REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 21, 1975 at 9 A.M., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion in order to determine what measures should be taken to prevent waste and to prevent the escaping, blowing and releasing of gas in excessive or unreasonable amounts from wells in the Lone Tree Field, Adams and Arapahoe Counties, 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 until such time as wells are connected to a gas processing plant, prevention of the waste of gas during the interim is required. For this to be accomplished, the Commission finds that a maximum limit should be placed on the production from the "J" Sand reservoir underlying the Lone Tree Field, for a period of ninety (90) days, and that at the end of said period no gas should be produced unless it is either (1) marketed and sold to supply domestic, industrial or municipal needs; or (2) used for lease develop-ment or operations and fuel,

4. That for the interim, the maximum daily production of gas from wells capable of producing both oil and gas from the "J" Sand should not exceed a volume of fifty thousand (50, 000) cubic feet.

5. That the restrictions placed on the wells drilled as exceptions should continue as provided for by Order No, 283-5, except that for the purposes of this order and for the interim, no minimum daily oil allowable should be placed on said wells and the oil allowable should be calculated on the basis of the gas-oil ratio tests of the offset wells and the exception wells.

6. That in order to measure the amount of gas that can be produced, the operator should either install gas measuring devices or make a monthly gas-oil ratio test of each producing well,

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ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall be, and the same are hereby adopted for wells capable of producing both oil and gas from the "J" Sand in the Lone Tree Field, underlying the following described lands in Adams and Arapahoe Counties, Colorado.

Adams County Township 3 South, Range 5 9 West, 6th P. M, Section 19: S/2 Section 31: All Section 29: SW/4 Section 32: W/2 S/2NW/4 Section 30. All

Township 3 South, Range 60 West, 6th P.M. Section 36: E/2 Arapahoe County Township 4 South, Range 59 West, 6th P.M. Section 5: NW/4 Section 6: All Township 4 South, Range 60 West, 6th P.M. Section 1. All Section 12: N/2 Rule 1. Production Limitation

a. The maximum daily production of gas from any one well capable of pro-ducing both oil and gas from the "J" Sand underlying theLone Tree Field shall not exceed a volume of fifty thousand (50, 000) cubic feet.

b. A 15-day test period is permitted without limitation for new wells com-pleted in the "J" Sand in said field.

Rule 2. Gas Measurement and Production Reports

a. The operator shah either install gas measuring devices on all wells capable of producing in the field, and the gas production reported at times as may be requested by the Commission, in addition to the regular monthly production report, or make a monthly gas-oil ratio test of each producing well in accordance with good engineer-ing and oil field practices, and upon notification and approval by the Commission.

b. Operators shall file With the Commission a monthly report of produc-tion by wells as required on OGCC Form 7.

IT IS FURTHER ORDERED, that this limitation shall continue for a period of ninety (90) days from the date of the hearing, or until such time as the wells are con-nected to a gas processing plant, and that commencing April 21, 1975 no gas shall be produced unless it is either (1) marketed and sold to supply domestic, industrial or muni-cipal needs; or (2) used for lease development or operations and fuel.

IT IS FURTHER ORDERED, that the provisions of Order No. 288-5 concern-ing the restriction of production for certain wells drilled as exceptions shall be temporarily amended for the purposes of this Order and the daily oil allowable for said exception wells shall be fifty percent (50%) of the average of the daily allowable production of oil from all direct offset wells drilled in accordance with the spacing pattern established for the field and that such oil allowable shall be determined from the monthly gas-oil ratio tests of the offset wells and the exception wells.

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IT IS FURTHER ORDERED, that this order shall become effective February 1, 1975.

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 21st day of January, 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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