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 PAWNEE CREEK FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 68

 

ORDER NO. 68-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on October 25, 1955, at 10:00 a.m., in Room 243, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order vacating Order No. 69-1, Cause No. 69, Pawnee Creek-North Field, insofar as it pertains to the "J" sand in the South Half of Section Twenty-six, Township 8 North, Range 54 west of the 6th P.M., Logan County, Colorado, and an order amending Order No. 68-1, Cause No. 68, Pawnee Creek Field, by adding to the area of the Pawnee Creek Field the area to be deleted from the Pawnee Creek-North Field, the additional area to be spaced the same as in Order No. 68-1.

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 "J" sand of the Pawnee Creek Field constitutes a common source of supply of oil and gas underlying, in addition to the area set forth in Cause No. 68, Order No. 68-1, the following described hands in Logan County, Colorado, to-wit:

Township 8 North, Range 54 west, 6th P.M.

 

Section 26:  S/2

4. That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act; 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 said "J" 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, and that the permitted oil well for each unit should be located not less than Three Hundred Thirty (330) feet from any property line, lease line, or governmental quarter-quarter section line, and should be located not less than One Thousand Three Hundred Twenty (1320) feet between wells on the same lease within any one governmental quarter section; provided that no well should be drilled closer than Six Hundred Sixty (660) feet to the West line of the forty (40) acre drilling unit defined as the Southwest Quarter of the Southeast Quarter (SW/4 SE/4), Section Twenty-six (26), Township Eight (8) North, Range Fifty-four (54) West; and provided, further, that a well on the same lease may be drilled closer than One Thousand Three Hundred Twenty (1320) feet to the well drilled on the forty-acre drilling unit specified herein.

5.      That all available geological and engineering data concerning the "J" sand, common source of supply in said Pawnee Creek Field and in the additional area hereinabove described, 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 "J" sand, common source of supply in said Pawnee Creek Field.

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 lards set forth in Cause No. 68, Order No. 68-1, referred to as the Pawnee Creek Field, in Logan County, 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 "J" sand, common source of supply underlying:

North Half (N/2) of Section Two (2), and the North Half of the North Half (N/2 N/2) of Section Three (3), Township Seven (7) North, Range Fifty-four (54) West of the 6th PM; South Half (S/2) of Section Twenty-six (26), the Southeast Quarter (SE/4) of Section Twenty-seven (27), all except the Northwest Quarter (NW/4) of Section Thirty-four (34), and all of Section Thirty-five (35), in Township Eight (8) North, Range Fifty-four (54) West of the 6th P.M. all in Logan County, Colorado,

and such area is known as the Pawnee Creek Field.

(a)  The permitted well for each unit shall be located not less than Three Hundred Thirty (330) feet from any property line, lease line or governmental quarter-quarter section line, and shall be located not less than One Thousand Three Hundred Twenty (1320) feet between wells on the same lease within any one governmental quarter section.

(b)  The permitted well for the forty-acre drilling unit located at the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section Twenty-six (26), Township Eight (8) North, Range Fifty-four (54) west of the 6th P.M. shall not be drilled closer than Six Hundred Sixty (660) feet to the west line of the forty (40) acre drilling unit defined herein, and that a well on the same lease may be drilled closer than One Thousand Three Hundred Twenty (1320) feet to the well drilled on the forty-acre drilling unit specified herein.

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 "J" sand, 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 25th day of October, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary