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. 46-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on June 26, 1956, at 10:00 a.m., in Room 330, State Office Building, Denver, Colorado, after service of Notice of Hearing or appropriate waiver thereof, all as required by law, on the applications of The Carter Oil Company for an order from the Commission requiring the pooling of tracts of land lying within Drilling Unit #3, covering the W/2 of Section 14; Drilling Unit #5, covering the E/2 of Section 22, and Drilling Unit #6, covering the W/2 of Section 23, all in Township 3 North, Range 59 West of the 6th P.M., for the development of the "D" and "J" sand formations lying beneath said lands and within the Vallery Field, Morgan County, Colorado.  Previous testimony was also taken in this cause at a hearing on March 20, 1956.

 

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 in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, and to conform with the previously issued order of the Commission establishing 320-acre drilling and spacing units for the production of gas from the "D" and "J" sand formations underlying said lands, an order should be made pooling all interests in the 320-acre drilling units as described herein.

 

4.      That Applicant is the owner of working interests within Unit #3, Unit #5 and Unit #6, and is the designated Unit Operator of all working interests within Unit #3, covering the W/2 of Section 14; Unit #5, covering the E/2 of Section 22, and Unit #6, covering the W/2 of Section 23, all in Township 3 North, Range 59 West of the 6th P.M., Morgan County, Colorado.

 

5.      That opposing interests appeared at the hearing, but presented no engineering or geologic testimony to substantiate their opposition.

 

6.      That the order of the Commission pooling all interests in said drilling units is necessary, just and reasonable, in order to afford each owner of interest within each said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying each said drilling unit.

 

7.      That production obtained from said drilling units should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within each said drilling unit.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling units described below are hereby pooled for the development and operation of said drilling units in the Vallery Field, Morgan County, Colorado:

 

1.

Drilling Unit #3, covering the West Half (W/2) of Section Fourteen (14), Township Three (3) North, Range Fifty-nine (59) West, 6th P.M.

 

 

2.

Drilling Unit #5, covering the East Half (E/2) of Section Twenty-two (22), Township Three (3) North, Range Fifty-nine (59)West, 6th P.M.

 

 

3.

Drilling Unit #6, covering the West Half (W/2) of Section Twenty-three (23), Township Three (3) North, Range Fifty-nine (59) West, 6th P.M.

 

IT IS FURTHER ORDERED, that the production obtained from each said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within each said drilling unit, and each owner of interest in said tracts in each said drilling unit shall be entitled to receive his share of the production of the well located or to be located on each said drilling unit applicable to his interest in each said drilling unit.

 

IT IS FURTHER ORDERED, that this Order shall become effective forthwith.

 

ORDERED this 9th day of July, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary