accordance with the Exhibit "A" attached to said amended petition.

 

5.      An order creating drilling and spacing units for the Muddy Sand, often referred to as the "D" Sand, common source of supply, in accordance with the prayer of the amended petition of Shell Oil Company in this cause and in accordance with the Exhibit "B" attached to said amended petition.

 

That Shell Oil Company is the owner of oil and gas leases covering all of the lands hereinafter described in Paragraph 3 of the Findings and has heretofore drilled its State of Colorado "B" No. 1 well located in the center of the Southwest Quarter (SW¼) of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of said Section Sixteen (16), its I.G. Christner No. 1 well located in the center of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of said Section Fifteen (15) and its J.A. Brewer "B" No. 1 well located in the center of the Northeast Quarter (NE¼) of the Northwest Quarter (NW¼) of said Section Fifteen (15), all of which wells have been completed in the Dakota Sand as gas producers. That said wells encountered the Dakota Sand, often referred to as the "J" Sand, common source of supply, at the approximate depth of Four Thousand Eight Hundred Fifty (4,850) feet below the surface. That said wells encountered the Muddy Sand, often referred to as the "D" Sand, common source of supply, at the approximate depth of Four Thousand Seven Hundred Fifty (4,750) feet below the surface and that gas was encountered therein.

 

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 subject matter of this hearing is the following described land situated in Logan County, Colorado, to-wit:

 

The West Half (W½) of Section Fifteen (15), the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), all of Section Sixteen (16) except the West Half (W½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of said Section Sixteen (16), the East Half (E½) of the Northwest Quarter (NW¼) of Section Twenty-one (21), the East Half (E½) of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of Section Twenty-one (21), all in Township Eight (8) North, Range Fifty-three (53) West, WHICH AREA IS PRESENTLY REFERRED TO AS THE SPRINGDALE FIELD.

 

4.      That the Dakota Sand pool, sometimes referred to as the "J" Sand pool, in the Springdale Field as used herein, constitutes a common source of supply of gas underlying the lands last above described. That the Muddy Sand pool, sometimes referred to as the "D" Sand pool in the Springdale Field as used herein, constitutes a common source of supply of gas underlying the lands last above described.

 

5.      That in order to prevent waste of gas as defined in the Colorado Oil and Gas Conservation Act of 1951 as amended and to prevent the drilling of unnecessary wells, the following orders should be promulgated:

 

a.      An order vacating Order No. 14-1 in Cause No. 14, in the Luft Field, insofar as it pertains to the West Half (W½) of Section Sixteen (16) and the Northwest Quarter (NW¼) of Section Twenty-one (21) except the West Half (W½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of Section Sixteen (16) and except the West Half (W½) of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) and the Southwest Quarter (SW¼) of the Northwest Quarter (NW¼) of Section Twenty-one (21), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado;

 

b.      An order vacating Order No. 11-1 in Cause No. 11, in the Dale Field, insofar as it pertains to the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado;

 

c.      An order vacating Order No. 12-1 in Cause No. 12, in the Dale Field, insofar as it pertains to the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado;

 

d.      An order creating drilling and spacing units for the Dakota Sand, often referred to as the "J" Sand, common source of supply, in accordance with the prayer of the amended petition of Shell Oil Company in this cause and in accordance with the Exhibit "A" attached to said amended petition.

 

e.      An order creating drilling and spacing units for the Muddy Sand, often referred to as the "D" Sand, common source of supply, in accordance with the prayer of the amended petition of Shell Oil Company in this cause and in accordance with Exhibit "B" attached to said amended petition.

 

6.      That all available geological and engineering data concerning the said Dakota Sand pool or "J" Sand pool in said Springdale Field, indicates that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) acres; that a 320-acre drilling and spacing unit is not smaller than the maximum area that can be adequately drained by a single gas well producing from said Dakota Sand, common source of supply; that to the extent now possible drilling and spacing units comprising Three Hundred Twenty (320) acres should be established for such common source of supply and that in view of current development, drilling and spacing units as hereinafter ordered should be established; that all available geological and engineering data concerning the said Muddy Sand pool or "D" Sand pool in said Springdale Field, indicates that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) acres; that a 320-acre drilling and spacing unit is not smaller than the maximum area that can be adequately drained by a single gas well producing from said Muddy Sand, common source of supply; that to the extent now possible drilling and spacing units comprising Three Hundred Twenty (320) acres should be established for such common source of supply and that in view of current development, drilling and spacing units as hereinafter ordered should be established.

 

ORDER

 

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the Dakota Sand pool, sometimes referred to as the "J" Sand pool, common source of supply, and the Muddy Sand pool, sometimes referred to as the "D" Sand pool, common source of supply, of the Springdale Field, Logan County, Colorado, 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.    It is hereby ordered that this Commission's former Order No. 14-1 in Cause No. 14 in the Luft Field is hereby vacated insofar at as it pertains to the West Half (W½) of Section Sixteen (16) and the Northwest Quarter of Section Twenty-one (21) except the West Half (W½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of Section Sixteen (16), and except the West Half' (W½) of the Northwest Quarter (NW¼) of the Northwest Quarter and the Southwest Quarter (SW¼) of the Northwest Quarter (NW¼) of Section Twenty-one (21), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado.

 

Rule 2.    It is hereby ordered that this Commission's former Order No. 11-1 in Cause No. 11 in the Dale Field is hereby vacated insofar as it pertains to the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53`) West, Logan County, Colorado.

 

Rule 3.    It is hereby ordered that this Commission's former Order No. 12-1 in Cause No. 12 in the Dale Field is hereby vacated insofar as it pertains to the West Half (W½) of the Northeast Quarter (NE¼) of Section Fifteen (15), Township Eight (8) North, Range Fifty-three (53) West, Logan County, Colorado.

 

Rule 4.    Drilling and spacing units shall be and the same are hereby established for the production of gas from the Dakota Sand pool, sometimes referred to as the "J" Sand pool, common source of supply, as follows:

 

Unit No. 1 –

 

The North Half (N½) of said Section Sixteen (16) containing Three Hundred Twenty (320) acres with the State of Colorado "B" No. 1 well located in the center of the Southwest Quarter (SW¼) of the Northeast Quarter of the Northeast Quarter (NE¼) of said Section Sixteen (16), designated as the permitted gas well on Unit No. 1 and that no other gas well be drilled to the Dakota Sand on Unit No. 1.

 

 

Unit No. 2 –

The North Half (N½) of the Southwest Quarter (SW ¼) and the Southeast Quarter (SE¼) of the Southwest Quarter (SW¼) and the East Half (E½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of said Section Sixteen (16) and the East Half (E½) of the Northwest Quarter (NW¼) and the East Half (E½) of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of said Section Twenty-one (21), containing Two Hundred Forty (240) acres with the permitted gas well to be located in the center of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of the Northwest Quarter (NW¼) of said Section Twenty-one (21) subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 3 –

The Southeast Quarter (SE¼) of said Section Sixteen (16) and the Southwest Quarter (SW¼) of said Section Fifteen (15) containing Three Hundred Twenty (320) acres with the permitted gas well to be located in the center of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of the Southeast Quarter (SE¼) of said Section Sixteen (16), subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 4 –

The West Half (W½) of the Northwest Quarter (NW¼) of said Section Fifteen (15) containing Eighty (80) acres with the I.G. Christner No. 1 well located in the center of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of said Section Fifteen (15) designated as the permitted gas well on Unit No. 4, and that no other gas well be drilled to the Dakota Sand.

 

 

Unit No. 5 –

The East Half (E½) of the Northwest Quarter (NW¼) and the West Half (W½) of the Northeast Quarter (NE¼) of said Section Fifteen (15) containing One Hundred Sixty (160) acres with the J.A. Brewer "B" No. 1 well located in the center of the Northeast Quarter of the Northwest Quarter (NW¼) of said Section Fifteen (15) designated as the permitted gas well on Unit No. 5, and that no other gas well be drilled to the Dakota Sand.

 

Rule 5.    Drilling and spacing units shall be and the same are hereby established for the production of gas from the Muddy Sand pool, sometimes referred to as the "D" Sand pool, common source of supply, as follows:

 

Unit No. 1 –

The North Half (N½) of said Section Sixteen (16) containing Three Hundred Twenty (320) acres with the permitted gas well to be located in the center of the Southwest Quarter (SW¼) of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of said Section Sixteen (16), subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 2 –

The North Half (N½) of the Southwest Quarter (SW¼) and the Southeast Quarter (SE¼) of the Southwest Quarter (SW¼) and the East Half (E½) of the Southwest Quarter (SW¼) of the Southwest Quarter (SW¼) of said Section Sixteen (16) and the East Half (E½) of the Northwest Quarter (NW¼) and the East Half (E½) of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of said Section Twenty-one (21), containing Two Hundred Forty (240) acres with the permitted gas well to be located in the center of the Northeast Quarter (NE¼) of the Northeast Quarter (NE¼) of the Northwest Quarter (NW¼) of said Section Twenty-one (21), subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 3 –

The Southeast Quarter (SE¼) of said Section Sixteen (16) and the Southwest Quarter of said Section Fifteen (15) containing Three Hundred Twenty (320) acres, with the permitted gas well to be located in the center of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of the Southeast Quarter (SE¼) of said Section Sixteen (16), subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 4 –

The West Half (W½) of the Northwest Quarter (NW¼) of said Section Fifteen (15) containing Eighty (80) acres with the permitted well located in the center of the Northwest Quarter (NW¼) of the Northwest Quarter (NW¼) of said Section Fifteen (15), subject to a surface obstruction tolerance limit of One Hundred (100) feet.

 

 

Unit No. 5 –

The East Half (E½) of the Northwest Quarter (NW¼) and the West Half (W½) of the Northeast Quarter (NE¼) of said Section Fifteen (15) containing One Hun-dred Sixty (160) acres with the permitted well located in the center of the Northeast Quarter (NE¼) of the Northwest Quarter (NW¼) of said Section Fifteen (15), subject to a surface tolerance limit of One Hundred (100) feet.

 

IT IS FURTHER ORDERED that by order of the Commission, after due notice and hearing, the said Dakota Sand pool or "J" Sand pool in the Springdale Field, common source of supply, and the said Muddy Sand pool or "D" Sand pool in the Springdale Field, common source of supply, Logan County, Colorado, may be re-designated 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 gas from the said Dakota Sand pool or "J" Sand pool, common source of supply, or the said Muddy Sand pool or "D" Sand pool, common source of supply.

 

IT IS FURTHER ORDERED that the rules, regulations and orders contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Dakota Sand pool or "J" Sand pool, common source of supply, as defined herein, or in the Muddy Sand pool or "D" Sand pool, common source of supply, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this order, except as herein provided, 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 of the above orders, rules, and regulations.

 

ORDERED this 15th day of April, 1954, 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, Assistant Secretary