IN THE MATTER OF THE PROMULGATION
CAUSE NO. 329
AND ESTABLISHMENT OF FIELD RULES TO
GOVERN OPERATIONS IN THE SCHRAMM
ORDER NO. 329-1
FIELD, YUMA COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on November 21, 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 Kansas-Nebraska
Natural Gas Co., for an order establishing 640-acre drilling and spacing units
for the production of gas from the Niobrara formation underlying certain lands
in Yuma 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 evidence presented at the hearing indicates that the Niobrara formation
constitutes a common source of supply of gas underlying the following described
lands in Yuma County, Colorado, to-wit:
Township 1 North, Range 46 West, 6th P.M.
Sections 4, 5, 6, 7, 8, 9
Township 2 North, Range 46 West, 6th P.M.
Sections 31, 32, 33
Township 1 North, Range 47 West, 6th P.M.
Sections 1, 2, 3, 10, 11, 12, 14, 15
Township 2 North, Range 47 West, 6th P.M.
Sections 34, 35, 36
4. That in order to prevent the waste of gas, as defined by law; to protect the
correlative rights of all parties concerned; to prevent the drilling of
unnecessary wells, and to insure proper and efficient development and promote
conservation of the gas resources of the State, an order should be made
establishing 640-acre drilling and spacing units for the production of gas from
the Niobrara formation, common source of supply underlying the lands defined
herein; that said units should be 640-acre drilling units, and consist of a
section of land according to the governmental survey thereof, and that the
permitted well for each such drilling unit should be located no closer than 990
feet from the boundaries of the quarter section upon which it is located;
however, the presently producing wells or wells capable of producing, should be
the permitted wells for the units upon which each is located.
5. That all available geological and engineering data concerning said Niobrara
formation indicate that one well will efficiently and economically drain an area
of approximately 640-acres, and that drilling units of the size and shape
hereinabove described are not smaller than the maximum area that can be
efficiently drained by one well producing from said Niobrara formation.
6. That a hearing should be held in nine (9) months, at which time the
Commission should review data obtained from additional development in the spaced
area in order to determine whether the spacing as established by this order
should be continued.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall
apply hereafter to wells drilled, completed, or recompleted in the Niobrara
formation underlying the Schramm 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. Six Hundred Forty (640) acre drilling and spacing units shall be and the
same are hereby established for the production of gas from the Niobrara
formation underlying the following described lands in the Schramm Field, Yuma
County, Colorado, to-wit:
Township 1 North, Range 46 West, 6th P.M.
Sections 4, 5, 6, 7, 8, 9
Township 2 North, range 46 West, 6th P.M.
Sections 31, 32, 33
Township 1 North, Range 47 West, 6th P.M.
Sections 1, 2, 3, 10, 11, 12, 14, 15
Township 2 North, Range 47 West, 6th P.M.
Sections 34, 35, 36
IT IS FURTHER ORDERED, that a hearing shall be held in nine (9) months, at which
time the Commission shall review data obtained from additional development in
the spaced area in order to determine whether the spacing as established by this
order shall be continued.
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
orders, rules and regulations.
ORDERED this 21st day of November, 1977.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary
(#329-1)