BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO. 3 ORDER NO. 3-27

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 17, 1956, at, 10:00 a.m., in Room 243, State Capital, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Amerada Petroleum Corporation for an order granting permission and authority to dually complete its A. H. Terrell #1 well, located in the NE/4 of SW/4 of NW/4 of Section 15, Township 33 North, Range 9 West, La Plata 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 applicant is the owner of oil and gas leases which cover, among other lands, the Southwest Quarter of the Northwest Quarter (SW/4 NW/4) of Section 15, Township 33 North, Range 9 West, N.MP.M., La Plata County, Colorado, and that it has drilled its A.H. Terrell #1 well in the above described tract, and that said well is now producing from the Fruitland-Pictured Cliffs formation.

4.      That in the drilling of said well, the top of the Fruitland-Pictured Cliffs formation was encountered at a depth of approximately Two Thousand Five Hundred Seventy-five (2575) feet, and the top of the Mesaverde formation was encountered at a depth of approximately Four Thousand Eight Hundred Six (4806) feet; and that said well is now producing from the Fruitland-Pictured Cliffs formation through casing perforations at various intervals from a depth of Two Thousand Five Hundred Seventy-five feet to Three Thousand feet (2575’ to 3000’); that the Mesaverde formation has been tested at various intervals from Five Thousand Four Hundred Thirty-four feet to Five Thousand Five Hundred Sixty-eight feet (5434’ to 5568’); and that said well is now capable of producing from both the Fruitland-Pictured Cliffs formation and the Mesaverde formation.

5.      That all available geological and engineering data concerning the A. H. Terrell #1 well indicate that said well can have dual zone completion by perforating at the above intervals, and then setting a Baker "D" production packer between the two horizons and producing gas from the Mesaverde formation through tubing, and from the Fruitland-Pictured Cliffs formation through the annulus, either or both, independently and without any commingling.

6. That the granting of petitioner's application, and the completion and production of said well in the marmot hereinabove described will not result in waste, and that no damage will result to either formation because of such dual zone completion.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to the A.H. Terrell #1 well located in the Northeast Quarter of the Southwest Quarter of the Northwest Quarter (NE/4 SW/4 NW/4) of Section Fifteen (15), Township Thirty-three (33) North, Range Nine (9) West of the N.M.P.M., La Plata County, Colorado, in addition to other applicable rules and regulations and orders of this Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1.  That authority is hereby granted applicant the Amerada Petroleum Corporation, for dual zone completion of its said AH. Terrell #1 well by perforating the casing opposite the Fruitland-Pictured Cliffs formation between the approximate depths of Two Thousand Five Hundred Seventy-five feet and Three Thousand feet (2575’ – 3000’), and perforating the casing opposite the Mesaverde formation between the approximate depths of Five Thousand Four Hundred Thirty-four feet and Five Thousand Five Hundred Sixty-eight feet (5434’ – 5568’), and then setting a Baker "D" production packer between the two horizons and producing gas from the Mesaverde formation through tubing, and from the Fruitland-Pictured Cliffs formation through the annulus, either or both, independently and without any commingling.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing to alter, amend or repeal any/or all of the above rules and regulations.

ORDERED this 17th day of July, 1956.

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