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, [sic] COUNTY, COLORADO

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CAUSE NO. 112

 

ORDER NO. 112-74

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 18, 1989 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Palo Petroleum, Inc., for an order pooling all interests in the drilling and spacing unit consisting of the W1/2, Section 34, Township 33 North, Range 11 West, N.M. P.M., [sic] La Plata County, Colorado, for the development and operation of the Fruitland coal seams for the production of methane gas underlying said unit, pursuant to Colorado Revised Statutes, 34-60-116, as amended.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Palo Petroleum, Inc., 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.      The W1/2 Section 34, Township 33 North, Range 11 West, N.M. P.M., [sic] has been established as a drilling and spacing unit by the Commission by Order No. 112-60 issued June 17, 1988.

 

5.      Efforts have been made to obtain the voluntary pooling of all interests.  A.F.E.'s [sic] have been furnished to non-consenting interests on September 14, 1989, and consent has not been given.

 

6.      Based on the facts stated in the verified application, and receiving no protests and having been heard by the Acting Director as Hearing Officer on December 13, 1989 and recommended for approval, the Commission should enter an order pooling all interests in the 320-acre drilling and spacing unit herein described in order to insure proper and efficient development of the oil and gas from the Fruitland coal seam underlying said unit.

 

7.      An order of the Commission pooling all interests in said drilling unit is necessary in order to afford each owner of interest in each said drilling unit the opportunity to recover and receive his just and equitable share of the oil and/or gas from the common source of supply underlying said drilling unit.

 

8.      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 each tract bears to the total number of acres within said drilling unit.

 

9.      At the time of administrative hearing the parties agreed to be bound by the verbal order of the Commission in this matter.

 

ORDER

 

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

 

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 orders.

 

ENTERED this 19th day of December, 1989, as of December 18, 1989.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Dennis R. Bicknell, Secretary

 

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203