IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

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 "D" SAND OF THE LITTLE BEAVER-EAST FIELD, WASHINGTON COUNTY, COLORADO.

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CAUSE NO. 53

ORDER NO. 53-1

Appearances:

John R. Moran, for Vaughey and Vaughey and the Lion Oil Company.

R.W. Hawley, for the Continental Oil Company.

Peter J. Little, for Drilling Oil Company.

Wilbur Rocchio, Assistant Attorney General;

A.J. Jersin, Deputy Director, and

D.V. Rogers, Petroleum Engineer, for the Commission.

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 12, 1955, 10:00 A.M., Room 704 State Capitol Annex, 14th Avenue and Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Vaughey and Vaughey, and the Lion Oil Company, and the Commission's own motion, for the establishment of forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil and gas from the "D" sand, common source of supply underlying the Little Beaver-East 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 said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed Order.

3. That the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Washington County, Colorado, to-wit:

Township 1 South, Range, 56 West, 6th P.M.

All of Sections 23, 25, 26, 27, 34 and 35.

Township 2 South, Range 56 West, 6th P.M.

Section 2: NW¼	Section 3: N½

and is known as the Little Beaver-East 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 from the said "D" sand, common source of supply underlying said land, as defined herein; that said units should be forty (40) acre drilling and spacing units, according to the govern-mental survey thereof, and that the permitted oil well for each unit should be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and should be located not less than One Thousand Three Hundred Twenty (1320) feet between wells on the same lease within any one governmental quarter section; 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.

5. That all available geological and engineering data concerning the "D" sand, common source of supply in said Little Beaver-East 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 "D" sand, common source of supply in said Little Beaver-East Field.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand underlying the Little Beaver-East 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 "D" sand, common source of supply underlying:

Sections Twenty-three (23), Twenty-five (25), Twenty-six (26), Twenty-seven (27), Thirty-four (34), and Thirty-five (35), Township One (1) South, Range Fifty-six (56) West of the 6th P.M., and the Northwest (Quarter (NW¼) of Section Two (2); the North Half (N½) of Section Three (3), Township Two (2) South, Range Fifty-six (56) West of the 6th P.M., all in Washington County, Colorado,

and such area shall henceforth be known as the Little Beaver-East Field.

(a) The permitted well for each unit shall be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and shall be located not less than One Thousand Three Hundred Twenty (1320) feet between wells on the same lease within any one governmental quarter section; and 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 the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling any well or wells in the "D" sand, as defined herein, for the purpose of producing oil and gas therefrom, at a location other than authorized by this Order, 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 12th day of January, 1955, 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