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 LUFT FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 14

 

ORDER NO. 14-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 22, 1958, at 10 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order approving a certain Unitization Agreements, and further approving a proposed water flood operation in the "D" sand reservoir of the Luft Field.

 

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 thereon, and jurisdiction to promulgate the hereinafter prescribed order.

3.      That on November 25, 1952, the Commission issued its Order No. 14-1 in Cause No. 14, establishing twenty-acre drilling and spacing units for the production of oil and gas from the "D" sand, common source of supply, and defining the area to be known as the Luft Field. Subsequent development reveals that certain changes in the field limits of said Luft Field should be made as follows:

 

Area to be deleted

 

Township 8 North, Range 53 West, 6th P. M.

 

 

Section 17: E½  NE¼

Section 20: W½ NW¼

Section 21: SW¼ NW¼

 

 

Area to be added

 

 

Township 8 North, Range 53 West, 6th P.M.

 

 

                  Section 8:

S½ SW¼, W½ SE¼

                  Section 16:

E½ SW¼ SW¼

                  Section 18:

NE¼ NE¼

                  Section 21:

E½ NW¼ NW/4

 

4.      That the provisions of Order No. 14-1 should be extended to include the additional area as set forth above.

 

5.      That the Unitization Agreement presented by Applicant, as Unit Operator, is necessary to increase the ultimate recovery of oil and gas from the "D" sand, common source of supply of oil and gas underlying the Unitized Area set forth in said Unitization Agreement, and should therefore be approved as being in the public interest for conservation. The Unitized Area is composed of the following lands in Logan County, Colorado, to-wit:

 

W½ SE¼ and S½ SW¼ of Section 8; SW¼ SW¼ of Section 16; S½ and NW¼, and W½ NE¼ of Section 17; NE¼ NE¼ of Section 18; NE¼ and E½ NW¼ of Section 20, and NW¼ NW¼ of Section 21, Township 8 North, Range 53 West, 6th P.M.

 

6.         That the pressure maintenance program by water injection into the "D" sand underlying the Luft 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.

 

7.         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 Luft Unit Area, as herein defined, will not be adversely affected and will be reasonable 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 Luft Field, as defined in Order No, 14-1, is hereby redefined by the deletions and additions set forth in Finding 3 hereof, leaving the following described area as the field limits, which area coincides with the Luft Unit Area, as defined in the Unitization Agreement presented by Applicant:

 

West Half of the Southeast Quarter (W/2 SE/4 ) and South Half of Southwest Quarter (S/2 SW/4 ) of Section Eight (8); Southwest Quarter of the Southwest Quarter (SW/4 SW/4) of Section Sixteen (16); South Half (S/2) and Northwest Quarter (NW/4), and West Half of the Northeast Quarter (W/2 NE/4 ) of Section Seventeen (17); Northeast Quarter of Northeast Quarter (NE/4 NE/4 ) of Section Eighteen (18); Northeast Quarter (NE/4) and East Half of Northwest Quarter (E/2 NW/4 ) of Section Twenty (20), and Northwest Quarter of the Northwest Quarter (NW/4 NW/4) of Section Twenty-one (21), Township Eight (8) North, Range Fifty-three (53) West, 6th P.M., Logan County, Colorado.

 

Rule 2.    The Unitization Agreement dated September 15, 1957, covering the Luft Unit Area herein, defined, and providing for unit operations of the "D" sand underlying said Unit Area, is hereby approved.

 

Rule 3.    The pressure maintenance program by the injection of water into the "D" sand reservoir of the Luft Unit Area, as set forth in Applicant's Unitization Agreement, is hereby approved, and Applicant is authorized to inject water into said reservoir through injection wells 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 22nd day of July, 1958.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary