145-3

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 MANTLE FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 145

ORDER NO. 145-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 16, 1962, at 10 >m., in Room 330, State Office Building, Denver, Colorado, as provided in Order No. 145-2.

In summary, pursuant to the application of the Claude Wentworth Drilling Co., Inc., the Commission duly issued its Order No. 145-1 on June 29, 1960, which order established two drilling and spacing units for the production of gas from the "D" and "J" sands of the Mantle Field. The Wentworth-McEndaffer Well No. 1, located in the NW¼SW¼ of Section 20, Township 11 North, Range 56 West, 6th P.M., Weld County, Colorado, was established as the permitted gas well for Unit, No. 1 which consists of approximately 560 acres. Unit No. 1 embraces two separately owned tracts of land which have not, as yet, been pooled. The Sun Oil Company, one of the owners of interest within Unit No. 1, filed an application with the Commission to seek an order requiring the pooling of tracts of land lying within said Unit No. 1, which application was heard on September 19, 1961. As a resuit of this hearing, the Commission issued its Order No. 145-2 on October 16, 1961, which, among other things, ordered that the operator of said Wentworth-McEndaffer Well No. 1 accumulate additional information to be submitted at the January 16, 1962 hearing. At such hearing, the operator did not submit the information as it was directed to do by Order No. 145-2, and gave as one of its reasons that, in its opinion, the expenses necessary to accumulate such information would be too great. No substantial testimony was presented to the Commission at the January 16, 1962 hearing.

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 by the Commission's Order No. 145-1, dated June 29, 1960, the following described lands were established as drilling and spacing Unit No. 1, for the production of gas from the "D" and "J" sand formations of the Mantle Field, Weld County, Colorado:

560 acres comprised of the SE¼ NE¼ and SE¼ of Section 19; SW¼ NW¼ and W½SW¼ of Section 20; W½NW¼ of Section 29, and NE½ [sic] of Section 30, Township 11 North, Range 56 West, 6th P.M.

4. That the Wentworth McEndaffer [sic] Well No. 1, located in the NW¼SW¼ of Section 20, Township 11 North, Range 56 West, 6th P.M., is the permitted gas well for said drilling Unit No. 1; and that at the time of the hearing, no gas had yet been marketed from said permitted well.

5. That two basic tracts of land are contained within Unit No. 1; and that Applicant owns an undivided fifty per cent (50%) working interest in and under one tract described as the SE¼ NE¼ of Section 19, and SW¼ NW¼ of Section 20, Township 11 North, Range 56 West of the 6th P.M., Weld County, Colorado; and that the Claude Wentworth Drilling Co., Inc. owns or controls oil and gas leases covering the remaining lands, or second tract, contained within Unit No. 1.

6. That the owners of interest within Unit No. 1 have been unable to arrive at a pooling agreement, and that these interests should be pooled for the development and operation of Unit No, 1.

7. That Applicant generally agreed with the geologic and engineering testimony submitted to the Commission at the June 29, 1960 hearing by the Claude Wentworth Drilling Co., Inc; and that such geologic and engineering testimony includes, among other things, isopachous interpretations of the "D" and "J" sands underlying Unit No. 1.

8. That in order to afford to the owner or owners of each tract or interest in Unit No. 1 the opportunity to recover or receive, without unnecessary expense, his just and equitable share, all hydrocarbons produced and saved from said Unit, No. 1 should be apportioned among and allocated to each tract within said Unit No. 1 in a proportion based on the following formula:

That Participation should be established as fifty per cent (50%) times -
	Number of surface acres of the tract
	Total number of surface acres in Unit No. 1

	- plus -

fifty per cent (50%) times -
	Number of acre feet of effective pay sand of "D" and "J" sands of the tract
	Total number of acre feet of effective pay sand of "D" and "J" sands of Unit No. 1

9. That the various interests in said Unit No. 1, excluding royalty or other interests not obligated to pay any part of the cost of drilling and operating, should pay their share of the actual costs of drilling and operating the permitted well of said Unit No. 1, including a reasonable charge for storage and supervision; and that such share should be determined in the formula set out in Finding 8 hereof.

10. That the Claude Wentworth Drilling Co., Inc. is in violation of Order No. 145-2; however, in view of the circumstances involved, the Commission hereby waives the assessing of any penalty for such violation.

ORDER

NOW, THEREFORE, IT IS ORDERED that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling Unit No. 1. theretofore established by the Commission in Order No. 145-1, for the "D" and "J" sand reservoirs underlying such lands, are hereby pooled for the development and operation of said drilling Unit No. 1.

IT IS FURTHER ORDERED, that all hydrocarbons produced and saved from the permitted well within said drilling Unit No. 1 shall be apportioned among and allocated to each tract therein in a proportion based on the following formula:

That Participation should be established as fifty per cent (50%) times -
	Number of surface acres of the tract
	Total number of surface acres in Unit No. 1

	- plus -

fifty per cent (50%) times -
	Number of acre feet of effective pay sand of "D" and "J" sands of the tract
	Total number of acre feet of effective pay sand of "D" and "J" sands of Unit No. 1

IT IS FURTHER ORDERED, that the various interests in said drilling Unit No. 1, excluding royalty or other interests not obligated to pay any part of the cost of drilling and operating, shall pay their share of the actual costs of drilling and operating the Wentworth-McEndaffer Well No. 1, including a reasonable charge for supervision and storage, and such share shall be as determined by the Tract Participation Formula set forth above,

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.

ORDERED this 14th day of February 1962.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Secretary