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 DARBY CREEK FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 86

 

ORDER NO. 86-1

 

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 The British-American Oil Producing Company for an order from the Commission establishing forty (40) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the "D" sand underlying the Darby Creek Field, Logan 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 Logan County, Colorado, to-wit:

 

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

 

 

Section 17:  All

Section 20:  N/2

Section 21: W/2 NW/4

 

and is referred to as the Darby Creek 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 and gas from the "D" sand, common source of supply underlying the Darby Creek 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 all available geological and engineering data concerning the "D" sand, common source of supply in said Darby Creek Field indicate that one well will efficiently and economically drain an area of approximately forty (40) acres, and that drilling 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 "D" sand, common source of supply in said Darby Creek Field.

 

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 underlying the Darby Creek 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.    Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "D" sand formation, common source of supply underlying:

 

Section Seventeen (17), North Half (N/2) of Section Twenty (20), and West Half of the Northwest Quarter (W/2 NW/4) of Section Twenty-one (21), Township Ten (10) North, Range Fifty-three (53)West, 6th P.M., Logan County, Colorado,

 

and such area shall henceforth be known as the Darby Creek Field.

 

Rule 2.    That each governmental quarter-quarter section in the governmental survey shall constitute a drilling and spacing unit, and that the permitted well for each unit shall be located in the center of each quarter-quarter section in the governmental survey; that 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.

 

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 Darby Creek Field to the "D" sand, common source of supply 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