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 CHEYENNE WELLS FIELD, CHEYENNE COUNTY, COLORADO

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CAUSE NO. 212

 

ORDER NO. 212-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 21, 1969, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, to consider any additional data available to more closely define the field limits as established by Order No. 212-2.

 

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 October 15, 1968, the Commission issued its Order No. 212-1 which, among other things, established 80-acre drilling units for the production of oil from the Mississippian formation, with the permitted well to be located in the center of the NE¼ and SW¼ of each quarter section.  On March 18, 1969, the Commission issued its Order No. 212-2 which reduced the spaced area of the field.

 

4.      That testimony presented at the hearing indicates that the area as set forth in Order No. 212-2 should be reduced and divided into three separate fields, and that the Mississippian formation constitutes a common source of supply of oil underlying each such field and, therefore, the following described lands in Cheyenne County, Colorado, to-wit:

 

Township 13 South, Range 44 West, 6th P.M.

 

Sections:  31, 32, and 33

 

Township 14 South, Range 44 West, 6th P.M.

 

Sections:  4, 5, 6, 7, 8, and 9

 

should be known as Cheyenne Wells Field.

 

5.      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 Mississippian formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units consisting of the W½ and E½ 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 NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction for surface hazards.

 

6.      That all available geological and engineering data concerning said Mississippian 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 Mississippian 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 Mississippian formation underlying the Cheyenne Wells 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 Mississippian formation underlying the following described lands in the Cheyenne Wells Field, Cheyenne County, Colorado, to-wit:

 

Township 13 South, Range 44 West, 6th P.M.

 

Sections:  31, 32, and 33

 

Township 14 South, Range 44 West, 6th P.M.

 

Sections:  4, 5, 6, 7, 8, and 9

 

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W½ & [sic] E½ 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 NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction from the prescribed location permitted to avoid surface obstructions and hazards.

 

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 21st day October 1969.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary