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 MT. HOPE FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 22

 

ORDER NO. 22-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 19, 1961, at 10 a.m.; in Room 132 State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, and mailing of copies of the application pursuant to regulations of this Commission, on the application of the Shell Oil Company for an order approving a certain Unit Agreement attached to said application as Exhibit "B"; and further approving a proposed water injection project for the "D" and "J" sand formations underlying certain lands in Logan 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 "D" and "J" sand formations underlying the Mt. Hope Unit Area, as presented by Applicant, constitute common sources of supply of oil and gas, and that said Mt. Hope Unit Area is composed of the following described lands in Logan County, Colorado, to-wit:

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 19:

Lots 2, 3, and 4, SE¼ NW¼,

 

E½ SW¼, W½ SE¼, SE¼ SE¼

 

 

Section 30:

Lots 1, 2, 3, and 4, E½ NW¼, NE¼, E½ SW¼, NW¼ SE¼

 

 

Township 9 North, Range 54 West, 6th P.M.

 

 

Section 24:

E½ SW¼, SE¼

Section 25:

NE¼, NE¼ NW¼, N½ SE¼, SE¼ SE¼

 

4.      That said Mt. Hope Unit Agreement, dated. March 1, 1961, is necessary to increase the ultimate recovery of oil and gas from said Mt. Hope Unit Area, and should therefore be approved as being in the public interest for conservation.

 

5.      That the proposed water injection plan for injection of water into the "D" and "J" sand formations underlying the Mt. Hope Unit Area as set forth in Applicant's Exhibit "A",; will increase the ultimate recovery of oil and gas from said Mt. Hope Unit Area; and should therefore be approved as being in the public interest for conservation.

 

6, That avoidable waste of oil and gas will be prevented by the operations proposed by' Applicant; and the correlative rights of all parties in the Mt. Hope Unit Area, as herein defined will not be adversely affected and will be reasonably protected under such a plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said formations, the prevention of waste and protection of correlative rights, this application should be granted.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that: the following rules and regulations shall apply hereafter to the lands set forth in this order, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1.    The "D" and "J" sand formations constitute common sources of supply of oil and gas underlying the Mt. Hope Unit Area, as set forth in Exhibits l and 2 attached to the Unit: Agreement entered into March 1, 1961, which Unit Area is composed of the following lands in Logan County, Colorado, to-wit:

 

UNIT AREA

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 19:

Lots 2, 3, and 4, SE¼ NW¼,

 

E½ SW¼, W½ SE¼, SE¼ SE¼

 

 

Section 30:

Lots 1, 2, 3, and 4, E½ NW¼, NE¼, E½ SW¼, NW¼ SE¼

 

 

Township 9 North, Range 54 West, 6th P.M.

 

 

Section 24:

E½ SW¼, SE¼

 

 

Section 25:

NE¼, NE¼ NW¼, N½ SE¼, SE¼ SE¼

 

Rule 2.    Said Mt. Hope Unit Agreement covering the Mt. Hope Unit Area herein defined and providing for unit operations of the "D" and "J" sand formations underlying said Mt. Hope Unit Area, is hereby approved.

 

Rule 3.    The water injection project, as presented by Applicant, for injection of water into the "D" and "J" sand formations underlying the Mt. Hope Unit Area, is hereby approved; and the Shell Oil. Company is authorized to inject water into said reservoirs through injection wells in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.

 

 

Rule 4.    In the event that it becomes necessary in the future to convert additional producing wells to input wells to plug and abandon certain wells in the Unit Area; or to drill additional producing or input wells as dictated by developments in the course of the operation of the water injection plan, the Unit Operator is authorized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval of the Director the Commission.

 

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 orders, rules and regulations.

 

ORDERED this 19th day of December 1961.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary