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 PAPOOSE CANYON FIELD, MONTEZUMA AND DOLORES COUNTIES, COLORADO

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CAUSE NO. 231

 

ORDER NO. 231-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 17, 1970, at 10 a.m., in the P.U.C. Hearing Room, 5th Floor, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of The Cherokee and Pittsburg Coal and Mining Company, which application was amended at the hearing, for an order establishing 320-acre drilling and spacing units for the production of gas from the Desert Creek formation underlying certain lands in Montezuma and Dolores Counties, 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 Desert Creek formation constitutes a common source of supply of gas underlying the following de-scribed lands in Montezuma and Dolores Counties, Colorado, to-wit:

 

Montezuma County

 

Township 38 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

5:

All

Section

8:

All

Section

6:

All

Section

17:

N½

Section

7:

All

Section

18:

N½

 

 

 

 

 

 

Township 38 North, Range 20 West, N.M.P.M.

 

 

 

 

 

 

Section

1:

All

Section

12:

All

Section

2:

E½

Section

13:

N½

Section

11:

 E½

 

 

 

 

 

 

 

 

 

 

 Township 39 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

19:

All

Section

31:

All

Section

30:

All

Section

32:

All

 

 

 

 

 

 

 Township 39 North, Range 20 West, N.M.P.M.

 

 

 

 

 

 

Section

24:

All

Section

35:

E½

Section

25:

All

Section

36:

All

Section

26:

E½

 

 

 

 

 

 

 

 

 

Dolores County

 

 

 

 

 

 

 Township 39 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

8:

All

 

 

 

 

4.      That in order to prevent the waste of 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 gas resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas from the Desert Creek formation, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of the E½ and the W½ or the N½ and the S½ of each section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the NE¼ and SW¼ of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

 

5.      That the Commission may grant exceptions to the permitted well locations without notice and hearing, provided the owners of the contiguous and cornering 320-acre, more or less, drilling units, file with the Commission a waiver or consent in writing agreeing to said locations.

 

6.      That the Well No. 1 Pribble-Government, located 660 feet from the North line and 660 feet from the East line, Section 31, and Well No. 1 Hampton Unit located 1750 feet from the South line and 990 feet from the West line, Section 32, Township 39 North, Range 19 West, 6th P.M., be considered exceptions and be the permitted wells for the drilling units upon which each is located.

 

7.      That all available geological and engineering data concerning said Desert Creek formation indicate that one well will efficiently and economically drain an area of approximately 320 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 Desert Creek formation.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Desert Creek formation underlying the Papoose Canyon 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.    Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the Desert Creek formation underlying the following described lands in the Papoose Canyon Field, Montezuma and Dolores Counties, Colorado, to-wit:

 

Montezuma County

 

Township 38 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

5:

All

Section

8:

All

Section

6:

All

Section

17:

N½

Section

7:

All

Section

18:

N½

 

 

 

 

 

 

Township 38 North, Range 20 West, N.M.P.M.

 

 

 

 

 

 

Section

1:

All

Section

12:

All

Section

2:

E½

Section

13:

N½

Section

11:

 E½

 

 

 

 

 

 

 

 

 

 Township 39 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

19:

All

Section

31:

All

Section

30:

All

Section

32:

All

 

 

 

 

 

 

 Township 39 North, Range 20 West, N.M.P.M.

 

 

 

 

 

 

Section

24:

All

Section

35:

E½

Section

25:

All

Section

36:

All

Section

26:

E½

 

 

 

 

 

 

 

 

 

Dolores County

 

 

 

 

 

 

 Township 39 North, Range 19 West, N.M.P.M.

 

 

 

 

 

 

Section

8:

All

 

 

 

 

Rule 2:    Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall be the E½ and the W½ or the N½ and the S½ of each section, according to the governmental survey thereof, and each operator shall designate the 320-acre unit upon which each well is to be located; and the permitted well for each drilling unit shall be located in the NE¼ and SW¼ of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located; provided that exceptions may be granted to the provisions of this rule for well locations if the owners of the contiguous and cornering 320-acre units file with the Commission a waiver or consent in writing, agreeing to said locations.

 

IT IS FURTHER ORDERED that an exception is hereby granted for the Well No. 1 Pribble-Government, located 660 feet from the North line and 660 feet from the East line, Section 31 and Well No. 1 Hampton Unit, located 1750 feet from the South line and 990 feet from the West line, Section 32, Township 39 North, Range 19 West, 6th P.M., and that such wells be the permitted wells for the drilling units upon which they are located.

 

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 17th day of November 1970.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary