46-2

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 GAS IN THE "D" AND "J" SANDS IN THE VALLERY FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 46

ORDER NO. 46-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 10:00 a.m., April 13, 1955, in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of The Carter Oil Company, a corporation, and E. T. Metz, R. M. Hough, Earl Siler, Ray Campbell, and Mac Bickling, for the establishment of Three Hundred Twenty (320) acre drilling and spacing units in the Vallery Field, Morgan 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 formations of the Vallery Field constitute common sources of supply of gas underlying the following described lands in Morgan County, Colorado:

Township 3 North, Range 59 West, 6th P.M.

Section 14: W/2	Section 22: All
Section 15: All	Section 23: W/2

4. That in order to prevent waste of 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 Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from the said "D" and "J" sand formations, common sources of supply underlying said land, as defined herein; that said units should consist of Three Hundred Twenty (320) acres, as shown in Exhibit [sic] attached hereto and made a part hereof, setting forth the units which are numbered One (1) through Six (6); and the permitted well should be located not more than Nine Hundred Fifty (950) feet from the center of each 320-acre drilling unit as designated in Exhibit [sic] hereto attached; provided, however, that no well should be located less than Six Hundred Sixty (660) feet from the exterior boundary of such drilling unit.

5. That all available geological and engineering data concerning said "D" and "J" sand formations in the Vallery Field indicate that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) acres, and that units of the size and shape as set forth in Exhibit attached hereto and made a part hereof are not smaller than the maximum area that can be efficiently drained by one well producing from the said "D" and "J" sand formations.

6. That exceptions should be allowed for two wells drilled on the following locations:

1.	Earl F. Siler No. 1 Ollie Graham Well -
	located in the C NW/4 NE/4, Section 22, Township 3 North, Range 59 West of the 6th P.M., Morgan County, Colorado;

2.	Earl F. Siler No. 1 Ross Well -
	located in the C N/2 NW/4 NW/4, Section 23, Township 3 North, Range 59 West of the 6th P.M., Morgan County, Colorado,

and that each of said wells should be the permitted gas well for the drilling and spacing unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" and "J" sand formations of the Vallery Field in Morgan County, Colorado, as hereinabove defined 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 and heretofore adopted and not in conflict herewith.

Rule 1. Three Hundred Twenty (320) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the "D" and "J" sand formations, common sources of supply underlying:

Sections Fifteen (15) and Twenty-two (22), and the West Half (W/2) of Sections Fourteen (14) and Twenty-three (23), Township Three (3) North, Range Fifty-nine (59) West of the 6th P.M., in Morgan County, Colorado, which area is known as the Vallery Field.

Rule 2. The said units shall Consist of Three Hundred Twenty (320) acres, as shown in Exhibit [sic] attached hereto and made a part hereof, setting forth the units which are numbered One (1) through Six (6); and the permitted well shall be located not more than Nine Hundred Fifty (950) feet from the center of each Three Hundred Twenty (320) acre drilling unit, as designated in Exhibit [sic] hereto attached; provided, however, that no well shall be located less than Six Hundred Sixty (660) feet from the exterior boundary of such drilling unit.

IT IS FURTHER ORDERED, that exceptions are hereby allowed for two wells drilled in the following locations:

1.	Earl F. Siler No. 1 Ollie Graham Well, located in the center of the Northwest Quarter of the Northeast Quarter (C NW/4 NE/4), Section Twenty-two (22), Township Three (3) North, Range Fifty-nine (59) West of the 6th P.M., Morgan County Colorado, and that said well shall be the permitted gas well for the drilling and spacing unit upon which it is located.

2.	Earl F. Siler No. 1 Ross Well, located in the center of the North Half of the Northwest Quarter of the Northwest Quarter (C N/2 NW/4 NW/4), Section Twenty-three (23), Township Three (3) North, Range Fifty-nine (59) West of the 6th P.M., Morgan County, Colorado, and that said well shall be the permitted gas well for the drilling and spacing unit upon which it is located.

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said "D" and "J" sand formations in the Vallery Field, Morgan County, Colorado, 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 gas from said "D" and "J" sand formations, common sources 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 "D" and "J" sand formations, as defined herein, for the purpose of producing 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 13th day of April, 1955, 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