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 OPAL FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 130 ORDER NO. 130-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 10, 1959, at 10 a.m., in the Spruce Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the McKnab Production Company for an order establishing 240-acre drilling and spacing units for the production of gas from the "J" sand, common source of supply underlying certain lands in Morgan County, Colorado, and pooling the interests of the mineral and royalty owners in said drilling units.

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 the "J" sand constitutes a common source of supply of gas underlying the following described lands in Morgan County, Colorado, to-wit:

Township 4 North, Range 58 West, 6th P.M.
Section 10:	SE¼
Section 15:	E½, NW¼, N½SW¼

and such area is referred to as the Opal Field.

4.      That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing 240-acre drilling and spacing units for the production of gas from the "J" sand, common source of supply underlying said land, as defined herein; that said units should be 240-acre drilling and spacing units according to the governmental survey thereof, and that the permitted gas well for each unit should be located as set forth in the following order.

5.      That all available geological and engineering data presently available to the Commission concerning the "J" sand formation in said Opal Field indicate, that one well will efficiently and economically drain an area of approximately 240 acres as to gas, and that drilling units of the size and shape herein described in the following order are not smaller than the maximum area that can be efficiently drained by one well producing from the said "J" sand, common source of supply in said Opal Field.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "J" sand formation underlying the Opal Field, herein defined, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    Two Hundred Forty (240) acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the "J" sand formation, common source of supply underlying the following described lands in Morgan County, Colorado to-wit:

Southeast Quarter (SE¼) of Section Ten (10), and East Half (E½), Northwest Quarter (NW¼), and North Half of the Southwest Quarter (N½SW¼) of Section Fifteen (15), Township Four (4} North, Range Fifty-eight (58) West of the 6th P.M.,

and such area shall henceforth be known as the Opal Field.

Rule 2.    The following drilling and spacing units are hereby established for the production of gas from the "J" sand formation, common source of supply underlying the Opal Field, as defined in. Rule 1 hereof:

Unit #1 - NW¼ and N½SW¼ of Section 15, Town-ship 4 North, Range 58 West; and the permitted gas well for such unit is located in the center of the SW¼NW¼ of said Section 15;

Unit #2 - N½NE¼ of Section 15 and SE¼ of Section 10, Township 4 North, Range 58 West; and the permitted gas well for such unit shall be located in the center of the SW¼SE¼ of said Section 10;

Unit #3 - SE¼ and S½NE¼ of Section 15, Town-ship 4 North, Range 58 West; and the permitted gas well for such unit shall be located in the center of the SW¼NE¼ of said Section 15;

and a tolerance shall be permitted in any direction from the prescribed location when necessary to compensate for any surface hazard or obstruction.

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 "J" sand formation, common source of supply in the Opal Field 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 10th day of December 1959.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Annabel Hogsett, Secretary