BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT THE WASTE OF OIL AND GAS IN THE JACKPOT FIELD, MORGAN AND WELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 56 ORDER NO. 56-1

            APPEARANCES:

Byron Neid, Esq., Denver, Colorado, for the Applicant.

A.J. Jersin, Deputy Director;

D.V. Rogers, Petroleum Engineer; and

Wilbur Rochio, Asst Attorney General; for the Commission.

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 4, 1955, at 10:00 A.M., in 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 John L. Nelson for an order from the Commission establishing 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 Jackpot Field, in Morgan and Weld counties, Colorado.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place, and purpose of the hearings 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 hereafter prescribed Order.

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

Township 6 North, Range 59 West, 6th P.M.
Sections 1, 2, 11, and 12
Township 6 North, Range 58 West, 6th P.M.
Section 6:  W/2	Section 7:  W/2
All in Morgan County, Colorado; and

Township 7 North, Range 59 West, 6th P.M.

Sections 35 and 36

Township 7 North, Range 58 West, 6th PM.

Section 31:  W/2

All in Weld County, Colorado;

and is known as the Jackpot 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 and gas from the "D" sand, common source of supply underlying the Jackpot 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.

5.      That all available geological and engineering data concerning the "D" sand, common source of supply in said Jackpot 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 Jackpot 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 formation underlying the Jackpot field [sic] 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 formation, common source of supply underlying:

Sections One (1), Two (2), Eleven (11) and Twelve (12), Township Six (6) North, Range Fifty-Nine West of the 6th P.M., and the West Half (W/2) of Section Six (6), the West Half (W/2) of Section Seven (7), Township Six North, Range Fifty-eight West of the 6th P.M., in Morgan County Colorado;

Sections Thirty-five (35) and Thirty-six (36), Township Seven (7) North, Range Fifty-nine (59) West of the 6th P.M., and the West Half (W/2) of Section Thirty-one (31), Township Seven North, Range Fifty-eight (58) West of the 6th P.M., in Weld County, Colorado;

and such area shall henceforth be known as the Jackpot 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 Jackpot Field, "D" sand, common source of supply, may be re-designated 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 oil and gas from the "D" sand, common source 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 Jackpot field [sic] to the "D" sand, common source of supply as defined herein, for the purpose of producing oil and 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 4th day of February, 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