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 CLARKS LAKE FIELD, LARIMER COUNTY, COLORADO

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CAUSE NO. 185

 

ORDER NO. 185-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 16, 1985 at 9:00 a.m., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing is required by law, on the verified application of Terra Resources, Inc., for an order approving a water injection program for pressure maintenance to enhance the production of oil and associated hydrocarbons from the Muddy "J" Sand formation underlying certain lands in the Clarks Lake Field, Larimer County, Colorado.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Terra Resources, 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.      Testimony presented at the hearing indicates that the proposed program to inject water into the Muddy "J" Sand formation, which is found generally at 6,100 feet subsurface in the Well No. 22-6 located in the NW1/4SE1/4NE1/4 of said Section 22, is necessary to maintain constant reservoir pressure and enhance the production of oil and associated hydrocarbons from said formation underlying the following described lands in the Clarks Lake Field, Larimer County, Colorado:

 

Township 9 North, Range 68 West, 6th P.M.

Section 22:  NE1/4

 

5.      Royalty and working interest ownership in the N1E/4 of said Section 22 are undivided and the correlative rights are adequately protected and there is no need for a Unit Agreement.

 

6.      The proposal to inject water into the Muddy "J" Sand formation reservoir underlying the NE1/4 will increase the ultimate recovery of oil and associated hydrocarbons and the additional oil recovered will exceed in value the additional cost of the proposed program.

 

7.      The plan of operation will commence with converting Well No. 22-6, NW1/4SE1/4NE1/4 of said Section 22 from a producer to a pilot injector.  As it becomes necessary, Well No. 22-7 Redwin, NW1/4NE1/4NE1/4 Section 22 and Well No. 22-5 Redwin, NW1/4SW1/4NE1/4 Section 22 should be converted to injection wells, upon approval of the Director.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that approval is hereby given for a water injection program for pressure maintenance to enhance the production of oil and associated hydrocarbons from the Muddy "J" Sand underlying the following described lands in the Clarks Lake Field, Larimer County, Colorado, to-wit:

 

Township 9 North, Range 68 West, 6th P.M.

Section 22:  NE1/4

 

IT IS FURTHER ORDERED, that Well No. 22-6 Redwin located in the NW1/4SE1/4NE1/4 of said Section 22 shall be converted to an injection well.  Upon approval of the Director and as it becomes necessary, Well No. 22-7 Redwin located in the NW1/4NE1/4NE1/4 of said Section 22 and Well No. 22-5 Redwin located in the NW1/4SW1/4NE1/4 of said Section 22 shall be converted to injection wells.

 

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 11th day of October, 1985, as of September 16, 1985.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary