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, WITH PARTICULAR REFERENCE TO THAT KNOWN PRODUCING ZONE LOCATED THEREIN TERMED "DAKOTA-MORRISON"

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CAUSE NO. 3

 

ORDER NO. 3-31

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 16, 1957, at 10:00 a.m., 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing and service or appropriate waiver thereof, all as required by law, on the application of the Amerada Petroleum Corporation, for an order from the Commission requiring the pooling of certain tracts of land lying within Township Thirty-three North, Range Eight West, N.M.P.M., 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 to parties interested therein 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 Dakota-Morrison formation in the Ignacio Field constitutes a common source of supply of gas underlying lands described in Order No. 3-10, issued by the Commission under date of May 6, 1954, and that the lands described herein are within the Ignacio Field.

 

4.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, and to conform with the previously issued order of the Commission establishing 640-acre drilling and spacing units for the production of gas from the Dakota-Morrison formation underlying said lands, an order should be made pooling all interests in Section 8 and Section 17, Township 33 North, Range 8 West, N.M.P.M., La Plata County, Colorado, which sections were designated as drilling and spacing units in. Order No. 3-10.

 

5.      That the Amerada Petroleum Corporation is the owner of the entire working interest in oil and gas leases covering the entire mineral interest under the lands forming the drilling units described in Finding 4 above.

 

6.      That all owners of royalty interests in said lands have voluntarily agreed to the pooling of their interests in said drilling units, except for Marjorie Marie Smith; owner of interests in portions of the lands within said drilling units described as a royalty interest of one-half of the one-eighth royalty interest in the Southeast Quarter (SE/4) of Section Eight (8), and one-half of the one-eighth royalty interest in the North Half of the Northeast Quarter (N/2 NE/4) of Section Seventeen (17); and that reasonable effort has been made to obtain the voluntary pooling of such interests in the said drilling units for the development and operation thereof.

 

7.      That the order of the Commission pooling all interests in said drilling units is necessary, just and reasonable in order to afford each owner of interest within said drilling units the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling units.

 

8.      That production obtained from said drilling units should 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 units.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling units described below are hereby pooled for the development and operation of said drilling units in the Dakota-Morrison formation underlying the Ignacio Field, La Plata County, Colorado:

 

1.      Smith Dakota-Morrison Gas Unit, covering all of Section Eight (8), Township Thirty-three (33) North, Range Eight (8) West, NMPM

 

2.      Harmon Dakota-Morrison Gas Unit, covering all of Section Seventeen (17), Township Thirty-three (33) North, Range Eight (8) West, N.M.P.M.

 

IT IS FURTHER ORDERED, that the production obtained from each 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 each said drilling unit; and each owner of interest in said tracts in each said drilling unit shall be entitled to receive his share of the production of the well located on each said drilling unit applicable to his interest in each said drilling unit,

 

IT IS FURTHER ORDERED that this order shall become effective forthwith.

 

ORDERED this 25th day of July, 1957.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary