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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT THE WASTE OF OIL AND GAS IN THE FRASCO FIELD, LOGAN COUNTY, COLORADO. |
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CAUSE NO. 48
ORDER NO. 48-1 |
APPEARANCES:
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W.L. Livingston, and Ted Stockmar, |
for the Frontier Refining Company |
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George W. Selinger, |
Tulsa, Oklahoma, for the Skelly Oil Company |
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A.J. Jersin, |
Deputy Director, and |
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D.V. Rogers, |
Petroleum Engineer, for the Commission |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on Tuesday, November 21, 1954, at 10:00 A.M., in the Mezzanine Room of the Shirley Savoy Hotel, Denver, Colorado, after notice of hearing, as required by law, upon the application of the Frontier Refining Company and The Carter Oil Company, for an order from the Commission to establish Forty (40) acre drilling told 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 Frasco Field, Logan 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, on November 8, 1954, the Commission published Notice of Hearing in Cause No. 48, Frasco Field, for establishment of 40-acre drilling and spacing units for the production of oil and gas from the "J" sand of said Frasco Field. That, at the hearing held November 23, 1954, testimony revealed that the Southeast Quarter of the Northeast Quarter (SEĽ NEĽ) and the East Half of the Southeast Quarter (E˝ SEĽ) of Section Thirty-two (32), Township Eight (8) North, Range Fifty-five (55) West of the 6th P.M., and the East Half of the East Half (E˝ E˝) of Section Five (5), and the Northeast Quarter of the Northeast Quarter (NEĽ NEĽ) of Section Eight (8), Township Seven (7) North, Range Fifty-five (55) West of the 6th P.M., should not be included in said Frasco Field, Logan County, Colorado.
4. That the "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, towit [sic]:
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Township 8 North, Range 55 West, 6th P.M. |
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Section 33: |
S/2 N/2 and S/2 |
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Section 34: |
S/2 |
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Township 7 North, Range 55 West, 6th P.M. |
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Section 3: |
N/2 and SW/4 |
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Section 4: |
All |
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Section 9: |
N/2 N/2 |
and is referred to as the Frasco Field.
5. 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 Frasco 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 One Hundred (100) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.
6. That all available geological and engineering data concerning the "J" sand, common source of supply in said Frasco 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 Frasco 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 Frasco Field, 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:
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South Half of North Half (S/2 N/2) and South Half (S/2) of Section Thirty-three (33), and the South Half (S/2) of Section Thirty-four (34), Township Eight (8) North, Range Fifty-five (55) West of the 6th P.M.; and |
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North Half (N/2) and Southwest Quarter (SW/4) of Section Three (3); All of Section Four (4), and North Half of North Half (N/2 N/2) of Section Nine (9), Township Seven (7) North, Range Fifty-five (55) West of the 6th P.M., all in Logan County, Colorado, |
and such area shall henceforth be known as the Frasco Field.
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 One Hundred (100) 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 Frasco Field, "J" sand, common source of supply, may be redesignated from time to time to embrace other lands In the vicinity which are believed, on basis of additional development, to be capable of producing oil and gas from "J" sand, common source of supply.
IT IS FURTHER ORDERED, that the rules and regulations contained herein become effective forthwith, and henceforth the commencement of the drilling any well or wells in the Frasco Field to the "J" sand, common source of supply, defined herein, for the purpose of producing oil and gas therefrom at a location than authorized by this Order, is hereby prohibited.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, notice and hearing to alter, amend, or repeal and and/or all of the above and regulations.
ORDERED this 23rd day of November, 1954, by the Oil and Gas Conservation Commission of the State of Colorado.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |