BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE "J" SAND OF THE LIBERTY FIELD IN LOGAN COUNTY, COLORADO

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CAUSE NO. 37

 

ORDER NO. 37-1

APPEARANCES:

John R. Moran,

Attorney for applicant, The British-American Oil Producing Company, Denver, Colorado

Don Conaway,

for The British-American Oil Producing Company

Wilbur Rocchio,

Assistant Attorney General,

A.J. Jersin,

Deputy Director, and

D.V. Rogers,

Petroleum Engineer, for the Commission

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 22, 1954, at ten o’clock A.M., Room 704 State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The British-American Oil Producing Company, for an order from the Commission establishing forty (40) acre, drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the "J" sand, common source of supply underlying Liberty Field, Logan County, Colorado.

 

The applicant above named is the owner of oil and gas leases within the Liberty Field, and has heretofore completed its No. 1 Feik well which is located as follows:

 

Northeast Quarter of the Southwest Quarter (NE/4 SW/4) of Section Five (5), Township Eight (8) North, Range Fifty-four (54) West of the Sixth (6th) P.M., Logan County, Colorado.

 

Said well was completed in the "J" sand formation, the top of which was encountered in said well at the approximate depth of Five Thousand Three Hundred Fifteen (5,315) feet below the surface.

 

Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying forty (40) acres in the "J" sand formation, and that forty (40) acres is not smaller than the maximum area which can be efficiently drained by one well producing from the "J" sand formation.

 

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 Notices and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

 

3.      That the "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County Colorado, to-wit:

 

Township 8 North, Range 54 West, 6th P.M.

 

 

Section 4:

W/2, W/2 E/2, except Lot 2

Section 5:

All

Section 6:

Lots 1, 2, 7, E/2 Lot 8

Section 8:

N/2 NW/4, SE/4 NW/4, NE/4, N/2 SE/4

 

 

Township 9 North, Range 54 West, 6th P.M.

 

 

Section 31:

S/2 SE/4

Section 32:

S/2 S˝

all in Logan County, Colorado,

 

and is referred to in said petition as the Liberty Field.

 

4.      That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing forty (40) acre drilling and spacing units for the production of oil and gas from the "J" sand, common source of supply underlying the Liberty Fields described above; that said units should be forty (40) acre drilling and spacing units according to the governmental survey thereof; that the permitted well for each drilling unit should be located in the center of each quarter quarter section in the governmental survey; except in that area defined by lots, the wells in which area should be drilled in the locations as indicated on Exhibit "A", attached hereto and made a part hereof; and that a tolerance of Fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the "J" sand common source of supply in said Liberty Field, indicate that one well will efficiently and economically drain an area of approximately forty (40) acres, and that drilling traits of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from the said "J" sand, common source of supply in said Liberty Field.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" sand formation underlying the Liberty Field above described in the Findings, which, by reference, are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

 

Rule 1.    Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "J" sand formation, common source of supply underlying the following described lands in Logan County, Colorado, to-wit:

 

West Half (W/2), and West Half of East Half (W/2E/2), except Lot 2, of Section Four (4); all of Section Five (5); Lots One (1), Two (2), Seven (7), and East Half (E/2) of Lot Eight (8), Section Six (6); North Half of Northwest Quarter (N/2NW/4), Southeast Quarter of Northwest Quarter (SE/4NW/4), Northeast Quarter (NE/4), North Half of Southeast Quarter (N/2SE/4), Section Eight (8), all in Township Eight (8) North, Range Fifty-four (54); and South Half of Southeast Quarter (S/2SE/4) of Section Thirty-one (31), and South Half of South Half (S/2S/2) of Section Thirty-two (32), Township Nine (9) North, Range Fifty-four (54), all West of Sixth (6th) P.M.,

 

and such area shall hence forth be known as the Liberty Field, "J" sand, common source of supply.

 

Rule 2.    That each governmental quarter quarter section in the governmental survey shall constitute a drilling and spacing unit, and the permitted well for each unit shall be located in the center of each quarter quarter section in the governmental survey; except in that area defined by lots, the wells in which area shall be drilled in the locations as indicated on Exhibit "A", attached hereto and made a part hereof; and that a tolerance of Fifty (50) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said Liberty Field, "J" sand, common source of supply, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the "J" sand, common source of supply.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Liberty Field to the "J" sand, common source of supply, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, is herby prohibited.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice of hearing, to alter, amend, or repeal any and/or all of the above rules and regulations.

 

ORDERED this 22nd day of July, 1954, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary