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. 59-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February, 18, 1958, at 10 a.m., in Room 243 State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of N. C. Ginther, H. C. Warren and W. L. Ginther for an order approving certain agreements attached said application and marked Exhibit "B-1" and Exhibit "B-2", covering unit operations in the Leader Field, Adams County, Colorado, and granting permission to conduct recycling and extraction operations thereunder.

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 formation underlying the Leader Field 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 composed of the following lands in Adams County, Colorado, to-wit:

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

Section 8:	E/2 and E/2 SW/4
Section 17:	All

4. That the Unit Agreement, as presented by the applicant, is necessary to increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

5. That the pressure maintenance program by gas injection into the "J" sand underlying the Leader Field Unit Area, as presented by the applicant, will increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation; and that permission should be granted for cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith.

6. That avoidable waste of oil and gas will be prevented by the operations proposed by the applicant, and the correlative rights of all parties in the Leader Field Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and the protection of correlative rights, this application should be granted.

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 therewith:

Rule 1. The "J" sand formation underlying the Leader Field Unit Area as set forth in the Unit Agreement presented by Applicant and dated the 8th day of March, 1956, constitutes a common source of supply of oil and gas. Said Unit Area is composed of the following lands in Adams County, Colorado, to-wit:

East Half and East Half of the Southwest Quarter (E/2, E/2 SW/4) of Section Eight (8), and all of Section Seventeen (17), Township Two (2) South, Range Fifty-nine (59) West, 6th P.M.

Rule 2. Said Unit Agreement covering the Leader Field Unit Area herein defined, and providing for Unit operations of the "J" sand underlying said Unit Area, is hereby approved.

Rule 3. The pressure maintenance program by the injection of gas into the "J" sand of the Leader Field Unit Area is hereby approved, and Applicant is authorized to inject gas into said formation through the injection well in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste of oil and gas; and permission is hereby granted for cycling or recycling operations, including the extraction and separation of liquid hydrocarbons from natural gas in connection therewith.

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 18th day of February, 1958.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary