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 CLARKS LAKE FIELD, LARIMER COUNTY, COLORADO

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CAUSE NO. 185

 

ORDER NO. 185-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 20, 1984 at 9:00 a.m., in Suite 380 Logan Tower Building, 1580 Logan Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Terra Resources, Inc. for an order establishing 20-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Muddy "J" Sand formation underlying certain lands in the Clarks Lake Field, Larimer County, Colorado.  The application was amended at the time of hearing to delete the S1/2 Section 10, Township 9 North, Range 68 West from the proposed spaced area.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Terra Resources, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      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.

 

4.      Evidence presented at the hearing indicates that the Muddy "J" Sand formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Larimer County, Colorado, to-wit:

 

Township 9 North, Range 68 West, 6th P.M.

Section 15:  W1/2W1/2, W1/2NE1/4NW1/4

NE1/4NE1/4NW1/4, N1/2NW1/4NE1/4,

NE1/4NE1/4, E1/2SE1/4NE1/4,

E1/2E1/2SE1/4

Section 22:  All

 

5.      In order to prevent waste of oil and 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 oil and gas resources, an order should be made establishing 20-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Muddy "J" Sand formation, a common source of supply underlying the lands defined herein; that said units should be 20-acres, more or less, and consist of the N1/2 and S1/2 or the E1/2 and W1/2 of a quarter-quarter section, according to the governmental survey.  Only one well should be permitted to be drilled on each unit and produced from the common source of supply.  The permitted well for each unit should be located in the center of the NW1/4 and SE1/4 of each quarter-quarter section with a tolerance for topographical reasons as may be permitted on the permit to drill in any direction and the existing producing or producible wells or permitted locations should be considered the permitted wells for the units upon which they are located.

 

6.      All available geological and engineering data concerning said Muddy "J" Sand formation indicate that one well will efficiently and economically drain an area of approximately 20-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Muddy "J" Sand formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Muddy "J" Sand formation underlying a portion of Clarks Lake 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.    Twenty (20) acre drilling and spacing units shall be and the same is hereby established for the production of oil and associated hydrocarbons from the Muddy "J" Sand formation underlying the following described lands in the Clarks Lake Field, Larimer County, Colorado, to-wit:

 

Township 9 North, Range 68 West, 6th P.M.

Section 15:  W1/2W1/2, W1/2NE1/4NW1/4

NE1/4NE1/4NW1/4, N1/2NW1/4NE1/4,

NE1/4NE1/4, E1/2SE1/4NE1/4,

E1/2E1/2SE1/4

Section 22:  All

 

Rule 2.    Said drilling units shall consist of 20-acres, more or less, and consist of the N1/2 and S1/2 or the E1/2 and W1/2 of a quarter-quarter section, according to the governmental survey, and the permitted well for each unit shall be located in the center of the NW1/4 and SE1/4 of each quarter-quarter section with a tolerance for topographical reasons as may be permitted on the permit to drill in any direction and the existing producing or producible wells or permitted locations should be considered the permitted wells for the units upon which they are located.

 

IT IS FURTHER ORDERED, that a buffer zone of 600 feet shall be established surrounding the outer boundaries of the area described herein in which Rule 318 is hereby waived.

 

IT IS FURTHER ORDERED, that the provisions contained in the above order 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.

 

 

ENTERED this 14th day of September 1984, as of August 20, 1984.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary