82-1

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 "D" AND "J" SANDS OF THE ALLEN FIELD, MORGAN COUNTY, COLORADO

)

CAUSE NO. 82

ORDER NO. 82-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 21, 1956, 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 Albert P. Daniels, et al, for an order from the Commission establishing 320-acre drilling and spacing units for the production of gas in the "D" and "J" sands, and 40-acre drilling and spacing units for the production of oil in the "D" sand, all in the Allen Field, Morgan County, Colorado, and to permit the commingling of oil produced from two or more formations in wells drilled in said area.

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 formation constitutes a common source of supply of oil, and the "D" and "J" sand formations constitute common sources of supply of gas underlying the following described lands in Morgan County, Colorado, to-wit:

Township 2 North, Range 56 West, 6th P.M.

Section 3: W/2	Section 9: All
Section 4: All	Section 10: W/2

and is referred to as the Allen Field.

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 from the "D" sand, common source of supply underlying the Allen 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; 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 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 Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from the "D" and "J" sands, common sources of supply underlying said land, as defined herein; that said units should be Three Hundred Twenty (320) acre drilling and spacing units according to the governmental survey thereof, and that said unit should be in the shape of a rectangle except for known variations in legal subdivisions of the United States land surveys, and the East Half (E/2) or West Half (W/2) of each section should constitute a drilling unit; and that the permitted well for each drilling unit should be located not closer than One Thousand Three Hundred Twenty (1320) feet from the north and south lines of the unit, and not closer than Six Hundred Sixty (660) feet from the east and west lines of such Three Hundred Twenty (320) acre drilling and spacing unit.

6. That all available geological and engineering data concerning the said "D" sand in said Allen 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 "D" sand, common source of supply.

7. That all available geological and engineering data concerning the said "D" and "J" sands in said Allen Field indicate that one well should efficiently and economically drain an area of approximately Three Hundred Twenty (320) 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 "D" and "J" sands, common sources of supply.

8. That an exception should be allowed for a well drilled on the following described location:

No. 1-A George Petersen well located in the Northwest Quarter Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Nine (9), Township Two (2) North, Range Fifty-six (56) West, 6th P.M., Morgan County, Colorado.

9. That the No. 1-A George Petersen well located in the Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Nine (9), Township Two (2) North, Range Fifty-six (56) West may be dually completed for production of oil and gas from the "D" sand formation and the "J" sand formation, provided, however, that concurrence of the United States Geological Survey is obtained.

ORDER

NOW, THEREFORE, IT IS 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 Allen 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 "D" and "J" sands, common sources of supply underlying:

West Half (W/2) of Section Three (3), Sections Four (4) and Nine (9), and the West Half (W/2) of Section Ten (10), Township Two (2) North, Range Fifty-six (56) West of the 6th P.M., Morgan County, Colorado

(a) Forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil from the "D" sand. The permitted well for each unit shall be located in the center of each quarter-quarter section in the governmental survey and a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted to avoid surface hazards and obstructions.

(b) Three Hundred Twenty (320) acre drilling and spacing units, according to the governmental survey thereof, for the production of gas from the "D" and "J" sands, and said unit shall be in the shape of a rectangle, except for known variations in legal subdivisions of the United States land surveys, and the East Half (E/2) or West Half (W/2) of each section shall constitute a drilling unit. The permitted gas well shall be located not closer than One Thousand Three Hundred Twenty (1320) feet from the north and south lines of the unit, and not closer than Six Hundred Sixty (660) feet from the east and west lines of such Three Hundred Twenty (320) acre drilling and spacing unit.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the following well:

No. 1-A George Petersen well located in the Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Nine (9), Township Two (2) North, Range Fifty-six (56) West, 6th P.M., Morgan County, Colorado.

IT IS FURTHER ORDERED, that the No. 1-A George Petersen well located in the Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Nine (9), Township Two (2) North, Range Fifty-six (56) West may be dually completed for production of oil and gas from the "D" sand formation and the "J" sand formation; provided, however, that concurrence of the United States Geological Survey is obtained.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth commencement of the drilling of any well or wells in the "D" and "J" sands, 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 2nd day of March, 1956.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary