BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 305
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS IN THE SPACE CITY ) ORDER NO. 305-1
FIELD, WELD COUNTY, COLORADO ) AMENDED
REPORT OF THE COMMISSION
This cause same on for hearing before the Commission on January 20, 1976 at 9 a.m., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Thomas G. Vessels, for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" and "J" Sands underlying certain lands in Weld County, 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 "D" and "J" Sands constitute common sources of supply of oil and associated hydrocarbons underlying the following described lands in Weld County, Colorado, to-wit:
Township 1 North, Range 65 West, 6th P.M.
Section 31: All
4. 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, an order should be made establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" and "J" Sands, common sources of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the E1/2 and W1/2 or the N1/2 and S1/2 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 SE1/4 and NW 1/4 of each quarter section, with a tolerance of 150 feet in any direction.
5. That Well No. 1 Eppinger, located in the NE1/4 SW1/4 SW1/4 of said Section 31, should be considered an exception and be the permitted well for the unit upon which it is located.
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 to 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 said oil and associated hydrocarbons should be allowed to be commingled in the well bore without further application of such rights, or approval by the Director under Rule 320 of the Rules and Regulations of the Commission.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the "D" and "J" Sands underlying the Space City 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 Space City Field, Weld County, Colorado, to-wit:
Township 1 North, Range 65 West, 6th P.M.
Section 31: All
Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E1/2 and W1/2 or the N1/2 and S1/2 of each quarter section, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each such drilling unit shall be located in the center of the SE1/4 and NW1/4 of each quarter section, with a tolerance of 150 feet in any direction; however, Well No. 1 Eppinger, located in the NE1/4 SW1/4 SW1/4 of said Section 31 shall be considered an exception and be the permitted well for the unit upon which it is located.
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 hydrocarbons shall be allowed to be commingled in the well bore of those wells in the spaced area without further application for such rights or approval by the Director under Rule 320 of the Rules and Regulations of the Commission.
IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 20th day of January , 1976.
AMENDED THIS day of , 1993, as of January 20th, 1976.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By:
Patricia C. Beaver, Secretary
Dated at Suite 380
1580 Logan Street
Denver, Colorado 80203
October 8, 1993