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 "D" AND "J" SANDS OF THE ADENA FIELD IN MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 26 ORDER NO. 26-12

REPORT OF THE COMMISSION

On June 4, 1954, the Commission issued its Order No. 26-9 in the above entitled matter, establishing rules and regulations governing the production of oil and gas from the "D" and "J" sand formations of the Adena Field, and providing that Order No. 26-9 be effective for a period of six (6) months, commencing July 1, 1954.

This Cause came on for further hearing before the Commission on December 15, 1954, at 10:00 A.M., in Room 330 State Office Building, Colfax Avenue and Sherman Street, Denver, Colorado, after publication of Notice of Hearing, as required by law, upon the Commission's own motion, to accept testimony in order to consider whether or not provisions of Order No. 26-9 should be continued.

The Commission now has before it all of the testimony and evidence relating to the production of oil and gas from the "D" and "J" sands of the Adena Field, and is fully advised in all matters pertaining to the operations of the field, and believes that it is now in a position to enter a further order in this proceeding, providing for measures to be taken by the operators to prevent the waste of oil and gas in said field.

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 of the Dakota Series in the Adena Field, as used herein, constitute common sources of supply underlying the area as defined in Order No. 26-9.

4.      That, in order to prevent undue waste of oil and gas, and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas, and to prevent underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy, the maximum production from any one well producing from the "D" or "J" sand pools of the Dakota Series of the Adena Field should not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/or One Hundred Fifty Thousand (150,000) cubic feet of gas; and that no one well should produce during any twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one month by not in excess of three (3) days' allowable production, provided that any such excess production should be deducted in producing the next month's allowable, and that any under production may be produced only during the month immediately following that in which the under production occurred.

5.      That the operators and owners of wells producing from the "D" or "J" sand pools of the Dakota Series of the Adena Field should make a gas-oil-ratio test of each of his producing wells during every quarter, beginning with the months of January, April, July, and October; and that such tests should not be taken within fifteen (15) days of the beginning or ending of each quarter, the results of which such tests should be reported to the Commission on or before the fifteenth (15th) day of the last month of every quarter; and that such tests should be the basis for calculating the volume of gas produced for each month of the following quarter, un-less all of the gas produced is metered; that, immediately prior to making the test for a gas-oil ratio, subject well should be produced at its normal rate of production for at least twenty-four (24) hours; and that during such tests subject well should be produced at a rate equal to or not exceeding its allowable by more than twenty-five (25) percent; and that a schedule should be submitted to the Commission prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured should be reported in units of cubic feet at a base pressure of 15.025 psia, a base temperature of 60° Fahrenheit, and a specific gravity of 0.7.

6.      That the operators and owners of wells producing from the “D” and “J” sand pools of the Dakota Series should file with the Commission a monthly report of production by wells, as required on Form OGCC-7a, covering the month next preceding the date of filing, on or before the twentieth (20th) day of each month.

7.      That this Order should be for a period of six (6) months, beginning January 1, 1955, at the expiration of which six (6) months' period, a further hearing will be held.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following Rules and Regulations be, and the same are, hereby adopted for the "D" and "J" sand pools of the Adena Field in Morgan County, Colorado.

Rule 1.    That the "D" and "J" sand formations of the Dakota Series in Adena Field, as used herein, constitute common sources of supply underlying the area as defined in Order No. 26-9.

Rule 2.    That, in order to prevent undue waste of oil and gas, and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas; and to prevent underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy, the maximum production from any one well producing from the "D" or "J" sand pools of the Dakota Series of the Adena Field shall not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/or One Hundred Fifty Thousand (150,000) cubic feet of gas; and that no one well shall produce during any twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one month by not in excess of three (3) days' allowable production, provided that any such excess production shall be deducted in producing the next month's allowable; and that any under production may be produced only during the month immediately following that in which the under production occurred.

Rule 3.    That the operators and owners of wells producing from the "D" or "J" sand pools of the Dakota Series of the Adena Field shall make a gas-oil-ratio test of each of his producing wells during every quarter, beginning with the months of January, April, July, and October; and that such tests shall not be taken within fifteen (15) days of the beginning or ending of each quarter, the results of which such tests shall be reported to the Commission on or before the fifteenth (15th) day of the last month of every quarter; and that such tests shall be the basis for calculating the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; that, immediately prior to making the test for a gas-oil ratio, subject well shall be produced at its normal rate of production for at least twenty-four (24) hours; and that during such tests, subject well shall be produced at a rate equal to or not exceeding its allowable by more than twenty-five (25) percent; and that a schedule shall be submitted to the Commission prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured shall be reported in units of cubic feet at a base pressure of 15.025 psia, a base temperature of 60° Fahrenheit, and a specific gravity of 0.7.

Rule 4.    That the operators and owners of wells producing from the "D" and "J" sand pools of the Dakota Series shall file with the Commission a monthly report of production by wells, as required on Form OGCC-7a, covering the month next preceding the date of filing, on or before the twentieth (20th) day of each month.

IT IS FURTHER ORDERED, that this Order shall become effective January 1, 1955, and shall remain in effect for a period of six (6) months.

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 orders, rules, and regulations

ORDERED this 15th day of December, 1954.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary