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	) ) ) )	CAUSE NO. 112 ORDER NO. 112-31

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 17, 1977 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 Jerome B. McHugh, for an order authorizing the drilling of an additional well for the production of gas from the Mesaverde formation in the drilling and spacing unit consisting of the E½E½ of Section 19 and the W½ of Section 20, Township 32 North, Range 7 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado.

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 November 9, 1959, the Commission issued its Order No. 112-6 which, among other things, established 320-acre drilling and spacing units for the production of gas from the Mesaverde formation, each unit being the N½ and the S½ of each section with the permitted well for each unit located in the NW¼ and the SE¼ of the section and no closer than 990 feet from the boundaries of the quarter section upon which it is located.  Because of fractional sections surveyed lying adjacent to the Colorado-New Mexico boundary, the E½E½ Section 19 and the W½ Section 20, Township 32 North, Range 7 West, N.M.P.M. was design-nated as a drilling and spacing unit.

4.      That there is a well producing gas from the Mesaverde formation on said unit located in the NW¼ of said Section 20.

5.      That evidence presented at the hearing indicates that one well is insufficient to adequately drain the gas from that part of the reservoir underlying the drilling and spacing unit described herein, therefore an additional well should be authorized to be drilled in the unit consisting of the E½E½ Section 19 and the W½ Section 20, Township 32 North, Range 7 West, N.M.P.M. and located in the SW¼ of said Section 20, and no closer than 990 feet to the boundaries of said drilling and spacing unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well for production of gas from the Mesaverde formation is hereby authorized to be drilled in the drilling and spacing unit consisting of the E½E½ Section 19 and the W½ Section 20, Township 32 North, Range 7 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado, and that such well shall be located in the SW¼ of said Section 20 and no closer than 990 feet to the boundaries of said drilling and spacing unit.

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

ORDERED this 17th day of January, 1977.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary