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 BRANDON FIELD, KIOWA COUNTY, COLORADO

)

)

)

)

CAUSE NO. 188

 

ORDER NO. 188-10

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on April 20, 1971, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Inexco Oil Company for an order rescinding the provisions of Order No. 188-3 and approving a plan of operations to accomplish the orderly transition to unlimited production and provide for the proper depletion of oil from the Mississippian formation in the Brandon Field, Kiowa 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 Commission issued its Order No. 188-3, effective June 1, 1967, which placed a limitation on oil production of 150 barrels per well per day in the Brandon Field.

 

4.      That the weight of geological and engineering testimony presented at the hearing indicates that by maintaining the present restrictions on the production from wells producing from the Mississippian formation, maximum oil recovery may not be attained and sufficient oil may be left in the reservoir as to constitute waste, and that a method of efficient depletion of the reservoir would be to produce at an unrestricted fluid withdrawal rate.

 

5.      That the evidence submitted indicates that a substantial volume of water is now being produced by the operators in the field and that substantial additional volumes of water will be produced in the event that Order No. 188-3 is rescinded.

 

6.      That insufficient evidence was presented at the hearing regarding the methods by which the operators are disposing of the present volume of water and the method by which the increased volume of water that may expect to be produced from the entire field if Order No. 188-3 is rescinded will be disposed of, consistent with the protection of correlative rights.

 

7.      That the evidence presented supports the rescinding of Order No. 188-3.  However, the evidence presented also indicates to the Commission that any order rescinding such order should require that all water produced from the field be disposed of by injection into acceptable formation or formations and that production will have to be limited and prorated if adequate disposal is not made of all such water.

 

8.      That the protection of correlative rights requires that adequate notice of this proposed disposal requirement be given to all operators in the field in order that they will have the opportunity to make proper provision for the disposal of their water production either individually, by contract, or by joinder in a cooperative system or systems.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the field operators within thirty days file with the Director the detailed plan or plans by which all the water that might reasonably be expected to be produced in the field will be disposed of underground, indicating the total volume of such water to be disposed of and the total capacity of the proposed disposal system or systems and particularly the date by which such plan or plans will be placed in effect.  Formulation of such plan or plans shall be such as to properly assure the full protection of correlative rights of all parties.  The plan shall include a suggested fieldwide [sic] scheme of proration to be effective during any time that the total capacity from the field exceeds the disposal system capacity.

 

IT IS FURTHER ORDERED that if agreement on the disposal and proration plan or plans cannot be reached by the field operators, any operator may request a hearing thereupon.

 

IT IS FURTHER ORDERED that this cause will remain open and the provisions of Order No. 188-3 shall remain in effect pending compliance with the within order at which time a further order will be issued by the Commission.

 

IT IS FURTHER ORDERED that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above orders.

 

ORDERED this 19th day of May 1971.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary