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 RANGELY FIELD NORTH-EAST (WEBER) UNIT AREA, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 2

 

ORDER NO. 2-34

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on July 16, 1979 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Grace Petroleum Corporation for an order approving a certain Unit Agreement and Unit Operating Agreement providing for involuntary unit operations of a reservoir consisting of the Weber formation underlying the Rangely Northeast Unit Area, and to approve a waterflood project for secondary recovery purposes from said reservoir.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Grace Petroleum Corporation, 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.      The Weber formation was encountered in Well No. 1 Govt. located in the SE/4NE/4 Section 25, Township 2 North, Range 102 West, 6th P.M., Rio Blanco County, Colorado, between the approximate depths of 6355 feet and 6606 Feet subsurface, has been defined and determined by drilling as underlying the following described lands in Rio Blanco County, Colorado, to-wit:

 

Township 2 North, Range 101 West, 6th P.M.

Section

19:

SW¼SW¼

Section

30:

W½NW¼, NW¼SW¼

 

 

 

Township 2 North, Range 102 West, 6th P.M.

 

 

 

Section

24:

S½SE¼, SE¼SW¼

Section

25:

NE¼, NE¼NW¼, NE¼SE¼

 

5.      The terms and conditions provided in the Unit Agreement and Unit Operating Agreement meet the requirements of the statute and are just and reasonable to all interests contained within said unit area and the plan For unit operations as presented by the Applicant, providing for a waterflood project for secondary recovery, is necessary to increase the ultimate recovery of oil and Will result in an estimated additional recovery of oil and gas, with a value in excess of the estimated additional cost incident to conducting such operations.

 

6. Testimony presented at the hearing indicates that, as of that date, said Unit Agreement and Unit Operating Agreement have not been approved in writing by other interest owners of at least eighty percent (80%).

 

7. The approval of the unit plan of operations should not become effective unless, or until the persons owning the required percentage of interest in the unit area approve said agreements.

 

8.That within a period of six (6) months from the date of this order, and upon application by Grace Petroleum Corporation, the Commission should hold a hearing to determine whether approval from the required percentage of interest for the plan for unit operations has been obtained. In the event such approval has not been obtained with in this period of time, the approval of the Commission for the plan of unit operations would be ineffective and be revoked.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that,

 

1.      The plan for unit operations covering lands in the Rangely Northeast Unit Area is hereby approved as being in the public interest for conservation.

 

2.      The Weber formation reservoir, common source of supply, underlies the following described lands in Rio Blanco County, Colorado, to-wit:

 

Township 2 North, Range 101 West, 6th P.M.

Section

19:

SW¼SW¼

Section

30:

W½NW¼, NW¼SW¼

 

 

 

Township 2 North, Range 102 West, 6th P.M.

 

 

 

Section

24:

S½SE¼, SE¼SW¼

Section

25:

NE¼, NE¼NW¼, NE¼SE¼

 

and such area shall hereafter be known as the Rangely Northeast Unit Area.

 

3.      The provisions contained in the Unit Agreement and Unit Operating Agreement as they pertain to the requirement of the statute are just and reasonable, and are incorporated herein as the Commission's plan of unit operations for such lands.

 

4.      The waterflood project for the Weber formation reservoir of said Unit Area, as presented by the Applicant, is hereby approved as being necessary to increase the ultimate recovery from said reservoir, and the operator is authorized to inject water through injection wells in such quantities as shall be reasonably determined by the opera-tor to best achieve the maximum recovery of oil without waste.

 

5.      In the event it becomes necessary in the future to convert additional producing wells to input wells, or to drill additional input wells as dictated by developments in the course of the waterflood, the Unit Operator is authorized to make such changes in the operation of the project subject to the approval of the Director, and notification of such changes to Chevron Oil Company, operator of the Rangely Unit Area.

 

IT IS FURTHER ORDERED, that approval of the plan of unit operations shall not become effective unless, or until the persons owning the required percentage of interest in the unit approve said plan.

 

IT IS FURTHER ORDERED, that within a period of six (6) months from the date of this order, and upon application by Grace Petroleum Corporation, the Commission shall hold a hearing to determine whether the approval of the required percentage of interest for the plan of unit operations has been obtained. In the event such approval has not been obtained within this period of time, the approval of the Commission for the plan of unit operations shall become ineffective and this order shall be revoked.

 

ORDERED this 16th day of July, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary