112-59

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 COUNTY, COLORADO

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CAUSE NO. 112

ORDER NO. 112-59

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 12, 1988 at 9:00 a.m. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado on the verified application of Carbon River Energy Partnership, for an order allowing an additional well to be drilled in the NW1/4 of Section 1, Township 32 North, Range 10 West, N.M.P.M. for the production of coal seam gas from the Fruitland formation in the Ignacio Blanco Field as spaced by Order No. 112-6 as amended by Order No. 112-46.

FINDINGS

The Commission finds as follows:

1. Carbon River Partnership 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 the notice of the aforesaid hearing, and of the parties interested therein, as well as jurisdiction to promulgate the hereinafter prescribed order.

4. On July 16, 1979, the Commission authorized Order No. 112-46 which amended Order No. 112-6 allowing two wells located on a quarter section of a 320-acre drilling and spacing unit, for the production of gas and associated hydrocarbons from the Fruitland-Pictured Cliffs formation. A well located in the NW1/4 Section 1, Township 32 North, Range 10 West, N.M.P.M. produces from said formation, said well being completed in a Fruitland sand member and is the designated well for the drilling and spacing unit.

5. Based on the facts stated in the verified application and exhibits submitted, and having been heard by the Director as Hearing Officer on February 10, 1988, the Commission should grant an exception for a well to be drilled at a location approximately 1580 feet from the North line and 1050 feet from the west line of Section 1, Township 32 North, Range 10 West, N.M.P.M., La Plata County, Colorado for the production of coal seam gas from the Fruitland formation, and that a gas analysis of each gas stream should be made, a produced water chemical analysis should be made for both wells if possible, and that the Ladd Petroleum Corporation well 3-1 Cox Canyon be monitored for pressure changes during fracturing operations on the exception well and that such information be furnished to the Director after April 1, 1988 to assist in the differentiation of the gases produced.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location 1580 feet from the North line and 1050 feet from the West line Section 1, Township 32 North, Range 10 West, N.M.P.M., Ignacio Blanco Field, La Plata County, Colorado for the production of coal seam gas from the Fruitland formation, and that a gas analysis of each gas stream from each well shall be made, a chemical analysis shall be made of the produced water from each well, if possible, and pressure recordings be made in the existing well during the completion operations on the exception well and the results of these tests and measurements be furnished to the Director of the Commission after April 1, 1988.

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

Entered this 24th day of February, 1988, as of February 12, 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Dennis R. Bicknell, Secretary