BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CANADIAN RIVER FIELD, JACKSON COUNTY, COLORADO	) ) ) )	CAUSE NO. 96 ORDER NO. 96-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 18, 1965, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Amax Petroleum Corporation for an order deleting from the Commission’s Order No. 96-1 the provision stating that all wells with a gas-oil ratio in excess of 20,000 to 1 shall not be produced, and for a general review of all operations in the Canadian River Field.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place and purpose of the healing 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 on November 5, 1956, the Commission issued Order No. 96-1 which, among other things, provided that all wells with a gas-oil ratio in excess of 20,000 to 1 could not be produced.

4.      That the above provision of said Order No. 96-1 is no longer necessary, and that in order to continue exploitation of the field in an economic manner, such a prohibitive order should be rescinded and gas well production should be allowed, provided that such produced gas be either marketed or used in lease operations.

5.      That the production of gas in the manner set forth in Finding 4 hereof should prevent waste, and that such production is necessary for ultimate recovery from the Dakota-Lakota reservoir.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following provision is hereby deleted from Order No. 96-1:

"That all wells with a gas-oil ratio in excess of Twenty Thousand to One (20,000 to 1) shall not be produced."

IT IS FURTHER ORDERED, that operators and owners of gas wells capable of producing from the Dakota-Lakota formation, common source of supply underlying the Canadian River Field, shall not produce from any such well unless the gas so produced is either marketed or used for lease operations, and in no case may such produced gas be flared.

IT IS FURTHER ORDERED, that this order shall become effective twenty (20) days after date of said order.

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 provisions.

ORDERED this 18th day of May 1965.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary