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; AND IN THE MATTER OF THE APPLICATION OF THE CALIFORNIA COMPANY FOR AN ORDER BY THE OIL AND GAS CONSER-VATION COMMISSION APPROVING A PLAN FOR THE OPERATION OF THE RANGELY WEBER SAND UNIT AREA AND PROMULGATING RULES APPROPRIATE FOR THE OPERATION OF SAID UNIT AREA	) ) ) ) ) ) ) ) ) ) )	CAUSE NO. 2 ORDER NO. 2-32

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 24, 1957, at 9:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The California Company as designated Unit Operator of the Rangely Weber Sand Unit, for permission to present for approval a general plan of operation for said Rangely Weber Sand Unit Area, and for an order approving such a general plan of operation and such general rules as may be appropriate for the operation of said Rangely Weber Sand Unit Area in the Rangely Field, 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 UNIT AGREEMENT FOR THE DEVELOPMENT AND OPERATION OF THE RANGELY WEBER SAND UNIT AREA has heretofore been approved by the Commission and on behalf of the United States by a duly authorized representative of the Secretary of the Interior, as being necessary and advisable in the public interest, to prevent waste and to protect correlative rights.

4.      That pursuant to the provisions of said Unit Agreement and the said governmental approvals, the effective date of said Agreement is October 1, 1957.

5.      That "Rangely Field", as used herein, is that area included within an outline located 2640 feet outside of the Unit Area as described in Article 2 of the said Unit Agreement.

6.      That the "Weber Sand Pool", as used herein, shall mean that underground reservoir below the base of the Park City Lime and above the Morgan Sand containing a common accumulation of oil and gas, the top of which Weber Sand was found at a depth of 236 feet subsea in The California Company - Emerald No. 1 well located in the Northeast Quarter of the Southwest Quarter (NE/4 SW/4) of Section 30, Township 2 North, Range 102 West, Rio Blanco County, Colorado.

7.      That the Weber Sand Pool has been developed generally on a forty (40) acre spacing pattern. If it becomes desirable or necessary to drill wells to the Weber Sand Pool outside of the Unit Area, either for injection or production purposes; and if such production wells are completed within 2640 feet outside the Unit Area, the acreage of each such drilling unit should be not less than forty (40) surface contiguous acres, or a governmental quarter-quarter section containing not less than thirty-six (36) acres. The shape of such drilling units should be approximately in the form of a square.

8.      That in the judgment of the Commission, the preliminary plan of operation, including the shutting in of high gas-oil ratio wells, revision of gas handling facilities, pilot water flood projects, and stimulation of low gas-oil ratio wells, heretofore approved by the Regional Supervisor, U. S. Geological Survey, will have the effect of preventing waste and protecting correlative rights; and further, that any subsequent plan of operation approved by the Supervisor should be submitted to the Commission.

9.      That, effective at 7:00 a. m., Mountain Standard Time, October 1, 1957, Order No. 2-28, dated July 17, 1956, and any other conflicting orders heretofore issued should hereby be repealed and superseded by the following order.

10.    That Unit Operator should diligently and as expeditiously as possible proceed under the Unit Operating Plan to reduce and maintain the flaring of gas to a minimum practicable operational level.

11.    That to enable the Commission to be informed of the progress of the Unit operation, certain reports on field operations should be submitted to the Commission by the Unit Operator.       

ORDER

NOW, THEREFORE, IT IS ORDERED by The Oil and Gas Conservation Commission of the State of Colorado, that:

Rule 1.       Operating Plan Approval. The plan presented by the Unit Operator for the operation of the Rangely Weber Sand Unit Area is hereby adopted and approved.

Rule 2.       Effective Date. Repeal of Order No. 2-28. Effective at 7:00 a. m., Mountain Standard Time, October 1, 1957, Order No. 2-28, dated July 17, 1956, and any other conflicting orders heretofore issued, are hereby repealed and superseded by this order.

Rule 3.       Operating Rules. Effective at 7:00 a. m., Mountain Standard Time, October I, 1957, and until otherwise ordered by this Commission, Unit Operator shall, with respect to all non-federal lands within the Unit Area, apply uniformly thereto the Unit Operating Plan as approved from time to time by the Supervisor of the United States Geological Survey having jurisdiction over the Federal lands within the Unit Area; provided, that the Unit Operator shall furnish to the Commission a copy of the Operating Plan as approved by the Supervisor within five (5) days after receipt of such approval by the Unit Operator.

Rule 4.       Gas Flare. Unit Operator shall diligently and as expeditiously as possible proceed under the Unit Operating Plan to reduce and maintain the flaring of gas to a minimum practicable operational level.

Rule 5.       Well Spacing in Marginal Area. The drilling of wells to the Weber Sand Reservoir or deeper on lands outside the Unit Area within a line Two Thousand Six Hundred Forty (2640) feet from the boundary of the Unit Area shall be regulated as follows:

(a)     No Notice of Intention to Drill a Well for Oil or Gas within Two Thousand Six Hundred Forty (2640) feet of the Unit Area shall be approved by the Director of the Commission until ten (10) days from the mailing of a copy of such Notice to the Unit Operator by the Director.

(b)     A drilling unit shall consist of not less than forty (40) surface contiguous acres, or a governmental quarter-quarter section containing not less than thirty-six (36) acres; and the distance between any two points farthest apart within such drilling unit shall not exceed Two Thousand One Hundred (2100) feet.

(c)     No well shall be located closer than Six Hundred (600) feet from the Unit Area boundary.

(d)     Wells drilled by Unit Operator for injection purposes on behalf of the Unit shall not be subject to Rules 5(a) and 5(b).

Rule 6.       Reports of Oil, Water and Gas Production. Total monthly production of oil, gas and water from the unitized area shall be reported by the Unit Operator to the Commission on or before the twenty-fifth (25th) day of a given month for the preceding month.

Rule 7.       Reports of Gas Disposition. Unit Operator shall report to the Commission by the twenty-fifth (25th) day of a given month for the preceding month, field disposition of gas showing:

1. Total volume of gas flared.

2. Total volume of gas beneficially consumed.

3. Total volume of gas injected from field compressors.

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 rules and regulations.

IT IS FURTHER ORDERED, that this Order shall be effective coincident with the time the Unit Agreement for the Development and Operation of the Rangely Weber Sand Unit Area becomes effective; namely, at 7:00 a. m., Mountain Standard Time, on October 1, 1957.

ORDERED this 24th day of September, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary