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 SHERIDAN LAKE FIELD, KIOWA COUNTY, COLORADO	) ) ) )	CAUSE NO. 211 ORDER NO. 211-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1968, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Petroleum, Inc., for an order establishing 80-acre drilling and spacing units for the production of oil from the Pennsylvanian formation underlying certain lands in Kiowa 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 Pennsylvanian formation, defined as being from the top of the Virgil to the base of the Morrow, constitutes a common source of supply of oil underlying the following described lands in Kiowa County, Colorado, to-wit:

Township 18 South, Range 44 West. 6th P.M.
Section	28:	All	Section	31:	All
Section	29:	All	Section	32:	All
Section	30:	All	Section	33:	All
Township 19 South, Range 44 West, 6th P.M.
Section	4:	All	Section	7:	All
Section	5:	All	Section	8:	All
Section	6:	All	Section	9:	All

4.      That 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 of the State, an order should be made establishing 80-acre drilling units for the production of oil from the Pennsylvanian formation, as defined, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units consisting of the N½ or S½ of each quarter section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the center of the NW¼ and SE¼ of each quarter section, with a tolerance of 150 feet in any direction.

5.      That all available geological and engineering data concerning said Pennsylvanian formation indicate that one well will efficiently and economically drain an area of approximately 80 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 Pennsylvanian formation.

6.      That in six months, the Commission should review the data obtained by the drilling of additional wells in the area in order to determine more closely the areal extent of said field.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Pennsylvanian formation, defined as being from the top of the Virgil to the base of the Morrow, underlying the Sheridan 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.    Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the Pennsylvanian formation, as defined, underlying the following described lands in the Sheridan Lake Field, Kiowa County, Colorado, to-wit:

Township 18 South, Range 44 West. 6th P.M.
Section	28:	All	Section	31:	All
Section	29:	All	Section	32:	All
Section	30:	All	Section	33:	All
Township 19 South, Range 44 West, 6th P.M.
Section	4:	All	Section	7:	All
Section	5:	All	Section	8:	All
Section	6:	All	Section	9:	All

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shah be the N½ or S½ of each quarter section, according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located in the center of the NW¼ and SE¼ of each quarter section, with a tolerance of 150 feet in any direction.

IT IS FURTHER ORDERED, that a hearing before this Commission shall be held on March 18, 1969, to consider any additional data available to more closely define the field limits.

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 15th day of October 1968.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary