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 "J" SAND OF THE ADENA FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 26

 

ORDER NO. 26-33

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 15, 1957, at 10:00 a.m., in the Empire Room of the Cosmopolitan, an Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Pure Oil Company for itself and as Unit Operator of the Adena "J" Sand Unit Area, requesting that matters relating to existing Order No. 26-30 be reviewed before the Commission. Hearing in this matter was originally set for October 25, 1956, and, at the request of the Adena operators, was continued to November 28, 1956, and subsequently continued to December 18, 1956 and again to January 15, 1957.

 

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 oil allowable of nine barrels per day for Tract No. 81-B, defined as the East Half (E/2) of Section 26, Township 1 North, Range 58 West, Morgan County, Colorado, as fixed by Order No. 26-31, would prevent additional development of the "J" sand reservoir of the Adena Field; therefore, it is necessary to increase the oil allowable of the Delaney No. 1 well located in the Center of the Southeast Quarter of the Southeast Quarter of the Northeast Quarter (SE/4 SE/4 NE/4) of Section Twenty-six (26), Township One (1) North, Range Fifty-eight (58) West, Morgan County, Colorado, to forty (40) barrels per day for a period of one (1) year, in order to encourage further development of said "J" sand reservoir; and that at near the termination of this period, the Commission should hold another hearing on this matter to review all additional pertinent information for further action; however, this action is not to be construed or interpreted as a departure from any findings contained in its Order No. 26-30.

 

4.      That any well drilled and completed as a commercial oil well within the limits of Tract No. 81-B, as defined in Finding No. 3 hereof, should be allowed to produce up to but not more than forty (40) barrels of oil per day until such well has paid out its respective expenses over and above operating costs, provided that such an oil allowable is produced without waste; and that the Commission should hold a hearing just prior to the date of pay-out of any such oil well to accept and review additional pertinent information for further action.


 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Order No. 26-30, as amended by Order No. 26-31, is hereby amended by the following rules:

 

Rule 1. The oil allowable of the Delaney No. 1 well, located in the Center of the Southeast Quarter of the Southeast Quarter of the Northeast Quarter (C SE/4-SE/4 NE/4) of Section Twenty-six (26), Township One (1) North, Range Fifty-eight (58) West, Morgan County, Colorado, is hereby increased to forty (40) barrels per day for a period of one (1) year, commencing February 1, 1957; and the restrictive limits of oil and gas for Tract No. 81-B, as set forth in Order No. 26-31, issued the 25th day of October, 1956, shall not apply for a period of one (1) year, commencing February 1, 1957.

 

Rule 2.    Any well drilled and completed as a commercial oil well within the limits of Tract No. 81-B, as defined in Finding No. 3 hereof, shall be allowed to produce up to but not more than forty (40) barrels of oil per day until such well has paid out its respective expenses over and above operating costs, provided that such oil allowable is produced without waste; and a tabulation of expenses incurred in drilling, completing, equipping and operating such a commercial well shall be submitted to the office of the Commission by the owners of such a well, or wells, as soon as practicable, so that the Commission can reasonably determine the proper cost thereof.

 

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 due to changed conditions in the field which may occur as a result of future drilling and development, or otherwise.

 

ORDERED this 23rd day of January, 1957.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary