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 ATWOOD-EAST FIELD, LOGAN COUNTY, COLORADO.

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CAUSE NO. 65

 

ORDER NO. 65-1

            APPEARANCES:

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

W.H. Fraser                         - for Superior Oil Company

Martin Hegglund                  - for Stanolind Oil & Gas Company

Wilbur Rocchio, Assistant Attorney,

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 May 12, 1955, at 10:00 a.m., in the Mezzanine Room of the Shirley Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil 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 "D" sand, common source of supply underlying the Atwood-East 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 the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, to-wit:

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

 

 

Sections 1 and 2:

All

 

 

 

Township 7 North, Range 53 West, 6th PM.

 

 

Section 23:  S/2

Section 26:  All

Section 24:  S/2

Section 35:  All

Section 25:  All

Section 36:  All

and is referred to as the Atwood-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 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, lot line, or Governmental [sic] quarter-quarter section line; that the oil wells heretofore drilled should be the permitted oil wells for the units on which they are located and that no other oil wells should be drilled to and produced from said sand on said units.

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

6.      That the Town of Atwood, Colorado, is located within the area herein spaced, and that there may be common rules, regulations, or ordinances of the Town of Atwood restricting the drilling of wells for the production of oil or gas within said town, and therefore this Order should be subject to such rules, regulations and ordinances of the Town of Atwood applicable to the drilling of wells for the production of oil or gas.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand underlying the Atwood-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 One (1) and Two (2), Township Six (6) North, Range Fifty-three (53) West of the 6th P.M.; and Sections Twenty-five (25), Twenty-six (26), Thirty-five (35), and Thirty-six (36), and the South Half (S/2) of Sections Twenty-three (23) and Twenty-four (24), Township Seven (7) North, Range Fifty-three (53) West of the 6th P.M., all in Logan County, Colorado,

and such area shall henceforth be known as the Atwood-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, lot line, or Governmental [sic] quarter-quarter section line; that the oil wells heretofore drilled shall be the permitted oil wells for the units on which they are located; and that no other oil wells shall be drilled to and produced from said sand on said units.

IT IS FURTHER ORDERED, that this Order is subject to any rules, regulations or ordinances of the Town of Atwood, Colorado, applicable to the drilling and production of oil or gas wells within the town.

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 "D" 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 by order of the Commission, after due notice and hearing, said Atwood-East 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 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 May, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary