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 PLATEAU FIELD, MESA COUNTY, COLORADO

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CAUSE NO. 166

 

ORDER NO. 166-11

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 16, 1973 at 9 a.m., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Rocky Mountain Natural Gas Company, Inc., for an order authorizing the drilling of additional wells in the drilling units of the Plateau Field as previously established, and to extend the field limits of the Plateau Field and establish for the additional lands 160-acre drilling and spacing units for the production of gas from the Mesaverde formation (to include the "Corcoran" sandstone as its basal member).

 

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 on April 17, 1962, the Commission issued its Order No. 166-1 for the Plateau Field which, among other things, established 640-acre drilling and spacing units for the production of gas from the Mesaverde formation (to include the "Corcoran") sandstone as its basal member), with the permitted well for each such drilling unit to be located no closer than 1320 feet from any section line.  Certain lands were deleted and the present area was established by Order No. 166-8.

 

4.      That there has been a well drilled in each drilling unit in accordance with the provisions of said Order Nos. 166-1 and 166-8 and that such wells produce gas from the Mesaverde formation as previously described.

 

5.      That evidence presented at the hearing indicates that one gas well will not adequately drain an area of 640-acres from the Mesaverde formation and that a drilling unit of 160-acres overlying said formation is not smaller than the maximum area that can be efficiently and economically drained by one gas well; therefore, additional wells should be authorized to be drilled on each 640-acre drilling and spacing unit in the area as established by Order No. 166-8, with a maximum of four wells on any such 640-acre unit; that the location of each additional well should be within a quarter section according to the governmental survey thereof, and no closer than 600 feet from the boundaries of the quarter section upon which it is located.

 

6.      That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area as set forth in Order No. 166-8, the following described lands in Mesa County, Colorado, to-wit:

 

Township 10 South, Range 95 West, 6th P.M.

 

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Township 10 South, Range 96 West, 6th P.M.

 

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7.      That in order to prevent the waste of gas, as defined by law, to protect the correlative rights of all parties concerned, to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the gas and oil resources of the State, an order should be made establishing 160-acre drilling units for the production of gas from said Mesaverde formation, common source of supply underlying the lands described in Finding 6 herein; that said units should be 160-acres, more or less, consisting of a quarter section according to the governmental survey thereof, and that the permitted well for each such drilling unit should be located no closer than 600 feet from the boundaries of the quarter section upon which it is located.

 

8.      That all available geological and engineering data concerning said Mesaverde formation indicate that one well will efficiently and economically drain an area of not more than 160-acres, and that the drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said Mesaverde formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the provisions pertaining to the number of permitted wells and locations as established by Order Nos. 166-1 and 166 are hereby amended and additional wells are hereby authorized to be drilled to the Mesaverde formation (herein defined to include the "Corcoran" sandstone as its basal member), on each 640-acre drilling and spacing unit in the area as established by Order No. 166-8, with a maximum of four wells on any such 640-acre unit; that the location of each additional well shall be within a quarter section, according to the governmental survey thereof, and no closer than 600 feet from the boundaries of the quarter section upon which it is located.

 

IT IS FURTHER ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in said Mesaverde formation, underlying certain additional lands 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 units shall be, and the same are hereby established for the production of gas from the Mesaverde formation herein described, a common source of supply underlying the following described lands in Mesa County, Colorado, to-wit:

 

Township 10 South, Range 95 West, 6th P.M.

 

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Township 10 South, Range 96 West, 6th P.M.

 

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and such area shall henceforth be part of the Plateau Field.

 

Rule 2.    Said units shall consist of 160-acres, more or less, and each such drilling unit shall be a quarter section, according to the governmental survey thereof; and the permitted well for such drilling units shall be located no closer than 600 feet from the boundaries of the quarter section upon which it is located.

 

IT IS FURTHER ORDERED, that the orders, rules and regulations contained herein shall become effective forthwith.

 

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, rules and regulations.

 

ORDERED this 16th day of January, 1973.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary