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 "J" SAND OF THE BEALL CREEK FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 89

 

ORDER NO. 89-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 23, 1956, at 2:00 p.m., in the Senate Chambers of the State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order from the Commission establishing forty-acre drilling and spacing units for the production of oil and gas from the "J" sand in the Beall 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 "J" 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 23:

All

Section 24:

All

Section 25:

All

Section 26:

N/2, N/2 SE/4

 

and is referred to as the Beall 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 "J" sand, common source of supply underlying the Beall 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 "J" sand common source of supply in said Beall 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 "J" sand, common source of supply in said Beall 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 "J" sand formation underlying the Beall 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 "J" sand formation, common source of supply underlying:

 

Sections Twenty-three (23), Twenty-four (24), Twenty-five (25), and the North Half (N/2) and North Half of the Southeast Quarter (N/2 SE/4) of Section Twenty-six (26), Township Ten (10) North, Range Fifty-three (53) West of the Sixth (6th) P.M., Logan County, Colorado,

 

and such area shall henceforth be known as the Beall 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 Beall Creek Field to the "J" 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 23rd day of April, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary