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. 59-3

REPORT OF THE COMMISSION

On the 8th day of March, 1955, the Commission issued its Order No. 59-1, which provided in part that the Leader Field be shut in for a period of six months, during which time the operators were to jointly test and study the field in an effort to determine the most efficient method of producing the known oil and gas reserves in the "J" sand pool of the Leader Field. As the result of a hearing in this cause which was held August 24, 1955, the Commission issued its Order No. 59-2, which extended the effective period of Order No. 59-1 for an additional six months, commencing September 8, 1955.

This Cause came on for further hearing before the Commission on February 21, 1956, at 10:00 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion, to accept testimony in order to consider whether or not provisions of Order No. 59-2 should be continued, and to consider recommended rules and regulations for governing the production of oil and gas from the "J" sand pool of the Leader Field in the most efficient manner.

The Commission now has before it all of the testimony and evidence relating to the above, and is fully advised in all matters pertaining to the operations of the Leader Field, and believes that it is now in a position to enter a further order in this proceeding, providing for measures to be taken by the operators to prevent the waste of oil and gas in said 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. The Commission finds that the provisions of Order No. 59-2 should be continued for a period of three (3) months, beginning March 8, 1956.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following Rules and Regulations be, and the same are, hereby adopted for the "J" sand pool of the Dakota Series of the Leader Field, Adams County, Colorado.

Rule 1. That the "J" sand formation of the Dakota Series in the Leader Field, as used herein, constitutes a common source of supply underlying the area 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 three (3) months, commencing March 8, 1956, except for testing purposes.

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 21st day of February, 1956.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary