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 LADDER CREEK FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO. 219 ORDER NO. 219-1

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, on the application of Plains Exploration Company, which application was subsequently amended at the hearing to delete Sections 5, 8, 17 and 20, Township 15 South, Range 44 West, and to include Section 31, Township 14 South, Range 44 West and Sections 35 and 36, Township 14 South, Range 45 West, for an order establishing 80-acre drilling and spacing units for the production of oil from the Mississippian formation underlying certain lands in Cheyenne 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 described lands in Cheyenne County, Colorado, to-wit:

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

Section 31

Township 14 South, Range 45 West, 6th P.M.

Sections 35 and 36

Township 15 South, Range 44 West, 6th P.M.

Sections 6, 7, 18, and 19

Township 15 South, Range 45 West, 6th P.M.

Sections 1, 2, 11, 12, 13, 14, 23, and 24

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 [sic] 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 NW¼ and SE¼ of each quarter section, with a tolerance of 150 feet in any direction for surface conditions, and that the existing productive wells should be the permitted wells for the drilling and spacing unit upon which they are located.

5.      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 Ladder Creek 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 Ladder Creek Field, Cheyenne County, Colorado, to-wit:

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

Section 31

Township 14 South, Range 45 West, 6th P.M.

Sections 35 and 36

Township 15 South, Range 44 West, 6th P.M.

Sections 6, 7, 18, and 19

Township 15 South, Range 45 West, 6th P.M.

Sections 1, 2, 11, 12, 13, 14, 23, and 24

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W½ or [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 NW¼ and SE¼ of each quarter section, with a tolerance of 150 feet in any direction from the prescribed location permitted for surface conditions, and the existing productive wells shall be the permitted wells for the drilling and spacing unit upon which they are located.

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 of October 1969.

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