45-3

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 BLANCO-MESAVERDE FIELD, LA PLATA COUNTY, COLORADO

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CAUSE NO. 45

ORDER NO. 45-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 25, 1955 at 10:00 a.m., in Room 243, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Southern Union Gas Company, a Delaware corporation, for an order from the Commission to dually complete its three wells, the Ute No. 3, Farmer No. 1, and Ute No. 4-A, all located in the Blanco-Mesaverde Field, La Plata County, Colorado, and to commingle the production therefrom only at delivery of gas into the gathering pipeline.

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 applicant is the owner of oil and gas leases within the limits of the Blanco-Mesaverde Field, La Plata County, Colorado, and that it has drilled the following three wells on 320-acre tracts:

1.	Ute No. 3 well – located 990 feet north of the south line, and 900 feet east of the west line of Section 22, Township 32 North, Range 11 West, N.M.P.M.

2.	Farmer No. 1 well – located 900 feet from the north line, and 1040 feet from the east line of Section 15, Township 23 North, Range 11 West, N.M.P.M.

3.	Ute No. 4-A well – located 990 feet south of the north line, and 990 feet west of the east line of Section 21, Township 32 North, Range 11 West, N.M.P.M.

and that the Ute No. 3 and Farmer No. 1 wells are capable of producing from the Mesaverde and Pictured Cliffs formations, and that the Ute No. 4-A well is capable of producing from the Mesaverde and Lewis formations.

4. That in the drilling of the Ute No. 3 well, applicant set 7-5/8" casing in said well at a depth of 3095 feet, and 5-1/2" casing at a depth of 5279 feet, and proposed to produce gas from the Mesaverde formation at a depth of from 5279 to 5379 feet through a string of 2" tubing inside the 5-1/2" casing, and to then produce natural gas from the Pictured Cliffs formation at a depth of from 2957 to 2985 feet by means of perforations in the 7-5/8" casing string; and that prior to delivery of gas into the gathering pipeline there would be no commingling of gas from the two formations referred to, and the well would be operated at all times so as to prevent any flow of Mesaverde gas into the Pictured Cliffs formation or vice versa.

5. That in the drilling of the Farmer No. 1 well, applicant set 7-5/8" casing in said well at a depth of 3077 feet, and 5-1/2" casing at a depth of 5205 feet, and proposed to produce gas from the Mesaverde formation at a depth of from 5205 to 5359 feet through a string of 2" tubing inside the 5-1/2" casing, and to then produce natural gas from the Pictured Cliffs formation between the 7-5/8" and 5-1/2" casing strings by means of perforations in the 7-5/8" string at a depth of from 2850 to 2873 feet; and that prior to delivery of gas into the gathering pipe-line [sic] there would be no commingling of gas from the two formations referred to, and the well would be operated at all times so as to prevent any flow of Mesaverde gas into the Pictured Cliffs formation or vice versa.

6. That in the drilling of the Ute No. 4-A well, applicant set 7-5/8" casing in said well at a depth of 3411 feet, and expects to set 5-1/2" casing on the top of the Mesaverde formation at a depth of approximately 5120 feet, and proposed to produce gas from the Mesaverde formation through a string of 2" tubing inside the 5-1/2" casing, and then to produce natural gas from the Lewis formation at a depth of from 3750 to 3820 feet, gas from such formation to be produced into the open hole outside the 5-1/2" casing string and brought to the surface between said string and the 7-5/8" string; and that prior to delivery of gas into the gathering pipe-line [sic] there would be no commingling of gas from the two formations referred to, and the well would be operated at all times so as to prevent any flow of Mesaverde gas into the Lewis formation or vice versa.

7. That all available geological and engineering data concerning the above wells indicate that said wells can be dually completed as set forth in Findings 4, 5 and 6, and that said dual completions should be granted.

8. That the granting of applicant's petition, and the completion of and production from said wells in the manner hereinabove described would not result in waste, and that no damage would result to any formation because of such dual completions.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter and respectively to the Ute No. 3 well located 990 feet north of the south line and 900 feet east of the west line of Section Twenty-two (22); the Farmer No. 1 well located 900 feet from the north line and 1040 feet from the east line of Section Fifteen (15), and the Ute No. 4-A well located 990 feet south of the north line and 990 feet west of the east line of Section Twenty-one (21), all in Township Thirty-two (32) North, Range Eleven (11) West of the New Mexico Principal Meridian, La Plata County, Colorado, in addition to other applicable rules and regulations and orders of this Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1. That authority is hereby granted applicant, the Southern Union Gas Company, for dual completion of its Ute No. 3 well by perforating the 7-5/8" casing in said well opposite the Pictured Cliffs formation between the approximate depths of Two Thousand Nine Hundred Fifty-seven to Two Thousand Nine Hundred Eighty-five feet (2957’ to 2985’) and then producing gas from the Mesaverde formation at a depth of approximately Five Thousand Two Hundred Seventy-nine to Five Thousand Three Hundred Seventy-nine feet (5279’ to 5379’) through a string of two-inch (2") tubing inside the five and one-half inch (5½") [sic] casing; and that the production of gas from either or both of the formations stated herein shall be produced independently and without any commingling prior to the point of delivery of gas into the gathering pipe-line [sic], and that the well shall be operated at all times so as to prevent any flow of Mesaverde gas into the Pictured Cliffs formation or vice versa.

Rule 2. That authority is hereby granted applicant, the Southern Union Gas Company, for dual completion of its Farmer No. 1 well by perforating the 7-5/8" casing in said well opposite the Pictured Cliffs formation between the approximate depths of Two Thousand Eight Hundred Fifty and Two Thousand Eight Hundred Seventy-three feet (2850' to 2873’) and then producing gas from the Mesaverde formation at a depth of approximately Five Thousand Two Hundred Five to Five Thousand Three Hundred Fifty-nine feet (5205’ to 5359’) through a string of two-inch (2") tubing inside the five and one-half inch (5½") [sic] casing; and that the production of gas from either or both of the formations stated herein shall be produced independently and without any commingling prior to the point of delivery of gas into the gathering pipeline, and that the well shall be operated at all times so as to prevent any flow of Mesaverde gas into the Pictured Cliffs formation or vice versa.

Rule 3. That authority is hereby granted applicant, the Southern Union Gas Company, for dual completion of its Ute No. 4-A well by setting the 7-5/8" casing in said well at a depth of Three Thousand Four Hundred Eleven (3411) feet, and by setting 5-1/2" casing on top of the Mesaverde formation at a depth of approximately Five Thousand One Hundred Twenty (5120) feet, and then to produce gas from the Mesaverde formation through a string of 2" tubing inside the 5-1/2" casing, and to produce natural gas from the Lewis formation at an approximate depth of from Three Thousand Seven Hundred Fifty to Three Thousand Eight Hundred Twenty feet (3750’ to 3820’), and the gas from such formation to be produced into the open hole outside the 5-/2" casing and brought to the surface between the 5-/2" casing and the 7-5/8" casing; and that the production of gas from either or both of the formations stated herein shall be produced independently and without any commingling prior to the point of delivery of gas into the gathering pipeline, and that the well shall be operated at all times so as to prevent any flow of Mesaverde gas into the Lewis formation or vice versa.

Rule 4. That similar dual completions with independent production from more than one formation in one well bore in other wells in the Blanco-Mesaverde Field may be approved and authorized by the Commission upon application to said Commission, as provided by the rules and regulations of this Commission.

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 25th day of October, 1955

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary