77-2

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

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

)

CAUSE NO. 77

ORDER NO. 77-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1957, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion to consider measures to prevent the waste of oil and gas in the "D" sand of the Beacon Field, Adams County, Colorado, and for the purpose of accepting testimony relative to engineering data for the "D" sand reservoir of 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. That the "D" sand formation in the Beacon Field, as used herein, constitutes a common source of supply underlying the following described lands in Adams County, Colorado, to-wit:

Township 1 South, Range 57 West, 6th P.M.

Section 6: All	Section 7: All

Township 1 South, Range 58 West, 6th P.M.

Section 1: All	Section 12: All

4. 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 "D" sand production from any one forty-acre tract located in the Beacon Field should not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, or Two Hundred (200) Mcf of gas, whichever is produced first; and that when any well reaches a gas-oil ratio of Twenty Thousand to One (20,000 to 1), such well should be shut in pending a gas market; and that upon completion of facilities for said gas market, the maximum production of gas from any one forty-acre tract should not, during any one month, exceed a daily average of Two Hundred Thousand (200,000) cubic feet of gas; and that no one well should produce during any twenty-four hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one (1) month by not in excess of three (3) days’ allowable production, provided that any such excess production should be deducted in producing the next month’s allowable; and that any underproduction may be produced only during the month immediately following that in which the underproduction occurred.

5. That when there is a market for the gas produced from the "D" sand reservoir of the Beacon Field, the operators and owners of all wells producing oil or gas, or both oil and gas from the "D" sand formation of the Beacon Field should not produce gas from any one well unless:

1.	The gas so produced is marketed to supply domestic or municipal needs; or

2.	The gas so produced is required for lease development or operations and fuel.

6. That the operators and owners of wells producing from the "D" sand formation of the Beacon Field should make a gas-oil-ratio test of each of their producing wells during every quarter, beginning with the months of January, April, July and October, unless otherwise authorized by the Commission; and that such tests should be taken during the first fifteen (15) days of the last month of each quarter, the results of which such tests should be reported to the Commission on or before the twenty-fifth (25th) day of the last month of every quarter; and that such tests should be the basis for calculating the volume of oil and gas allowed to be produced, and the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; and that, immediately prior to making the test for a gas-oil ratio, subject well should be produced in its normal manner for at least twenty-four (24) hours; and that during such tests, subject well should be produced at a volume equal to or not exceeding its dally allowable by more than twenty-five (25) percent, if capable; and that tests taken during the first quarter of 1957 should be the basis for calculating the second quarter allowables; and that a schedule should be submitted to the Commission and offset operators prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured should be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.

7. That the operators and owners of wells producing from the "D" sand formation of the Beacon Field should file with the Commission a monthly report of production by wells, as required on Form OGCC-7a, covering the month next preceding the date of filing, on or before the twenty-fifth (25th) day of each month, unless otherwise authorized by the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations be, and the same are, hereby adopted for the "D" sand formation of the Beacon Field, Adams County, Colorado:

Rule 1. 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 "D" sand production from any one forty-acre tract located in the Beacon Field shall not, during any one (1) month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, or Two Hundred (200) Mcf, whichever is produced first; and that when any well reaches a gas-oil ratio of Twenty Thousand to One (20,000 to 1), such well shall be shut in pending a gas market; and that upon completion of facilities for said gas market, the maximum production of gas from any one (1) forty-acre tract shall not, during any one month, exceed a daily average of Two Hundred Thousand (200,000) cubic feet of gas; and that no one well shall produce during any twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one (1) month by not in excess of three (3) days’ allowable production, provided that any such excess production shall be deducted in producing the next month's allowable; and that any underproduction may be produced only during the month immediately following that in which the underproduction occurred.

Rule 2. When there is a market for the gas produced from the "D" sand reservoir of the Beacon Field, the operators and owners of all wells producing oil or gas, or both oil and gas from the "D" sand formation of the Beacon Field, shall not produce gas from any one well unless:

1.	The gas so produced is marketed to supply domestic or municipal needs; or

2.	The gas so produced is required for lease development or operations and fuel.

Rule 3. That the operators and owners of wells producing from the "D" sand formation of the Beacon Field shall make a gas-oil-ratio test of each their producing wells during every quarter, beginning with the months of January, April, July and October, unless otherwise authorized by the Commission; and that such tests shall be taken during the first fifteen (15) days of the last month of each quarter, the results of which such tests shall be reported to the Commission on or before the twenty-fifth (25th) day of the last month of every quarter; and that such tests shall be the basis for calculating the volume of oil and gas allowed to be produced and the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; and that, immediately prior to making the test for a gas-oil ratio, subject well shall be produced in its normal manner for at least twenty-four (24) hours; and that during such tests, subject well shall be produced at a volume equal to or not exceeding its daily allowable by more than twenty-five (25) percent, if capable; and that tests taken during the first quarter of 1957 shall be the basis for calculating the second quarter allowables; and that a schedule shall be submitted to the Commission and offset operators prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured shall be reported in units of cubic feet at a base pressure of 15025 psia, and a base temperature of 60° Fahrenheit.

Rule 4. That the operators and owners of wells producing from the "D" sand formation of the Beacon Field shall file with the Commission a monthly report of production by wells, as required on Form OGCC-7a, covering the month next preceding the date of filing, on or before the twenty-fifth (25th) day of each month, unless otherwise authorized by the Commission.

IT IS FURTHER ORDERED, that this order shall become effective on April 15, 1957.

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 29th day of March, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary