BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN THE SPACING AND DENSITY OF OIL AND GAS WELLS IN THE "J" SAND OF THE ADENA FIELD, MORGAN COUNTY, COLORADO	) ) ) ) )	CAUSE NO. 26 ORDER NO. 26-24

REPORT OF THE COMMISSION

On August 24, 1955, the Commission issued its Order No. 26-22 in the above entitled matter, providing for continuation of provisions of Order No. 26-21 for a period of two months, beginning September 1, 1955.

This Cause came on for further hearing before the Commission on Tuesday, October 25, 1955, at 10:00 a.m., in Room 243, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion, to take testimony in order to consider whether or not provisions of Order No. 26-21 should be amended and continued.

During the course of the hearing, the matter of gas flaring was discussed. At the suggestion of the Commission, the advisability of including a no-flare provision in the Order was presented to the operators. All operators agreed that a no-flare provision would be very beneficial to the field, and presented no objection that such a provision be included in the Order.

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 f

or 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 operators are in the process of unitizing oil and gas wells completed in the "J" sand formation of the Dakota Series in the Adena Field, and that a separate order should be issued for rules and regulations governing the prevention of waste of oil and gas in the "J" sand formation, apart from the rules and regulations governing the wells completed in the "D" sand formation of the Adena Field.

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 gas, and to prevent underground waste, inefficient, excessive and improper use and dissipation of reservoir energy, the maximum "J" sand production from any one 40-acre tract located in the Adena Field should not, during any one month, exceed a daily average of 125 barrels of oil or 150,000 cubic feet of gas, whichever is produced first; and that no one well should produce during any one 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 from 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 "J" sand pool 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 15th day of the last month of every quarter; and that such tests may be the basis for calculating the volume of oil and gas produced from each well for each month of the following quarter; 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 volume equal to or not exceeding its daily allowable by more than twenty-five (25) percent; and that a schedule should be submitted to the Commission and to off-set operators prior to testing, showing the wells and respective dates of tests, and that such schedules should be submitted in a sufficient amount of time .to allow the Commission or offset operators an opportunity to witness sand tests; and that the volume of gas measured should be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60 Fahrenheit; and that the tests for a gas-oil ratio should be made and calculated in accordance with good engineering practices.

6.      That the operators present at the hearing presented no objection to a no-flare order; that there is now an outlet for all gas allowed to be produced from wells completed in the "J" sand formation of the Dakota Series, and that no gas produced should be allowed to be released directly or indirectly into the open air on any lease, except for occasional emergencies, or when otherwise authorized by the Commission; and that all produced gas should be metered within practical limits, and such metered volumes of gas should be reported to the Commission.

7.      That the operators and owners of wells producing from the "J" sand pool 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 20th day of each month.

ORDER

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

Rule 1.    That the "J" sand formation of the Dakota Series in the Adena Field, as used herein, constitutes a common source of supply underlying the area known as the Adena Field, as set forth in Cause No. 26, Order No. 26-23.

Rule 2.    That the maximum "J" sand production from any one forty (40) acre tract located in the Adena Field shall not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, or One Hundred Fifty Thousand (150,000) cubic feet of gas, whichever is produced first; and that no one well shall produce during any one twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one (1) month by not in excess of three (3) days' allowable production, provided that any such excess production shall be deducted from 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 "J" sand pool 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 may be the basis for calculating the volume of oil and gas produced from each well for each month of the following quarter; 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 volume equal to or not exceeding its daily allowable by more than twenty-five (25) percent; and that a schedule shall be submitted to the Commission and to offset operators prior to testing, showing the wells and respective dates of tests, and that such schedules shall be submitted in a sufficient amount of time to allow the Commission or offset operators an opportunity' to witness said tests; and that the volume 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° Fahrenheit; and that the tests for a gas-oil ratio shall be made and calculated in accordance with good engineering practices.

Rule 4.    That no gas produced shall be allowed to be released directly or indirectly into the open air on any lease, except for occasional emergencies, or when otherwise authorized by the Commission; and that all produced gas shall be metered within practical limits, and such metered volumes of gas shall be reported to the Commission.

Rule 5.    That the operators and owners of wells producing from the "J" sand pool of the Dakota Series shall file with the Commission a monthly report of production by wells, as required on Form OGCG-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 November 1, 1955.

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 28th day of October, 1955.

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