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 BUSY BEE FIELD, ADAMS COUNTY, COLORADO	) ) ) )	CAUSE NO. 150 ORDER NO. 150-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1960, 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 Sundance Oil Company for an order approving a certain Unit Agreement attached to said application, covering unit operations in an area described and shown on attached Exhibits "A" and "B"; and further approving a proposed water injection project for the "D" sand reservoir of the Busy Bee Field by the injection of water into the Sundance Oil Company's #1 Flader well.

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 Busy Bee Unit Area, as set forth in the Unit Agreement presented by Applicant, constitutes a common source of supply of oil and gas, and that said Unit Area is composed of the following lands in Adams County, Colorado, to-wit:

Township 3 South, Range 60 West, 6th P.M.

Sections 8 and 9

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

5.      That the project presented by Applicant for the injection of water into the Sundance Oil Company's #1 Flader well, located in the SE¼ NE¼ of Section 9, Township 3 South, Range 60 West, 6th P.M., Adams County, Colorado, will increase the ultimate recovery of oil 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 the applicant, and the correlative rights of all parties in the Busy Bee Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such a 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 "D" sand formation underlying the Busy Bee Unit Area as set forth in the Unit Agreement presented by the Sundance Oil Company, constitutes a common source of supply of oil and gas.  Said Unit Area is composed of the following described lands, to-wit: Sections 8 and 9, Township 3 South, Range 60 West of the 6th P.M., Adams County, Colorado.

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

Rule 3.    The project for the injection of water into the Sundance Oil Company's #1 Flader well, located in the SE¼ NE¼ of Section 9, Township 3 South, Range 60 West, 6th P.M., Adams County, Colorado, is hereby approved, and Applicant is authorized to inject water into said formation through the injection well 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 18th day of October 1960.

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