BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF SINCLAIR & GAS COMPANY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION PROVID-ING FOR TWENTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERNMENTAL SURVEY THEREOF FOR THE MUDDY SAND, OFTEN REFERRED TO AS THE "J" SAND, COMMON SOURCE OF SUPPLY UNDERLYING THE SW¼ OF SECTION 32 AND S½ OF SECTION 31 - TOWNSHIP 10 NORTH, RANGE 52 WEST, AND W½ OF SECTION 5 AND ALL OF SECTION 6 AND N½ OF SECTION 7 AND NW¼ OF SECTION 8 - ALL IN TOWNSHIP 9 NORTH, RANGE 52 WEST, AND S½ OF SECTION 36, TOWNSHIP 10 NORTH, RANGE 53 WEST, AND ALL OF SECTION 1 AND N½ OF SECTION 12 - TOWNSHIP 9 NORTH, RANGE 53 WEST - ALL IN LOGAN COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE PARKE FIELD

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CAUSE NO. 7

 

ORDER NO. 7-1

 

APPEARANCES:

Akolt, Campbell, Turnquist & Shepherd by John P. Akolt, Attorney, and

 

G.D. Almen, Jr., Attorney, for applicant Sinclair Oil & Gas Company;

 

George Selinger, for Skelly Oil Company;

 

Ralph Sargent, Jr., Assistant Attorney General;

 

Wilbur Rocchio, Assistant Attorney General; and

 

J.J. Zorichak, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 15, 1952, at ten o'clock A.M., at 1280 Sherman Street, Denver, Colorado, after publication of notice of hearing as required by law on the application of Sinclair Oil & Gas Company for an order from the Commission establishing twenty (20) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Muddy Sand, often referred to as the "J" Sand, common source of supply underlying the SW¼ of Section 32 and S½ of Section 31, Township 10 North, Range 52 West, and W½ of Section 5, and all of Section 6, and N½ of Section 7 and NW¼ of Section 8, all in Township 9 North, Range 52 West, and S½ of Section 36, Township 10 North, Range 53 West, and all of Section 1 and N½ of Section 12, Township 9 North, Range 53 West, all in Logan County, Colorado, which area is referred to in the said application as the Parke Field.

 

Applicant, Sinclair Oil & Gas Company, is the owner of oil and gas leases within the above described area and has heretofore completed its Francis Parke Nos. 1 and 2 wells, both of which are located in the NW¼ NE¼ of Section 6, Township 9 North, Range 52 West, 6th P.M., in the Muddy Sand, the top of which found at the approximate depth of 4775 feet and the bottom at the approximate depth of 4855 feet below the surface. The Parke No. 1 well is capable of producing 300 barrels of oil per day, and the Parke No. 2 well is capable of producing in excess of 100 barrels of oil per day. There is a very small amount of gas produced with the oil from the Muddy Sand, and the Muddy Sand has an approximate porosity of 18% and an approximate average permeability of 150 millidarcies. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying 20 acres in the Muddy Sand, and that 20 acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Muddy Sand.

 

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 there has heretofore been some confusion as to the name of the area sought to be spaced in that it has been referred to in the application and by some as the "Parke Field", by others as the "Paroni Field", by still others as the "Padroni Field" and by still others as the "West Padroni Field; that, in order to prevent further confusion with respect to the name of the field, the Commission should adopt the name of "West Padroni Field" for the identification of this Field.

 

4.      That the Muddy Sand pool, sometimes referred to as the "J" Sand Pool in the West Padroni Field, as used herein, constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado:

 

Township 10 North, Range 52 West, 6th P.M., Logan County:

Section 32

SW¼

Section 31

S½

 

 

Township 9 North, Range 52 West, 6th P.M., Logan County:

 

 

Section 5

W½

Section 6

All

Section 7

N½

Section 8

NW¼

 

 

Township 10 North, Range 53 West, 6th P.M., Logan County:

 

 

Section 36

S½

 

 

Township 9 North, Range 53 West, 6th P.M., Logan County:

Section 1

All

Section 12

N/2

 

5.      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 twenty (20) acre drilling and spacing units for the production of oil and gas from the said Muddy Sand Pool, or "J" Sand Pool, common source of supply underlying said land, as defined herein; that said units should be formed by a line running north and south through the center of each quarter quarter section, according to the governmental survey thereof, and the permitted wells should be located one in the center of the northwest 10 acres and one in the center of the southeast 10 acres of each quarter quarter section; and a tolerance of 50 feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

6.      That all available geological and engineering data concerning the said Muddy Sand Pool, or "J" Sand Pool in said West Padroni Field, indicate that one well should efficiently and economically drain an area of approximately 20 acres, and that 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 Muddy Sand Pool, or "J" Sand Pool.

 

7.      That an exception should be allowed for the Skelly Oil Company No. 1 J. W. Richerson well located in the center of the NE¼ NE¼ NW¼ of Section 6, Township 9 North, Range 52 West, 6th P.M., Logan County, and that said well should be the permitted well for the unit on which it is located.

 

ORDER

 

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Muddy Sand Pool, sometimes referred to as this "J" Sand Pool, of the West Padroni Field, Logan County, as hereabove [sic] defined 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.    Twenty (20) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Muddy Sand Pool, sometimes referred to as the "J" Sand Pool, common source of supply underlying the SW¼ of Section 32 and the S½ of Section 31, Township 10 North, Range 52 West, 6th P.M., and the W½ of Section 5, and all of Section 6, and the N½ of Section 7 and the NW¼ of Section 8, all in Township 9 North, Range 52 West, 6th P.M., and the S½ of Section 36, Township 10 North, Range 53 West, 6th P.M., and all of Section 1, and the N½ of Section 12, Township 9 North, Range 53 West, 6th P.M., all in Logan County, Colorado, all as shown by Exhibit "A", a map attached hereto, which, by reference, is made a part hereof, and such area shall henceforth be known as the West Padroni Field.

 

Rule 2.    The said units shall be formed by a line running north and south through the center of each governmental quarter quarter section, and the permitted wells for each unit shall be located one well in the center of the northwest 10 acres and one well in the center of the southeast 10 acres of each quarter quarter section, all as shown by Exhibit "A", a map attached hereto, which, by reference, is made a part hereof, and that a tolerance of 50 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, the said Muddy Sand Pool or "J" Sand Pool, in the West Padroni Field, Logan County, Colorado, 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 said Muddy Sand Pool or "J" Sand Pool, common source of supply.

 

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Skelly Oil Company J. W. Richerson No. 1 well located in the NE¼ NE¼ N/4 of Section 6, Township 9 North, Range 52 West, 6th P.M., and said well shall be the permitted well for the unit on which it is located, and no other well shall be drilled to said sand on said unit.

 

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 Sand Pool, or "J" Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, except as herein provided, is hereby prohibited.

 

ORDERED this 15th day of April, 1952, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  John E. Cronin, Secretary