69-1

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 "J" SAND, COMMON SOURCE OF SUPPLY UNDERLYING PAWNEE CREEK-NORTH FIELD, LOGAN COUNTY, COLORADO.

)

CAUSE NO. 69

ORDER NO. 69-1

APPEARANCES:

George W. Selinger - for the Skelly Oil Company

John Braden, Jr. - for Braden and Hoover

Count Dunaway, per se

Wilbur Rocchio, Assistant Attorney General,

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 June 20, 1955, at 10:00 a.m., in the Pine Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of J.W. Braden and L.C. "Jim" Hoover, for an order establishing One Hundred Sixty (160) acre drilling and spacing units for the "D" and "J" sands, common sources of supply underlying the Pawnee Creek-North Field, in 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 there are no wells completed in the "D" sand formation of the Pawnee Creek-North Field, as described herein; therefore, no spacing for wells in the "D" sand of said field should be established in this order.

4. That the "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, to-wit:

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

All of Sections 23 and 26

and is known as the Pawnee Creek-North Field.

5. 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 from the said "J" sand formation, 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 the permitted oil well for each 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.

6. 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 un-necessary wells, an order should be made establishing One Hundred Sixty (160) acre drilling and spacing units for the production of gas from the said "J" sand formation, common source of supply underlying said land, as defined herein, that said units should be One Hundred Sixty (160) acre drilling and spacing units according to the governmental survey thereof, and the permitted gas well for each unit should be located in the center of any quarter-quarter section of said One Hundred Sixty (160) acre drilling and spacing unit, according to the governmental survey thereof, and a tolerance of One Hundred (100) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

7. That all available geological and engineering data concerning the said "J" sand in said Pawnee Creek-North Field indicate that one well should efficiently and economically drain an area of approximately Forty (40) acres as to oil; and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one oil well producing from the said "J" sand, common source of supply.

8. That all available geological and engineering data concerning the said "J" sand in said Pawnee Creek-North Field indicate that one well should efficiently and economically drain an area of approximately One Hundred Sixty (160) acres as to gas, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one gas well producing from the said "J" sand, common source of supply.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" sand underlying the Pawnee Creek-North 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. The following 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:

All of Sections Twenty-three (23) and Twenty-six (26), Township Eight (8) North, Range Fifty-four (54) West of the 6th Principal Meridian, Logan County, Colorado,

and such area shall henceforth be known as the Pawnee Creek-North Field.

(a) Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil. 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.

(b) One Hundred Sixty (160) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas. The permitted gas well shall be located in the center of any quarter-quarter section of said One Hundred Sixty (160) acre drilling and spacing unit, according to the governmental survey thereof; and a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted to avoid surface hazards and obstructions.

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 therefore, 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 21st day of June, 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