|IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE KEOTA FIELD, WELD COUNTY, COLORADO||Cause No. 10 Order No. 10-3|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on August 20, 1963, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, and mailing of copies of the application pursuant to regulations of the Commission, on the application of the Pep-per Tank Company for an order approving a certain Unitization Agreement, which agreement was amended at the hearing and attached to said application as Exhibit "B"; and further approving a proposed plan for injection of water into the "J" sand forma-tion underlying certain lands in Weld County, Colorado, to be known as the Unit Area.
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 Keota Unit Area, as set forth in the Unitization Agreement, as amended and presented by Applicant, con-stitutes a common source of supply of oil and gas, and that said Unit Area is com-posed of the following described lands in Weld County, Colorado, to-wit:
Township 9 North, Range 61 West, 6th P.M.
Section 4: S/2 Section 9: E/2
4. That said Unitization Agreement, as amended, is necessary to in-crease the ultimate recovery of oil and gas from said Keota Unit Area, and should therefore be approved as being in the public interest for conservation.
5. That Applicant's proposed plan for injection of water into the "J" sand formation underlying said Unit Area will increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public in-terest for conservation.
6. That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in said Unit Area will not be adversely affected and will be reasonably protected under such a plan of oper-ation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and protection of correlative rights, this application should be granted.
NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to the lands set forth in this order, in addition to other ap-plicable rules and regulations and orders of the Commission, if any, heretofore a-dopted and not in conflict herewith:
Rule 1. The Keota "J" Sand Unit Area, as set forth in the Unitization Agreement, as amended, is comprised of the following described lands in Weld County, Colorado, to-wit:
Township. 9 North, Range 61 West, 6th P.M.
Section 4: S/2 Section 9: E/2
Rule 2. Said Unitization Agreement, as amended, providing for unit operations of the "J" sand underlying said Unit Area, is hereby approved.
Rule 3. Applicant's plan for injection of water into the "J" sand forma-tion underlying said Unit Area is hereby approved, and the Pepper Tank Company is authorized to inject water into said reservoir through injection wells in such quantities as shall be reasonably determined by Applicant to best achieve the maxi-mum recovery of oil without waste.
Rule 4. In the event that it becomes necessary in the future to convert additional producing wells to input wells; to plug and abandon certain wells in the Unit Area, or to drill additional producing or input wells as dictated by develop-ments in the course of the operation of the water flood, the Unit Operator is auth-orized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval of the Director.
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 20th day of August 1963.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By William R. Smith, Secretary