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 ROGGEN-SOUTHWEST FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 111 ORDER NO. 111-3

REPORT OF THE COMMISSION

A meeting was held at 10 a.m., July 27, 1962, in the office of the Commission, pursuant to Rule 4 of Order No. 111-2 in the above entitled matter.  The following interests appeared at the meeting: Franco Western Oil Company; [sic] Prairie Petroleum, Inc., and the McWood Corporation.  At this time, additional information was presented to the Commission relating to the progress being made to utilize the gas produced in the field.  It is the desire of the Commission to encourage prompt action on the part of the operators and producers in the field to prevent the waste of gas.  Therefore, the provisions of the within order shall constitute the field rules for subject Roggen-Southwest area, in lieu of the provisions of Order No. 111-2.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place and purpose of the meeting 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 there are now eleven wells producing from the "D" sand reservoir underlying the following described lands in Weld County, Colorado, to-wit:

Township 2 North, Range 63 West, 6th P.M.
Section 23:  SE¼	Section 26:  E½
Section 24:  SW¼	Section 35:  E½
Section 25:  W½	Section 36:  W½

and that the limits of the "D" sand reservoir underlying such lands have not as yet been fully defined; and that the owners of interest are currently engaged in the further development of said reservoir.

4.      That the findings of Order No. 111-2 are incorporated herein by reference.

5.      That at the present time, negotiations are under way to provide a market for the produced gas from said "D" sand reservoir by the construction of a gasoline plant and sale of the residue gas.

6.      That when the gasoline plant is in operation, it is the intent of the Commission to allow production of gas from said "D" sand reservoir in the amount of 4,000,000 cubic feet per day, provided that all such produced gas is put to a beneficial use.

7.      That a reasonable basis for the production of gas among the several wells would be the allocation of production in the proportion that the number of wells of each owner bears to the total number of wells in the area; and that said allocation would minimize reasonably avoidable drainage so that each property would have the opportunity of producing or receiving its just and equitable share,

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" sand reservoir underlying the following described lands in Weld County, Colorado, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Township 2 North, Range 63 West, 6th P.M.
Section 23:  SE¼	Section 26:  E½
Section 24:  SW¼	Section 35:  E½
Section 25:  W½	Section 36:  W½

Rule 1.	LIMITATION OF GAS PRODUCTION, [sic]
a.	No well shall produce in excess of a daily average of 75,000 cubic feet of gas, and such gas restriction shall be enforced by utilizing the following formula:
			Barrels of oil production
			per well per day             =		75,000 cu. ft. of gas
					Gas-oil ratio of respective
					well, as determined by
					Rule 2 hereof
b.	In order that operators may produce any one lease in the most efficient manner possible, the gas allowable for any one well or combination of wells on any given lease may be transferred and produced by any other well or combination of wells on the same lease,
c.	Under and over production shall be adjusted on a monthly basis.  Underproduction during any one (1) month may be made up only during the month immediately following, and any overproduction obtained during any one (1) month shall be made up during the month immediately following the month of overproduction.
Rule 2.	GAS-OIL RATIO TESTS.
a.	Beginning with the month of September 1962, and each consecutive month thereafter, a gas-oil ratio test shall be taken of each producible well during the first fifteen (15) days of each such month; and such tests shall be utilized to enforce the limitation of gas production for the next consecutive month, as set forth in Rule 1 hereof,
b.	The results of all such gas-oil ratio tests shall be submitted to the office of the Commission on OGCC Form 9, on or before the 25th day of the testing month; and the volume of gas measured shall be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.
c.	Each well shall be produced at be normal stabilized rate for a period of forty-eight (48) consecutive hours, and the gas-oil ratio shall be computed on the basis of the measurement of oil and gas produced during the last twenty-four (24) hours of such 48-hour period.
d.	A schedule shall be submitted to the Commission and to offset operators prior to such testing, showing the well names with respective dates of tests.
e.	The requirements of this rule may be revised upon approval of the Director of the Commission.
Rule 3.	FUTURE GAS PRODUCTION.
a.	On the date the gasoline plant commences operation and is capable of receiving gas from the wells in the area herein defined, gas production shall be allowed at a rate not to exceed 4,000,000 cubic feet per day from the several wells in said area, provided the gas so produced is put to a beneficial use.
b.	Daily gas production shall be allocated among the several producing wells by utilizing the following formula:
		Gas production from wells of each owner     =		Number of wells of each owner Total number of wells		x  4,000,000     cubic feet
	In the event any owner is unable to produce his share of the gas, the operator of the gasoline plant is authorized to take additional gas from wells of other owners in the field in a proportion that such wells bear to the total number of producing wells of said other owners.
c.	This rule is made without prejudice, and is subject to modification upon application of an interested party.

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.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D.V. Rogers, Secretary