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 "J" SAND OF THE DALE-NORTH FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 64

 

ORDER NO. 64-1

 

 

(Area formerly included in Cause No. 11)

 

APPEARANCES:

 

R.T. Robberson, Attorney - for Shell Oil Company

A.M. Ramsey - for the State Land Board

Wilbur Rocchio, Assistant Attorney General,

A.J. Jersin, Deputy Director, and

William R. Smith, Petroleum Engineer - for the Commission

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 18, 1955, at 10:00 A.M., in Room 704 State Capitol Annex, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the petition of the Shell Oil Company for an order deleting certain area from the Dale Field, Cause No. 11; and for an order establishing forty (40) acre drilling and spacing units therein.

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 subject matter of this hearing is the following described land situated in Logan County, Colorado, to-wit:

Township 8 North, Range 53 West, 6th P.M.

 

 

Section 11: SE/4

Section 13: NW/4

Section 12: SW/4

Section 14: NE/4

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, the following order should be promulgated:

(a)     An order vacating Order No. 11-1, in Cause No. 11, the Dale Field, insofar as it pertains to the Southeast Quarter (SE/4) of Section Eleven (11), Southwest Quarter (SW/4) Section Twelve (12), Northwest Quarter (NW/4) Section Thirteen (13), and Northeast Quarter (NE/4) Section Fourteen (14), Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado; and

(b)     An 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 by establishing forty (40) acre drilling and spacing units for the production of oil and gas from the said Dakota sand pool, or "J" 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 governmental 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 hereafter, the area described herein should be known as Cause No. 64, the Dale-North Field.

6.      That all available geological and engineering data concerning the said Dakota sand pool, or "J" sand, common source of supply in said Dale-North 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 Dale-North Field.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Dakota sand pool, sometimes referred to as the "J" sand, underlying the Dale-North 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.    That this Commission's Order No. 11-1 in Cause No. 11, the Dale Field, is hereby vacated insofar as it pertains to the Southeast Quarter (SE/4) of Section Eleven (11), Southwest Quarter (SW/4) Section Twelve (12), Northwest Quarter (NW/4) Section Thirteen (13), and Northeast Quarter (NE/4) Section Fourteen (14), Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado.

Rule 2.    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, common source of supply underlying:

Southeast Quarter (SE/4) Section Eleven (11), Southwest Quarter (SW/4) Section Twelve (12); Northwest Quarter (NW/4) Section Thirteen (13), and Northeast Quarter (NE/4) Section Fourteen (14), Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., Logan County Colorado.

(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.

Rule 3.    That hereafter, the area described herein shall be known as Cause No. 64, the Dale-North Field.

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 Dale-North Field in the "J" sand, 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 18th day of March, 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