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 ROUNDUP FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 205

 

ORDER NO. 205-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 15, 1967, 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 Pan American Petroleum Corporation for an order establishing 640-acre drilling units for production of gas from the Muddy "J" formation 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 formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Morgan County, Colorado, to-wit:

 

Township 2 North, Range 59 West, 6th P.M.

 

 

Section 18

 

 

Township 2 North, Range 60 West, 6th P.M.

 

 

Sections:

13, 14, 21, 22, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34, and 35

 

 

Township 1 North, Range 60 West, 6th P.M.

 

 

Sections 3 and 4

 

4.      That in order to prevent 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 resources of the State, an order should be made establishing 640-acre drilling units for the production of gas and associated hydrocarbons from the "J" Sand formation, common source of supply underlying said lands, as defined herein, that said units should be 640-acre drilling units consisting of a section of land as established by governmental survey thereof; and that the permitted gas well for any such drilling unit should be located no closer than 600 feet from the outer boundary of the drilling unit.

 

5.      That all available engineering data concerning said "J" Sand formation, indicate that one well will adequately and efficiently drain an area of approximately 640 acres, and that 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 "J" Sand formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that, the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the "J" Sand formation, as herein defined, in addition to other rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

 

Rule 1.    Six Hundred Forty (640) acre drilling units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" Sand formation, common source of supply underlying the following described lands in Morgan County; Colorado, to-wit: 

 

Township 2 North, Range 59 West, 6th P.M.

 

 

Section 18

 

 

Township 2 North, Range 60 West, 6th P.M.

 

 

Sections:

13, 14, 21, 22, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34, and 35

 

 

Township 1 North, Range 60 West, 6th P.M.

 

 

Sections 3 and 4

 

and such area shall henceforth be known as the Roundup Field.

 

Said drilling units shall consist of 640 acres, and shall consist of a section of land, as established by governmental survey thereof; and the permitted gas well for any such drilling unit shall be located no closer than 600 feet from the outer boundary of the drilling unit.

 

IT IS FURTHER ORDERED, that this 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, rules or regulations.

 

ORDERED this 15th day of August 1967.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary