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 WATTENBERG GAS SPACED AREA, ADAMS AND WELD COUNTIES, COLORADO

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CAUSE NO. 232

 

ORDER NO. 232-16

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on June 20, 1977 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 Webb Resources, Inc., for an order to amend Order No. 232-11 and grant certain relief from the restriction of production of gas placed on Well No. 20-4 Smith, NW¼NW¼, Section 20, Township 2 South, Range 64 West, 6th P.M., Wattenberg Gas Spaced Area, Weld 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 on January 26, 1976, the Commission issued its Order No. 232-11 which considered the Well No. 20-4 Smith, located 600 feet from the north line and 600 feet from the west line, Section 20, Township 2 South, Range 64 West, 6th P.M., as an exception to the spacing pattern as established by previous orders in Cause No. 232.  Said Order No. 232-11 further provided for a restriction in production from the well to twenty-five percent (25%) of the average of the daily production of gas from all direct offset wells drilled in accordance with the spacing pattern.

 

4.      That evidence presented at the hearing indicates that the present method of determining the allowable for said well is too restrictive and that certain relief should be granted to allow for additional production from said well.

 

5.      That Order No. 232-11 should be amended and the method of determining the allowable for the No. 20-4 Smith well should be based on fifty percent (50%) of the average of the daily production of gas from Well No. 1 UPRR 23-G, located in the SW¼ Section 17 and Well No. 20-7 Pugh, located in the SW¼NE¼ Section 20, Township 2 South, Range 64 West, 6th P.M., and that such allowable will protect the correlative rights of the offset owners.


 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 232-11 is hereby amended and that the restriction of production of gas from the "J" Sand reservoir shall be placed on Well No. 20-4 Smith, located in the NW¼NW¼ Section 20, Township 2 South, Range 64 West, 6th P.M., in accordance with the following:

 

1.      The daily allowable, calculated on a monthly basis, shall be fifty percent (50%) of the average daily production of gas from Well No. 1 UPRR 23-G, located in the SW¼ Section 17 and Well No. 20-7 Pugh, located in the SW¼NE¼ Section 20, Township 2 South, Range 64 West, 6th P.M.  The daily allowable for each month shall be determined from the report of the production from the two offset wells, submitted during the previous month.

 

2.      Operators and owners of the exception well and the herein described offset wells shall file with the Commission a monthly report of production for each well as required on OGCC Form 7, on or before the fifteenth (15th) day of each month succeeding the month in which the production occurs.

 

3. Under and over production of gas shall be adjusted on a monthly basis.  Underproduction of gas during any one month may be made up only during the month immediately following; and any overproduction of gas obtained during any one month shall be made up during the month immediately following.  Any overproduction of gas in excess of ten percent (10%) of the total monthly allowable shall be considered in violation, unless a valid reason is given.

 

IT IS FURTHER ORDERED, that this order shall become effective August 1, 1977.

 

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 order.

 

ORDERED this 18th day of July, 1977.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary