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	) ) ) )	CAUSE NO. 26 ORDER NO. 26-49

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 26, 1960, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Pure Oil Company, as Operator of the Adena "J" Sand Unit, for an order determining the present maximum efficient rate of production of oil and gas from the Adena "J" Sand Field, establishing the allowable daily quantities of oil and gas to be produced from said field in accordance with such MER determination, and allocating such total field production among the separate producing leases in the field; and for such other and further relief as the Commission shall determine proper in this matter.

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 based on the engineering testimony presented, the current maximum efficient rate of production of oil and gas from the Adena "J" Sand Field is such that said field can produce, without waste, approximately 20,000 stock tank barrels of oil per day, and approximately 25,173,000 cubic feet of gas per day; and that the production at such rates will tend to increase the ultimate recovery of oil and gas from said field; and that since there is a market for the increased production, encouragement should be given to the operators that undertake this type of project.

4.      That there are three separately operated producing tracts in the field; namely, the Adena, "J" Sand Unit, Tract 83, and Tract 81-B, said Unit being deemed one producing tract for the purposes of this order.

5.      That the increase in oil allowable for the Adena "J" Sand Field should not be in conflict with Order No. 26-45.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the Adena "J" Sand Field, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    The Adena "J" Sand Unit Area, or "Unit" as referred to herein, is that certain unitized portion of the Adena "J" Sand Field described in Rule 3 of the Commission's Order No. 26-27, as enlarged by Order No. 26-31, and for the purposes of this order, said Unit shall be deemed one producing property.

Rule 2.    The maximum allowable production from the "J" sand pool of the Adena Field shall not, during any one month, exceed a daily average of Twenty Thousand (20,000) stock tank barrels of oil, and Twenty-five Million One Hundred Seventy-three Thousand (25,173,000) cubic feet of gas, unless and until otherwise ordered by the Commission.

Rule 3.    Such oil and gas allowables shall be allocated among the producing properties in the Adena "J" Sand Field on a tract basis by application of the formulae set forth in Rule 3 of Order No. 26-30, as tabulated on Exhibit "C" attached hereto as a part of this rule, except that the provisions of Order No. 26-45 shall remain in effect. No tract shall produce in excess of its oil and gas allowable, except as herein otherwise provided.

IT IS FURTHER ORDERED, that the rules set forth herein shall become effective March 1, 1960.

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 16th day of February 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D. V. Rogers, Secretary

EXHIBIT “C”   of Order No. 26-30 as Amended by Order No. 26-42, No. 26-44, and No. 26-49

	Column A	Column B	Column C	Column D	Column E
Tract	Reservoir bbls. of “J” sand oil originally in place	Reservoir bbls. of “J” sand gas originally in place	Reservoir bbls. of “J” Sand oil and gas originally in place	Daily oil allowable bbls./day	Daily gas allowable Mcf. /day
Non-Unitized*
81-B	420,272	0	420,272	44	37.9
83	733,982	19,350	753,332	77	67.9
Unit Area**	189,577,174	88,416,844	277,994,018	19,879	25,067.2
TOTALS FOR POOL	190,731,428	88,436,194	279,167,622	20,000	25,173

*     Tract 81-B as used herein is described as the E½ of Section 26, Township 1 North, Range 58 West.  The figure showing the amount of “J” sand oil originally in place is the figure adopted by representatives of the Adena “J” Sand Unit for allocation of the field allowables by use of the formulae set out in Order No. 26-30, and shall not be construed as being in conflict with Order 26-45.

      Tract 83 as used herein, is described as the S½ of Section 25, Township 1 North, Range 58 West.

**   The Adena “J” Sand Unit Area, as used herein, is that certain unitized portion of the Adena “J” Sand Field described in Rule 3 of Order No. 26-27 and the additional area set forth in Rule 1 of Order No. 26-31.