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 GREENWOOD FIELD, BACA COUNTY, COLORADO

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CAUSE NO. 34

 

ORDER NO. 34-15

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 22, 1983 at 9:00 a.m., in the Old Supreme Court Chambers, 2nd Floor, State Capitol Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of TXO Production Corporation for an order to delete from the spaced area of the Greenwood Field, certain lands in Baca County, Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1.      TXO Production Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      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.

 

4.      On July 14, 1954, the Commission issued Order No. 34-1 which, among other things, established 640-acre drilling and spacing units for the production of gas from the Topeka-Lansing formation underlying lands in the Greenwood Field, Baca County, Colorado.  By subsequent orders certain lands were added and deleted from the spaced area.

 

5.      Evidence presented at the hearing indicates that the producing zones of the Topeka-Lansing formation are not consistent throughout the area and one gas well will not adequately drain an area of 640-acres, and a drilling and spacing unit of 320-acres overlying said formation is not smaller than the maximum area that can be efficiently and economically drained by one gas well.

 

6.      Order No. 34-1 should be amended and 320-acre drilling and spacing units should be established for the production of gas from the Topeka-Lansing formation underlying a portion of the Greenwood Field and described as follows:

 

Township, 33 South, Range 41 West, 6th P.M.

Sections 4, 5, 8, 9, 16, 17, 20, 21, 28

29, 32 and 33

 

7.      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 unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Topeka-Lansing formation, a common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consist of the N1/2 and S1/2 or the E1/2 and W1/2 of each section according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section.  The permitted well location should be in accordance with Rule 318 of the rules and regulations of the Commission.  Only one well should be permitted to be drilled on each unit and produced from the common source of supply.

 

8.      All available geological and engineering data concerning said Topeka-Lansing formation indicate that one well will efficiently and economically drain an area of approximately 320-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Topeka-Lansing formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 34-1 is hereby amended and the following rules and regulations shall apply hereafter to a well drilled, completed, of [sic] recompleted in the Topeka-Lansing formation underlying a portion of the Greenwood 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.    Three hundred twenty (320) acre drilling and spacing units shall be and the same is [sic] hereby established for the production of gas from the Topeka-Lansing formation underlying the following described lands in a portion of the Greenwood Field, Baca County, Colorado, to-wit:

 

Township, 33 South, Range 41 West, 6th P.M.

Sections 4, 5, 8, 9, 16, 17, 20, 21, 28

29, 32 and 33

 

Rule 2.    Said drilling units shall consist of 320-acres, more or less, and consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section.  The permitted well location shall be be [sic] in accordance with Rule 318 of the rules and regulations of the Commission.  Only one well shall be permitted to be drilled on each unit and produced from the common source of supply.

 

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 orders.


 

ENTERED this 20th day of December as of November 22, 1983.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary