90-1

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 "D" AND "J" SANDS OF THE ORCHARD FIELD, MORGAN COUNTY, COLORADO

)

CAUSE NO. 90

ORDER NO. 90-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 15, 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 F. Landauer for an order establishing 40-acre spacing units for the production of oil and gas from the "D" and "J" sands of the Orchard Field, and providing that the location of wells be in the center of the Northwest Quarter of each 40-acre drilling unit in said Orchard Field, Morgan County, Colorado. At the above hearing, Petitioner amended said application to exclude Sections Fourteen (14), Fifteen (15) and Sixteen (16).

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" and "J" sands constitute common sources of supply of oil and gas underlying the following described lands in Morgan County, Colorado, to-wit:

Township 4 North, Range 60 West, 6th P.M.

Sections 1, 2, 3, 4, 9, 10 and 11

and such area is referred to as the Orchard Field.

4. That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act of 1955; 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 said "D" and "J" sands, common sources of supply underlying said land, as defined herein; that said units should be forty (40) acre drilling and spacing units according to the governmental survey thereof, and that the permitted oil well for each unit should be located as follows:

Sections One (1), Two (2) and Eleven (11) - In the Center of the Northwest ten (10) acres in the governmental survey thereof, 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.

Sections Three (3), Four (4), Nine (9) and Ten (10) - In the Center of each quarter-quarter section in the governmental survey; and that a tolerance of One Hundred Fifty (150) feet in any direction from the prescribed location should be permitted, except that if the location falls in the river bed, a tolerance of Two Hundred (200) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

5. That all wells drilled, and all locations approved by the Commission prior to May 15, 1956, should be the permitted wells or locations for the respective drilling units.

6. That all available geological and engineering data concerning the "D" and "J" sands, common sources of supply in said Orchard 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" and "J" sands, common sources of supply in said Orchard 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" and "J" sands underlying the Orchard 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 net 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" and "J" sands, common sources of supply underlying:

Sections One (1), Two (2), Three (3), Four (4), Nine (9), Ten (10) and Eleven (11), Township Four (4) North, Range Sixty (60) West, 6th P.M., Morgan County, Colorado,

and such area shall henceforth be known as the Orchard Field.

(a) The permitted well for each unit shall be located as follows:

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to May 15, 1956, shall be the permitted wells or locations for the respective drilling units.

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" 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 15th day of May, 1956.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary