IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT THE WASTE OF OIL AND GAS IN THE "J" SAND OF THE LEADER FIELD, ADAMS COUNTY, COLORADO.

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CAUSE NO. 59

ORDER NO. 59-1

APPEARANCES:

John W. Shireman - for Ginther, Warren & Ginther

John Stanford - for Sinclair Oil & Gas Company

Richard Shaw, Attorney - for Union Pacific Railroad Co.

W.H. Fraser - for Superior Oil Company

A.A. McGregor - for Ryan Oil Company

F.C. Ball - for Union Oil Company

W.R. Waag - for Sohio Oil Company

Wilbur Rocchio, Assistant Attorney General,

A.J. Jersin, Deputy Director, and

D.V. Rogers, Petroleum Engineer - for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 8, 1955, at 10:00 a.m., in the Mezzanine Room of the Shirley Savoy Hotel, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the application of Ginther, Warren & Ginther for an order establishing adequate and proper field rules for the development and production of oil and gas from the "J" sand, common source of supply underlying the Leader Field, Adams 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 constitutes a common source of supply of oil and gas underlying the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 59 West, 6th P.M.

Section 8: All

Section 17: All

Section 20: All

and is known as the Leader Field.

4. That there has been and now is waste of gas caused by the escaping, blowing, and releasing into the open air of gas from the wells in an excessive or unreasonable amount as will unreasonably reduce reservoir pressures and unreasonably diminish the quantity of oil that might ultimately be produced by effective conservation methods, and will cause underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy in the "J" sand pool of the Dakota Series of the Leader Field.

5. That the Leader Field operators present at the hearing unanimously recommended to the Commission that the field be shut in for a period of Six (6) months, during which time the operators would jointly test and study the field in order to determine the most efficient method of producing the known oil and gas reserves in the "J" sand pool of the Leader Field.

6. That the "J" sand pool of said Leader Field should be shut in and remain shut in for a period of Six (6) months from the effective date of this Order, except for testing purposes, and that just prior to the expiration date of this Order, a hearing should be called to determine further action.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to the "J" sand pool of the Leader Field, Adams County, Colorado.

Rule 1. That the "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Adams County Colorado, to-wit:

Sections Eight (8), Seventeen (17), and Twenty (20), Township Two (2) South, Range Fifty-nine (59) West of the 6th P.M.,

and such area shall henceforth be known as the Leader Field.

Rule 2. That the operators and owners of wells producing from the "J" sand pool of the Dakota Series of the Leader Field shall not produce oil or gas from any well in said field for a period of Six (6) months commencing with the effective date of this Order, except for testing purposes.

IT IS FURTHER ORDERED, that all rules and regulations contained herein shall become effective forthwith, and henceforth production of oil or gas, except as set forth in Rule 3 herein, is hereby prohibited.

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 rules and regulations.

ORDERED this 8th day of March, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary