REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 17, 1973 at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, to consider measures to prevent the waste of oil and gas from wells producing from the Dakota and Lakota formations in the Lone Pine Field.

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 Lone Pine Field is located in an area of complex structure with extensive faulting and the Dakota and Lakota formations underlying said field each have a reservoir containing a common source of supply of oil and gas.

4. That evidence presented at the hearing indicates that each reservoir consists of a gas cap, oil column and a water zone, and that gas expansion in the gas cap is considered to be an effective producing mechanism.

5. That the open hole completion method utilized in well No. 6 A caused communication to occur between the Dakota and Lakota formations, which communication continues to exist.

6. That the field limits have not been defined and more drilling is necessary to determine the extent of the reservoirs.

7. That gas from the gas cap zone of the Dakota reservoir has been used as a circulating medium to drill other wells in the area and it is planned to use such gas for additional drilling of wells.

8. That the taking of gas from the gas cap of the reservoirs in the Dakota and Lakota formations may cause damage to the producing mechanism of the reservoirs resulting in an unrecoverable quantity of oil that might otherwise be produced.

9. That the Commission should prohibit the production of gas from the gas cap zones of the reservoirs in the Dakota and Lakota formations until such time as more information is available and it is determined that such production will not cause damage to said reservoirs.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that no gas shall be produced from the gas cap zone of the reservoirs in the Dakota and Lakota formations in an area known as the Lone Pine Field, located in parts of Sections 21, 28 and 33, Township 9 North, Range 81 West, 6th P.M., Jackson County, Colorado, unless authorized by the Commission after proper notice and hearing.

ORDERED this 20th day of July 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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