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 THE WASTE OF OIL AND GAS IN THE "D" AND "J" SANDS OF THE MINTO WEST FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 61

ORDER NO. 61-1

APPEARANCES:

John R. Moran, Attorney - for British-American Oil Producing Company

William Cutler - for J. Ray McDermott &Company

Wilbur Rocchio, Assistant Attorney General,

A.J. Jersin, Deputy Director, and

William R. Smith, Petroleum Engineer - for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 18, 1955, at 10:00 A.M., Room 704 State Capitol Annex, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the application of the British-American Oil Producing Company for an order from the Commission establishing Forty (40) acre drilling and spacing units, according to the governmental survey thereof; and that each well drilled in accordance with the spacing pattern established be permitted, at the option of each operator, to be produced simultaneously from the "D" and "J" sands, common sources of supply underlying the Minto-West 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" and "J" sands constitute common sources of supply of oil and gas underlying the following described lands in Logan County, Colorado, to-wit:

Township 9 North, Range 53 West, 6th P.M.

Section 33:	SE/4, S/2 NE/4
Section 34:	All
Section 35:	W/2

Township 8 North, Range 53 West, 6th P.M.

Section 2:	Lots 1, 2, 3, and 4, including any lands lying between said lots and the South township line of Town-ship 9N, Range 53 West.

Township 8 North, Range 53 West, 6th P.M.

Section 3:	Lots 1, 2, 3, and 4, including any lands lying between said lots and the South township line of Town-ship 9 North, Range 53 West

and is referred to as the Minto-West Field.

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" and "J" sands, common sources of supply underlying the Minto-West Field described above; 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, except in Sections Two (2) and Three (3), Township Eight (8) North, Range Fifty-three (53) West, where said units should be approximately Forty (40) acres, and the permitted well for each drilling unit should be located Six Hundred Sixty (660) feet from lease lines; and that a tolerance of One Hundred (100) feet in any direction from the prescribed location should be permitted.

5. That all available geological and engineering data concerning the "D" and "J" sand, common sources of supply in said Minto-West 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" and "J" sands, common sources of supply in said Minto-West Field.

6. That applicant is the owner of an oil and gas lease which covers, among other lands, the Northeast Quarter of the Southwest Quarter (NE/4 SW/4) of Section Thirty-four (34), Township Nine (9) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado, and that it has drilled its No. 1 Rodeman well in said Forty (40) acre tract, and said well is now producing from the "J" sand formation.

7. That in the drilling of said well, the producing interval in the "D" sand formation was encountered at a depth of Four Thousand Seven Hundred Fifty-three (4753) feet, and the "J" sand formation was encountered at a depth of Four Thousand Eight Hundred Fifty-two (4852) feet; that said well is now producing from this last mentioned formation through casing perforations at a depth of Four Thousand Eight Hundred Fifty-eight to Four Thousand Eight Hundred Sixty-three (4858 to 4863) feet; that said well is now capable of producing from the "D" sand formation and from the "J" sand formation, and that the quantities of such production will not justify the drilling of an additional well.

8. That all available geological and engineering data concerning the said No. 1 Rodeman well indicate that said well can be dually completed by perforating the casing opposite the "D" sand formation between the approximate depths of Four Thousand Seven Hundred Fifty-four (4754) feet and Four Thousand Seven Hundred Fifty-nine (4759) feet, to permit the oil from the "D" sand formation and the oil from the "J" sand formation to be commingled in the well bore and to be produced simultaneously.

9. That the granting of petitioner's applications and the completion and production of said well in the manner hereinabove described will not result in waste, and that no damage will result to either formation because of such dual completion and commingling.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" and "J" sand formations underlying the Minto-West 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 1a. 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" and "J" sand formations, common sources of supply underlying:

Southeast Quarter (SE/4) and South Half of the Northeast Quarter (S/2 NE/4) of Section Thirty-three (33), all of Section 34, and West Half (W/2) of Section Thirty-five (35), all in Township Nine (9) North, Range Fifty-three (53) West of the 6th P.M., and Lots One (1), Two (2), Three (3), and Four (4), including and lands lying between said lots and the South township line of Township Nine (9) North, Range Fifty-three (53) West, Section Two (2); and Lots One (1), Two (2), Three (3), and Four (4), including any lands lying between said lots and the South township line of Township Nine (9) North, Range Fifty-three (53) West, Section Three (3), all in Township Eight (8) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado,

and such area shall henceforth be known as the Micro-West Field.

Rule 1b. 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, except in Sections Two (2) and Three (3), Township Eight (8) North, Range Fifty-three (53) West, where said units shall be approximately Forty (40) acres, and the permitted well for each drilling unit shall be located Six Hundred Sixty (660) feet from lease lines; and that a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted.

IT IS FURTHER ORDERED, that the following rules and regulations shall apply hereafter to the No. 1 Rodeman well located in the Northeast Quarter of the Southwest Quarter (NE/4 SW/4) of Section Thirty-four (34), Township Nine (9) North, Range Fifty-three (53) West of the 6th P.M., in the Minto-West Field, Logan County, Colorado.

Rule 2a. That applicant, the British-American Oil Producing Company, is hereby authorized and granted the right to dually complete its No. 1 Rodeman well by perforating the casing opposite the "D" sand formation between the approximate depths of Four Thousand Seven Hundred Fifty-four (4754) feet and Four Thousand Seven Hundred Fifty-nine (4759) feet, and to permit the oil from the "D" sand formation and the oil from the "J" sand formation to be commingled in the well bore and to be produced simultaneously.

Rule 2b. That similar dual completions and commingling in one well bore in other wells in the Minto-West Field may be approved and authorized by this Commission upon application to said Commission, as provided by the rules and regulations of said Commission.

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 Minto-West Field, 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 18th day of March, 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