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 BOXER UNIT,

MORGAN COUNTY, COLORADO

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CAUSE NO.   204

 

ORDER NO.   204-9

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on April 26, 1999 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the Commission’s own motion to rescind Commission Order No. 204-7, entered May 16, 1972, which approved a certain Unit Agreement and Unit Operating Agreement for the "D" Sand Formation reservoir in the Boxer North Unit, Morgan County, Colorado.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  The Commission 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.  On June 20, 1967, the Commission entered Order No. 204-3 which established production restrictions for gas produced from the "D" Sand Formation underlying the below-described lands, to-wit:

 

                                                   Township 1 North, Range 58 West, 6th P.M.

                                                                             Section 5:  N½

 

                                                   Township 2 North, Range 58 West, 6th P.M.

                                                                      Section 16:  E½ , SW¼

                                                                             Section 20:  All

                                                                             Section 21:  All

                                                                  Section 28:  W½, W½ NE¼

                                                                             Section 29:  All

                                                                        Section 31:  E½  E½

                                                                             Section 32:  All

                                                                        Section 33:  W½ W½

 

                        5.  On May 16, 1972, the Commission entered Order No. 204-7 which established the Boxer North Unit, approving a certain Unit Agreement and Unit Operating Agreement for operation of the "D" Sand Reservoir underlying the below-described lands, to-wit:

 

                                                   Township 2 North, Range 58 West, 6th P.M.

                                                                             Section 21:  All

 

and further approved a program of water injection for secondary recovery, and further rescinded and revised the provisions of Order No. 204-3.

 

                        6.  On May 17, 1993, the Commission entered Order No. 204-8 which rescinded the Unit Agreement and Unit Operating Agreement for the Boxer Unit and directed the Commission to review the provisions of Order No. 204-7, as the unit had been terminated in accordance with the provisions of the unit agreement.

 

                        7.  That the records of the Commission show that no production has been reported for the Boxer North Unit since July 1975 and that all water injection wells have been properly plugged and abandoned and that no water injection has occurred during the time from April 1975 to the present.

 

                        8.  Based on the facts stated in the verified application and having been reviewed by the Hearing Officer on April 20, 1999 and recommended for approval, the Commission should enter an order rescinding Order No. 204-7.

 

                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED that Commission Order No. 204-7 entered May 16, 1972 is hereby rescinded and that the Rules and Regulations of the Oil and Gas Conservation Commission shall govern future operations in Section 21, Township 2 North, Range 58 West, 6th P.M.

 

                        IT IS FURTHER ORDERED that no injection of water in the above-described lands may be initiated without the approval of the Director.

 

                        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 __________ day of April 1999, as of April 26, 1999.

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

 

 

                                                                        By _______________________________________

                                                                                          Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

April 26, 1999