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 IGNACIO-BLANCO FIELD, LA PLATA AND ARCHULETA COUNTIES, COLORADO

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CAUSE NO. 112

 

ORDER NO. 112-27

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 17, 1968, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after publication of Notice of Hearing and proper service or appropriate waiver thereof, all as required by law, on the application of W.M. Gallaway for an order requiring the pooling of tracts of land lying within a 640-acre drilling unit established by Order No, 112-6.

 

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 by its Order No. 112-6, the Commission established a drilling unit of approximately 640 acres for the production of gas and the development of the Dakota-Morrison formation underlying said unit which is comprised of Section 6, Township 32 North, Range 9 West, N.M.P.M., La Plata County, Colorado.

 

4.      That reasonable effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all, owners of interests in said unit for the voluntary pooling thereof.

 

5.      That Applicant is an interested person within the meaning of 100-6-4 (6) of the Oil and Gas Conservation Act of the State of' Colorado.

 

6.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, and to conform with the previously issued order of the Commission establishing 640-acre drilling units for the production of gas from the Dakota-Morrison formation underlying said lands, an order should be made pooling all interests in the 640-acre drilling unit described herein.

7.      That an order of the Commission pooling all interests in

 said drilling unit is necessary, just, and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

 

8.      That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that, pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as Section 6, Township 32 North, Range 9 West, N.M.P.M., La Plata County, Colorado, are hereby pooled for the development and operation of said drilling unit.

 

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located or to be located on said drilling units applicable to his interest in said drilling unit.

 

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

 

ORDERED this 17th day of December 1968.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary