BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE RANGELY FIELD IN THE STATE OF COLORADO

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CAUSE NO. 2

 

ORDER NO. 2-22  (Emergency)

 

REPORT OF THE COMMISSION

 

On the 20th day of June, 1952, the Commission entered its Order No. 2-8, as amended by subsequent orders, in the above entitled matter. Said order prescribed certain rules and regulations for the Rangely Field, in Rio Blanco County, Colorado, and Rule 3(b) of Order No. 2-8 has subsequently been declared void by the Supreme Court of the State of Colorado.

 

It is the duty of the Commission to issue valid orders preventing the waste of oil and gas, and to exercise its powers in the Rangely Field in accordance with the Oil and Gas Conservation Act of 1951, as amended; and it is necessary that the status quo be maintained insofar as possible, until a hearing can be held and new rules and regulations be promulgated by the Commission, in accordance with the Decision of the Supreme Court of the State of Colorado and the said statute, as amended; that the conservation of the field may now best be accomplished by permitting the flaring of gas in quantities and in such measure as will not unreasonably reduce reservoir pressure or unreasonably diminish the quantity of oil or gas that might ultimately be produced.

 

As a result of Order No. 2-8, as amended by subsequent orders, all of the operators purchased and installed equipment for reinjection of gas into the Weber Reservoir of the Rangely Field, and fully complied with all of the orders of the Commission to date; that by reason of such practice of the operators, all of the gas that might have been flared and wasted was returned to the reservoir and is now available for future use, except as hereinafter stated.

 

FINDINGS

 

The Commission finds as follows:

 

1.      That the total daily average production of oil from the Weber Reservoir has been maintained since the commencement of gas injection, and that the Rangely Engineering Committee reported that 571,307 barrels of oil were produced per pound decline in bottom-hole pressure during the period April, 1953 - June, 1954, as compared to 149,335 barrels during the period April, 1952 - April, 1953; and that there has been 32,331,932,000 cubic feet of gas injected into the Weber Reservoir as of May 1, and that less than two percent (2%) of all gas produced from the Weber Reservoir during the period between September 15, 1953, to May 1, 1955, has been flared.

 

2.      That the Supreme Court of the State of Colorado has declared Rule 3(b) of Order No. 2-8 void, and it is the duty of this Commission to issue valid orders concerning the conservation of oil and gas in the Rangely Field, in accordance with that Decision and the Oil and Gas Conservation Act of 1951, as amended.

 

3.      That a state of emergency exists with respect to the Weber Reservoir of the Rangely Field as a result of said recent Decision of the Colorado Supreme Court declaring Rule 3(b) of Order No. 2-8 invalid; and in accordance with the provisions of the Colorado Revised Statutes of 1953, Vol. 4, Ch. 100-6-7(3), the Commission does hereby declare and find that an emergency exists requiring immediate action; and that the Commission has issued proper notice for a hearing set for July 16, 1955, for the prevention of waste of oil and gas in the Weber Reservoir of the Rangely Field, Rio Blanco County, Colorado, to promulgate new rules and regulations for the field, and to do whatever else may be considered proper and within the powers of this Commission to carry out its purposes in accordance with the Decision of the Colorado Supreme Court and the Colorado Oil and Gas Conservation Act of 1951, as amended.

 

4.      That during the emergency period, the operators of the Rangely Field should be permitted to produce their average daily production of oil for the six-months period commencing November 1, 1954, and ending May 1, 1955; said allowable being based upon the assumption that the operators will utilize all gas injection equipment now installed and in use in the field; and that the operators may flare over and above gas flared for operational and emergency purposes (which heretofore has averaged about 1,500,000 cubic feet per day), the gas that would cause hardship to any operator, and which is necessary for him to produce his daily production of oil during the emergency period.

 

5.      That each of the operators, at the request of the Commission, has submitted to the Commission his average daily production of oil and an estimate of the so-called hardship gas needed to be flared during the months of July and August.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that each of the operators in the Rangely Field be permitted to produce his average daily production of oil as determined by the six-months period commencing November 1, 1954, and ending May 1, 1955. This is on the assumption and expectation that the operators will utilize all gas injection equipment now installed and in use in the field; that the operators may flare gas over and above the gas required for operational and emergency flare, so-called hardship gas as limited in the following schedule:

 

 

 

 

Hardship Flare (McfPD)

Company

Oil Production (BOPD)

July

August

 

California

31,890

 

500

3,000

Phillips

3,692

 

525

600

Sharples

1,297

 

1,000

1,250

Stanolind

15,047

 

800

900

Texas

12,437

 

        0

         0

Totals

64,363

 

2,825

5,750

 

Any operator shall be permitted to produce in excess of his average daily production of oil in the event he utilizes his injection equipment to full capacity and does not exceed the so-called hardship flare.

 

This order is subject to change or revocation at any time, and the Commission will at any time hear any complaint from any party in interest for the purpose of so correcting any of the provisions hereof.

 

IT IS FURTHER ORDERED, that this order shall become effective July 5, 1955, and pursuant to Colorado Revised Statutes of 1953, Vol. 4, Ch. 100-6-7(3), remain in effect for fifteen (15) days.

 

ORDERED this 1st day of July, 1955.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary