|
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 BIJOU-SOUTH FIELD, MORGAN COUNTY, COLORADO |
) ) ) ) |
CAUSE NO. 168
ORDER NO. 168-2 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on December 19, 1972, at 9 a.m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Ferguson Oil Company for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons, from the "J" Sand underlying certain lands in Morgan County, Colorado.
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 evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Morgan County, Colorado, to-wit:
|
Township 3 North, Range 59 West, 6th P.M. |
|||||
|
Section |
5: |
N½ |
Section |
6: |
NE¼ |
|
|
|
|
|
|
|
|
Township 4 North, Range 59 West, 6th P.M. |
|||||
|
Section |
28: |
All |
Section |
32: |
All |
|
Section |
29: |
E½ |
Section |
33: |
W½ |
|
Section |
31: |
SE¼ |
|
|
|
4. That in order to prevent the waste of gas and oil, 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 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consist of the E½ and W½ of Section 28, the E½ of Section 29, the N½ and S½ of Section 32 and the W½ of Section 33, Township 4 North, Range 59 West, the N½ Section 5, Township 3 North, Range 59 West; and a unit comprised of the NE¼ Section 6, Township 3 North, Range 59 West with the SE¼ Section 31, Township 4 North, Range 59 West. The permitted well for each unit should be located no closer than 990 feet from the boundary of each unit and that the No. 1 Larrick well located in the NE¼NE¼ Section 32 and the No. 2 Larrick well located in the NE¼SE¼ Section 32, Township 4 North, Range 59 West, be considered exceptions and be the permitted wells for the units upon which they are located and further that the No. 1 Kroh well located in the SE¼NE¼ Section 29 and the No. 1 Challis well located in the NW¼NW¼ Section 33, Township 4 North, Range 59 West, also be considered exceptions so they may be re-entered to attempt completion and be designated the permitted wells for the units upon which they are located.
5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 320-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "J" Sand.
6. That evidence presented at the hearing indicates that the "J" Sand may also be a common source of supply of oil and that the No. 1 Meisner-Kroh well, located in the center of the NW¼SE¼ Section 29, Township 4 North, Range 59 West, 6th P.M. should be considered an oil well, and that this well and other wells drilled for oil in the area should not be made subject to this order insofar as the drilling and spacing units are concerned.
7. That in order to prevent waste, as defined by the Oil and Gas Conservation Act, the gas produced from wells capable of producing gas only or oil and gas in the spaced area described herein should be either (1) marketed and sold to supply domestic, industrial, commercial or municipal needs; or (2) used for lease fuel, development or operations; or (3) returned to the "J" Sand reservoir, unless otherwise authorized by the Commission.
8. That the Commission should upon application by any interested party schedule a hearing to consider drilling and spacing units for the production of oil from the "J" Sand.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Bijou-South ("J" Sand) Field 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. Three hundred twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Bijou-South Field, Morgan County, Colorado, to-wit:
|
Township 3 North, Range 59 West, 6th P.M. |
|||||
|
Section |
5: |
N½ |
Section |
6: |
NE¼ |
|
|
|
|
|
|
|
|
Township 4 North, Range 59 West, 6th P.M. |
|||||
|
Section |
28: |
All |
Section |
32: |
All |
|
Section |
29: |
E½ |
Section |
33: |
W½ |
|
Section |
31: |
SE¼ |
|
|
|
Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall be the E½ and W½ of Section 28; the E½ of Section 29, the N½ and S½ of Section 32 and the W½ of Section 33, Township 4 North, Range 59 West; the N½ Section 5, Township 3 North, Range 59 West, and a unit comprised of the NE¼ Section 6, Township 3 North, Range 59 West with the SE¼ Section 31, Township 4 North, Range 59 West. The permitted well for each unit shall be located no closer than 990 feet from the boundary of each unit and that the No. 1 Larrick well located in the NE¼NE¼ Section 32 and the No. 2 Larrick well located in the NE¼SE¼ Section 32, Township 4 North, Range 59 West be considered exceptions and be the permitted wells for the units upon which they are located, and further that the No. 1 Kroh well located in the SE¼NE¼ Section 29, and the No. 1 Challis well located in the NW¼NW¼ Section 33, Township 4 North, Range 59 West, also be considered exceptions so they may be re-entered to attempt completion and be designated the permitted wells for the units upon which they are located.
IT IS FURTHER ORDERED, that the No. 1 Meisner-Kroh well, located in the center of the NW¼SE¼ Section 29, Township 4 North, Range 59 West, 6th P.M., and other wells drilled in the spaced area described herein, for oil from the "J" Sand, shall not be subject to the provisions of this order insofar as the drilling and spacing units are concerned, and that the Commission shall upon application by any interested party, schedule a hearing to consider drilling and spacing units for the production of oil from the "J" Sand.
IT IS FURTHER ORDERED, that the gas produced from wells capable of producing gas only, or oil and gas in the spaced area described herein shall be either (1) marketed and sold to supply domestic, industrial, commercial or municipal needs; or (2) used for lease fuel, development or operations; or (3) returned to the "J" Sand reservoir, unless otherwise authorized by the Commission.
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 19th day of December, 1972.
|
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
|
||
|
By |
Frank J. Piro, Secretary |