112-38

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULATION AND ESTABLISHMENTS 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. 112-38

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 15, 1979 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 Ladd Petroleum Corporation, for an order authorizing the drilling of additional wells for the production of gas from the Mesaverde formation in each of the drilling and spacing units consisting of the E½ and W½ Section 31, Township 34 North, Range 9 West and the S½ Section 2 and the S½ Section 10, Township 32 North, Range 10 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado.

FINDINGS

The Commission finds as follows:

1. Ladd Petroleum Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. 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.

4. 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. The units consist of the N½ and S½ or the E½ and W½ of each full section, with the permitted well located in the NE¼ and the SW¼ of the section, when south of the north line of Township 32 North, and in the NW¼ and SE¼ of the section when north of the north line of Township 32 North and no closer than 990 feet from the boundaries of the quarter section upon which it is located.

5. There is a well producing gas from the Mesaverde formation at the permitted well locations on each of the units consisting of the E½ and W½ Section 31, Township 34 North, Range 9 West, and the S½ Section 2 and the S½ Section 10, Township 32 North, Range 10 West, N.M.P.M., Ignacio-Blanco Field, La Plata County, Colorado.

6. Evidence presented at the hearing indicated that one well is insufficient to adequately drain the gas from that part of the reservoir underlying the units described herein, and the drilling of an additional well on each such drilling and spacing unit will result in greater ultimate recovery of the gas reserves and prevent waste; therefore, the application requests authorization to drill additional wells at the following locations:

Township 34 North, Range 9 West, N.M.P.M.
	Section 31: SW¼, NE¼

Township 32 North, Range 10 West, N.M.P.M.
	Section 2: SE¼
	Section 10: SE¼

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well for the production of gas from the Mesaverde formation is hereby authorized to be drilled on each drilling and spacing unit at locations described as follows:

Township 34 North, Range 9 West, N.M.P.M.
	Section 31: SW¼ (Unit W½)
	NE¼ (Unit E½)

Township 32 North, Range 10 West, N.M.P.M.
	Section 2: SE¼ (Unit S½)
	Section 10: SE¼ (Unit S½)

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

ORDERED this 15th day of January, 1979.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary