IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IRONDALE FIELD, ADAMS COUNTY, COLORADO Cause No. 251 Order No. 251-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 20, 1972, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, for an order extending the field limits of the irondale Field, and establishing for the addi-tional area 80-acre drilling and spacing units for the production of oil from the "D" and "J" Sands as provided for in Order No. 251-1; and further to consider measures to prevent waste and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells capable of producing both oil and gas.

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 March 21, 1972, the Commission issued its Order No. 251-1 which, among other things, established 80-acre drilling and spacing units for the production of oil from the "D" and "J" Sands underlying the Irondale Field, and the permitted well for each unit to be located in the center of the NW/4 and SE/4 of each quarter section.

4. That testimony presented at the hearing indicates a common source of supply of oil underlies, in addition to the area set forth in Order No. 251-1, the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 61 West, 6th P.M. Section 30: SW/4 Section 31: NW/4 Township 2 South, Range 62 West, 6th P.M. Section 25: S/2 Section 35: NE/4 Section 26: SE/4 Section 36: N/2 and that such area should be made subject to the provisions of Order No. 251-1.

5. That although there is flaring of casinghead gas from the "D" and "J" Sand reservoirs in the Irondale Field, which is apparently temporary, the operators in the field are proceeding with necessary steps to install a gas processing plant. With the completion of the plant, the flaring should be eliminated. Said plant is presently under construction and should be completed within 90 days from the date of hearing. The Commission, therefore, finds that no action is necessary at this time; however, the operators in the field should produce their wells in a prudent manner in accordance with good engineering practice. (over)

6. That a hearing should be held on September 19, 1972 to receive a report from the operators to the Commission on the completion of the gas processing plant and in the event said plant is not completed, to take necessary measures to prevent any excessive flaring of casinghead gas.

ORDER

.

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 4 herein shall be subject to the provisions of Order No. 251-1, and the Irondale Field shall henceforth include the following described lands in Adams County, Colorado, to-wit: Township 2 South, Range 61 West, 6th P.M. Section 18: SW/4 Section 30: W/2 Section 19: W/2 Section 31: NW/4 Township 2 South, Range 62 West, 6th P.M. Section 13: S/2 Section 25: All Section 14: SE/4 Section 26; E/2 Section 23: E/2 Section 35: NE/4 Section 24: All Section 36: N/2

IT IS FURTHER ORDERED that no action shall be taken at this time concern-ing the flaring of the casinghead gas from the "D" and "J" Sand reservoirs in the Irondale Field; however, operators in the field shall produce their wells in a prudent manner in accordance with good engineering practice.

IT IS FURTHER ORDERED that a hearing shall be held September 19, 1972 at which time a report shall be submitted by the operators in the field to the Commission on the completion of the gas processing plant, and in the event said plant is not completed by that time the Commission shall take necessary measures to prevent any excessive flaring of casinghead gas.

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 7th day of July 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#251-4)