IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE DUNE RIDGE FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 54

ORDER NO. 54-1

APPEARANCES:

R.T. Robberson, Attorney - for the Shell Oil Company

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 January 6, 1955, at 10:00 A.M., in the Colorado Room of the Shirley Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company, for an order from the Commission establishing Forty (40) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the "D" sand, common source of supply underlying the Dune Ridge Field, Logan 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 the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Dune Ridge Field, Logan County, Colorado; to-wit:

Township 7 North, Range 52 West, 6th P.M.

Section 28: All	Section 31: All
Section 29: All	Section 32: All
Section 30: All, except SW/4 SW/4
Section 33: All

Township 6 North, Range 52 West, 6th P.M.

All of Sections 4, 5, 6

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 "D" sand, common source of supply underlying the Dune Ridge Field described above, and that said units should be forty (40) acre drilling and spacing units 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 in the governmental 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 "D" sand, common source of supply in said Dune Ridge Field, 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 "D" sand, common source of supply in said Dune Ridge Field.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand formation underlying the Dune Ridge Field, herein 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 "D" sand formation, common source of supply underlying:

Sections Twenty-eight (28) and Twenty-nine (29); Section Thirty (30), except for Southwest Quarter of the Southwest Quarter (SW/4 SW/4), and Sections Thirty-one (31), Thirty-two (32), and Thirty-three (33), all in Township Seven (7) North, Range Fifty-two (52) West of the 6th P.M.; and Sections Four (4), Five (5), and Six (6), all in Township Six (6) North, Range Fifty-two (52) West of the 6th P.M., all in Logan County, Colorado,

and such area shall henceforth be known as the Dune Ridge Field.

Rule 2. That each governmental quarter-quarter section in the governmental survey shall constitute a drilling and spacing units and the permitted well for each unit shall be located in the center of each quarter-quarter section in the governmental survey, and 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 pre-scribed location.

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said Dune Ridge Field, "D" sand, common source of supply, may be re-designated 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 "D" sand, common source of supply.

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 Dune Ridge Field to the "D" 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 and hearing, to alter, amend, or repeal any and/or all of the above rules and regulations.

ORDERED this 6th day of January, 1955, 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, Secretary