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 AZURE-EAST FIELD, WASHINGTON COUNTY, COLORADO

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CAUSE NO. 225

 

ORDER NO. 225-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 21, 1969, at 10 a.m., in the P.U.C. Hearing Room, 5th Floor, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Stratigraphic Oil Company, Inc., for an order approving a certain Unit Agreement and Unit Operating Agreement attached to said application as Exhibits "B" and "C" respectively, and further approving a plan for injection of water into the "D" Sand formation underlying the Azure-East Unit Area, Washington 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 "D" Sand formation underlying the Azure-East Unit Area, as set forth in the Unit Agreement presented by the Applicant, constitutes a common source of supply of oil and gas, and that said Unit Area is comprised of the following described lands in Washington County, Colorado, to-wit:

 

Township 1 South, Range 55 West, 6th P.M.

 

 

Section 13:

NW¼, S½

Section 24:

N½ NW¼

 

4.      That said Unit Agreement and Operating Agreement are necessary to increase the ultimate recovery of oil and gas from said Azure-East Unit Area, and should therefore be approved as being in the public interest for conservation.

 

5.      That the proposed waterflood operation for secondary recovery is necessary to increase the ultimate recovery of oil and gas, and that such operation, pursuant to said Unit Agreement and Unit Operating Agreement, will result in an estimated additional recovery of oil and gas with a value in excess of the estimated additional cost incident to conducting such operation.


 

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 Azure-East Unit Area, as set forth in subject Unit Agreement, is comprised of the following described lands in Washington County, Colorado to-wit:

 

Township 1 South, Range 55 West, 6th P.M.

 

 

Section 13:

NW¼, S½

Section 24:

N½ NW¼

 

Rule 2.    Said Unit Agreement and Unit Operating Agreement providing for unit operations of the "D" Sand underlying said Unit Area, are hereby approved.

 

Rule 3.    Applicant's plan for injection of water into the "D" Sand underlying said Azure-East Unit Area is hereby approved, and the Unit Operator is authorized to inject water into said "D" Sand through the injection well in such quantities as shall be reasonably determined by the Unit Operator to best achieve the maximum recovery of oil without waste.

 

ORDERED this 21st day of April 1970.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary