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 PAWNEE HILLS FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 97

 

ORDER NO. 97-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 11, 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 Skelly Oil Company for an order establishing a 480-acre drilling and spacing unit for the production of gas and gas distillate from the "D" sand of the Pawnee Hills Field in Logan County, Colorado.  At the hearing, the Skelly Oil Company amended its application to exclude the forty acres described as the Southeast quarter of the Northwest quarter of Section 11, thus decreasing the requested unit from 480 acres to 440 acres.

 

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 gas underlying the following described lands in a 440-acre unit in Logan County, Colorado, to-wit:

 

Township 7 North, Range 55 West, 6th P.M.

 

Section 11:  E/2, E/2-SW/4, NE/4 NW/4

 

and is known as the Pawnee Hills Field.

 

4.      That in order to prevent the drilling of unnecessary wells, an order should be made establishing one unit consisting of 440 acres for the entire productive area for the production of gas and gas distillate from the "D" sand, common source of supply underlying said land as defined herein; and that the permitted well should be the Phillips Petroleum Company's Arnold State "A" No. 1 well located in the Center of the Southwest quarter of the Northeast quarter (SW/4 NE/4) of Section 11, Township 7 N, Range 55 West, 6th P.M., Logan County, Colorado.

 

5.      That all available geological and engineering data concerning the "D" sand, common source of supply in said Pawnee Hills Field, indicate that one well will efficiently and economically drain an area of approximately 440 acres, and that a drilling unit of the size and shape hereinabove described is 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 Pawnee Hills Field.

 

6.      That the "D" sand reservoir of the Pawnee Hills Field is a gas reservoir, and that the operator and owner of the well capable of producing gas and gas distillate from the "D" sand of the Pawnee Hills Field should not produce gas unless:  (1) The gas so produced is marketed to supply domestic or municipal needs; (2) The gas so produced is required for lease develop-ment of operations and fuel.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that one unit is hereby established and shall consist of Four Hundred Forty (440) acres for the entire productive area, for the production of gas and gas distillate from the "D" sand, common source of supply underlying the following described lands, to-wit:

 

East Half (E/2), East Half of the Southwest Quarter (E/2 SW/4), and the Northeast Quarter of the Northwest Quarter (NE/4 NW/4) of Section Eleven (11), Township Seven (7) North, Range Fifty-five (55) West, 6th P.M., Logan County, Colorado,

 

and such area shall henceforth be known as the Pawnee Hills Field.

 

(a)

The permitted well for such unit shall be the Phillips Petroleum Company’s Arnold State "A" No. 1 well located in the Center of the Southwest Quarter of the Northeast Quarter (SW/4 NE/4) of Section Eleven (11), Township Seven (7) North, Range Fifty-five (55) West, 6th P.M., Logan County, Colorado.

 

IT IS FURTHER ORDERED, that the operator and owner of said well producing gas and gas distillate from the "D" sand of the Pawnee Hills Field shall not produce gas from said well unless:

 

(1)

The gas so produced is marketed to supply domestic or municipal needs;

 

 

(2)

The gas so produced is required for lease development or operations and fuel.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith.

 

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 12th day of December, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary