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 MIDJAY FIELD, ADAMS COUNTY, COLORADO

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CAUSE NO. 138

 

ORDER NO. 138-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 19, 1959, at 10:00 a.m., in the Pine Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Ancora Corporation for an order establishing 160-acre drilling and spacing units for the production of gas from the "J" sand underlying certain lands in Adams County, Colorado; and for an order establishing the Ancora Corporation #1 Midcap-Rugg well and the Ancora Corporation #2 Copeland well as the authorized wells for their individual spacing units.

 

FINDINGS

 

The Commission finds as follows:

 

1.      That due notice of the time, place and purpose of the bearing 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 formation constitutes a common source of supply of gas underlying the following described lands in Adams County, Colorado, to-wit:

 

Township 1 South, Range 57 West, 6th P.M.

 

 

Section 19:

NE¼ and SE¼

Section 20:

NW¼ and SW¼

 

and is referred to as the Midjay 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 160-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 160-acre drilling and spacing units according to the governmental survey thereof and that each such unit should be a normal quarter section; and that the permitted well for each such drilling unit should be located not closer than 660 feet from any boundary line of each such drilling unit, and that Ancora Corporation’s No. 1 Midcap-Rugg, located in the C NE¼ SE¼ Section 19, Township 1 South, Range 57 West, and No. 2 Copeland, located in the C SW¼ NW¼, Section 20, Township 1 South, Range 57 West, should be the permitted gas wells for the drilling and spacing units upon which they are located.

 

5.      That all available geological and engineering data concerning said "J" sand in said Midjay Field indicate that one well should efficiently and economically drain an area of approximately 160 acres as to gas, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one gas well producing from said "J" sand, common source of supply.

 

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 Midjay Field herein described in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the "J" sand, common source of supply underlying:

 

Northeast Quarter (NE¼) and Southeast Quarter (SE¼) of Section Nineteen, and Northwest Quarter (NW¼) and Southwest Quarter (SW¼) of Section Twenty (20), Township One (1) South, Range Fifty-seven (57) West, 6th P.M., Adams County, Colorado,

 

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

 

a.

The permitted well for each such drilling and spacing unit shall be located not closer than Six Hundred Sixty (660) feet from any boundary line of each such drilling unit, and Ancora Corporations's [sic] No. 1 Midcap-Rugg well and No, 2 Copeland well shall be the permitted gas wells for the drilling and spacing units upon which they are located.

 

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, 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 19th day of November, 1959.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Annabel Hogsett, Secretary