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 MT. HOPE-EAST FIELD IN LOGAN COUNTY, COLORADO.

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CAUSE NO. 40

 

ORDER NO. 40-1

 

APPEARANCES:

 

John R. Moran, Attorney and Don Conaway for the British-American Oil Producing Company

 

A.J. Jersin, Deputy Director and Wilbur Rocchio, Asst. Atty. General for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 22, 1954, at 10:00 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 Mt. Hope-East Field, Logan 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 the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado to-wit:

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 20:

W/2, W/2 SE/4, SE/4 SE/4

Section 21:

S/2 S/2

Section 28:

ALL

Section 29:

ALL

Section 32:

ALL

Section 33:

N/2 N/2, SW/4 NW/4, W/2 SW/4

 

and is referred to in said petition as the Mt. Hope-East 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 Mt. Hope-East 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 One Hundred (100) 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 "D" sand, common source of supply in said Mt. Hope-East 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 Mt. Hope-East field.

 

6.      That an exception should be allowed for the British-American Oil Producing Company's Green "B" No. 1 well in the Northwest Quarter of the Northwest Quarter of the Northwest Quarter (NW/4NW/4NW/4) of Section Twenty (20), Township Nine (9) North, Range 53 West of the 6th P.M.

 

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 Mt. Hope-East field, herein 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:

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 20:

W/2, W/2 SE/4, SE/4 SE/4

Section 21:

S/2 S/2

Section 28:

All

Section 29:

All

Section 32:

All

Section 33:

N/2 N/2, SW/4 NW/4, W/2 SW/4

 

 

All in Logan County, Colorado,

 

and such area shall henceforth be known as the Mt. Hope-East field, "D" 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; that a tolerance of One Hundred (100) 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 Mt. Hope-East Field, "D" 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 "D" sand, common source of supply.

 

IT IS FURTHER ORDERED, that an exception is hereby allowed for the British-American Oil Producing Company's Green "B" No. 1 well, in the NW/4 NW/4 NW/4 of Section 20, Township 9 North, Range 53 West of the 6th P.M., and said well shall be the permitted well for the drilling unit on which it is located, and no other well shall be drilled to said sand on said unit.

 

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 Mt. Hope-East 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 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 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