This cause came on for hearing before the Commission on July 18, 1972, at 2 P.M., in Room 132, State Services Building, Denver, Colorado, as the result of Order No. 238-2 (Emergency) in order to allow the operator of the expanded Peoria Gas Proces-sing Plant to load the plant with gas from the Hombre Field, as well as the Peoria, Peoria North, Latigo and Poncho Fields, and further ordered that operators in the fields were to present all available production and test data in order for the Commission to determine field rules for the production of oil and gas and to consider long range plans for allocation of gas to the expanded Peoria Gas Processing Plant.


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. Thai 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 Peoria Gas Processing Plant has been expanded to handle approximately 16, 000 Mcf of gas per day, and that in order to allow the operator of the plant to obtain gas for the expanded facility, the plant nomination should be allocated among the Hombre, Latigo, Peoria, Peoria North and Poncho Fields in Adams and Arapahoe Counties, Colorado, and that 600 to 1,500 Mcf of gas per day is a reasonable allocation of the plant capacity for the Hombre Field.

4. That in order to prevent waste, as that term is defined in the Oil and Gas Conservation Act, and to prevent the escaping, blowing, and releasing of gas in an exces-sive or unreasonable amount, a maximum limit should be placed on gas production from the "J" Sand reservoir in the Hombre Field.

5. That the maximum daily production of gas from wells capable of produc-ing both oil and gas should not exceed a volume of 300,000 cubic feet, until such time as additional development indicates a change would be necessary,


NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall be, and the same are hereby adopted for the "J" Sand, common source of supply of oil and gas, of the Hombre Field, Adams and Arapahoe Counties, Colorado, underlying the following described lands:


Adams County Township 3 South, Range 61 West, 6th P. M, Section 28: All Section 31: All Section 29: All Section 32: All Section 30: All Section 33: All

Township 3 South, Range 62 .West, 6th P, M, Section 25: All Section 36: All Arapahoe County Township 4 South, Range 61 West, 6th P, M, Section 4: All Section 6: All Section 5: All Rule 1. Production Limitation

a. The nomination of 600-1500 Mcf of gas per day by the operator of the Peoria Gas Processing Plant shall be the allocation of the plant capacity for the Hombre Field.

b. The maximum daily production of gas from any one (1) well capable of producing both oil and gas from the "J" Sand underlying said Hombre Field shall not exceed a volume of Three Hundred Thousand (300,000) cubic feet.

c. in order that the operators may produce their leases in the most efficient manner possible, the gas allowable' of any one well or combination of wells on any given lease may be transferred and produced from any other well or combination of wells on that lease; provided the transfer is to a well or wells with lower gas-oil ratios, provided further, that in no case shall an allowable greater than the capacity of the well be transferred,

d. Under- and overproduction 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 overproduc-tion of gas in excess of ten percent (10%) of the total monthly allowable shall be considered a violation, unless a valid reason is given.

e. A ten (10) day test period is permitted without limitation for new wells completed in the "J" Sand in said Field.

Rule 2. Gas-Oil Ratio Tests

a. Operators and owners of wells producing from the "J" Sand formation of the Hombre Field underlying the lands described in this order shall make a monthly gas-oil ratio test of each producing well, such tests to be taken during the first fifteen (15) days of each month and the results to be received by the Commission on OGCC Form 9 on or before the twenty-fifth (25th) day of the same month. Such tests shall be the basis for calculating the volume of oil and gas allowed to be produced for the following month. Each well shall be produced at its normal rate of production for the last twenty-four (24) hours prior to the actual test and that during such test the well shall be produced at a rate not greater or less than 10% of the pre-test rate. Not less than ten (10) days prior to the testing of the-well, a schedule shall be submitted to the. Commission and to the offset operators showing the wells and the respective dates of tests so that the Com-mission and offset operators will have an opportunity to witness such tests, The volume -2 (238-4) of gas measured shall be reported in units of cubic feet at a base pressure of 15,025 psia and a base temperature of 60 F, and the gas-oil ratio shall be made and calculated in accordance with good engineering principles.

b. Any operator may apply for an amended allowable upon sub-mission of authorized test or retest results.

Rule 3. Individual Weld Production Reports Operators and owners of wells producing from the aforementioned "J" Sand reservoir of the Hombre Field shall file with the Commission a monthly report of production by wells, as required on a form prescribed by the Commission, on or before the twenty-fifth (25th) day of each month succeeding the month in which the produc-tion occurs.

IT IS FURTHER ORDERED, that this order shall become effective August 1, 1972.

IT IS FURTHER ORDERED, that the Commission expressly reserves the right, after notice and hearing, to alter, amend or repeal any part of or all of the above orders.

ORDERED this 19th day of July, 1972.