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 JACKPOT FIELD, MORGAN AND WELD COUNTIES, COLORADO

)

CAUSE NO. 56

ORDER NO. 56-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 13, 1955, at 10:00 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Amerada Petroleum Corporation of Tulsa, Oklahoma, for an order from the Commission to extend the area of the Jackpot Field, Morgan and Weld Counties, 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 haw.

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 of the Jackpot Field constitutes a common source of supply of oil and gas underlying, in addition to the area set forth in Cause No. 56, Order No. 56-1, the following described lands in Morgan County, Colorado, to-wit:

Township 6 North, Range 59 West, 6th P.M.

Section 13: All	Section 23: N/2
Section 14: All	Section 24: N/2

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

Section 18: W/2	Section 19: NW/4

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 said land, as defined herein; 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 said "D" sand in the Jackpot Field and in the additional area hereinabove described, indicate that one well should 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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this Order, and to those lands set forth in Cause No. 56, Order No. 56-1, referred to as the Jackpot Field, in Morgan and Weld Counties, Colorado, in addition to other applicable rules, regulations, and orders of the Commission 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 the following described lands in Morgan and Weld Counties, Colorado, which include the original Jackpot Field and the additional area herein described in the Findings:

Sections One (1), Two (2), Eleven (11), Twelve (12), Thirteen (13) and Fourteen (14), and the North Half (N/2) of Sections Twenty-three (23) and Twenty-four (24), Township Six (6) North, Range Fifty-nine (59) West of the 6th P.M.; and the West Half (W/2) of Sections Six (6), Seven (7) and Eighteen (18), and Northwest Quarter (NW/4) of Section Nineteen (19), Township Six (6) North, Range Fifty-eight (58) West of the 6th P.M., all in Morgan County, Colorado; and Sections Thirty-five (35) and Thirty-six (36), Township Seven (7) North, Range Fifty-nine (59) West of the 6th P.M., and the West Half (W/2) of Section Thirty-one (31), Township Seven (7) North, Range Fifty-eight (58) West of the 6th P.M., all in Weld County, Colorado,

and such area shall henceforth be known as the Jackpot Field.

Rule 2. That each governmental quarter-quarter section in the governmental 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 in the governmental 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 Jackpot Field, "D" 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 "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 Jackpot 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 13th day of July, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary