|IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE DOUGLAS CREEK-SOUTH FIELD (DAKOTA FORMATION), RIO BLANCO COUNTY, COLORADO||Cause No. 311 Order No. 311-2|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on February 17, 1978 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Lawrence Barker, Jr., for an order establishing two (2) 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota formation underlying certain lands in Rio Blanco County, Colorado.
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 Dakota formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Rio Blanco County, Colorado, to-wit:
Township 4 South, Range 102 West, 6th P.M. Section 11: All Section 12: 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 unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota for-mation, a common source of supply underlying the lands defined herein; that said units should be 640-acres and consist of the lands as herein described, and that Well No. 12 South Douglas Creek Govt., located in the SE/4NE/4 of said Section 11, and Well No. 12-1 ired Rock Canyon-Superior Fee, located in the SW/4NE/4 of said Section 12, should be the permitted wells for the units upon which each is located.
5. That all geological and engineering data concerning the Dakota forma-tion indicate that one well will efficiently and economically drain an area of approxima-tely 640-acres, and that the drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well produc-ing from said Dakota formation.
NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the Dakota formation underlying that portion of the Douglas Creek-South 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:
Rule 1. Two (2) six hundred forty (640) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Dakota formation underlying the following described lands in the Douglas Creek-South Field, Rio Blanco County, Colorado, to-wit: Township 4 South, Range 102 West, 6th P.M. Section 11: All Section 12: All Rule 2. Each such unit shall consist of 640-acres and shall consist of a section of land according to the governmental survey thereof, and Well No. 12 South Douglas Creek Govt., located in the SE/4NE/4 of said Section 11, and Well No. 12-2, Red Rock Canyon-Superior Fee, located in the SW/4NE/4 of said Section 12 shall be the per-mitted wells for the units upon which each is located.
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 order, rules and regulations.
ORDERED this 17th day of February, 1978.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary
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