IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE PAWNEE CREEK FIELD, LOGAN COUNTY, COLORADO. Cause No. 68 Order No. 68-1

APPEARANCES:

George W. Selinger for Skelly Oil Company John Braden, Jr. - for Braden and Hoover Count Dunaway, per se Wilbur Rocchio, Assistant Attorney General, A.J. Jetsin, 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 June 20, 1955, at 10:00 A.M., in the Pine Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the application of the Skelly Oil Company for an order establishing Forty (40) acre drilling and spacing units, according to the govern-mental survey thereof, for the production of oil and gas from the "J" sand, common source of supply underlying the Pawnee Creek 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 haw.

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 Logan County, Colorado, to-wit:

Township 7 North, Range 54 West, 6th P.M. Section 2: N/2 Section 3: N/2 N/2

Township 8 North, Range 54 West, 6th P.M. Section 27: SE/4 Section 34: All, Section 35: All except NW/4 thereof

and is known as the Pawnee 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 unneces-sary wells, an order should be made establishing Forty (40) acre drilling and spacing units for the production of oil from the said "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.

5. That all available geological and engineering data concerning the "J" sand, common source of supply in said Pawnee Creek Field, indicate that one well will ef-ficiently and economically drain an area of approximately Forty (40) acres, and that drill-ing 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 Pawnee Creek Field.

6. That an exception should be allowed for the Crown Oil Company's No. 2 State well located in the Northwest Quarter of the Northwest Quarter of the Southeast Quar-ter (NW/4 NW/4 SE/4) of Section Thirty-five (35), Township Eight (8) North, Range Fifty-four (54) West of the 6th P.M., and that said well should be the permitted oil 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 "J" sand underlying the Pawnee 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 Com-mission, if any, heretofore adopted and not in conflict herewith:

Rule 1 and such area shall henceforth be known as the Pawnee Creek 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, 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 govern-mental quarter section.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Crown Oil Company's No. 2 State well, located in the Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Thirty-five (35), Township Eight (8) North, Range Fifty-four (54) West of the 6th P.M., and that said well shall be the permitted oil well for the drilling and spacing unit upon which it is located.

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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 "J" sand, as defined herein, for the purpose of producing oil and gas therefrom, at a location other than authorized by this Orders 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 regu-lations.

ORDERED this 21st day of June, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Annabel Hogsett, Secretary

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