229-2

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 JAMBOREE FIELD, ADAMS COUNTY, COLORADO

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CAUSE NO. 229

ORDER NO. 229-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 20, 1971, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the Commission's own motion to consider revision of Order No. 229-1 in the Jamboree Field. The cause was heard further before the Commission on May 18, 1971, after giving additional Notice of Hearing, upon the application of Amoco Production Company for an order revising the area spaced for production of oil from the "D" Sand as established by Rule 1 of Order No. 229-1, further to include the "J" Sand in the spaced area and to allow commingling of oil and associated casinghead gas from both the "D" and "J" Sand reservoirs.

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 the Commission issued its Order No. 229-1 on September 15, 1970 which, among other things, established 80-acre drilling and spacing units for the production of oil from the "D" Sand.

4. That said Order should be revised to include the "J" Sand and the area as established by Rule 1 of said Order be revised, by certain additions and deletions, leaving the following described hands in Adams County, Colorado, as the area to be spaced:

Township 1 South, Range 64 West, 6th P.M.

Section	20:	All	Section		28:		All
Section	21:	All	Section		29:		All
Section	22:	All	Section		32:		All
Section	23:	All	Section		33:		All
Section	26:	All	Section		34:		All
Section	27:	All	Section		35:		All

Township 2 South, Range 64 West, 6th P.M.

Section	2:	All	Section	4:		All
Section	3:	All	Section	5:		All

5. That in order to prevent the 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, said Order No. 229-1 should be revised to establish 80-acre drilling and spacing units for the production of oil from both the "D" and "J" Sands, each a common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the E½ and the W½ or the N½ and the 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 NE¼ and the SW¼ of each quarter section, with a tolerance of 200 feet in any direction.

6. That all available geological and engineering data concerning said "D" and "J" Sands 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 "D" and "J" Sands.

7. That wherever hydrocarbons from both the "D" and "J" Sand reservoirs are found in commercial quantities in the same well bore, production of the oil and associated casinghead gas should be allowed to be commingled in the well bore.

ORDER

NOW, THEREFORE, IT IS ORDERED that the provisions of Order No. 229-1 are hereby revised and the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the "D" and "J" Sands underlying the Jamboree 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 and associated hydrocarbons from the "D" and "J" Sands underlying the following described lands in the Jamboree Field, Adams County, Colorado, to-wit:

Township 1 South, Range 64 West, 6th P.M.

Section	20:	All	Section		28:		All
Section	21:	All	Section		29:		All
Section	22:	All	Section		32:		All
Section	23:	All	Section		33:		All
Section	26:	All	Section		34:		All
Section	27:	All	Section		35:		All

Township 2 South, Range 64 West, 6th P.M.

Section	2:	All	Section	4:		All
Section	3:	All	Section	5:		All

Rule 2: Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E½ and the W½ or the N½ and the 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 NE¼ and the SW¼ of each quarter section, with a tolerance of 200 feet in any direction.

IT IS FURTHER ORDERED that wherever hydrocarbons from both the "D" and "J" Sand reservoirs are found in commercial quantities in the same well bore, production of the oil and associated casinghead gas shall be allowed to be commingled in the well bore of those wells presently completed in the spaced area, and that commingling in future wells be approved administratively by the Director, provided no objections are received within fifteen days from the date of the request or, if approval is required sooner, consents or no objections to the commingling, in writing from those interested parties shall be submitted to the Director prior to approval.

IT IS FURTHER ORDERED, that the provisions contained in the above orders 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 and regulations.

ORDERED this 18th day of May 1971.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary