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 CAVALRY FIELD, KIOWA COUNTY, COLORADO	) ) ) )	CAUSE NO. 213 ORDER NO. 213-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 18, 1969, 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 the Chevron Oil Company, Western Division, for an order establishing 30-acre drilling and spacing units for the production of oil from the Mississippian 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 Mississippian formation constitutes a common source of supply of oil underlying the following de-scribed lands in Kiowa County, Colorado, to-wit:

Township 18 South, Range 45 West, 6th P.M.
Section	25:	All	Section	33:	NE¼
Section	26:	All	Section	34:	All
Section	27:	All	Section	35:	All
Section	28:	All	Section	36:	All
Township 19 South, Range 45 West, 6th P.M.
Section	1:	All	Section	11:	All
Section	2:	All	Section	12:	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 Mississippian formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units consisting of the W½ or E½ of each quarter section, according to the governmental survey thereof; that the permitted well for each such drilling unit should be located in the center of the NE¼ and SW¼ of each quarter section; and that there should be a tolerance of 150 feet in any direction for surface hazards, but because of special surface hazards already in existence, the well located in the SW¼ NE¼ of Section 35, should have a tolerance of 200 feet in any direction, and the well located in the NE¼ NE¼ of Section 36, should have a tolerance of 335 feet in any direction.

5.      That since the town site of Brandon is located in the E½ of Section 34, Township 18 South, Range 45 West, any application for a permit to drill a well in the E½ of Section 34 shall be submitted for a hearing before the Commission.  At said hearing, the applicant shall present a plan of development with full particulars as to the location of the well sites relative to surface obstructions and any interference with the town site or its inhabitants.  That the Commission, at such hearing, shall afford any interested person an opportunity to be heard.

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 Cavalry 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 Cavalry Field, Kiowa County, Colorado, to-wit:

Township 18 South, Range 45 West, 6th P.M.
Section	25:	All	Section	33:	NE¼
Section	26:	All	Section	34:	All
Section	27:	All	Section	35:	All
Section	28:	All	Section	36:	All
Township 19 South, Range 45 West, 6th P.M.
Section	1:	All	Section	11:	All
Section	2:	All	Section	12:	All

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W½ or 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 200 feet in any direction for the well located in the SW¼ NE¼ of Section 35, a tolerance of 335 feet in any direction for the well located in Section 36, and a tolerance of 150 feet in any direction from all other prescribed locations permitted to avoid surface obstructions and hazards.

IT IS FURTHER ORDERED, that any application for a permit to drill a well located in the E½ of Section 34, Township 18 South, Range 45 West, be submitted for a hearing before the Commission; that at said hearing the applicant shall present a plan of development with full particulars as to the location of the well sites relative to surface obstructions and any interference with the Brandon town site or its inhabitants, and that the Commission at such hearing afford any interested person an opportunity to be heard.

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 18th day of February 1969.

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