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 AZURE FIELD, WASHINGTON COUNTY, COLORADO

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CAUSE NO. 154

 

ORDER NO. 154-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on June 20, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, and mailing of copies of the application pursuant to regulations of this Commission, on the application of the Kimbark Exploration Company for an order approving a certain Azure Unit Agreement attached to said application as Exhibit "C"; and further approving a proposed water injection plan, as set forth in applicants Exhibit "B", for injection of water into the "D" sand underlying the Azure Unit Area, Washington County, Colorado.

 

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

 

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

 

 

Section 14:

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Section 15:

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

 

5.      That the proposed water injection plan, as set forth in Applicant’s Exhibit "B", for injection of water into the "D" sand formation underlying said Azure Unit Area, will increase the ultimate recovery of oil and gas from said Azure 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 parties in the Azure 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 Azure Unit Area as set forth in the Azure Unit Agreement entered into February 1, 1961, constitutes a common source of supply of oil and gas, and said Azure Unit Area is composed of the following lands in Washington County, Colorado, to-wit:

 

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

 

 

Section 14:

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Section 15:

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

 

Rule 3.    The water injection plan set forth in Applicant's Exhibit "B", for injection of water into the "D" sand formation underlying said Azure Unit Area, is hereby approved, and the Kimbark Exploration Company 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 20th day of June 1961,

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary