IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT

OF FIELD RULES TO GOVERN OPERATIONS IN THE SLICK ROCK

 FIELD, SAN MIGUEL COUNTY, COLORADO

Cause No. 296

Order No. 296-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 15, 1975 at 9 A.M., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Read and Stevens, Inc., for an order establishing a 640-acre drilling unit for the production of gas and associated hydrocarbons from the Lower Ismay formation undelying certain lands in San Miguel 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 Lower Ismay formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in San Miguel County, Colorado, to-wit:

 

Township 43 North, Range 17 West, N.M.P.M.

Section 8: All

        4. That in order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing a 640-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Lower Ismay formation, a common source of supply underlying the lands defined herein; that said unit should be 640-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 1 Slick Rock Well, located 1650 feet from the south line and 660 feet from the east line of said Section 8.

        5. That all geological and engineering data concerning the Lower Ismay formation indicate that one well will efficiently and economically drain an area of approximately 640-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said Lower Ismay formation.

ORDER

        NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Lower Ismay formation underlying the Slick Rock Field, herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith: (over)

        Rule 1. A Six Hundred Forty (640) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydrocarbons from the Lower Ismay formation underlying the following described lands in the Slick Rock Field, San Miguel County, Colorado, to-wit:

Township 43 North, Range 17 West, N.MP.M.

        IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

        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 15th day of April, 1975.

        THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#296-1)