85-1

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE COTTON VALLEY FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 85

ORDER NO. 85-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 20, 1956, 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 Halbert, Jennings and Simic, a partnership, and Don M. Rounds, for an order from the Commission establishing forty-acre drilling and spacing units for the production of oil from the "D" sand, and One Hundred Sixty acre drilling and spacing units for the production of gas from the "J" sand, all in the Cotton Valley Field, Weld 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 formation constitutes a common source of supply of oil, and the "J" sand formation constitutes a common source of supply of gas, all underlying the following described lands in Weld County, Colorado, to-wit:

Township 9 North Range 56 West, 6th P.M.

Section 8: S/2	Section 16: NW/4
Section 9: SW/4	Section 17: N/2

and is referred to as the Cotton Valley Field.

4. That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act, 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 from the "D" sand, common source of supply underlying the Cotton Valley Field described above; that said units should be forty (40) acre drilling and spacing units according to the government 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 Oil and Gas Conservation Act, and to prevent the drilling of unnecessary wells, an order should be made establishing One Hundred Sixty (160) acre drilling and spacing units for the production of gas from the "J" sand, common source of supply underlying said land, as described herein; that said units should be a quarter section of land contained within one section, according to the governmental survey thereof, and that the permitted gas well should be located not less than Six Hundred Sixty (660) feet from any drilling unit line contained in each said One Hundred Sixty (160) acre unit, according to the governmental survey thereof.

6. That all available geological and engineering data concerning the said "D" sand in said Cotton Valley 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 "J" sand in said Cotton Valley Field indicate that one well should efficiently and economically drain an area of approximately One Hundred Sixty (160) 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 "J" sand, common source of supply.

8. That exceptions should be allowed for two wells drilled on the following described locations:

1.	L.L. Gage #A-1 State well - located in the Center of the West Half of the Northwest Quarter of the Northwest Quarter (W/2 NW/4 NW/4) of Section Sixteen (16), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M.

2.	L.L. Gage #A-2 State well - located in the Center of the Northwest Quarter of the Southwest Quarter of the Northwest Quarter (NW/4 SW/4 NW/4), Section Sixteen (16), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M.

and that said wells should be the permitted wells for the drilling and spacing units upon which they are located.

9. That an exception should be allowed for a well to be located in the Center of the Northeast Quarter of the Southeast Quarter of the Northeast Quarter (NE/4 SE/4 NE/4) of Section Seventeen (17), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M., and that said well should be the permitted 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" and "J" sand formations underlying the Cotton Valley 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" and "J" sands, common sources of supply underlying:

South Half (S/2) of Section Eight (8), Southwest Quarter (SW/4) of Section Nine (9), Northwest Quarter (NW/4) of Section Sixteen (16), and North Half (N/2) of Section Seventeen (17), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M., Weld County, Colorado,

and such area shall henceforth be known as the Cotton Valley Field.

(a) Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil from the "D" sand. The permitted well for 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 to avoid surface hazards and obstructions.

(b) One Hundred Sixty (160) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas from the "J" sand, and said unit shall be a quarter section of land contained within one section, according to the governmental survey thereof. The permitted gas well shall be located not closer than Six Hundred Sixty (660) feet from any drilling unit line contained in each said One Hundred Sixty (160) acre unit, according to the governmental survey thereof.

IT IS FURTHER ORDERED, that exceptions are hereby allowed for the following wells:

1.	L.L. Gage #A-1 State well - located in the Center of the West Half of the Northwest Quarter of the Northwest Quarter (W/2 NW/4 NW/4) of Section Sixteen (16), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M.

2.	L.L. Gage #A-2 State well - located in the Center of the Northwest Quarter of the Southwest Quarter of the Northwest Quarter (NW/4 SW/4 NW/4), Section Sixteen (16), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M.

and that said wells shall be the permitted wells for the drilling and spacing units upon which they are located.

IT IS FURTHER ORDERED, that an exception shall be granted for a well to be located in the Center of the Northeast Quarter of the Southeast Quarter of the Northeast Quarter (NE/4 SE/4 NE/4) of Section Seventeen (17), Township Nine (9) North, Range Fifty-six (56) West, 6th P.M., and that said well shall be the permitted 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 commencement of the drilling of any well or wells in the "D" and "J" sands, 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 20th day of March, 1956.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary