REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 20, 1973 at 9 A.M., in the Revenue Department Hearing Room, State Capitol Annex, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Con-tinental Oil Company for an order approving a secondary recovery program by injection of carbon dioxide gas into the Pierre "B" Sand reservoir of the McCallum Unit Area, Jackson County, Colorado.

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 a Unit Agreement, entered into as of July 26, 1951, a Unit Opera-ting Agreement and an Agreement for expansion for the McCallum Unit Area, Jackson County, Colorado, have been approved by the United States Geological Survey.

4. That the proposed program for secondary recovery by injection of carbon dioxide gas into four wells into the Pierre "B" Sand reservoir, underlying lands within the Pierre Sand Participating Area of the McCallurn Unit Area as shown on Exhibit "A" of the application, is necessary to increase the ultimate recovery of oil from said unit area, and will result in an additional recovery of oil with a value in excess of the estimated additional cost incident to conducting such operation. Therefore, the project should be approved as being in the public interest for conservation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the secondary recovery pro-gram for the Pierre "B" Sand reservoir, underlying lands within the Pierre "B" Sand Participating Area of the McCallurn Unit Area, Jackson County, Colorado, as shown on Exhibit "A" of the application, is hereby approved and the operator is authorized to inject carbon dioxide gas into said reservoir, through Well No. 52, located in Section 34, Township 10 North, Range 79 West, 6th P.M.; Well Nos. 38 and 57, located in Section 2, and Well No. 77 located in Section 12, Township 9 North, Range 79 West, 6th P.M., in such quantities as shall be reasonably determined by the operator to best achieve the maximum recovery of oil without waste.

(over)

IT IS FURTHER ORDERED, that in the event it becomes necessary in the' future to convert or drill additional wells for injection purposes and to change the injection pattern as dictated by developments in the course of the operation of the secondary re-covery program, the operator is authorized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval of the Director.

IT IS FURTHER ORDERED, that the provisions contained in the above orders shall become effective forthwith.

ORDERED this 20th day of November 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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