144-1

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 BIG GULCH FIELD, MOFFAT COUNTY, COLORADO

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CAUSE NO. 144

ORDER NO. 144-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 21, 1960, at 10:00 a.m., in Room 227, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Intex Oil Company for an order defining the limits of the Lower Mesaverde and the Frontier production zones in the Big Gulch Field; establishing drilling units for the production of gas from wells drilled in said pools, and dual completion methods to be used in completion of the Alpha State #1-16 well in said pools.

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 Mesaverde formation and the Frontier formation constitute common sources of supply of gas underlying the following described lands in Moffat County, Colorado, to-wit:

Township 7 North, Range 93 West, 6th P.M.

Sections	8, 9, 10, 11, 14, 15, 16, 17, 20, 21, 22, 23 and 24

and is referred to as the Big Gulch 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 640-acre drilling and spacing units for the production of gas from the Mesaverde and Frontier formations, common sources of supply underlying said land, as defined herein; that said units should be 640-acre drilling and spacing units according to the governmental survey thereof, and should consist of a normal section; add that the permitted well for each drilling unit should be located in the Northwest Quarter (NW¼) or the Southeast Quarter (SE¼) of said unit, not closer than 1320 feet from the boundary lines of such 640-acre drilling and spacing unit.

5. That all available geological and engineering data concerning said Mesaverde and Frontier formations in said Big Gulch Field indicate that one well should efficiently and economically drain an area of approximately Six Hundred Forty (640) 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 the said Mesaverde and Frontier formations, common sources of supply.

6. That an exception should be allowed for the Alpha State #1-16 well drilled in the SE¼ SE¼ of Section 16, Township 7 North, Range 93 West, 6th P.M., Moffat County, Colorado, and that said well should be the permitted gas well for the drilling and spacing unit in which it is located.

7. That all available geological and engineering data concerning said Alpha State #1-16 well indicate that said well is capable of producing gas from the Mesaverde formation through casing perforations at a depth of 3595 feet to 3750 feet, and from the Frontier formation through casing perforations at a depth of 8598 feet to 8630 feet in a manner permitting no commingling of gas from either formation in the well bore.

8. That the completion and production of said well in the manner hereinabove described will not result in waste, and that no damage will result to either formation because of such dual completion, and that in order to present the drilling of unnecessary wells, such dual completion should be granted.

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 Mesaverde and Frontier formations of the Big Gulch Field, herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. Six Hundred Forty (640) acre drilling and spacing units shall be, and the same are hereby, established for the production of gas from the Mesaverde and Frontier formations, common sources of supply underlying the following described lands in Moffat County, Colorado, to-wit:

Township 7 North, Range 93 West, 6th P.M.

Sections	8, 9, 10, 11, 14, 15, 16, 17, 20, 21, 22, 23 and 24

and such area shall henceforth be known as the Big Gulch Field.

Rule 2. No well shall be drilled or completed in the Big Gulch Field, and no notice of intention to drill shall be approved by the Commission unless:

a. 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 pool.

b. Such drilling unit be a normal section, according to legal subdivisions of the United States and Surveys.

c. Such well be drilled in the Northwest Quarter (NW¼) or the Southeast Quarter (SE¼) of such unit, not closer than 1320 feet, from the boundary lines of said 640-acre drilling and spacing unit.

Rule 3. The Commission may, without additional notice and hearing, grant exceptions to Rule 2c above when, because of topographical reasons, it is necessary to locate such well at a location other than that required by said Rule 2c.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the Alpha State #1-16 well located in the Southeast Quarter of the Southeast Quarter (SE¼ SE¼) of Section Sixteen (16), Township Seven (7) North, Range Ninety-three (93) West, 6th P.M., Moffat County, Colorado, and said well shall be the permitted gas well for the drilling and spacing unit in which it is located.

IT IS FURTHER ORDERED, that authority is hereby granted the Intex Oil Company for dual zone completion of its said Alpha State #1-16 well, by perforating the casing opposite the Mesaverde formation between the approximate depths of Three Thousand Six Hundred Ninety-five (3695) feet and Three Thousand Seven Hundred Fifty (3750) feet, and perforating the casing opposite the Frontier formation between the approximate depths of Eight, Thousand Five Hundred Ninety-eight (8598) feet and Eight Thousand Six Hundred Thirty (8630) feet in a manner permitting no commingling of gas from either formation in the well bore.

IT IS FURTHER ORDERED, that the rules, regulations and orders contained herein shall become effective forthwith, and henceforth commencement of the drilling of any well or wells in the Mesaverde and Frontier formations, as herein defined, 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, regulations and orders.

ORDERED this 21st day of June 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Secretary