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 NUGGET FIELD, WASHINGTON COUNTY, COLORADO

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CAUSE NO. 134

 

ORDER NO. 134-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 10, 1961, at 10:00 a.m., in Room 720, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Monsanto Chemical Company for an order approving a certain Unit Agreement covering the Nugget Unit Area described on exhibits attached to said Unit Agreement, and a water injection program for said Nugget Unit Area; and also approving certain changes in the field rules set forth in Order No. 134-1, issued by the Commission on September 3, 1959.

 

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 Nugget Unit Agreement presented by the Monsanto Chemical Company is necessary to increase the ultimate recovery of oil and gas from the Nugget Unit Area, and should therefore be approved as being in to public interest for conservation.

 

4.      That the "D" sand formation underlying the Nugget Unit Area, as set forth in said Unit Agreement, constitutes a common source of supply of oil and gas, and is composed of the following lands in Washington County, Colorado, to-wit:

 

Township 1 South, Range 56 West, 6th P.M.

 

 

Section 19:

SE¼

Section 20:

S½, S½NE¼

Section 29:

NW¼, N½NE¼, SW¼NE¼

Section 30:

NE¼

 

5.      That the water injection program for the "D" sand formation underlying said Nugget 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.

 

6.      That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all interested parties will not adversely affected, and will be reasonably protected under such plan of operation; that in the interest of securing the greatest ultimate recovery of oil and gas from pool, the prevention of waste and protection of correlative rights, this application should be granted.

 

7.      That because of the water injection program and unitized operations for said Nugget Unit, Rules 2, 3, 4 and 5 of this Commission's Order No. issued September 3, 1959, should be rescinded.

 

8.      That a diligent testing and reporting program approved by the Director be adhered to, in order to ascertain that complete separation of the "D" and sands underlying the Nugget Field is maintained.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations 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 not in conflict herewith:

 

Rule 1.    The Nugget Unit Agreement presented by the Monsanto Chemical covering the Nugget Unit Area herein defined, and providing for Unit operations of the "D" sand underlying said Nugget Unit Area, is hereby approved.

 

Rule 2.    Said Nugget Unit Area shall be composed of the following described in Washington County, Colorado, to-wit:

 

Township 1 South, Range 56 West, 6th P.M.

 

 

Section 19:

SE¼

Section 20:

S½, S½NE¼

Section 29:

NW¼, N½NE¼, SW¼NE¼

Section 30:

NE¼

 

Rule 3.    The program presented by Applicant for the injection of water into "D" sand of the Nugget Unit Area is hereby approved, and the Monsanto Chemical is authorized to inject water into said formation through the proposed input in such quantities as shall be reasonably determined by Applicant to best the maximum recovery of oil without waste.

 

Rule 4.    Rules 2, 3, 4 and 5 of this Commission's Order No. 134-1 are hereby rescinded.

 

Rule 5.    A diligent testing and reporting program approved by the Director be adhered to, in order to ascertain that complete separation of the "D" and "J" underlying the Nugget Field is maintained.

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, notice and hearing, to alter, amend or repeal any and/or all of the above orders, and regulations.

 

 

ORDERED this 24th day of January 1961.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary