BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WESTPLAINS-NORTH FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 92

 

ORDER NO. 92-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 17, 1956, 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 Wendell G, Sanford, doing business as the Sanford Oil Company, for an order from the Commission establishing drilling and spacing units in Section 17 and the N/2 of Section 20, Township 10 North, Range 54 West, 6th P.M., and requiring the pooling of a tract of land lying within a drilling unit covering the S/2 of Section 17, Township 10 North, Range 54 West, 6th P.M., for the development of the "D" sand formation lying beneath said land and within the Westplains-North Field, Logan County, Colorado; and on the Commission's own motion to consider spacing of additional 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 herein, and jurisdiction to promulgate the hereinafter prescribed order.

 

3.      That the "D" sand formation constitutes a common source of supply of gas under-lying the following described lands in Logan County, Colorado, to-wit:

 

Township 10 North, Range 54 West, 6th P.M.

 

Sections 17 and 20

 

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 Three Hundred Twenty (320) acre drilling and spacing units for the production of gas from the "D" sand, common source 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 the North Half (N/2) or South Half (S/2) of each section should constitute a drilling unit; and that the permitted well for each drilling unit should be located not closer than Six Hundred (600) feet from any unit line of such Three Hundred Twenty (320) acre drilling and spacing unit.

 

5.      That all available geological and engineering data concerning the said "D" sand formation in said Westplains-North 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" sand, common source of supply.

 

6.      That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of the gas resources of the State, an order should be made pooling all interests in the 320-acre drilling unit described as the S/2 of Section 17, Township 10 North, Range 54 west, 6th P.M., Logan County, Colorado.

 

7.      That the order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest within said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

 

8.      That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

 

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" sand formation underlying the Westplains-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 "D" sand formation is the common source of supply of gas underlying the following described lands in Logan County, Colorado, to-wit:

 

Sections Seventeen (17) and Twenty (20), Township Ten (10) North, Range Fifty-four (54) west of the 6th P.M.,

 

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

 

Rule. 2.   The following drilling and spacing units shall be and the same are hereby established for the production of gas from the "D" sand common source of supply underlying the Westplains-North Field as defined herein:

 

(a)

Three Hundred Twenty (320) acre [sic] drilling and spacing units, according to the governmental survey thereof, for the production of gas from the "D" sand; and the North Half (N/2) or South Half (S/2) of each section shall constitute a drilling unit.

 

 

(b)

The permitted gas well shall be located not closer than Six Hundred (600) feet from any unit line of such Three Hundred Twenty (320) acre drilling and spacing unit.

 

IT IS FURTHER ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as the South Half (S/2) of Section Seventeen (17), Township Ten (10) North, Range Fifty-four (54) West, 6th P.M., Logan County, Colorado, are hereby pooled for the development and operation of said drilling unit.

 

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located or to be located on said drilling unit applicable to his interest in said drilling unit.

 

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" sand, as defined herein, for the purpose of producing 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 hearings to alter, amend or repeal any and/or all of the above rules and regulation

 

ORDERED this 17th day of July, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel  Hogsett, Secretary