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 KEOTA FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 10 ORDER NO. 10-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 19, 1978 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, to consider the approval of a water disposal well in the Keota Field, Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1.      Pepper Tank Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3.      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.

4.      On May 3, 1978, Pepper Tank Company filed an application pursuant to Rule 329 of the rules and regulations for approval to use Well No. 7 Gillette, located in the NW¼ SW¼ Section 4, Township 9 North, Range 61 West, 6th P.M., Keota Field, Weld County, Colorado, as a water disposal well. Protests to the granting of the application were filed with the Commission.

5.      Evidence presented at the hearing shows that the well has been used as an injection well for the Keota Unit Area Water flood Project during the period 1963-1970, and a considerable amount of water has been injected into the "J" Sand reservoir during that time. The produced water is to be disposed of into the same formation from which produced. The injection rate will be insufficient to cause migration of oil in the reservoir and such operation will not adversely affect the correlative rights of offset owners; therefore, the application should be approved.

6.      Before well can be utilized as a water disposal well a proper test of the casing should be made in order to insure that no damage will be caused to formations containing oil, gas, fresh water Or other substances.

7.      Some evidence was presented that pit maintenance has not, at all times, been kept in such a manner as to prevent overflow of produced waters into the surrounding area; therefore, measures should be taken by the operator to properly maintain said pits to prevent future overflows.

ORDER

NOW, THEREFORE, IT IS ORDERED that the application requesting authority to dispose of produced water into the "J" Sand by use of Well No. 7 Gillette, located in the NW¼ SW¼ Section 4, Township 9 North, Range 61 West, 6th P.M., Keota Field, Weld County, Colorado, is hereby approved subject to the following:

1.      Before commencement of operations of water disposal, the casing in said well shall be tested by placing a retrievable bridge plug above the perforations, filling the hole with fluid and applying a pressure of not less than 1500 psi. If, at the end of a 30-minute period, the pressure shows a drop of 100 psi or more, the casing shall not be considered adequate for disposal purposes. In the event that the pressure test of the casing is inconclusive due to failure of the plug or casing, corrective measures shall be taken to insure the integrity of the casing. The Commission shall be notified of the time of the test in order for it to be witnessed.

2.      An inspection of the casing shall be made at such times, and in such a manner as may be required by the Director.

IT IS FURTHER ORDERED, that the operator shall at all times maintain the retaining pits in such a manner as to properly contain the produced water and maintain operations in conformance with the rules and regulations of the Oil and Gas Conservation Commission.

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.

ORDERED this 19th day of June, 1978.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Frank J. Piro, Secretary