|IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE MUSKRAT FIELD, ARAPAHOE COUNTY, COLORADO||Cause No. 297 Order No. 297-2|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on January 21, 1980 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Morgan Oil Company for an order requiring the pooling of all tracts of land within the designated unit consist-ing of the E/2 Section 14, Township 4 South, Range 61 West, 6th P.M., for the develop-ment of gas from the "J" Sand underlying said unit.
The Commission finds as follows:
1. Morgan Oil Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. 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.
4. On May 20, 1975, the Commission issued Order No. 297-1 which established 320-acre drilling and spacing units for the production of gas from the "J" Sand underlying lands in the Muskrat Field. The E/2 of Section 14, Township 4 South, Range 61 West, 6th P.M. has been designated a drilling and spacing unit with the well to be drilled at the permitted location in the SE/4 of said section.
5. That effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all owners of interests in said unit for the voluntary pooling thereof.
6. Applicant is an "interested person" within the meaning of 34-60-116 (6), CRS 1973, as amended, of the Oil and Gas Conservation Act of the State of Colorado.
7. In order to insure proper and efficient development of said drilling unit and to promote conservation of the gas resources of the State, an order should be made pooling all interests in the 320-acre drilling unit described herein.
8. An order of the Commission pooling all interests in said drilling unit is necessary in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.
9. Production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in each tract bears to the total number of acres within said drilling unit.
NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 34-60-116, CRS 1973, as amended, of the Oil and Gas Conservation Act of the State on Colorado, all interests in the drilling unit consisting of the E/2 Section 14, Township 4 South, Range 61 West, 6th P.M., Muskrat Field, Arapahoe County, Colorado, are hereby pooled for the development and operation of said drilling unit.
IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit, applicable to his interest in said drilling unit.
IT IS FURTHER ORDERED, that this order shall become effective forthwith.
ORDERED this 21st day of January, 1980.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary
-- 2 --DATE OF ENTRY 2/14/80 (#297-2)