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 BATTLE CANYON FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 20

 

ORDER NO. 20-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 20, 1960, at 10:00 a.m., in Room 720, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order approving a certain Unit Agreement and a proposed water injection operation for the "J" sand formation underlying certain lands referred to in the application as the "Unit Area" in the Battle Canyon Field, Weld 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 the "J" sand formation underlying the Battle Canyon Unit Area, as set forth in Exhibit "A" of said application, is a common source of supply of oil and gas, and that said Unit Area is composed of the following lands in Weld County, Colorado, to-wit:

 

Township 11 North, Range 56 West, 6th P.M.

 

 

      Section 15:

SW¼, S½ NW¼

      Section 16:

E½ SW¼, S½ NE¼, SE¼

      Section 21:

NE¼, E½ SE¼

      Section 22:

W½, SE¼, S½ NE¼

 

4.      That the Unit Agreement, as presented by Applicant, is necessary to increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

5.      That the water injection program presented by Applicant, for injection of water into eight input wells in the "J" sand underlying said Unit Area, will increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

6.      That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in the Battle Canyon Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and protection of correlative rights, this application should be granted.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this order, 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 "J" sand formation of the Battle Canyon Unit Area, as set forth in Exhibit "A" attached to the Shell Oil Company application, constitutes a common source of supply of oil and gas underlying said Unit Area composed of the following lands in Weld County, Colorado, to-wit:

 

Township 11 North, Range 56 West, 6th P.M.

 

 

      Section 15:

SW¼, S½ NW¼

      Section 16:

E½ SW¼, S½ NE¼, SE¼

      Section 21:

NE¼, E½ SE¼

      Section 22:

W½, SE¼, S½ NE¼

 

Rule 2.    Said Unit Agreement covering the Battle Canyon Unit Area herein defined, and providing for Unit operations of the "J" sand formation underlying said Unit Area, is hereby approved.

 

Rule 3.    The water injection program for injecting water into eight input wells in the "J" sand underlying said Battle Canyon Unit Area is hereby approved, and Applicant is authorized to inject water into said formation through the injection wells in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste of oil and gas.

 

Rule 4.    In the event it becomes necessary in the future to convert additional producing wells to input wells, to plug and abandon certain wells in the Unit Area, or to drill additional producing or input wells as dictated by developments in the course of the operation of the water injection program, the Unit Operator is authorized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval of the Director of the Commission and the United States Geological Survey.

 

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 orders, rules and regulations.

 

ORDERED this 20th day of September 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary