BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN OPERATIONS IN THE "D" SAND OF THE ADENA FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 26

 

ORDER NO. 26-51

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 3, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Pure Oil Company, for an order designating the NE¼ and N½SE¼ of Section 13, Township 1 North, Range 58 West, and the S½SW¼ of Section 7 and NW¼ and N½SW¼ of Section 18, Township 1 North, Range 57 West, 6th P M., Morgan County, Colorado, as a separate common source of supply of gas from the "D" sand; this area to be designated as a Unit for the production of gas from the "D" sand; and that this unit be given an allowable of 1,050,000 cubic feet of gas per day from said "D" sand, and classify The Pure Oil Company's H. J. Clar No. 6 well located in the SE¼SE¼NE¼ Section 13, Township 1 North, Range 58 West as a gas well in the "D" sand; and that it be the permitted well in this Unit for the production of gas from said "D" sand; and that this Commission issue such other rules and regulations as it shall determine necessary or proper in the matter.

 

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 "D" sand formation constitutes a common source of supply of gas underlying the following described lands in the Adena Field, Morgan County, Colorado, to-wit:

 

Township 1 North, Range 58 West, 6th P.M.

 

 

Section 13:

NE¼, N½SE¼

 

 

Township 1 North, Range 57 West, 6th P.M.

 

 

Section 7:

S½SW¼

Section 18:

NW¼, N½SW¼

 

4.      That in order to prevent waste of oil and gas, as defined in the Colorado Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing a 560-acre drilling and spacing unit comprised of the above described lands, for the production of gas from said "D" sand formation; and that the permitted well, for such drilling and spacing unit should be The Pure Oil Company’s H. J. Clar No. 6 well, located in the SE¼SE¼NE¼ of Section 13, Township 1 North, Range 58 West, 6th P.M.

 

5.      That all available geological and engineering data concerning the "D" sand formation underlying the land set forth herein indicate that one well will efficiently and economically drain an area of approximately 560 acres; and that a drilling unit of the size and shape herein described is not smaller than the maximum area that can be efficiently drained by one gas well producing from said "D" sand formation.

 

6.      That the maximum "D" sand allowable for said drilling and spacing unit should be 300,000 cubic feet times the number of 160-acre tracts contained therein.

 

7.      That in order to recognize seasonal variations, and to prevent waste, flexibility in the production of gas should be allowed on a six-month balancing period, for over and under production.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the "D" sand formation underlying the lands herein defined, in addition to other applicable rules and regulations and orders of the Commission, if any; heretofore adopted and not in conflict herewith:

 

Rule 1.    A Five Hundred Sixty (560) acre drilling and spacing unit shall be, and the same is hereby established for the production of gas from the "D" sand formation common source of supply of gas underlying the following described lands in Morgan County, Colorado:

 

Township 1 North, Range 58 West, 6th P.M.

 

 

Section 13:

NE¼, N½SE¼

 

 

Township 1 North, Range 57 West, 6th P.M.

 

 

Section 7:

S½SW¼

Section 18:

NW¼, N½SW¼

 

and the permitted well for such drilling and spacing unit shall be The Pure Oil Company's H. J, Clar No 6., located in the SE¼SE¼NE¼ of Section l3, Township 1 North, Range 58 West, 6th. P, M,

 

Rule 2.    The maximum "D" sand gas allowable for the drilling and spacing unit herein described shall be 1,050,000 cubic feet per day.  Under and over production of gas from said H. J. Clar No. 6 well shall be adjusted during six-month allowable periods. Underproduction of gas may be made up only during the allowable period immediately following the period of production, and any overproduction of gas shall be made up during the allowable period immediately following the period of production.  An allowable period, as used within this order; shall mean six consecutive months beginning with the months of April and October.

 

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 "D" sand formation, as defined herein, for the purpose of producing 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 and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

 

ORDERED this 3rd day of October 1961.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary