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 "D" SAND OF THE ADENA MORGAN COUNTY, COLORADO

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CAUSE NO. 26

 

ORDER NO. 26-52

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on May 22, 1962, at 10 a.m., in Room 320E, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Monsanto Chemical Company for an order designating the NW¼ of Section 13 and the NE¼ of Section 14, Township 1 North, Range 58 West, 6th. P.M., as part of the common source of supply of gas in the "D" sand of the Adena Field; that this area be designated as a drilling unit for the production of gas from the "D" sand thereunder; and that the permitted well for this area for such production be designated as the Monsanto No. 3 B.F. Crone well located in the southeast corner of the NW¼NW¼ of said Section 13.

 

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:  NW¼

Section 14:  NE¼

 

4.      That in order to prevent waste of oil and gas, as defined in the Colorado and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing a 320-acre drilling 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 unit should be the Monsanto No. 3 B.F. Crone well in the southeast corner of the NW¼ NW¼ of Section 13, Township 1 North, 58 West, 6th P.M., Morgan County, Colorado.

 

5.      That all available geological and engineering data concerning the "D" formation underlying the land set forth herein indicate that one well will efficiently and economically drain an area of approximately 320 acres; and that a drilling unit of the size and shape herein described is not smaller than the maximum area can be efficiently drained by one gas well producing from said "D" sand formation.

 

6.      That the maximum "D" sand allowable for said drilling unit should be 600,000 cubic feet of gas per day.

 

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 Three Hundred Twenty (320) acre drilling 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:  NW¼

Section 14:  NE¼

 

and the permitted gas well for such drilling unit shall be the Monsanto No. 3 B. F. Crone well located in the southeast corner of the NW¼ NW¼ of Section 13, Township 1 North, Range 58 West, 6th P. M., Morgan County, Colorado.

 

Rule 2.    The maximum "D" sand gas allowable for the drilling unit herein described shall be 600,000 cubic feet of gas per day. Under and over production of gas from said Monsanto No. 3 B. F. Crone 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 22nd day of May 1962.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary