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. 232-19

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 19, 1979 at 11:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of H.H. Champlin and Jack Danford for an order classifying the Well No. 1 Champlin-Danford, located in the SW¼NE¼NE¼ Section 32, Township 2 South, Range 64 West, 6th P.M., as an oil well pursuant to C.R.S. 1973, 34-60-106 (3) (b).

 

FINDINGS

 

The Commission finds as follows:

 

1.      H.H. Champlin and Jack Danford, as applicants herein, are interested parties 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 November 17, 1970, the Commission issued Order No. 232-1 which, among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams and Weld Counties.  The units consist of the E½ and W½ or the N½ and S½ of each section with the permitted well located in the NE¼ and SW¼ of each section.  Subsequent orders extended the spaced area.

 

5.      The E½ Section 32, Township 2 South, Range 64 North, 6th P.M. was designated a drilling and spacing unit with the permitted well being the No. 1 Champlin Danford, located in the SW¼NE¼NE¼ of said section.  Said well was completed April, 1974 in the "J" Sand with an initial potential of 18 bbls oil/day and 125 MCF gas/day with a gas-oil ratio of 6944.

 

6.      Cumulative production from the well through November 1978 was 4144 bbls of oil with a cumulative gas-oil ratio during this period of 4853.  The current gas-oil ratio is 6892.

 

7.      The testimony from the applicant indicated that revenues from the oil and the gas production were approximately equal, however, the liquid condensate was included as part of the oil revenue and should have been included as part of the gas production under C.R.S. 1973, 34-60-103 (5) (6).  Therefore, when adjustments were made, as testified by the protestant and unchallenged by the petitioner a majority of the revenue was from the gas production with the gross revenues from the gas being approximately 54,000 and gross revenues from the oil approximately 28,000.

 

8.      The Commission, pursuant to C.R.S. 1973, 34-60-106 (3) (b) has the authority to classify a well as oil or gas as defined by C.R.S. 1973, 34-60-103 (5) (6) and Rule 110 and 111 of the Rules and Regulations of the Oil and Gas Conservation Commission Based upon the value of the gas produced compared to the value of oil produced, the principal production of the well is gas; therefore, under said definitions, the well should be classified as a gas well.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Well No. 1 Champlin-Danford, located in the SW¼NE¼NE¼ Section 32, Township 2 South, Range 64 West, 6th P.M., Wattenberg Gas Spaced Area is hereby classified as a gas well and is the permitted well for the unit consisting of the E½ of said Section 32.

 

ORDERED this 19th day of March, 1979.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary