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 "D" SAND OF THE DIVIDE FIELD IN LOGAN COUNTY, COLORADO.	) ) ) )	CAUSE NO. 38 ORDER NO. 38-1

APPEARANCES:

John Stanford for the Sinclair Oil & Gas Company

R.T. Robberson for the Shell Oil Company

Patrick M. Westfeldt for the Lion Oil Company

Robert Fifer, Walter Miracle, and Raymond J. Gengler             for the Miracle-Fifer Drilling Company

H.B. Gernert for the Trigood Oil Company

and

Wilbur Rocchio, Assistant Attorney General

A.J. Jersin, Deputy Director, and

D.V. Rogers, Petroleum Engineer, for the Commission

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 the "D" sand pool of the Dakota Series in the Divide Field constitutes a common source of supply underlying the following described lands:

Southwest Quarter (SW/4), South Half of the Northwest Quarter (S/2 NW/4) of Section Two (2); South Half, South Half of North Half (S/2, S/2 N/2) of Section Three (3); South Half (S/2) of Section Four (4), North Half (N/2) Section Nine (9), North Half (N/2) Section Ten (10), and Northwest Quarter (NW/4) Section Eleven (11), all in Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado.

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 40-acre drilling and spacing units for the production of oil from the "D" sand of the Dakota Series, common source of supply underlying said land, as defined herein; that said units should be 40-acre drilling and spacing units according to the governmental survey thereof and that the permitted oil well for each unit should be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and should be located a minimum distance of Thirteen Hundred Twenty (1320) feet between wells on the same lease within any or governmental Quarter section.

5.      That all available geological and engineering data concerning the said "D" sand pool of the Dakota Series indicate that one well should efficiently and economically drain an area of approximately Forty (40) acres, and that 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 the said "D" sand pool of the Dakota Series.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand pool of the Dakota Series of the Divide Field in Logan County, Colorado, as hereinabove defined in the Findings, which are hereby 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.    The following drilling and spacing units shall be and the same are hereby established for the production of oil from the D" sand pool of the Dakota Series, common source of supply underlying:

Southwest Quarter (SW/4), South Half of the Northwest Quarter (S/2 NW/4) of Section Two (2); South Half, South Half of North Half (S/2 S/2 [sic] N/2) of Section Three (3); South Half (S/2) of Section Four (4), North Half (N/2) Section Nine (9), North Half (N/2) Section Ten (10), and Northwest Quarter (NW/4) Section Eleven (11), all in Township Eight (8) North, Range Fifty-three (53) West of the Sixth (6th) P.M., Logan County, Colorado.

(a)     Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil.  The permitted well for each unit shall be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and shall be located a minimum distance of Thirteen Hundred Twenty (1320) feet between wells on the same lease within any one governmental quarter section.

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 "D” sand formation of the Dakota Series, as defined herein, for the purpose of producing oil therefrom, at a location other than authorized by this Order, is hereby prohibited.

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 rules and regulations.

ORDERED this 29th 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