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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATE AND ARCHULETA COUNTIES, COLORADO |
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CAUSE NO. 112
ORDER NO. 112-6 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on October 20, 1959, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission’s own motion to consider possible extension in all producing horizons of the Ignacio-Blanco Field.
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 evidence presented at the hearing indicates that the areas set forth for the Fruitland-Pictured Cliffs formation in Order No. 3-12; for the Dakota-Morrison formation in Order No. 3-13; and for the Mesaverde formation in Order No. 112-1, should be consolidated into one field, and that the field limits for the aforementioned producing horizons should be extended to include all of the area under consideration at said hearing, and that such area should henceforth be known as the Ignacio-Blanco Field, Cause No. 112.
4. That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to insure proper and efficient development, and to promote conservation of the gas resources of the State, an order should be made extending the established 320-acre spacing pattern for the production of gas from the Mesaverde and Fruitland-Pictured Cliffs formations, and extending the established 640-acre spacing pattern for the production of gas from the Dakota-Morrison formation, to cover the additional area to be included in said Ignacio-Blanco Field.
5. That all available geological and engineering data concerning said formations in the Ignacio and Ignacio-Blanco fields, and in the additional area considered at the hearing, indicate that one well will adequately and efficiently drain an area of at least 320 acres of land in the Mesaverde and Fruitland–Pictured Cliffs formations, and that one well will adequately and efficiently drain an area of at least 640 acres of land in the Dakota-Morrison formation.
6. That all wells drilled, and all locations approved by the Commission prior to November 9, 1959, should be the permitted wells or locations for the respective drilling units.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Ignacio-Blanco Field, as herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:
Rule 1. The following described lands in La Plata and Archuleta Counties, Colorado, shall hereafter be known as the Ignacio-Blanco Field:
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Township 32 North, Range 6 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 6 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 6 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 32 North, Range 7 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 7 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 7 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 32 North, Range 8 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 8 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 8 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 32 North, Range 9 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 9 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 9 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 32 North, Range 10 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 10 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 10 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 32 North, Range 11 West, N.M.P.M. |
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Sections 1 through 24 |
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Township 33 North, Range 11 West, N.M.P.M. |
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Sections 1 through 36 |
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Township 34 North, Range 11 West, N.M.P.M. |
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Sections 1 through 36 |
Rule 2. Three Hundred Twenty (320) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the Mesaverde and Fruitland-Pictured Cliffs formations underlying the Ignacio-Blanco Field herein described; and no well shall be drilled or completed in said formations, and no notice of intention shall be approved by the Commission unless:
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Such well be located on a designated drilling unit of not less than 320 acres of land, more or less, according to legal subdivisions of the United States Land Surveys, in which unit all of the interests of owners are consolidated by a pooling agreement or otherwise, and on which no other well is completed or approved for completion in the same formation. |
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Such drilling unit be in the shape of a rectangle, except for normal variations in legal subdivisions of the United States Land Surveys, the North half (N½), South Half (S½), East Half (E½), or West Half (W½) of each full section (i.e. a section containing Six Hundred Forty (640) acres, more or less) [sic] to constitute a drilling unit; and the following legal subdivisions to constitute the drilling units in the cases of the fractional sections in Township Thirty-two (32) North, Ranges Six (6), Seven (7), Eight (8), Nine (9), Ten (10), and Eleven (11) West of the New Mexico Principal Meridian lying immediately adjacent to the Colorado-New Mexico state boundary: |
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West Half (W½) and West Half of East Half (W½E½), Section Nineteen (19) |
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East Half of East half (E½E½) of Section Nineteen (19) and West Half (W½) of Section Twenty (20) |
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East Half (E½) of Section Twenty (20) and West Half of West Half (W½W½) of Section Twenty-one (21) |
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East Half of West Half (E½W½) and East Half (E½) of Section Twenty-one (21) |
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West Half (W½) and West Half of East Half (W½E½) of Section Twenty-two (22) |
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East Half of East Half (E½E½) of Section Twenty-two (22) and West Half (W½) of Section Twenty-three (23) |
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East Half (E½) of Section Twenty-three (23) and West Half of West Half (W½W½) of Section Twenty-four (24) |
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East Half of West Half (E½W½) and East Half (E½) of Section Twenty-four (24) |
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Such well, if to be drilled within a full section, be either in the Northeast Quarter (NE¼) or Southwest Quarter (SW¼) of the section when the location falls south of the north line of Township Thirty-two (32) North; and be either in the Northwest Quarter (NW¼) or Southeast Quarter (SE¼) when the location falls north of the north line of Township Thirty-two (32) North, and no closer than Nine Hundred Ninety (990) feet to the boundaries of the quarter section upon which it is located. |
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Such well, if to be drilled within a fractional section, be no closer than Nine Hundred Ninety (990) feet to the boundaries of the drilling unit upon which it is located |
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Rule 3. Six Hundred Forty (640) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the Dakota-Morrison formation underlying the Ignacio-Blanco Field herein described; and no well shall be drilled or completed in said formation, and no notice of intention shall be approved by the commission unless:
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Such well be located on a designated drilling unit of not less than 640 acres of land, more or less, according to legal subdivisions of the United States Land Surveys, in which unit all of the interests of owners are consolidated by a pooling agreement or otherwise, and on which no other well is completed or approved for completion in the same formation. |
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Such drilling unit be in the shape of a square, except for normal variations in legal subdivisions of the United States Land Surveys, and except for the fractional sections in Township Thirty-two (32) North, Ranges Six (6), Seven (7), Eight (8), Nine (9), Ten (10), and Eleven (11) West of the New Mexico Principal Meridian lying immediately adjacent to the Colorado-New Mexico state boundary. |
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Such well, if to be drilled within a full section, be no closer than 1320 feet to the outer boundaries of the quarter section upon which it is located and, if to be drilled within a fractional section, be no closer than Nine Hundred Ninety (990) feet to the boundaries of the drilling unit upon which it is located. |
Rule 4. The Commission may, by order entered after due notice and hearing, and to prevent waste or confiscation of property, or to prevent inclusion of unproductive land in a drilling unit, grant exceptions to the provisions of Rules 2 and 3 above; and the Commission may, without additional notice and hearing, grant exceptions to Rule 2c and Rule 2d, and Rule 3c above when, because of topographical reasons, it is necessary to locate such well closer than the prescribed distance to any applicable boundary referred to in such rules.
Rule 5. The casing program of all wells hereafter drilled in the Ignacio-Blanco Field shall include at least two (2) strings of casing which shall be set in accordance with the following:
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a. The surface casing shall consist of new or reconditioned pipe with the original mill test of not less than 1200 psi and shall be set and cemented at a point such that all fresh water and water of present or probable value for domestic, commercial or stock purposes shall be confined to their respective strata and shall be adequately protected against contamination by objectionable water, oil or gas, provided that the point at which the surface casing shall be set and cemented shall in no case be less than 200 feet below the surface of the earth. Cementing shall be by the pump and plug method, and sufficient cement shall be used to fill the annular space behind the pipe to the surface of the ground or the bottom of the cellar. Cement shall be allowed to stand a minimum of 24 hours before drilling the plug or initiating tests. Before drilling the plug, a pump pressure of at least 1000 psi shall be applied. If at the end of 30 minutes, the pressure shows a drop of 100 psi or more, the casing shall be condemned. In lieu of the foregoing test, the surface casing shall be tested after drilling the plug by bailing the hole dry. The hole shall remain dry for one (1) hour to constitute satisfactory proof of a water shutoff. In event the casing is condemned, it shall again be tested in the same manner after corrective operations are completed, and this string shall stand the required test before compliance with the rule shall have been made. |
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b. The producing or oil string shall consist of new or reconditioned pipe with an original mill test of not less than 2000 psi. This string of casing shall be set and cemented at such a point that all oil, gas and water encountered above the producing formation and below the surface casing shall be adequately confined to their respective strata. The cement shall be allowed to stand a minimum of 24 hours before drilling the plug or initiating tests. Before drilling the plug, a pump pressure of at least 1500 psi shall be applied. If at the end of 30 minutes, the pressure shows a drop of 150 psi or more, the casing shall be condemned. In lieu of the foregoing test, the surface casing shall be tested after drilling the plug by bailing the hole dry. The hole shall remain dry for one (1) hour to constitute satisfactory proof of a water shutoff. In event the casing is condemned, it shall again be tested in the same manner after corrective operations are completed, and this string shall stand the required tests before compliance with this rule shall have been made. |
IT IS FURTHER PROVIDED, that any operator or operators owning oil and gas leases upon lands contained within the boundaries hereinabove defined, and desiring to drill a well or wells thereon shall, by pooling agreement or otherwise, form a 320-acre unit, or units, for the Fruitland-Pictured Cliffs and Mesaverde formations; and a 640-acre unit, or units for the Dakota-Morrison formation, in conformity with the spacing pattern herein established; provided that the rights of all parties affected hereby to apply to the Commission for the formation of a unit or units under the provisions of Section 100-6-4 CRS 1953, as amended, shall not be prejudiced by the entry of this order; and provided that, in the event of the proposed formation of a unit to conform with the spacing pattern herein established which contains patented lands and Indian lands, if the Department of the Interior fails to approve such unit, then the patented lands therein shall not be affected by the terms and requirements of this order, other than Rule 5 above.
IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to November 9, 1959, shall be the permitted wells or locations for the respective drilling units.
IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Fruitland-Pictured Cliffs, Mesaverde, or Dakota-Morrison formations of the Ignacio-Blanco Field, as defined herein, for the purpose of producing gas therefrom, at a location other than authorized by this order, is hereby prohibited.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above rules and regulations.
ORDERED this 9th day of November, 1959.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATE AND ARCHULETA COUNTIES, COLORADO |
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CAUSE NO. 112
ORDER NO. 112-6 |
ADDENDUM TO ORDER
On December 17, 1990, the Commission issued Order 112-85 which adopted additional field rules to protect the health, safety and welfare of citizens in the Ignacio Blanco Field, La Plata and Archuleta Counties, Colorado, for the development and production of gas and associated hydrocarbons from the Dakota, Mesaverde, Fruitland-Pictured Cliffs, and Fruitland Coal formations.
The following rules are hereby added to Order 112-6:
Rule 6. Upon completion of any well for production and on wells presently completed, the operator shall equip the bradenhead access to the annulus between the production and surface casing, as well as any intermediate casing, with approved fittings to allow safe and convenient determination of pressure and fluid flow. This rule shall apply to any or all formations below the Kirtland shale. All wells capable of production will be tested by the operator for pressure and flow, with results submitted to OGCC and other appropriate regulatory agencies on approved forms. Certain wells in environmentally sensitive areas as determined by the Director, will be scheduled for immediate testing. In any case, all wells will be tested by July 1, 1991. Complete wellbore sketches with formation tops and detailed cementing data will be furnished on all wells if not previously submitted. Regulatory staff will witness testing on a random basis. Remedial requirements and testing frequency will be determined by the appropriate regulatory agency.
Rule 7. All [sic] pits or surface containment facilities used for the storage of produced water or other oil field waste must [sic] be approved by the appropriate regulatory agency. The general 5 bbl/day and/or blowdown pit exemption as provided for in Rule 325 is rescinded for the Ignacio Blanco field. Existing facilities as well as new construction will be permitted so as to prevent any surface or subsurface discharge into waters of the state, unless otherwise permitted under NPDES.
Entered this 31st day of December, 1990, as of December 17, 1990.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Patricia C. Beaver, Secretary |
Dated at Suite 380
1580 Logan Street
Denver, Colorado 80203
December 27, 1990