|IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BIG BEND FIELD, ADAMS COUNTY, COLORADO||Cause No. 324 Order No. 324-1|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on May 16, 1977 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 Amoco Production Company, for an order establishing 80-acre drilling and spacing units for the production of oil and assorts ted hydrocarbons underlying certain lands in Adams County, Colorado. The application was amended at the time of the hearing to delete from the area requested to be spaced the following described lands:
Township S South, Range 61 West, 6th P.M. Section 1: S/2 Section 11: NE/4 Section 2: SE/4 Section 12: N/2
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 embrace in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.
3. That evidence presented at the hearing indicates that the "D" Sand con-stitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:
Township 2 South, Range 61 West, 6th P.M. Section 35: SE/4 Section 36: S/2 Township 3 South, Range 61 West, 6th P.M. Section 1: N/2 Section 2: NE/4
4. That in order to prevent the 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 of the State, an order should be made establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand, common source of supply underlying the lands defined herein; that said units should be SO-acre drilling units consisting of the N/2 and S/2 or the E/2 and W/2 of each quarter section, according to the governmental survey thereof (to be designated at the time of filing the permit to drill), and that the permitted well for each such drilling unit should be located in the center of the NE/4 and SW/4 of each quarter section, with a toler-ance of 200 feet in any direction.
5. That all available geological and engineering data concerning said "D* Sand indicate that one well will efficiently and economically drain an area of approximated 80-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "D" Sand.
NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "D" Sand underlying the Big Bend 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. Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil and associated hydrocarbons from the "D" Sand underlying the following described lands in the Big Bend Field, Adams County, Colorado to-wit:
Township 2 South, Range 61 West, 6th P.M. Section 35: SE/4 Section 36: S/2
Township S South, Range 61 West, 6th P.M. Section 1: N/2 Section 2: NE/4
Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the N/2 and S/2 or the E/2 and W/2 of each quarter section, according to the governmental survey thereof (to be designated at the time of filing the permit to drill), and the permitted well for each such drilling unit shall be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direction.
IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 16th day of May, 1977.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary