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WEU CO. Gnu! MISSIONER$
GREELFY, COLO.
R ECEIVED
AUG 17 1970
BEFORE THE OIL AND GAS CONSERVATION COMMISSION. P.M.
OF THE STATE OF COLORADO
0181 , t101111121141 ; 141fli
4
IN THE MATTER OF THE PROMULGATION
AND ESTABLISHMENT OF FIELD RULES CAUSE NO, 20
TO GOVERN OPERATIONS IN THE BATTLE fi
CANYON FIELD 'WELD COUNTY, * ORDER NO. 20 - 4
COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on June 16 , 1970 ,
at 10 a . me , in the P . U . C . Hearing Room, 5th Floor , Columbine Building, 1845 Sherman
Street, Denver, Colorado, after giving notice as required by law, on the application of
Charles R . Barr, for an order establishing a 320 - acre drilling and spacing unit for the
production of gas and associated hydrocarbons from the " J " sand underlying the El- of
Section 23 , Township 11 North, Range 56 West, Weld County, Colorado, and also that
all interests in said drilling unit be pooled . However, since there was a protest, the
hearing was continued to July 21, 1970 , to give the protestant an opportunity to present
testimony in opposition to the application . On July 20 , 1970 , the Commission received
a letter from the protestant requesting a further continuation, which was denied .
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 em -
braced in said Notice , and of the parties interested therein, and jurisdiction to pro -
mulgate the hereinafter prescribed order .
.3 . That the " J " sand formation constitutes a common source of supply
of gas and associated liquid hydrocarbons underlying the following described land in
Weld County, Colortado, to - wit :
Township 11 North, Range 56 West, 6th P . M .
Section 23 : E -1-
and is referred to as part of the Battle Canyon Field .
4 . That in order to prevent waste of oil and gas , as defined by law ; to
protect the correlative rights of all parties concerned ; to prevent the drilling of un -
necessary wells , and to insure proper and efficient development and promote conser -
vation of the oil and gas resources , an order should be made establishing a 320 - acre
drilling and spacing unit for the production of gas and associated hydrocarbons from
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the ' ! J ' ' sand formation, a common source of supply underlying the lands defined herein ;
that said unit should be the El Section 23 , Township 11 North, Range 56 West, and that
the No , 1 Weld County Wheeler well, located 2055 feet from the North line and 1980
feet from the East line of. said Section 23 , should be the permitted gas well for said
drilling and spacing unit .
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700387
L601a4
5. That all geological and engineering data concerning the " : d for-
mation in that portion of the Battle Canyon Field indicates that one well efficiently
and economically drain an area of approxinritely 320 acres, and that the digit: t fig unit of
the size and shape hereinabove described is not smaller than the maximum yea that
can be efficiently drained by one well producing from said `•I" sand for -r4.1 :ro
6. That in order to insure proper and efficient development; as eliminate
the drilling of unnecessary well=: to promote conservation of gas resources of the State,
an order should be made pooling all interests in the 320-acre drilling unit described as
the EZ of said Section 23,
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 sv ch tract
bears to the total number of acres within said drilling unit.
ORDER
NOW, THEREFORE, IT :S ORDERED, that the following rules and regu-
lations shall apply to a completed or recompleted in the "J" sand forma-
tion underlying that portion of the Battle Canyon Field herein. described, 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 '1:1 ' sand forrnat'on is a common source of supply of gas and
associated liquid hydrocarbons underlying the following described land in Weld County,
Colorado, to-wit:
Township 11 North, Range 56 West, 6th P. M.
Section. 23: Et
and such area shall henceforth be known as part of the Battle Canyon Field.
Rule 2. The following drilling and spacing unit shall be and the same is
hereby established for the production of gas and associated liquid hydrocarbons from
the "J" sand, a common source of supply, underlying that portion of the Battle Canyon
Field as defined herein:
(a) A 320-acre drilling and spacing unit, accord-
ing to the governmental survey thereof, for the
production of gas from the "J" sand, and the E+
of said Section 23, shall constitute a drilling unit.
(b) The permitted gas well on said unit shall be
the Well No. I. Weld County-Wheeler, located
2, 055 feet from the North line and 1, 980 feet
from the East line of said Section 23.
IT IS EURTHE,R 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 drill-
ing unit described as the E of said Section 23, are hereby pooled for the development
and operation of said drilling unit.
-- (#20-4)
IT IS FURTHER ORDERED, that the production obtained from -cad 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 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.
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 July, 1970.
OIL ANb GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Frank J. iro, Secretary
(#20-4)
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