BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF SINCLAIR OIL & GAS COMPANY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSERVATION COMMIS-SION PROVIDING FOR TWENTY ACRE DRILLING AND SPACING UNITS ACCORDING TO THE GOVERN-MENTAL SURVEY THEREOF FOR THE DAKOTA 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 TOWN-SHIP 9 NORTH, RANGE 52 WEST, AND THE 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 KNOWN AS THE WEST PADRONI FIELD

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CAUSE NO. 8

 

ORDER NO. 8-1

 

APPEARANCES:

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

 

Loren L. Ware, Sinclair Oil & Gas Company, Tulsa, Oklahoma

 

L. Forse, Sinclair Oil and Gas Company, Tulsa, Oklahoma

 

George Selinger, Skelly Oil Company, Tulsa, Oklahoma

 

Cliff J. Nolte, Skelly Oil Company, Tulsa, Oklahoma

 

Mrs. Cecil F. Schaer, 2950 Fairfax Street, Denver, Colorado

 

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 July 7, 1952 at 10:00 A.M., at 330 State Office Building, Denver, Colorado, after publication of notice of hearing as required by law, on the application of Sinclair Oil and 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 Dakota Sand, common source of supply, underlying the SW¼ of Section 32 and the S½ of Section 31, Township 10 North, Range 52 West, and the W½ of Section 5 and all of Section 6 and the N/2 of Section 7 and the NW/4 of Section 8, all in Township 9 North, Range 52 West, and the S½ of Section 36, Township 10 North, Range 53 West, and all of Section 1 and the N½ of Section 12, Township 9 North, Range 53 West, all in Logan County, Colorado, which area is known as the West Padroni Field.

 

Applicant, Sinclair Oil and Gas Company, is the owner of oil and gas leases within the above described area and has heretofore completed its Arthur Sindt No. 3 well, located in the NW¼ SW¼ SE¼ of Section 6, Township 9 North, Range 52 West, and its Arthur Sindt No. 2 well, located in the NW¼ SE¼ SW¼ of Section 31, Township 10 North, Range 52 West, in the Dakota Sand common source of supply. The top of the Dakota is found at the approximate depth of 5,000 feet and the bottom at the approximate depth of 5,048 feet in the Sindt No. 3 well. The top of the Dakota Sand is found at the approximate depth of 5,064 feet and the bottom at the approximate depth of 5,111 feet in the Sindt No. 2 well. The Sindt No. 3 well is capable of producing eighty-six (86) barrels of oil per day and the Sindt No. 2 well is capable of producing seventy (70) barrels of oil per day. There is a very small amount of gas produced with the oil from the Dakota Sand and the Dakota Sand has an approximate porosity of 19% and an approximate average permeability of 425 millidarcies. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying twenty (20) acres in the Dakota Sand and that twenty (20) acres is not smaller than the maximum area which can be efficiently drained by one well producing from the Dakota 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 the Dakota Sand 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

N½

 

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 twenty (20) acre drilling and spacing units for the production of oil and gas from the said Dakota Sand, common source of supply, underlying said land as defined herein; that 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 ten acres and one in the center of the southeast ten acres of each quarter quarter section; and a tolerance of fifty (50) 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 said Dakota Sand in the West Padroni Field, indicate that one well should efficiently and economically drain an area of approximately twenty (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 Dakota Sand.

 

6.      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 Dakota Sand Pool of the West Padroni Field, Logan County, Colorado, as hereinabove defined in the FINDINGS, which by reference are made a part hereof, in addition 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 Dakota 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.

 

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 ten acres and one well in the center of the southeast ten 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 fifty feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous of expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said Dakota 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 Dakota 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 NW¼ of Section 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 sad regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Dakota Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than that authorized by this order, except as herein provided, is hereby prohibited.

 

ORDERED this 7th day of July, 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