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" SAND OF THE LITTLE BEAVER FIELD, WASHINGTON AND ADAMS COUNTIES, COLORADO

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CAUSE NO. 30

 

ORDER NO. 30-16

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on March 26, 1959, at 10 A.M., in the Spruce Room of the Albany Hotel Denver, Colorado, after publication of Notice of Hearing as required by statute and mailing of copies of the application pursuant to the regulations of this Commission, on the application of Continental Oil Company as Operator of the Little Beaver "D" Sand Unit for an order approving enlargement of the Unit Area, expansion of the waterflood project for secondary recovery for the Little Beaver "D" Sand Unit and for subsequent expansion of the Unit Area to include Wheatlake Lease Wells Numbers 1 and 5 at such time as said wells are capable of sustained production of 10 barrels or more of oil per day.

 

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, and that all prerequisites to the granting of this order have been performed.

 

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 pursuant to Article 38, "Enlargement of Unit Area" in the Unit Agreement and the Unit Operating Agreement for the Little Beaver "D" Sand Unit, Little Beaver Field, Washington County, Colorado more than 85% of the working interest owners in said Unit have approved the enlargement of said Unit Area and subsequent enlargement thereof by the addition of the twenty acre tract immediately surrounding Wheatlake Well Number 1, at such time as said well is capable of maintaining a sustained production rate of 10 barrels of oil or more per day, and the addition of the twenty acre tract immediately surrounding Wheatlake Well Number 5, at such time as said well is capable of maintaining a sustained production rate of 10 barrels of oil or more per day.

 

4.      That the enlargement of said Unit Area will consist of adding the NW¼ SW¼ and the E½ SW¼ SW¼ of Section 5, Township 2 South, Range 56 West of the 6th P.M., Washington County, Colorado.

 

5.      That the inclusion in the Unit Area of the twenty acre tract immediately surrounding Wheatlake Well Number 1 will add the W½ SW¼ SW¼ and the inclusion of the twenty acre tract immediately surrounding Wheatlake Well Number 5 will add the W½ NE¼ SW¼, both tracts being in Section 5, Township 2 South., Range 56 West 6th P.M., Washington County, Colorado.

 

6.      That the expansion of the waterflood project as requested by applicant by the conversion of Unit Wells Numbered 58, 63, 68, 75, 76, to water injection wells is essential for efficient operation of said waterflood project.

 

7.      That the expanded waterflood project as presented by the applicant for the secondary recovery program for the "D" Sand will increase the ultimate recovery of oil and gas from said field and, therefore, should be approved as being in the public interest for conservation.

 

8.      That avoidable waste of oil and gas will be prevented by the operation proposed by the applicant and the correlative rights of all parties in the Little Beaver "D" Sand Field will not be adversely affected and will be reasonably protected under such a plan of operation.

 

9.      That operation of the Little Beaver "D" Sand Unit by the enlargement of said unit by the immediate addition of the NW¼ SW¼ and the E½ SW¼SW¼ and the subsequent addition of the W½ SW¼ SW¼ and the W½ NE¼ SW¼ of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado, will improve the efficient operation of the Little Beaver "D" Sand Unit and will be in the best interest of conservation.

 

10.      That the inclusion of the W½ SW¼ SW¼ and the W½ NE¼ SW¼ of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado, to said Unit Area should be made at such time as the well located on such twenty acre tract is capable of maintaining a sustained producing rate of 10 barrels or more of oil per day., and that such addition to the Unit Area should be made at such time as such producing rate is maintained, without necessity for additional notice and hearing by the Commission.

 

11.      That the Little Beaver "D" Sand Unit Area as enlarged by this order and as subsequently enlarged by the addition of either or both the twenty acre tracts immediately surrounding Wheatlake Wells Number 1 and 5 should be considered as one lease.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations be and the same are, hereby adopted for the "D" Sand of the Little Beaver Field, Washington County, Colorado, in addition to other applicable rules and regulations of the Commission, if any, heretofore adopted and not in conflict herewith.

 

Rule 1.    The enlargement of Little Beaver "D" Sand Unit Area to include the NW¼ SW¼ and the E½ SW¼ SW¼ of Section 5, Township 2 South Range 56 West 6th P.M.., Washington County, Colorado, is hereby approved.

 

Rule 2.    Subsequent enlargement of the Little Beaver "D" Sand Unit Area by the inclusion of the twenty acre tract consisting of the W½ SW¼ SW¼ of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado, at such time as Wheatlake Well Number 1 located thereon is capable of maintaining a sustained production rate of 10 barrels of oil or more per day is hereby approved and no hearing before the Commission shall be required to secure future approval of such enlargement; provided, however, that applicant as Unit Operator, shall notify the office of the Commission in writing at the time that such enlargement becomes effective.

 

Rule 3.    Subsequent enlargement of the Little Beaver "D" Sand Unit Area by the inclusion of the twenty acre tract, consisting of the W½ NE¼ SW¼, Section 5, Township 2 South, Range 56 West 6th P.M., Washington County, Colorado, at such time as Wheatlake Well Number 5 located thereon is capable of maintaining a sustained production rate of 10 barrels of oil or more per day is hereby approved and no hearing before the Commission shall be required to secure future approval of such enlargement, provided, however, that applicant, as Unit Operator, shall notify the office of the Commission in writing at the time, that such enlargement becomes effective.

 

Rule 4.    The expansion of the existing waterflood project for the secondary recovery program as proposed to the Commission for the "D" Sand of the Little Beaver Field is hereby approved and applicant is authorized to inject water into said "D" Sand through the injection wells designated at the hearing, Unit Wells Numbered 58, 63, 68, 75, 76, in such quantities as shall be reasonably determined by applicant to best achieve the maximum recovery of oil and gas without waste.

 

Rule 5.    All rules not in conflict herewith set out in Order No. 30-15 shall be applicable to the use and operations of the expanded waterflood project and the Unit as here by enlarged and as subsequently enlarged by the approval contained herein.

 

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 order, rule and regulations.

 

ORDERED this 26th day of March, 1959.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary