|IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE MOUNT PEARL FIELD, CHEYENNE COUNTY, COLORADO||Cause No. 426 Order No. 426-13|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on March 16, 1987 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Champlin Petroleum Company for an order granting an exception to the permitted well location as provided for by Order No. 426-1 for a well to be drilled in the SW/4SW/4 Section 29, Township 13 South, Range 48 West, 6th P.M. and that it be the permitted well for the unit consisting of the W/2SW/4 of said section.
The Commission finds as follows:
1. Champlin Petroleum Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. 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.
4. On February 18, 1985, the Commission authorized Order No. 426-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow formation underlying certain lands in the Mt. Pearl Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section according to the governmental survey. The permitted well is at a location in the center of the NW/4 and SE/4 of each quarter section with a tolerance of 200 feet in any direction.
5. Testimony presented at the hearing indicates that a well drilled in the permitted location in the NW SW of said Section 29 would be outside the limits of the Morrow Sand formation and that a well drilled at this location wither would nor encounter the Morrow Sand formation or would not encounter sufficient section of the Morrow to justify completion of the well, and in order for the applicant to obtain his share of production from the pool, avoid drainage and protect correlative rights, an exception to the permitted well location as provided for in Order No. 426-1 should be allowed for a well to be drilled in the SW/4SW/4 Section 29, Township 13 South, Range 48 West, 6th P.M., and that it be considered the permitted well for the Unit consisting of the W/2SW/4 of said section 29.
6. Should a commercial well be completed at the exception location, production from said well should be restricted in accordance with the provisions of Order No. 426-6 and Order No. 426-9.
NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 426-1 is hereby granted for a well to be drilled at a location in the SW/4SW/4 Section 29, Township 13 South, Range 48 West, 6th P.M., Mt. Pearl Field, Cheyenne County, Colorado, and that it be the permitted well for the unit consisting of the W/2SW/4 of said Section 29.
IT IS FURTHER ORDERED, that should said exception well be completed as a commercial well, production from said well shall be in accordance with Order No. 426-6 and Order No. 426-9.
ENTERED this 26th day of March 1987, as of March 16, 1987.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary