70-1

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 PINNEO FIELD MORGAN COUNTY, COLORADO

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CAUSE NO. 70

ORDER NO. 70-1

APPEARANCES:

Martin Hegglund	- for the Stanolind Oil and Gas Company
John Moore	- for The Texas Company
N. H. Williamson	- for British-American Oil Producing Co.
W. G. Sanford	- for the Sanford Production Company
Wilbur Rocchio, Assistant Attorney General
Sam Freeman, 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 July 13, 1955, at 10:00 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Stanolind Oil and Gas Company for an order establishing 40-acre drilling and spacing units for the production of oil, and 320-acre drilling and spacing units for the production of gas from the "D" sand, common source of supply underlying the Pinneo Field, Morgan 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 Morgan County, Colorado, to-wit:

Township 2 North, Range 55 West, 6th P.M.

Sections Three (3), Four (4), Nine (9), Ten (10), Fifteen (15), and Sixteen (16)

and is referred to as the Pinneo 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" sand, common source of supply underlying the Pinneo 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 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 Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from the said "D" sand, common source of supply underlying said land, as defined herein, that said units should be Three Hundred Twenty (320) acre drilling and spacing units according to the governmental survey thereof, and that the permitted gas well should be located not less than One Thousand Nine Hundred Eighty (1980) feet from either short side of the drilling unit nor less than Six Hundred Sixty (660) feet from either long side of the drilling unit upon which it is located.

6. That all available geological and engineering data concerning the said "D" sand in said Pinneo Field indicate that one well should efficiently and economically drain an area of approximately forty (40) acres as to oil; and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one oil well producing from the said "D" sand, common source of supply.

7. That all available geological and engineering data concerning the said "D" sand in said Pinneo Field indicate that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) acres as to gas, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one gas well producing from the said "D" sand, common source of supply.

8. That an exception should be allowed for the Sanford No. 1 Atkinson well located in the Southwest Quarter of the Southwest Quarter of the Southwest Quarter (SW/4SW/4SW/4) of Section Ten (10), Township Two (2) North, Range Fifty-five (55) West of the 6th P.M., Morgan 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" sand underlying the Pinneo 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. The following 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 Three (3), Four (4), Nine (9), Ten (10), Fifteen (15), and Sixteen (16), Township Two (2) North, Range Fifty-five (55) West of the 6th P.M., Morgan County, Colorado,

and such area shall henceforth be known as the Pinneo Field.

(a) Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil. The permitted well or each unit shall be located in the center of each quarter-quarter section in the governmental survey, and 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.

(b) Three Hundred Twenty (320) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas. The permitted gas well shall be located not less than One Thousand Nine Hundred Eighty (1980) feet from either short side of the drilling unit, nor less than Six Hundred Sixty (660) feet from either long side of the drilling unit upon which it is located.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Sanford No. 1 Atkinson well located in the Southwest Quarter of the Southwest Quarter of the Southwest Quarter (SW/4SW/4SW/4) of Section Ten (10), Township Two (2) North, Range Fifty-five (55) West of the Sixth (6th) P.M., Morgan 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 "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 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 13th day of July, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary