30-6

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" AND "J" SANDS OF THE LITTLE BEAVER FIELD IN WASHINGTON AND ADAMS COUNTIES, COLORADO

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CAUSE NO. 30

ORDER NO. 30-6

REPORT OF THE COMMISSION

This Cause came on for further hearing before the Commission on December 15, 1954, at 10:00 A.M., in Room 330 State office Building, Colfax Avenue and Sherman Street, Denver, Colorado, after publication of Notice of Hearing, as required by law, upon the Commission's own motion, to take further measures to prevent the waste of oil and gas in the "D" and "J" sands of the Little Beaver Field in Washington and Adams Counties, Colorado.

The Commission now has before it all of the testimony and evidence relating to the production of oil and gas from the "D" and "J" sands of the Little Beaver Field, and is fully advised in all matters pertaining to the operations of the field, and believes that it is now in a position to enter a further order in this proceeding, providing for measures to be taken by the operators to prevent the waste of oil and gas in said field.

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 "D" and "J' sand formations of the Dakota Series in the Little Beaver Field, as used herein, constitute common sources of supply underlying the following described lands in the Little Beaver Field, Washington and Adams Counties, Colorado:

Sections Nineteen (19), Twenty-eight (28), Twenty-nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), and Thirty-three (33), all in Township One (1) South, Range Fifty-six (56) West; Sections Five (5), Six (6), Seven (7), and Eight (8), all in Township Two (2) South, Range Fifty-six (56) West, Washington County, Colorado; and Sections Twenty-four (24), Twenty-five (25), and Thirty-six (36), Township One (1) South, Range Fifty-seven (57) West; Sections One (1) and Twelve (12), Township Two (2) South, Range Fifty-seven (57) West of the Sixth (6th) P.M., Adams County, Colorado.

4. That, in order to prevent reasonably avoidable drainage of oil and gas across property lines, and to permit the owners and operators to produce their just and equitable share of the recoverable oil and gas, and to utilize reservoir energy in the "D" and "J" sand pools of the Little Beaver Field in the proportion which the recoverable reserves underlying their land bear to the recoverable reserves in the "D" and "J" sand pools, and, in order to prevent undue waste of oil and gas, and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas; and to prevent underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy, the maximum production from any one well producing from (1) the "D" sand pool of the Dakota Series of the Little Beaver Field should not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/ or One Hundred Thousand (100,000) cubic feet of gas; and (2) the "J" sand pool of the Dakota Series of the Little Beaver Field should not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/or One Hundred Fifty Thousand (150,000) cubic feet of gas; and that no one well should pro-duce during any twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one month by not in excess of three (3) days' allowable production, provided that any such excess production should be deducted in producing the next month's allowable; and that any under production may be produced only during the month immediately following that in which the under production occurred.

5. That the operators and owners of wells producing from the "D" or "J" sand pools of the Dakota Series of the Little Beaver Field should make a gas-oil-ratio test of each of his producing wells during every quarter, beginning with the months of January, April, July, and October; and that such tests should not be taken within fifteen (15) days of the beginning or ending of each quarter, the results of which such tests should be reported to the Commission on or before the fifteenth (15th) day of the last month of every quarter; and that such tests should be the basis for calculating the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; that, immediately prior to making the test for a gas-oil ratio, subject well should be produced at its normal rate of production for at least twenty-four (24) hours; and that during such tests subject well should be produced at a rate equal to or not exceeding its allowable by more than twenty-five (25) percent; and that a schedule should be submitted to the Commission prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured should be reported in units of cubic feet at a base pressure of 15.025 psia, a base temperature of 60° Fahrenheit, and a specific gravity of 0.7.

6. That the operators and owners of wells producing from the "D" and "J' sand pools of the Dakota Series should file with the Commission a monthly report or production by wells, as required on Form CGCC-7a covering the month next preceding the date of filing, on or before the twentieth (20th) day of each month.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following Rules and Regulations be, and the same are, hereby adopted for the "D" and "J" sand pools of the Little Beaver Field in Washington and Adams Counties, Colorado.

Rule 1. That the "D" and "J' sand formations of the Dakota Series in the Little Beaver Field, as used herein, constitute common source of supply underlying the following described lands in the Little Beaver Field, Washington and Adams Counties, Colorado:

Sections Nineteen (19), Twenty-eight (28), Twenty. nine (29), Thirty (30), Thirty-one (31), Thirty-two (32), and Thirty-three (33), all in Township One (1) South, Range Fifty-six (56) West; Sections Five (5), Six (6), Seven (7), and Eight (8), all in Township Two (2) South, Range Fifty-six (56) West, Washington County, Colorado; and Sections Twenty-four (24), Twenty-five (25), and Thirty-six (36), in Township One (1) South, Range Fifty-seven (57) West; Sections One (1) and Twelve (12), in Township Two (2) South, Range Fifty-seven (57) West of the Sixth (6th) P.M., Adams County, Colorado

Rule 2. That, in order to prevent reasonably avoidable drainage of oil and gas across property lines, and to permit the owners and operators to produce their just and equitable share of the recoverable oil and gas, and to utilize reservoir energy in the "D" and "J" sand pools of the Little Beaver Field in the proportion which the recoverable reserves underlying their land bear to the recoverable reserves in the "D" and "J" sand pools; and, in order to prevent undue waste of oil and gas, and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas; and to prevent underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy, the maximum production from any one well producing from (1) the "D" sand pool of the Dakota Series of the Little Beaver Field shall not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/or One Hundred Thousand (100,000) cubic feet of gas; and (2) the "J' sand pool of the Dakota Series of the Little Beaver Field shall not, during any one month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil, and/or One Hundred Fifty Thousand (150,000) cubic feet of gas; and that no one well shall produce during any twenty-four (24) hour period more than twice its daily allowable; and that the allowable production may be exceeded for any one month by not in excess of three (3) days' allowable production, provided that any such excess production shall be deducted in producing the next month's allowable; and that any under production may be produced only during the month immediately following that in which the under production occurred.

Rule 3. That the operators and owners of wells producing from the "D" or "J" sand pools of the Dakota Series of the Little Beaver Field shall make a gas-oil-ratio test of each of his producing wells during every quarter, beginning with the months of January, April, July, and October; and that such tests shall not be taken within fifteen (15) days of the beginning or ending of each quarter, the results of which such tests shall be reported to the Commission on or before the fifteenth (15th) day of the last month of every quarter; and that such tests shall be the basis for calculating the volume of gas produced for each month of the following quarter, unless all of the gas produced is metered; that, immediately prior to making the test for a gas-oil ratio, subject well shall be produced at its normal rate of production for at least twenty-four (24) hours; and that during such tests, subject well shall be produced at a rate equal to or not exceeding its allowable by more than twenty-five (25) percent; and that a schedule shall be submitted to the Commission prior to testing, showing the wells and respective dates of tests; and that the volume of gas measured shall be, reported in units of cubic feet at a base pressure of 15.025 psia, a base temperature of 60° Fahrenheit, and a specific gravity of 0.7.

Rule 4. That the operators and owners of wells producing from the "D" and "J" sand pools of the Dakota Series shall file with the Commission a monthly report of production by wells, as required on Form OGCC-7a, covering the month next preceding the date of filing, on or before the twentieth (20th) day of each month.

IT IS FURTHER ORDERED that this Order shall replace Order No. 30-5, and become effective February 1, 1955.

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 12th day of January, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Assistant Secretary