BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF J. R. LOWELL, JR. AND A. P. DANIELS, SHELL OIL COMPANY AND THE CARTER OIL COMPANY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION WHICH WILL ESTABLISH FORTY ACRE DRILLING AND SPAC-ING UNITS FOR THE "J" SAND COMMON SOURCE OF SUPPLY UNDERLYING THE N½, SW¼ and W½ SE¼ OF SECTION 26, ALL OF SECTION 27, THE N½ OF SECTION 34, AND THE N½ OF SECTION 35, ALL IN TOWNSHIP 8 NORTH, RANGE 55 WEST, LOGAN COUNTY, COLORADO, HEREIN REFERRED TO AS THE BONHAM POOL.

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CAUSE NO. 24

 

ORDER NO. 24-1

 

APPEARANCES:

 

Donn D. Peters,

Attorney for applicant, Shell Oil Company, Denver, Colorado.

Richard P. Ryan,

Attorney for applicant, The Carter Oil Company, Denver, Colorado.

Wilbur Rocchio,

Assistant Attorney General,

A.J. Jersin,

Deputy Director, and

D.V. Rogers,

Petroleum Engineer, for the Commission.

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 3, 1953, at ten o'clock A.M., Room 704 State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law on the application of J.R. Lowell, Jr., A.P. Daniels, Shell Oil Company and The Carter Oil Company for an order from the Commission establishing forty (40) acre drilling and spacing units (or equivalent lots) according to the governmental survey thereof, for the production of oil and gas from the "J" sand common source of supply underlying the North Half (N½), the Southwest Quarter (SW¼), and the West Half of the Southeast Quarter (W½ SE¼) of Section Twenty-six (26), all of Section Twenty-Seven (27), the North Half (N½) of Section Thirty-four (34) and the North Half (N½) of Section Thirty-five (35), all in Township Eight (8) North, Range Fifty-five (55) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, which area is referred to in said application as the Bonham Pool.

 

All of the applicants above named are the owners of oil and gas leases within the above described area. J.R. Lowell, Jr., and A.P. Daniels have heretofore completed their Bonham C-12 No. 1 well which is located as follows:

 

The center of the Southwest Quarter of the Northeast Quarter of the Southeast Quarter (SW¼ NE¼ SE¼) of Section Twenty-Seven (27), Township Eight (8) North, Range Fifty-five (55) West of the Sixth (6th) Principal Meridian, Logan County, Colorado.

Said well was completed in the "J" sand formation, the top of which was encountered in said well at the approximate depth of Five Thousand Three Hundred Ninety One (5,391) feet below the surface.

 

Since the application above referred to was filed, applicant, The Carter Oil Company, has completed its Darrell Bonham No. l well which is located as follows:

 

The center of the Northwest Quarter of the Southeast Quarter (NW¼ SE¼) of Section Twenty-seven (27), Township Eight (8) North, Range Fifty-five West of the Sixth (6th) Principal Meridian, Logan County Colorado.

 

Said well was completed in the "J" sand formation, the top of which was encountered in said well at the approximate depth of Five Thousand Four Hundred Three (5,403) feet below the surface.

 

That the subsea depth at which the "J" sand formation was encountered in both the Bonham C-12 No. 1 well and the Darrell Bonham No. 1 well is minus One Thousand (1,000) feet.

 

Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying forty (40) acres in the "J" sand formation and that forty (40) acres is not smaller than the maximum area which can be efficiently drained by one well producing from the "J" sand formation.

 

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 "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, to-wit:

 

Township Eight (81 North, Range Fifty-five (55) West

 

 

The North Half (N½), the Southwest Quarter (SW¼) and the West Half of the Southeast Quarter (W½ SE¼) of Section Twenty-six (26); all of Section Twenty-seven (27); the North Half (N½) of Section Thirty-four (34); the North Half (N/2) of Section Thirty-five (35);

 

and is referred to in said petition as the Bonham Pool.

 

4.      That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing forty (40) acre drilling and spacing units for the production of oil and gas from the "J" sand common source of supply underlying the Bonham Pool, described above; that said units should be forty (40) acre drilling and spacing units (or equivalent lots) according to the governmental survey thereof; that the permitted well for each drilling unit should be located in the center of each quarter quarter section (or equivalent lot) in the government survey; and that a tolerance of one hundred (100) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

 

5.      That all available geological and engineering data concerning the "J" sand common source of supply in said Bonham Pool indicate that one well will efficiently and economically drain an area of approximately forty (40) 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 the said "J" sand common source of supply in said Bonham Pool.

 

6.      That an exception should be allowed for the Bonham C-12 No. 1 well drilled by J.R. Lowell, Jr., and A.P. Daniels which is located in the center of the Southwest Quarter of the Northeast Quarter of the Southeast Quarter (SW¼ NE¼ SE¼) of Section Twenty-seven (27): Township Eight (8) North, Range Fifty-five (55) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, and that said well should be the permitted well in the drilling unit on which it is located.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted, in the "J" sand formation underlying the Benham Pool above described in the Findings, which, by reference, are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith;

 

Rule 1.    Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "J" sand formation common source of supply underlying all of the North Half (N½)the Southwest Quarter (SW¼) and the West Half of the Southeast Quarter (W½ SE¼) of Section Twenty-six (26), all of Section Twenty-seven (27), the North Half(N½) of Section Thirty-four (34) and the North Half (N½) of Section Thirty-five (35), Township Eight (8) North, Range Fifty-five (55) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, and such area shall henceforth be known as the Bonham Field, "J" sand common source of supply.

 

Rule 2. That each governmental quarter quarter section (or equivalent lot) in the government survey, shall constitute a drilling and spacing unit and the permitted well for each unit shall be located in the center of each quarter quarter section or equivalent lot in the government survey; that a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

 

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said Bonham Field, "J" sand common source of supply, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the "J" sand common source of supply.

 

IT IS FURTHER ORDERED, that an exception is hereby allowed for J.R. Lowell, Jr.'s and A.P. Daniels' Bonham C-12 No. 1 well located in the center of the Southwest Quarter of the Northeast Quarter of the Southeast Quarter. (SW¼ NE¼ SE¼) Section Twenty-seven (27), Township Eight (8) North, Range Fifty-five (55) West of the Sixth (6th) Principal Meridian, Logan County, Colorado, and said well shall be the permitted well for the drilling unit on which it is located and no other well shall be drilled to said sand on said unit.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Bonham Field to the "J" sand common source of supply, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, is hereby prohibited.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after Notice of Hearing, to alter, amend or repeal any and/or all of the above rules and regulations.

 

ORDERED this 3rd day of November, 1953, by the Oil and Gas Conservation Commission of the State of Colorado.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Asst. Secretary