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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE FORT MORGAN FIELD, MORGAN COUNTY, COLORADO |
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CAUSE NO. 49
ORDER NO. 49-1 |
APPEARANCES:
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Robert B. Laughlin, |
Casper, Wyoming, for Stanolind Oil and Gas Company |
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Benjamin Elenbogen, |
Denver, Colorado, for Aurora Gasoline Co., & Kingwood Oil Co. |
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George H. Fentress, |
Denver, Colorado, for Lion Oil Company |
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N.J. Matthews, |
Denver, Colorado, for Shell Oil Company |
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Edwin F. Marker, |
Denver, Colorado, for Lario Oil & Gas Company |
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J.W. Gee, |
Casper, Wyoming, for Ohio Oil Company |
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Robert O. Lewers, |
Denver, Colorado, for Sun Oil Company |
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Glenn W. Sandberg, |
Denver, Colorado, for Sunray Oil Corporation |
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W.F. Tormohlen, |
Fort Morgan, Colorado, per se |
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W.W. Flenniken, |
per se [sic] |
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Richard I. Drahn, |
Denver, Colorado, for Liland Solt |
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Wilbur Rocchio, Assistant Attorney General, |
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A.J. Jersin, Deputy Director, and |
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D.V. Rogers, Petroleum Engineer, for the Commission |
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REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on Tuesday, November 23, 1954, at 10:00 A.M., in the Mezzanine Room of the Shirley Savoy Hotel, Denver, Colorado, after notice of hearing, as required by law, upon the application of the Stanolind Oil and Gas Company for an order from the Commission to establish drilling and spacing units, according to the governmental survey thereof, for the production of oil and gas from the "D" sand, common source of supply underlying the Fort Morgan Field, Morgan 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, on November 8, 1954, the Commission published Notice of Hearing in Cause No. 49, Fort Morgan Field, for establishment of drilling and spacing units for production of oil and gas from the "D" sand of said Fort Morgan Field. That, at the hearing held November 23, 1954, testimony revealed that the Northwest Quarter (NW/4) of Section Nineteen (19), Township Three (3) North, Range Fifty-seven (57) West of the 6th PM., and the Northeast Quarter (NE/4) of Section Twenty-four (24), Township Three (3) North, Range Fifty-eight (58) West of the 6th P.M., Morgan County Colorado, should not be included in said Fort Morgan Field.
4. That the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Morgan County, Colorado, to-wit:
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Township 3 North, Range 57 West, 6th P.M. |
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Section 19: S/2 |
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Section 30: All |
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Section 31: N/2 |
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Township 3 North, Range 58 West, 6th P.M. |
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Section 24: S/2 |
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Section 25: All |
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Section 26: E/2 |
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Section 35: E/2 |
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Section 36: All |
and is referred to as the Fort Morgan 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 and gas from the "D" sand, common source of supply underlying the Fort Morgan 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 Fifty (50) 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 unnecessary wells, an order should be made establishing One Hundred Sixty (160) acre drilling and spacing units for the production of gas from the said "D" sand, 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 that the permitted gas well should be located not less than Six Hundred Sixty (660) feet from any property line, lease line, or governmental quarter-quarter section line contained in each said One Hundred Sixty (160) acre unit, according to the governmental survey thereof; and should be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.
7. That all available geological and engineering data concerning the said "D" sand in said Fort Morgan 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.
8. That all available geological and engineering data concerning the said "D" sand in said Fort Morgan 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 "D" sand, common source of supply.
9. That exceptions should be allowed for the following wells; and that each of said wells should be the permitted oil or gas well for each Forty (40) or one Hundred Sixty (160) acre drilling and spacing unit on which it is located, whichever is applicable:
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Aurora Gasoline Co. - Kingwood Oil Co. #1 Lauck
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Southwest Quarter of the Southwest Quarter of the Northeast Quarter (SW/4 SW/4 NE/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58) West. |
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Lario Oil Co. #1 Solt
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Southeast Quarter of the Southeast Quarter of the Northwest Quarter (SE/4 SE/4 NW/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58)West. |
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Ohio Oil Co. #1 Van Socyac
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Northeast Quarter of the Northeast Quarter of the Southwest Quarter (NE/4 NE/4 SW/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58) West. |
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Stanolind Oil & Gas Co. #1 Paulson
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Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Twenty-five (25), Township Three North (3N), Range Fifty-eight (58) West. |
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ORDER
IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand underlying the Fort Morgan 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" sand, common source of supply underlying:
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South Half (S/2) Section Nineteen (19); all of Section Thirty (30), and North Half (N/2) of Section Thirty-one (31), Township Three (3) North, Range Fifty-seven (57) West of the 6th P.M.; and the South Half (S/2) Section Twenty-four (24); all of Section Twenty-five (25); East Half (E/2) Section Twenty-six (26); East Half (E/2) Section Thirty-five (35); and all of Section Thirty-six (36), Township Three (3) North, Range Fifty-eight (58) West of the 6th P.M., all in Morgan County, Colorado. |
(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 Fifty (50) 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 not less than Six Hundred Sixty (660) feet from any property line, lease line, or governmental quarter-quarter section line contained in each said One Hundred Sixty (160) acre unit, according to the governmental survey thereof; and shall be located not less than One Thousand Three Hundred Twenty (1320) feet from any other producible or drilling oil or gas well located upon an adjoining drilling and spacing unit under lease to the same operator.
IT IS FURTHER ORDERED, that exceptions are hereby allowed for the following wells, and that each of said wells shall be the permitted oil or gas well for each Forty (40) or One Hundred Sixty (160) acre drilling and spacing unit on which it is located, whichever is applicable:
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Aurora Gasoline Co. - Kingwood Oil Co. #1 Lauck
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Southwest Quarter of the Southwest Quarter of the Northeast Quarter (SW/4 SW/4 NE/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58) West. |
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Lario Oil Co. #1 Solt
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Southeast Quarter of the Southeast Quarter of the Northwest Quarter (SE/4 SE/4 NW/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58)West. |
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Ohio Oil Co. #1 Van Socyac
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Northeast Quarter of the Northeast Quarter of the Southwest Quarter (NE/4 NE/4 SW/4) of Section Twenty-five (25), Township Three (3) North, Range Fifty-eight (58) West. |
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Stanolind Oil & Gas Co. #1 Paulson
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Northwest Quarter of the Northwest Quarter of the Southeast Quarter (NW/4 NW/4 SE/4) of Section Twenty-five (25), Township Three North (3N), Range Fifty-eight (58) West. |
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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 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 26th day of November, 1954, by the Oil and Gas Conservation Commis-sion of the State of Colorado.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |