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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 MT. HOPE-NORTH FIELD, IN LOGAN COUNTY, COLORADO |
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CAUSE NO. 41
ORDER NO. 41-1 |
APPEARANCES:
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R.T. Robberson, Attorney and N.J. Matthews for Shell Oil Company, Petitioner |
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A.J. Jersin, Deputy Director, D.V. Rogers, Petroleum Engineer and |
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Wilbur Rocchio, Asst. Attorney General for the Commission |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 29, 1954 at 10:00 A.M., in Room 704 State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of the Shell Oil Company for an order establishing 40-acre drilling units and the location of wells thereon in the Mt. Hope-North 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" and "J" sand pools of the Dakota Series in the Mt. Hope-North field constitute common sources of supply underlying the following described lands [sic]:
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E/2 SE/4 of Section 7 |
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W/2 SW/4 of Section 8 |
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W/2 of Section 17 |
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NE/4 and the E/2 SE/4 of Section 18 |
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NE/4 of Section 19 |
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Township 9N, Range 53W, 6th P.M. |
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All in 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 and gas, from the said "D" and "J" Sandsof [sic] the Dakota Series, common sources 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; 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 said "D" and "J" sand pools 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" and "J" sand pools of the Dakota Series.
6. That on the 3rd day of November, 1953, this Commission entered its Order No. 22-1 in Cause No. 22, Mt. Hope field, wherein it granted to the operators the right to dually complete into the "D" and "J" sand formations, common sources of supply, and authorized operators to permit oil from these common sources of supply to be commingled in the well bore and to be produced simultaneously from the Shell Oil Company's C.F. Green "B" No. 17 well; that said Order further provided that similar dual completions and commingling in one well bore, in other wells in the Mt. Hope field may be approved and authorized by the Director of the Commission, upon application to said Director; that further development reveals that the C. F. Green "B" No. 17 well is in the Mt. Hope-North Field; that similar dual completions and commingling in one well bore in other wells in the Mt. Hope-North field may be approved and authorized by the Director of this Commission, upon application to said Director as provided by the Rules and Regulations of this Commission.
ORDER
IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" and "J" sands of the Dakota Series of the Mt. Hope-North 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 and gas from the "D" and "J" sand pools of the Dakota Series, common sources of supply underlying [sic]:
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E/2 SE/4 of Section 7 |
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W/2 SW/4 of Section 8 |
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W/2 of Section 17 |
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NE/4 and the E/2 SE/4 of Section 18 |
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NE/4 of Section 19 |
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Township 9N, Range 53W, 6th P.M. [sic] |
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all in 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 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 shall be permitted to avoid surface hazards and obstructions.
Rule 2. That dual completions and commingling in one well bore in wells in the Mt. Hope-North field may be approved and authorized by the Director of this Commission, upon application to said Director, as provided by the Rules and Regulations of this Commission.
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" and "J" sand formations of the Dakota Series, 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 29th day of July, l954, 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 |