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 ALKALI GULCH FIELD, LA PLATA COUNTY, COLORADO

)

)

)

)

CAUSE NO. 106

 

ORDER NO. 106-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 16, 1978 at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Houston Oil & Minerals Corporation for an order granting an exception to the permitted well location as established by Order No. 106-1.

 

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 on August 20, 1957, the Commission issued its Order No. 106-1 for the Alkali Gulch Field which, among other things, established 640-acre drilling and spacing units for the production of gas from the Paradox member of the Hermosa formation.  The units consist of a governmental section with the permitted well located no closer than 1320 feet from the section line, and no closer than 330 feet from the quarter section lines of each section.

 

4.      That evidence presented at the hearing indicates that due to geological conditions, the requirements to drill a well at the authorized location would be inequitable and unreasonable; therefore, an exception to the permitted well location for the spaced area of the Alkali Gulch Field should be granted for a well to be drilled 702 feet from the south line and 660 feet from the west line of Section 22, Township 34 North, Range 12 West, N.M.P.M.

 

5.      That if a commercial well is drilled on the location as set forth in Finding 4 herein instead of on a location as provided for in Order No. 106-1, the Commission should, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for by Order No. 106-1, Alkali Gulch Field, La Plata County, Colorado, is hereby granted for a well to be drilled at a location 702 feet from the south line and 660 feet from the west line of Section 22, Township 34 North, Range 12 West, N.M.P.M., and that it be the permitted well for the unit upon which it is located.  However, should a commercial well be drilled at the location as set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

 

IT IS FURTHER ORDERED, that the above order shall become effective forthwith.

 

ORDERED this 16th day of January, 1978.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary