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

MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT THE WASTE OF OIL, AND GAS IN THE "J" SAND OF THE PLUM BUSH CREEK FIELD, WASHINGTON COUNTY, COLORADO

)

CAUSE NO. 57

ORDER NO. 57-1

APPEARANCES:

R.B. Giles, Casper, Wyoming - for the Stanolind OiL and Gas Company

A.J. Jersin, Deputy Director,

D.V. Rogers, Petroleum Engineer, and

Wilbur Rocchio Assistant Attorney General - for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on Friday, 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 The Kimbark Company, Ltd. and the Stanolind Oil and Gas Company 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 "J" sand, common source of supply underlying the Plum Bush Creek 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 in said Notice and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

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

Township 2 South, Range 55 West, 6th P.M.

Section 30: All	Section 31: All

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

Section 25: All	Section 36: All

and is known as the Plum Bush Creek 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 "J" sand, common source of supply underlying the Plum Bush Creek 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 and direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

5. That all available geological and engineering data concerning the "J" sand, common source of supply in said Plum Bush Creek 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 Plum Bush Creek 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 Plum Bush Creek 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:

Sections Thirty (30) and Thirty-one (31), Township Two (2) South, Range Fifty-five (55) West of the 6th P.M.; and Sections Twenty-five (25) and Thirty-six (36), 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 Plum Bush Creek 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 Plum Bush Creek 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 the basis of additional development to be capable of producing oil and gas from the "J" 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 Plum Bush Creek Field to the "J" 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 Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary