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 "D" SAND OF THE BIJOU FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 116 ORDER NO. 116-10

REPORT OF THE COMMISSION

On June 29, 1962, the Commission received a letter from the Gulf Oil Corporation stating that the Unit Agreement approved September 12, 1961, by the Commission's Order No. 116-9, would be terminated July 1, 1962 under Article 17.2 of said Agreement, as the Operator was unable to form the unit desired by the majority of the working interest and royalty owners; and that the Gulf Oil Corporation would be willing to reconsider unitization of the Bijou Field at a later date.

On December 28, 1962, the Gulf Oil Corporation filed with the Commission an application for an order approving a certain Unit Agreement attached to said application and covering unit operations of the D-1 and D-2 sand reservoirs underlying certain lands in Morgan County, Colorado, and further approving a proposed water injection project for said D-1 and D-2 sand reservoirs; and further approving a proposed revision of certain field rules set forth in Orders 116-5 and 116-9; therefore, this cause came on for hearing before the Commission on January 15, 1963, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law.  

FINDINGS

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 "D" sand formation underlying the Bijou Unit Area, as set forth in the Unit Agreement presented by the applicant, constitutes common sources [sic] of supply of oil and gas.

4.      That the Unit Agreement and water injection program, as presented by Applicant, are in the public interest for conservation; are necessary to increase the ultimate recovery of oil and gas from the Bijou Field, and will tend to prevent waste of oil and gas and therefore should be approved.

5.      That the Commission recognizes that the water injection program may, from time to time, require changes in the operation of the project in order to facilitate the efficient development thereof; and that such changes should be allowed, subject to the approval of the Director.

6.      That testimony presented at the hearing indicates that, under unit operations, most provisions of Order No. 116-5 and Order No. 116-9 should be deleted or revised and incorporated in the within order.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 116-5 and Order No. 116-9 are hereby amended to read as follows, and such rules and regulations shall apply hereafter to the lands set forth in this order, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    The "D" sand formation of the Bijou Unit Area, as shown on Exhibit "B" attached to the Gulf Oil Corporation application as a part of the Unit Agreement, constitutes common sources of supply of oil and gas underlying said Bijou Unit Area comprised of the following described lands in Morgan County, Colorado, to-wit:

Bijou Unit Area
Township 4 North, Range 59 West, 6th P.M.
Section 5:	Lots 3 and 4, S½NW½, SW¼, SW¼NE¼, W½SE¼
Section 6:	All
Section 7:	Lots 1 and 2, E½NW¼, NE¼
Section 8:	All
Section 17:	NW¼, W½NE¼
Township 4 North, Range 60 West, 6th P.M.
Section 1:	Lots 1 and 2, SE¼NE¼, E½SW¼NE¼, E½SE¼, E½W½SE¼
Township 5 North, Range 59 West, 6th P.M.
Section 31:	S½S½ of Lot 3, Lot 4, SE¼SW¼, S½SE¼
Township 5 North, Range 60 West, 6th P.M.
Section 36:	SE¼, SE¼SW¼

which area shall also define the limits of the Bijou Field.

Rule 2.    Said Unit Agreement, covering the Bijou Unit Area herein defined, and providing for unit operations of the "D" sand formation underlying said Bijou Unit Area, is hereby approved.

Rule 3.    The program proposed by the Gulf Oil Corporation providing for injection of water into the "D" sand formation underlying said Bijou Unit Area, is hereby approved, and Applicant is authorized to inject water into said formation in such quantities as shall be reasonably determined by Applicant to best achieve the maximum 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 Bijou Unit Area; or to drill additional producing or input wells as dictated by developments in the course of the operation of the water injection program, the Unit Operator is authorized 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 of the Commission.

Rule 5.    Two drilling units of approximately 160 acres each are hereby established for production of gas from the D-1 sand formation, said units to consist of the SW½ of Section 8, and the NW½ of Section 17, Township 4 North, Range 59 West of the 6th P.M., in the Bijou Field, Morgan County, Colorado.

Rule 6.    The production of gas from the D-1 sand formation shall be produced and taken ratably from each well capable of producing from said D-1 sand formation.

IT IS FURTHER ORDERED that the provisions of this order shall apply to all operators and owners of wells capable of producing from the "D" sand formation underlying the Bijou Field, and shall remain in effect unless otherwise authorized by 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, rules and regulations.

ORDERED this 15th day of January 1963.

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