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 RULISON FIELD, GARFIELD COUNTY, COLORADO

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CAUSE NO. 139

 

ORDER NO. 139-17

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 20, 1990 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 Fina Oil and Chemical Company, Inc., for an order pooling all interests in the drilling and spacing unit consisting of the SE1/4 Section 33, Township 6 South, Range 94 West, 6th P.M., Garfield County, Colorado for the development and operation of the Wasatch formations for the production of gas underlying said unit, pursuant to Colorado Revised Statutes, 34-60-116, as amended.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Fina Oil and Chemical, 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 SE1/4 Section 33, Township 6 South, Range 94 West, 6th P.M., has been established as a drilling and spacing unit by the Commission by Order No. 139-8 issued July 16, 1979.

 

5.      Applicant plans to drill the Quarter Circle #9-33W well within said spacing unit.

 

6.      Based on the facts stated in the verified application, and receiving no protests and having been heard by the Director as Hearing Officer on August 16, 1990, and recommended for approval, the Commission should enter an order pooling all interests in the 160-acre drilling and spacing unit herein described in order to insure proper and efficient development of the gas from the Wasatch formation underlying said unit.

 

7.      Efforts have been made to obtain the voluntary pooling of all interests including the tendering by the Applicant of the proposals required by Commission Rule 533 by letters from Applicant dated to those parties listed on Exhibit "A" attached hereto.  Either no responses to these letters have been received or the responses indicated the party declined to participate in the drilling of the well with the result there has not been a voluntary pooling of all interests.

 

8.      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.

 

9.      Except as otherwise mutually agreed by the parties or any of them, 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.

 

10.      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,

 

1.      Pursuant to the provisions of 34-60-116, C.R.S., as amended, of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling and spacing unit consisting of the SE1/4, Section 33, Township 6 South, Range 94 West, 6th P.M., Garfield County, Colorado, are hereby pooled for the development of gas from the Wasatch formation underlying said unit.

 

2.      Except as otherwise mutually agreed by the parties or any of them, production obtained from said drilling unit shall be allocated to each owner in the unit on the basis of the proportion that the number of acres in such tract bears to the total number of mineral acres within said drilling unit; each owner of an interest in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit applicable to his interest is said drilling unit.

 

3.      Those parties listed in Exhibit "A" attached hereto are deemed to have elected not to participate in the proposed drilling of the Quarter Circle #9-33W well and shall, therefore, be deemed to be non-consenting as to the well and be subject to the penalties provided by C.R.S. 34-60-116(7).

 

4.      Applicant, as operator of the well, shall furnish all non-consenting owners with a monthly statement of all costs incurred, together with the quantity of oil and gas produced, and the amount of proceeds realized from the sale of production for each month.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith, retroactive to the date that costs are incurred in drilling a well for the unit.

 

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 14th day of September, 1990, as of August 20, 1990.

 

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