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 DANFORTH HILLS FIELD, MOFFAT COUNTY, COLORADO	) ) ) )	CAUSE NO. 153 ORDER NO. 153-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 1, 1997, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Texaco Exploration and Production Inc. for an order authorizing an enhanced recovery project for injection of water into the Shinarump Formation in the Danforth Hills Field for the purpose of disposing of water produced from four (4) Shinarump Formation producing wells upstructure of the Government Treleaven No. 8 Well, located in the SW¼SW¼ of Section 29, Township 5 North, Range 95 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1.      Texaco Exploration and Production Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3.      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.

4.      On May 1, 1997, Sterling Cook filed with the Commission a letter in protest to this project.  The Protestant did not appear at the COGCC hearing on either June 30, 1997 or July 1, 1997, and the Commission requested the Application be heard at an administrative hearing by a Hearing Officer.

5.      Testimony presented at the time of the administrative hearing showed that Texaco is the lessee of a federal lease covering portions of Section 7, Township 4 North, Range 95 West, and Sections 29 - 33 of Township 5 North, Range 95 West, totaling 2,047.51 acres and that all surface owners and mineral owners within ¼ mile of the proposed injection well were notified of the proposed operation.

6.      Testimony presented showed that the Shinarump Formation is approximately 60’ thick, located directly above the Moenkopi Formation, and is found at a stratigraphic depth between 7,063 feet and 7,126 feet and currently produces approximately 200 BOPD and 150 BWPD.  Cumulative production for the field is approximately 500,000 BO.

7.      Water injected into the Shinarump Formation in the Treleaven No. 8 well will migrate updip to the area of highest pressure loss.  The Shinarump Formation is not under a natural water drive but is producing under solution gas drive.

8.      That the additional reserves which will be recovered by this project are approximately 500,000 BO.

9.      That at the time of the administrative hearing, Texaco Exploration and Production Inc. agreed to be bound by oral order of the Commission.

10. Based on the facts stated in the application, having been heard by the Hearing Officer who recommends approval of the application, the Commission should approve the request and authorize an enhanced recovery project for injection of water into the Shinarump Formation in the Danforth Hills Field for the purpose of disposing of water produced from four (4) Shinarump Formation producing wells upstructure of the Government Treleaven No. 8 Well, located in the SW¼SW¼ of Section 29, Township 5 North, Range 95 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED that Texaco Exploration and Production Inc. shall be authorized for an enhanced recovery project for injection of water into the Shinarump Formation in the Danforth Hills Field for the purpose of disposing of water produced from four (4) Shinarump Formation producing wells upstructure of the Government Treleaven No. 8 Well, located in the SW¼SW¼ of Section 29, Township 5 North, Range 95 West, 6th P.M.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

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.

ENTERED this 18th day of July, 1997, as of July 1, 1997.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

July 18, 1997