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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE "J" SAND OF THE ADENA-SOUTH FIELD IN MORGAN COUNTY, COLORADO |
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CAUSE NO. 33
ORDER NO. 33-6 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on March 31, 1955, at 10:00 a.m., in the Silver Spruce Room of the Shirley Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the petition of the Gem Oil Company, et al, for an order from the Commission to delete area from the Adena-South Field in Morgan County, Colorado; and for an order from the Commission to amend its Order No. 33-5 so as to increase the production of gas from the Adena-South 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 subsequent additional information indicates that the following described area of Adena-South Field is a part of the Adena Field and should be deleted from the Adena-South Field:
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Township 1 North, Range 58 West, 6th P.M. |
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Sections 25, 26, and 27 |
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Township 1 North, Range 57 West, 6th P.M. |
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Section 30: S/2 |
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4. That all of the remaining area of the Adena-South Field included in Order No. 33-5 should be deleted, except Section 35, Township 1 North, Range 58 West of the 6th P.M., Morgan County, Colorado.
5. That the applicant, the Gem Oil Company, et al, has violated Orders No. 33-2, 33-3, and 33-4, wherein it is provided as follows:
"IT IS THEREFORE ORDERED, that the operators and owners of all wells producing oil or both oil and gas from the "D" and "J" sands of the Adena-South Field, and hereinabove defined in the Findings, which, by reference, are made a part hereof, shall not produce oil from any one well in an amount, during any one month, exceeding a daily average of One Hundred Twenty-five (125) barrels; and shall not produce gas from any one well in an amount, during any one month, exceeding a daily average of One Hundred Fifty Thousand (150,000) cubic feet";
and has also violated Rules 2 and 3 of this Commission's Order No. 33-5, wherein it is provided as follows:
"Rule. 2. That, in order to prevent undue waste of oil and gas, and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas, and to prevent underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy, the maximum production from any one well producing from the "J" sand pool of the Dakota Series of the Adena-South Field, shall not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil; and/or One Hundred Fifty Thousand (150,000) cubic feet of gas; and that no one well shall produce during any 24-hour period more than twice its daily allowable, except during prescribed testing periods; and that any production of oil and/or gas produced in excess of the allowed production for any one (1) month shall be deducted in producing the next months allowable.
"Rule 3. That the operators and owners of wells producing from the "J" sand pool of the Dakota Series of the Adena-South Field shall make a gas-oil-ratio test of each of his producing wells during every quarter, beginning with the months of January, April, July, and October; and that such tests shall not be taken within fifteen (15) days of the beginning or ending of each quarters the results of which such tests shall be reported to the Commission on or before the fifteenth (15th) day of the last month of every quarter; and that such tests shall be the basis for calculating the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; that, immediately prior to making the test for a gas-oil ratio, subject well shall be produced at its normal rate of production for at least twenty-four (24) hours, and that such tests shall be conducted for a period of not less than eight (8) consecutive hours and reported on a twenty-four (24) hour basis; that the volume of gas measured shall be reported in units of cubic feet at a base pressure of 15.025 psia, a base temperature of 60° Fahrenheit, and a specific gravity of 0.7."
6. That said violations consist of the following:
(a) The overproduction of oil, as determined and provided for by this Commission in its Orders No. 33-2, 33-3, and 33-4, and Rules 2 and 3 of Order No. 33-5, said overproduction being determined as follows:
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TABLE NO. 1 |
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GEM OIL COMPANY STATE LEASE NO. 4489 |
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Record of Oil Production by Wells – July 1, 1954 to March 1, 1955 |
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Well No. 1 |
Well No. 2 |
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Barrels of Oil |
Barrels of Oil |
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Date |
Produced |
Allowed |
Over- produced |
Under-Prod. |
Produced |
Allowed |
Over- produced |
Under-Prod. |
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July, 1954 |
4,459 |
3,875 |
584 |
0 |
3,360 |
3,360 |
0 |
0 |
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August |
11,865 |
3,875 |
7,990 |
0 |
682 |
682 |
0 |
0 |
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September |
11,382 |
3,750 |
7,632 |
0 |
660 |
660 |
0 |
0 |
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October |
3,546 |
3,875 |
0 |
329 |
682 |
682 |
0 |
0 |
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November |
1,872 |
3,750 |
0 |
1,878 |
660 |
660 |
0 |
0 |
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December |
2,621 |
3,875 |
0 |
1,254 |
682 |
682 |
0 |
0 |
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Jan., 1955 |
3,585 |
3,188 |
397 |
0 |
806 |
806 |
0 |
0 |
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February |
3,871 |
2,879 |
992 |
0 |
728 |
728 |
0 |
0 |
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TOTAL |
43,201 |
29,067 |
17,595 |
3,461 |
8,260 |
8,260 |
0 |
0 |
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TABLE NO. 1 (cont.) |
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GEM OIL COMPANY STATE LEASE NO. 4489 |
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Record of Oil Production by Wells – July 1, 1954 to March 1, 1955 |
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Well No. 4 |
Lease Total |
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Barrels of Oil |
Barrels of Oil |
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Date |
Produced |
Allowed |
Over- produced |
Under-Prod. |
Produced |
Allowed |
Over- produced |
Under-Prod. |
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July, 1954 |
3,399 |
3,399 |
0 |
0 |
11,218 |
10,634 |
584 |
0 |
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August |
186 |
186 |
0 |
0 |
12,733 |
4,743 |
7,990 |
0 |
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September |
180 |
180 |
0 |
0 |
12,222 |
4,590 |
7,632 |
0 |
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October |
186 |
186 |
0 |
0 |
4,414 |
4,743 |
0 |
329 |
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November |
Abandoned October 30, 1954 |
2,532 |
4,410 |
0 |
1,878 |
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December |
0 |
0 |
0 |
0 |
3,303 |
4,557 |
0 |
1,254 |
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Jan., 1955 |
0 |
0 |
0 |
0 |
4,391 |
3,994 |
397 |
0 |
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February |
0 |
0 |
0 |
0 |
4,599 |
3,607 |
992 |
0 |
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TOTAL |
3,951 |
3,951 |
0 |
0 |
55,412 |
41.278 |
17,595 |
3.461 |
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Total overproduction = |
17,595 barrels |
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Total credit = |
3,461 barrels |
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Volume of oil to be made up = |
14,134 barrels |
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NOTE: Allowed oil production figures contained in the table above are based on the following gas-oil-ratio tests taken and reported to the Commission:
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Production |
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Date |
Duration |
during test |
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of Test |
of Test |
Oil (bbls) |
Gas (Mcf) |
GOR |
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7/20/54 |
24 hours |
424 |
415 |
980 |
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State No. 1 |
1/14/55 |
24 hours |
237 |
346 |
1459 |
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7/27/54 |
24 hours |
22 |
6.8 |
309 |
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State No. 2 |
1/15/55 |
24 hours |
26 |
TSTM |
-- |
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State No. 4 |
7/28/54 |
24 hours |
5.3 |
14.4 |
2720 |
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(b) The failure to make and report to this Commission the gas-oil-tests of applicant's producing wells on or before the fifteenth (15th) day of the last month of every quarter, so that such tests could be utilized to properly determine the volume of oil and gas to be produced the following quarter, as provided in Rule 3 of Order No. 33-5.
TABLE NO. II
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Form OGCC-4 |
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Date Required |
Date Received |
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September 15, 1954 |
NOT received |
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December 15, 1954 |
January 18, 1955 |
7. That the application of the Gem Oil Company, et al, to amend Rule 2 of Order No. 33-5 should be denied; and, in order to protect the correlative rights of all of the owners and operators in the Adena-South Field, and to prevent undue waste of oil and gas, as defined in the Oil and Gas Conservation Act of 1951, as amended, applicant should be ordered to make up all of the oil and gas produced in excess of that provided for and determined by Orders No. 33-2, 33-3, and 33-4, and Rules 2 and 3 of Order No, 33-5, by being permitted to produce hereafter not more than Eighty percent (80%) of the oil and gas permitted under rules 2 and 3 of Order No. 33-5, until such overproduction as set forth herein is made up.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the rules and regulations heretofore adopted for the Adena-South Field and not in conflict herewith shall apply hereafter to the following described lands, which shall be known as the Adena-South Field, in Morgan County, Colorado:
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Section Thirty-five (35), Township One (1) North, |
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Range Fifty-eight (58) West of the 6th P.M. |
IT IS FURTHER ORDERED, that the application of the Gem Oil Company, et al, to amend Rule 2 of Order No. 33-5, is hereby denied; and in order to protect the correlative rights of all the owners and operators in the Adena-South Field, and to prevent undue waste of oil and gas, as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, applicant, the Gem Oil Company, et al, is hereby ordered to make up its overproduction of Fourteen Thousand One Hundred Thirty-four (14,134) barrels of oil overproduced during the period commencing July 1, 1954 and ending on the 28th day of February, 1955, and shall forthwith produce not more than Eighty percent (80%) of the oil and gas permitted under Rules 2 and 3 of Order No. 33-5 until such overproduction of Fourteen Thousand One Hundred Thirty-four (14,134) barrels of oil is made up.
IT IS FURTHER ORDERED, that this Order shall become effective forthwith, and shall remain in full force and effect until further action is taken by this Commission.
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 6th day of April, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By Annabel Hogsett, Secretary |