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" SAND OF THE SURVEYOR CREEK FIELD, WASHINGTON COUNTY, COLORADO.

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CAUSE NO. 76

 

ORDER NO. 76-1

 

APPEARANCES:

 

Walter E. Will, Esq., for The Texas Company

John R. Moran, Esq., for the Skelly Oil Company

L.A. Ogden, for the Pure Oil Company

John Stanford, Esq., for the Sinclair Oil & Gas Company

Al Ward, pro se

R. B. Giles, for the Stanolind Oil & Gas Company

Sam Freeman, Esq., and

A. J. Jersin, Deputy Director, for the Oil and Gas Conservation Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 11, 1955 at 10:00 a.m., House of Representatives, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Texas Company for an order establishing 320-acre drilling and spacing units, according to the governmental survey thereof, for the "D" sand in the Surveyor Creek Field, Washington 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 gas underlying the following described lands in Washington County, Colorado, to-wit:

Township 2 North, Range 52 West, 6th P.M.

 

 

Section 15:  All

Section 27:  All

Section 16:  All

Section 28:  All

Section 17:  All

Section 29:  All

Section 20:  All

Section 32:  N/2

Section 21:  All

Section 33:  N/2

Section 22:  All

Section 34: N/2

and is referred to as the Surveyor Creek Field.

4.      That in order to prevent waste of gas, as defined in the Oil and Gas Conservation Act, 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 formation, common source of supply underlying said land, as defined herein; that said units should consist of Three Hundred Twenty 320) acres, and that each unit should be the North Half (N/2) or the South Half (S/2) of any section lying within the area to be spaced; and the permitted well should be located not less than Six Hundred Sixty (660) feet from the long sides nor less than Nineteen Hundred Eighty (1980) feet from the short sides of the drilling unit upon which it is located, and in the center of a quarter quarter section, with a tolerance of One Hundred (100) feet from the prescribed location toward the center of the drilling unit to avoid surface hazards and obstructions.

5.      That all available geological and engineering data concerning said "D" sand formation in the Surveyor Creek Field indicate that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) acres, and that units of the size and shape as set forth in Finding 4 are not smaller than the maximum area that can be efficiently drained by one well producing from the said "D" sand formation.

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 formation of the Surveyor Creek Field in Washington County, Colorado, as hereinabove 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.    Three Hundred Twenty (320) acre drilling and spacing units shall be, and the same hereby established for the production of gas from the "D" sand formation, common source of supply underlying:

Sections Fifteen (15), Sixteen (16), Seventeen (17), Twenty (20), Twenty-one (21), Twenty-two (22), Twenty-seven (27), Twenty-eight (28) and Twenty-nine (29), and North Half (N/2) of Section Thirty-two (32), North Half (N/2) of Section Thirty-three (33), and North Half (N/2) of Section Thirty-four (34), all in Township Two (2) North, Range Fifty-two (52) West of the 6th P.M., Washington County, Colorado, and such area shall henceforth be known as the Surveyor Creek Field.

Rule 2.    That in order to prevent waste of gas, as defined in the Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells, an order shall be made establishing Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from the said "D" sand formation, common source of supply underlying said land, as defined herein; that said units shall consist of Three Hundred Twenty (320) acres, and that each unit shall be the North Half (N/2) or the South Half (S/2) of any section lying within the area to be spaced; and the permitted well shall be located not less than Six Hundred Sixty (660) feet from the long sides nor less than Nineteen Hundred Eighty (1980) feet from the short sides of the drilling unit upon which it is located, and in the center of a quarter quarter section, with a tolerance of One Hundred (100) feet from the prescribed location toward the center of the drilling unit to avoid surface hazards and obstructions.

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 formation, as defined herein, for the purpose of producing 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 11th day of October, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary