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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE "D" SAND OF THE WEST PLAINS FIELD IN LOGAN COUNTY COLORADO |
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CAUSE NO. 39
ORDER NO. 39-1 |
APPEARANCES:
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John R. Moran, |
Attorney for applicant, The British-American Oil Producing Company, Denver, Colorado |
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Don Conaway, |
for The British-American Oil Producing Company |
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Wilbur Rocchio, |
Assistant Attorney General, |
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A.J. Jersin, |
Deputy Director, and |
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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 "D" sand, common source of supply underlying the West Plains Field, in Logan County, Colorado.
The applicant above named is the owner of oil and gas leases within the West Plains Field, and has heretofore completed its No. A-1 Sanders Well which is located as follows:
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The Center of the Northwest Quarter of the Northeast Quarter (NW¼NE¼) of Section Thirty-one (31), Township Ten (10) North, Range Fifty-four (54) West of the Sixth (6th) P.M., Logan County, Colorado. |
Said well was completed in the "D" sand formation, the top of which was encountered in said well at the approximate depth of Five Thousand One Hundred Ninety-six (5196) 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 "D" 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 "D" 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 Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.
3. That the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, to-wit:
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Township 10 North, Range 54 West, 6th P.M. |
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Section 30: |
SW¼ |
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Section 31: |
All |
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Section 32: |
W½ NW¼ |
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Township 10 North, Range 55 West, 6th P.M. |
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Section 25: |
SE¼ |
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Section 36: |
NE¼ |
and is referred to in said petition as the West Plains 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 "D" sand, common source of supply underlying the West Plains Field, 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 and that a tolerance of Fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.
That all available geological and engineering data concerning the "D" sand, common source of supply in said West Plains Field, indicate that one well will efficiently and economically drain an area of approximately forty (40) 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 the said "D" sand, common source of supply in said West Plains Field.
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 formation underlying the West Plains 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 "D" sand formation, common source of supply underlying all of the Southwest Quarter (SW¼) of Section Thirty (30); all of Section Thirty-one (31); and the West Half of the Northwest Quarter (W½ NW¼) of Section Thirty-two (32), all in Township Ten (10) North, Range Fifty-four (54) west of the Sixth (6th) P.M., and the Southeast Quarter (SE¼) of Section Twenty-five (25), and the Northeast Quarter (NE¼) of Section Thirty-six (36), Township Ten (10) North, Range Fifty-five (55) West of the Sixth (6th) P.M., all in Logan County Colorado, and such area shall henceforth be known as the West Plains Field, "D" sands 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 or equivalent lot in the governmental survey; 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 pre-scribed location.
IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said West Plains Field, "D" sand common source of supply, may be redesignated from time to time to embrace other lands in the of vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the "D" 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 West Plains Field to the "D" 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 hereby by 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.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |