Pallet Town with Super Rod in FireRed only.
Also on Route 47 in HG/SS. Can be caught with the Super Rod, but can be caught with only 6 badges with the good rod. Rare though.
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Shellder is a version exclusive Pokemon only found in Fire red. But, Instead of Shellder, you can get Slowpoke, if you use a good rod in the Vermillion city harbor.
Shellder can't be found in the wild in Pokemon leaf green, you would have to trade it from fire red.
Shellder evolves using the Water Stone. There is no level that it specifically has to be on in order to evolve.
Shellder does not evolve by level. Use a water stone on it (bought from celadon department store) when you are ready to evolve it
You wil have to trade with FireRed or XD.