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 "D" SAND OF THE PEAVY FIELD, LOGAN AND WELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 72 ORDER NO. 72-1

APPEARANCES:

John R. Morin, Attorney - for the Delfern Oil Company

Ronald Lestina - for F.W. Baumgartner

R. B. Giles - for the Stanolind Oil and Gas Company

A. J. Jersin, Deputy Director,

Wilbur Rocchio, Assistant Attorney General, and

D. V. Rogers, Petroleum Engineer - for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 16, 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 Delfern Oil Company of Lubbock, Texas, for an order establishing Forty-acre drilling and spacing units for the production of oil and gas from the "D" sand, common source of supply underlying the Peavy Field, Logan 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 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 Logan and Weld Counties, Colorado, to-wit:

Township 12 North, Range 55 West, 6th P.M.
Logan County, Colorado
Section 19:  All	Section 29:  NW/4
Section 20:  W/2	Section 30:  N/2
Township 12 North, Range 56 West, 6th P.M.
Weld County, Colorado
Section 24:  E/2	Section 25:  NE/4

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 "D" sand, common source of supply underlying the Peary Field described above; that said units should be approximately Forty (40) acre drilling and spacing units; and that the permitted oil well for each unit should be located not less than Five Hundred Fifty (550) feet from lease or property lines, and not less than Eight Hundred (800) feet from any other producible or drilling well.

5.      That all available geological and engineering data concerning the said "D" sand, common source of supply in said Peavy 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 net smaller than the maximum area that can be efficiently drained by one well producing from the said "D" said, common source of supply in said Peavy Field.

ORDER

NOW, THEREFORE, IT IS ORDERED, the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand formation underlying the Peavy 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.    Approximately 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:

Section Nineteen (19), West Half (W/2) of Section Twenty (20), Northwest Quarter (NW/4) of Section Twenty-nine (29), and North Half (N/2) of Section Thirty (30), Township Twelve (12) North, Range Fifty-five (55) West of the 6th P.M., Logan County, Colorado;

and

East Half (E/2) of Section Twenty-four (24) and Northeast Quarter (NE/4) of Section Twenty-five (25), Township Twelve (12) North, Range Fifty-six (56) West of the 6th P.M., Weld County, Colorado,

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

(a)     The permitted well for each unit shall be located not less than Five Hundred Fifty (550) feet from lease or property lines, and shall be located net less the Eight Hundred (800) feet from any other producible or drilling well.

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 "D" sand, as defined herein, for the purpose of producing oil and gas therefrom, at a location other the 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 8th day of September, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary