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 LUSTER FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 127

 

ORDER NO. 127-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on August 9, 1960, at 10 a.m.., in Room 227 of the State Services Building, Denver, Colorado, after publication of Notice of Hearing, as required by law, on the application of The Cramer Company, Limited, and joined in by the Brinkerhoff Drilling Company, for an order approving a certain Unit Agreement attached to said application as Exhibit II, Luster Field "J" Sand Unit. Morgan County, Colorado, covering unit operations in said Luster Field; and further approving a proposed water flood protect for the "J" sand underlying said proposed Luster Field "J" Sand Unit. Also, at the above hearing, on the Commission's own motion, consideration was given to extension of the Luster Field, and deletion of certain areas from the field, so as to have said Luster Field coincide which proposed Luster Field "J" Sand Unit area.

 

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 Commission by its Order No. 127-1, established field limits for the Luster Field, and provided that subject field be produced in such a manner as would best furnish information necessary to complete an engineering study to determine the maximum efficient producing rate for the field, provided that such production practices were conducted in a non-wasteful manner.

 

4. That the testimony presented at the hearing indicates that the field limits of the Luster Field should be revised to coincide with the proposed Luster Field "J" Sand Unit, as presented by Applicant, by the extension of certain areas and the deletion of certain other areas, as follows:

 

Area to be deleted

 

E of Section 33, Township 1 North [sic] Range 55 West of the 6th P.M.

 

Area to be added

 

 

 

NWNE of Section 34, Township 1 North, Range 55 West of the 6th P.M.

 

 

5. That the "J" sand formation underlying the Luster Field "J" Sand Unit Area, defined herein, constitutes a common source of supply of oil and gas; and that said Unit Area is composed of the following lands in Morgan County, Colorado, to-wit:

 

Township 1 North, Range 55 West, 6th P.M.

 

 

Section 27:

S

Section 34:

W, NWNE

 

6. That the Unit Agreement, as presented by Applicant, is necessary to increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

7. That the water flood project for the "J" sand formation underlying said Luster Field "J" Sand Unit Area, as presented by Applicant, will increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

8. That avoidable waste of oil, and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in the Luster Field "J" Sand Unit Area, herein defined, will not be adversely affected and will be reasonably protected under such plan of operation 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.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following 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 Luster Field "J" Sand Unit Area, also known as the Luster Field, shall be composed of the following lands in Morgan County, Colorado, to-wit:

 

South Half (S) of Section Twenty-seven (27), and West Half (W) and Northwest Quarter of the Northeast Quarter (NW NE) of Section Thirty-four (34), Township One (1) North, Range Fifty-five (55) West of the 6th P.M.

 

Rule 2. Said Unit Agreement covering the Luster Field "J" Sand Unit Area herein defined, and providing for unit operations of the "J" sand underlying said Unit Area, is hereby approved.

 

Rule 3. The water flood [sic] project for the "J" sand formation underlying the Luster Field "J" Sand Unit Area, as presented by Applicant, is hereby approved, and The Cramer Company, Limited, is authorized to inject water into said pool through the proposed intake wells, as outlined in said application, in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.

 

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 9th day of August 1960.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By

D.V. Rogers, Secretary