67-1

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" AND "J" SANDS OF THE MUDDY CREEK FIELD, ADAMS COUNTY, COLORADO.

)

CAUSE NO. 67

ORDER NO. 67-1

APPEARANCES:

John R. Moran, attorney, and
Don W. Conaway	- for British-American Oil Producing Co.
Roscoe Walker, Jr.	- for Pubco Development, Inc.
John Stanford, and
W. A. Bald	- for Sinclair Oil & Gas Company
W. H. Fraser	- for Superior 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 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 British-American Oil Producing 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" and "J" sands, common sources of supply underlying the Muddy Creek Field, Adams 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. The "D" and "J" sands constitute common sources of supply of oil and gas underlying the following described lands in Adams County, Colorado, to-wit:

Township 1 South, Range 59 West, 6th P.M.

Section 21: S/2	Section 27: All
Section 22: S/2	Section 28: All
Section 23: S/4	Section 33: All
Section 26: W/2	Section 34: All
Section 35: NW/4

which area was advertised for hearing under the name of Big Muddy Field, but should be referred to as the Muddy 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 "D" and "J" sands, common sources of supply underlying the Muddy 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 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" and "J" sands, common sources of supply in said Muddy 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 "D" and "J" sands, common sources of supply in said Muddy Creek Field.

6. That an exception should be allowed for the British-American Oil Producing Company's Union Pacific R.R. "G" No. 1 well located in the Northeast Quarter of the Northeast Quarter of the Southeast Quarter (NE/4 NE/4 SE/4) of Section Twenty-seven (27), Township One (1) South, Range Fifty-nine (59) West of the 6th P.M., Adams County, Colorado, and that said well should be the permitted oil or gas well for the drilling and spacing unit upon which it is located.

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" and "J" sand formations underlying the Muddy Creek Field, herein described in the Findings, which, by references 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" and "J" sand formations, common sources of supply underlying:

South Half (S/2) of Sections Twenty-one (21) and Twenty-two (22), the Southwest Quarter (SW/4) of Section Twenty-three (23), the West Half (W/2) of Section Twenty-six (26), the Northwest Quarter (NW/4) Section Thirty-five (35), and all of Sections Twenty-seven (27), Twenty-eight (28), Thirty-three (33), and Thirty-four (34), Township One (1) South, Range Fifty-nine (59) West of the 6th P.M., Adams County, Colorado,

and such area shall henceforth be known as the Muddy 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 Muddy Creek Field, "D" and "J" sands, common sources 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 "D" and "J" sands, common sources of supply.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the British-American Oil Producing Company's Union Pacific R. R. "G" No. 1 well located in the Northeast Quarter of the Northeast Quarter of the Southeast Quarter (NE/4 NE/4 SE/4) of Section Twenty-seven (27), Township One (1) South, Range Fifty-nine (59) West of the 6th P.M., Adams County, Colorado, and that said well shall be the permitted oil or gas well for the drilling and spacing unit upon which it is located.

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 Muddy Creek Field to the "D" and "J" sands, common sources 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 12th day of May, 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