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 FLANK FIELD, BACA COUNTY, COLORADO

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CAUSE NO. 157

 

ORDER NO. 157-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 20, 1965, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Kerr-McGee Oil Industries, Inc., for an order providing that drilling units for the SW¼, Section 8, Township 34 South, Range 42 West, be re-established into two units composed of the N½SW¼ and the S½SW¼; that the Pridemore No. 1 well be the permitted well for the drilling unit comprising the N½SW¼, Section 8; and that Petitioner be allowed to stop production from the Upper Morrow Sand in its Pridemore No. 2 well, and that in place thereof Kerr-McGee be permitted to drill a well to be located in the center of the SW¼SW¼ of said Section 8.

 

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 wells currently completed for production of oil and gas from the Upper Morrow Sand on the Pridemore tract in the SW¼ of Section 8, Township 34 South, Range 42 West, Baca County, Colorado, are incapable of producing the just and equitable share of the reservoir underlying said tract, and that unavoidable drainage is occurring which results in the abuse of correlative rights.

 

4.      That the drilling units as set forth in Order No. 157 -1 for the SW¼ of said Section 8 should be realigned so that one unit would consist of the N½ of said quarter section and the other unit would consist of the S½ of said quarter section.

 

5.      That an exception to the spacing pattern established by Order No. 257-1 should be permitted for a well to be located in the approximate center of the SW¼SW¼ of said Section. 8, for the drilling unit described as the S½SW¼ of said Section S; and that upon completion of said well as an exception, the Pridemore No. 2 well located in the SE¼SW¼ of said Section 8, should be shut in and abandoned as to production from the Upper Morrow Sand reservoir.

 

6.      That the operators of wells capable of producing oil from the Upper Morrow Sand of the Flank Field are in near agreement as to the relative portion of the oil reservoir underlying their respective tracts.

 

7.      That upon completion of the well described in Finding 5 hereof, such tests as may be requested by the Director should be made, and the Commission should take such action as it deems necessary to offset any advantage that the operator of said well may have over other producers by reason of the drilling of said well as an exception; and, if in the opinion of the Director it is necessary, the Commission will call a hearing for the purpose of issuing an order with suitable provisions for prevention of production from any tract of more than its just and equitable share of the oil and/or gas in the pool.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the drilling units located on the SW¼ of Section 8, Township 34 South, Range 42 West, 6th P.M., in the Flank Field, Baca County, Colorado, are hereby re-aligned with one 80-acre drilling unit consisting of the N½ of said quarter section and the other 80-acre drilling unit consisting of the S½ of said quarter section.

 

IT IS FURTHER ORDERED, that an exception is hereby granted for a well to be located in the approximate center of the SW¼SW¼ of said Section 8, and that said well shall be the permitted well for the drilling unit consisting of the S½SW¼ of said Section 8, and that upon completion of said well, the well known as the Pridemore No. 2, located in the SE¼SW¼ of said Section 8, shall be shut in and abandoned as to production from the Upper Morrow Sand reservoir.

 

IT IS FURTHER ORDERED, that the Commission shall take such action as may be necessary to prevent the production from any drilling unit of more than its just and equitable share of the oil and/or gas in said Upper Morrow Sand reservoir.

 

ORDERED this 28th day of July 1965.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

William R. Smith, Secretary