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 McRAE FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 99

 

ORDER NO. 99-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 18, 1956, at 10:00 a.m., in the Centennial Room of the Shirley-Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of R.S. Troost, president of R.S. Troost, Inc., a Colorado corporation, for an exception to Rule 317 of the Rules and Regulations of The Oil and Gas Conservation Commission of the State of Colorado, for wells to be drilled in the Southeast corner of the Southwest quarter of the Southeast quarter of Section 14, Township 1 North, Range 55 West; and in the Southeast corner of the Northwest quarter of the Southeast quarter of Section 14, Township 1 North, Range 55 West, Morgan County, Colorado.  This cause was originally set for December 11, 1956, at which time it was continued to December 18, 1956.

 

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 Morgan County, Colorado, to-wit:

 

Township 1 North, Range 55 West, 6th P.M.

 

Sections 14 and 23

 

and is known as the McRae Field.

 

4.      That the "J" sand reservoir of the McRae Field was extensively developed prior to the adoption of the present rules and regulations which became effective April 30, 1956, and that continued development of the said common source of supply should be conducted under drilling and spacing regulations similar to the regulations in force while such field was being developed.

 

5.      That the provisions of Finding No. 4 eliminate the necessity of granting exceptions to Rule 317 of the Rules and Regulations of The Oil and Gas Conservation Commission of the State of Colorado, as requested by Applicant.

 

6.      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-acre drilling and spacing units for the production of oil and gas from the said "J" sand, common source of supply underlying said land as defined herein; that said units should be forty-acre drilling and spacing units according to the governmental survey thereof, and that the permitted oil well for each unit should be located not less than Three Hundred Thirty (330) feet from any drilling unit line.

 

7.      That all available geological and engineering data concerning the "J" sand, common source of supply in said McRae Field, indicate that one well will efficiently and economically drain an area of approximately forty 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 McRae 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 underlying the McRae 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, common source of supply underlying:

 

Sections Fourteen (14) and Twenty-three (23), Township One (1) North, Range Fifty-five (55) West, 6th P.M., Morgan County. Colorado,

 

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

 

(a)        The permitted oil well for each unit shall be located not less than Three Hundred Thirty (330) feet from any drilling unit line.

 

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 "J" sand 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 19th day of December, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary