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 IGNACIO BLANCO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO. 112 ORDER NO. 112-81

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Amoco Production Company for an order allowing an enhanced recovery project consisting of the injection of inert nitrogen gas into the upper Fruitland coal seam found at a depth of approximately 2598 feet to 2621 feet in the Simon Land and Cattle Company Well No. 15-2 in Sections 15 and 22, Township 34 North, Range 9 West, N.M.P.M., Ignacio Blanco Field, La Plata County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That Amoco Production Company, as applicant, is an interested party to the matter described herein above.

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.      That the Hearing Officer recommends approval of the application and that no protests to the application have been received by the Commission.

5.      That the nitrogen injection project will not result in loss of production from surrounding wells but will result in public information concerning the increased production from maintaining the partial pressures of methane contained in the coal seams and that such information is necessary to allow orderly and efficient development of the coal bed methane reserves in the San Juan Basin.

6.      That the Director's approval be granted in accordance with Rule 326 for two additional injection wells to be drilled in the S1/2 of Section 15 and also for the conversion of the Simon Land and Cattle Co. No. 22-1 and the Simon Land and Cattle Co. No. 15U-2 from production wells to injection.

7.      That production for the project would be obtained from the Simon Land and Cattle Co. Well No. 15U-2.

8.      That the project would have a time period of approximately three years, with a yearly report of progress furnished to the Commission.  The project would be terminated upon notice from Amoco Production Company.

9.      At the conclusion of the project, the 15U-2R well would become the producing well for the unit consisting of the S1/2 of said Section 15, and the 22-1 well would be returned to production for the N1/2 unit of said Section 22 and all other wells would not be allowed to produce from the Fruitland coal seams without a further order of the Commission.

10.      That an order should be issued granting the application.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Amoco Production Company may conduct an enhanced recovery project involving the injection of inert nitrogen gas into the Fruitland coal seams, as defined above, in Sections 15 and 22, Township 34 North, Range 9 West, N.M.P.M., Ignacio Blanco Field, and approval is granted for two additional injection wells to be drilled in the S1/2 of Section 15 and also for the conversion of the Simon Land and Cattle Co. No. 22-1 and the Simon Land and Cattle Co. No. 15U-2 , [sic] making a total of four (4) injection wells authorized in the drilling and spacing units consisting of the S1/2 of Section 15 and the N1/2 of Section 22.

IT IS FURTHER ORDERED, that the results from the inert nitrogen gas injection project will not result in an unfair advantage to any party, and said project is important to the orderly and efficient development of the methane gas from the Fruitland coal seams.

IT IS FURTHER ORDERED, that Amoco Production Company remains responsible for all wells described above to be located in the units consisting of the S1/2 of said Section 15 and the N1/2 of said Section 22.

IT IS FURTHER ORDERED, that this order shall become effective forthwith as all parties have agreed to be bound by the verbal order of the 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.

ENTERED this 9th day of November, 1990, as of October 15, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

November 8, 1990