REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 7, 1975, at 9 Kkktt, in the Department of Revenue Hearing Room, 7th Floor State Capitol Annex Building, Denver, Colorado, as the result of Order No. 295-1 (Emergency) which limited the maximum daily production of oil to 25 barrels from any one well producing from the "D" Sand underlying an area known as the Lanyard-Roggen Field Area, and further ordered the operators to show cause why the order should not be made permanent; and to present all available data in order for the Commission to determine what field rules, if any, are necessary to control the production of oil and gas from said area.

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 Commission by its Order No. 295-1 (Emergency) limited the production of oil from the "D" Sand underlying the Lanyard-Roggen Field Area to 25 barrels per day per well in order to reduce the flaring of casinghead gas.

4. That until such time as the wells are connected to the gas processing plant, prevention of the waste of gas during the interim is required. For this to be ac-complished, the Commission finds that a maximum limit should be placed on the gas pro-duction from the "D" Sand reservoir underlying the Lanyard-Roggen Field Area for a period of twenty (20) 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 development or operations and fuel.

5. In order to protect correlative rights, the limitation of gas production should be in effect until all the wells that have been completed to date in the area that are to be connected to the gas processing plant have been connected.

6. That for a period of twenty (20) days commencing January 8, 1975, the maximum daily production of gas from wells capable of producing both oil and gas from the "D" Sand should not exceed a volume of one-hundred thousand (100,000) cubic feet.

7. That the gas-oil ratios submitted at the time of the hearing should be the basis for calculating the daily allowables for the wells in the area.

8. That a 24-hour test period should be permitted, without limitation, for= those wells in which it is necessary to determine the volume of gas available to the gas processing plant.

(over)

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 "D" Sand in the Lanyard-Roggen Field Area Weld County, Colorado, under-lying the following described lands:

Township 2 North, Range 62 West, 6th rrrtt Section 7: SE/4 Section 18: All Section 8: SW/4 Section 19: NW/4 Section 17: NW/4,

Township 2 North, Range 63 West, 6th rrrtt Section 13: S/2 Section 24: All

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 "D" Sand underlying said Lanyard-Roggen Field Area shall not exceed a volume of one=hundred thousand (100, 000) cubic feet.

b. A 24-hour test period is permitted, without limitation, for those wells in which it is necessary to determine the well capacity for gas plant purposes.

c. The gas-oil ratios submitted at the time of the hearing shall be the basis for calculating the daily allowables for the wells in the area.

IT IS FURTHER ORDERED, that this limitation shall continue for a period of twenty (20) days, or until all the wells that have been completed to date in the area that are to be connected to the gas processing plant have been connected, and that commencing January 28, 2975 no gas shall be produced unless it is either (1) marketed and sold to supply domestic, industrial or municipal needs; or (2) used for lease development or opera-tions and fuel.

IT IS FURTHER ORDERED, that this Order shall become effective January 8, 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 and rule.

ORDERED this, 7th day of January. 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary