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 SPRINGDALE FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 29

 

ORDER NO. 29-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 3, 1963, at 10 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing and service or receipt of appropriate waivers thereof, all as required by law, on the application of the Kansas-Nebraska Natural Gas Company, Inc. for an order vacating the provisions of Orders No. 29-1 and No. 29-2, Cause No. 29, Springdale Field, as they pertain to the "J" sand reservoir, and substituting in lieu thereof the provisions of the general rules and regulations of the Commission; and for an order approving a proposed project for the storage of natural gas in said "J" sand reservoir, which order would give Applicant an opportunity to pursue the right of condemnation for the acquisition of property, or any interests therein, for the storage of natural gas in said "J" sand reservoir.

 

The Commission recognizes that the order requested by Applicant is a prerequisite to petitioning a District Court for permission to exercise the right of eminent domain for the purpose of acquiring property for the underground storage of natural gas.

 

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 at the present stage of depletion of the "J" sand reservoir of the Springdale Field, Order No. 29-1 and Order No, 29-2, insofar as the provisions pertain to the "J" sand reservoir, should be vacated.

 

4.      That Applicant, the Kansas-Nebraska Natural Gas Company, Inc., is a Kansas corporation duly authorized to do business in Colorado as a public utility, and is a natural gas public utility as required by the provisions of Chapter 100, Article 9, Colorado Revised Statutes, 1953.

 

5.      That the Kansas-Nebraska Natural Gas Company, Inc. is engaged in the distribution, transportation and storage of natural gas, which gas, in major part, is intended for ultimate distribution to the public,

 

6.      That substantial evidence adduced by Applicant and introduced at the hearing shows that the proposed natural gas storage project defined in the following order is in the public interest and welfare, and that the storage reservoir is suitable and practicable; and that the formation sought to be condemned and which is the subject matter of the application is non-productive of oil or gas in commercial quantities under either primary or secondary recovery methods.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that Order No. 29-1 and Order No. 29-2, Cause No. 29, Springdale Field, pertaining to operations in the "J" sand reservoir, are hereby vacated.

 

IT IS FURTHER ORDERED, that the project as proposed by the Kansas-Nebraska Natural Gas Company, Inc., for the storage of natural gas in an underground reservoir situated in the "J" sand formation within the following described area in Logan County, Colorado, is hereby approved:

 

Township 8 North, Range 53 West, 6th P.M.

Logan County, Colorado

 

 

Section 9:

Section 10:

Section 15:

N½, SW¼, W½SE¼

Section 16:

All

Section 21:

N½, SE¼

Section 22:

NW¼, W½NE¼, W½SW¼

 

ORDERED this 3rd day of December 1963.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  William R. Smith, Secretary