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. 26-9

REPORT OF THE COMMISSION

This Cause came on for further hearing before the Commission on May 6, 1954, at 10:00 A.M., in Room 704, State Capitol Annex, 14th Avenue and Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion to take further measures to prevent the waste of oil and gas in the "D" and "J" sands in the Adena Field, Morgan County, Colorado.

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 its 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 following described lands in Morgan County, Colorado:

Sections One (1), Two (2), Three (3), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township One (1) North, Range Fifty-eight (58) West; Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Two (2) North, Range Fifty-eight (58) West; West Half (W½) of Section Four (4), all of Sections Five (5), Six (6), Seven (7), and Eight (8); West Half (W½) of Section Nine (9), West Half (W½) of Section Sixteen {16), all of Sections Seventeen (l7), Eighteen (18), Nineteen (19), and Twenty (20); West Half (W½) of Section Twenty-one (21), Northwest Quarter (NW¼) of Section Twenty-eight (28), North Half (N½) of Section Twenty-nine (29), North Half (N½) of Section Thirty (30), Township One (1) North, Range Fifty-seven (57) West; West Half (W½) of Section Twenty-eight (28), all of Sections Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), West Half (W½) of Section Thirty-three (33), Township Two (2) North, Range Fifty-seven (57) West, Morgan County, Colorado.

4.      That the "D" sand pool of the Dakota Series, as used herein, shall be construed to mean that underground reservoir containing a common accumulation of oil and gas, the top of which "D" sand pool is found at a depth of approximately One Thousand Twenty-eight (1028) feet subsea in the Petroleum, Incorporated L.J. Clar No. 1 well located in the Southeast Quarter of the Northeast Quarter of the Northwest Quarter (SE¼ NE¼ NW¼) of Section Twenty-four (24), Township One (1) North, Range Fifty-eight (58) West of the Sixth (6th) P.M., Morgan County, Colorado.

5.      That the "J" sand pool of the Dakota Series, as used herein, shall be construed to mean that underground reservoir containing a common accumulation of oil and gas, the top of which "J" sand pool is found at a depth of approximately One Thousand One Hundred Twenty-two (1122) feet subsea in the Bill Tomberlin No. l Cochran well, located in the Southeast Quarter of the Southeast Quarter of the Northwest Quarter (SE¼ SE¼ NW¼) of Section Twelve (12), Township One (1) North, Range Fifty-eight (58) West of the Sixth (6th) PM., Morgan County, Colorado.

6.      That the "D" and "J" sand pools of the Dakota Series are what is commonly known as a gas-cap expansion reservoir with no apparent evidence of effective water drive.

7.      That there has been and now is waste of gas caused by the escaping, blowing, and releasing into the open air of gas from the wells in an excessive or unreasonable amount as will unreasonably reduce reservoir pressures, and unreasonably diminish the quantity of oil that might ultimately be produced by effective conservation methods, and will cause underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy in both the "D" and "J" sand pools of the Dakota Series of the Adena Field.

8.      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 24-hour period more than twice its daily allowable except during prescribed testing periods; and that any production of oil and/or gas produced in excess of the allowed production for any one month should be deducted in producing the next month's allowable.

9.      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 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, unless 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 such tests should be conducted for a period of not less than eight (8) consecutive hours, and reported on a twenty-four (24) hour basis; 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.

10.    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.

11.    That the operators, through their representatives on the Adena Field Engineering Committee, recommended to this Commission the limitations on the production of both oil and gas, as contained herein.

12.    That this Order should be for a period of six (6) months, beginning July l, 1954, 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, as hereinabove defined in the Findings, in addition to Orders 26-1, 26-2, and 26-6.

Rule 1. The "D" and "J" sand pools of the Dakota Series of the Adena Field constitute common sources of supply underlying:

Sections One (1), Two (2), Three (3), Ten (10), Eleven (11), Twelve (12), Thirteen (13), Fourteen (14), Fifteen (15), Twenty-two (22), Twenty-three (23), and Twenty-four (24), Township One (1) North, Range Fifty-eight (58) West; Sections Twenty-five (25), Twenty-six (26), Twenty-seven) (27), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township Two (2) North, Range Fifty-eight (58) West; West Half (W½) of Section Four (4), all of Sections Five (5), Six (6), Seven (7), and Eight (8); West Half (W½) of Section Nine (9), West Half (W½) of Section Sixteen {16), all of Sections Seventeen (17), Eighteen (18), Nineteen (19), and Twenty (20); West Half (W½) of Section Twenty-one (21), Northwest Quarter (NW¼) of Section Twenty-eight (28), North Half (N½) of Section Twenty-nine (29), North Half (N½) of Section Thirty (30), Township One (1) North, Range Fifty-seven (57) West; West Half (W½) of Section Twenty-eight (28), all of Sections Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32); West Half (W½) of Section Thirty-three (33), Township Two (2) North, Range Fifty-seven (57) West, Morgan County, Colorado.

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 unreason-able 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 24-hour period more than twice its daily allowable, except during prescribed testing periods; and that any production of oil and/or gas produced in excess of the allowed production for any one (1) month shall be deducted in producing the next month's allowable.

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 such tests shall be conducted for a period of not less than eight (8) consecutive hours and reported on a twenty-four (24) hour basis; 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 July 1, 1954, 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 4th day of June, 1954.

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