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 "J" SAND IN THE BIG BEAVER FIELD, WASHINGTON COUNTY, COLORADO.	) ) ) )	CAUSE NO. 44 ORDER NO. 44-1

APPEARANCES:

R.C. Hawley, Esq., Denver, Colorado, for the Applicants;

W.L. Hershelman, for the Chicago Corporation;

Wilbur Rocchio, Assistant Attorney General, and

A.J. Jersin, Deputy Director, for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 28, 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 Continental Oil Company, the New Drilling Company, the Shell Oil Company, and the Stanolind and Gas 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 "J" sand, common source of supply underlying the Big Beaver Field, Washington 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 "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Washington County, Colorado to-wit:

Township 3 South, Range 56 West, 6th P.M.
Section 3:	All	Section 9:	All
Section 4:	All	Section 10:	All
Section 5:	All	Section 15:	All
Section 6:	All	Section 16:	All
Section 7:	All	Section 17:	All
Section 8:	All	Section 18:	All

Township 3 South, Range 56 West, 6th P.M.  (cont.)
	Section 19:  E½
	Section 20:  All
	Section 21:  All
	Section 22:  All

and is referred to in said Petition as the Big Beaver 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 "J" sand, common source of supply underlying the Big Beaver 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.

5.      That all available geological and engineering data concerning the "J" sand, common source of supply in said Big Beaver 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 "J" sand, common source of supply in said Big Beaver Field.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted, in the "J" sand formation underlying the Big Beaver Fields 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 "J" sand formation, common source of supply underlying:

Sections Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9), Ten (10), Fifteen (15), Sixteen (16), Seventeen (17), Eighteen (18); East Half (E/2) of Section Nineteen (19); Sections Twenty (20), Twenty-one (21) and Twenty-two (22), Township Three (3) South, Range Fifty-six (56) West of the Sixth (6th) P.M., Washington County Colorado,

and such area shall henceforth be known as the Big Beaver Field, "J" 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 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 prescribed location.

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said Big Beaver Field, "J" sand, common source of supply, may be re-designated 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 "J" 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 Big Beaver Field to the "J" 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 28th day of September, 19th, by the Oil and Gas Conservation Commis-sion of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary