30-8

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. 30-8

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 25, 1955, at 10:00 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion, to accept testimony in order to consider whether or not the Commission should issue an order continuing the provisions of Order No. 30-7, or an order similar thereto.

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 in order to prevent reasonably avoidable drainage of oil and gas across property lines, and to permit the operators and owners an equal opportunity to obtain and produce their just and equitable share of the recoverable oil and gas underlying the "J" Sand pool, common source of supply; and in order to protect the correlative rights of owners of wells in the gas cap; and to further prevent the 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 both oil and gas with a gas-oil-ratio of less than 30,000 cubic feet of gas to one barrel of oil from the "J" Sand pool should not, during any one (1) month, exceed a daily average of 125 barrels of oil and/or 125,000 cubic feet of gas, whichever comes first; and that no such well should 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, however, that any such excess production should be deducted in producing the next month's allowable, and that any underproduction may be produced only during the month immediately following that in which the underproduction occurred; and that the maximum production of gas from any one well producing gas only, or producing oil and gas with a gas-oil-ratio in excess of 30,000 cubic feet of gas to one barrel of oil from the "J" Sand pool should not, during the effective period of this order, exceed a daily average of 300,000 cubic feet of gas; and that the allowable gas production may be exceeded during the effective period of this order by not in excess of six (6) days' allowable gas production; provided, however, that any such overproduction or underproduction should be produced in accordance with Commission requirements.

4. That since there is now a market for the gas produced from the "J" Sand pool reservoir of the Little Beaver Field, the operators and owners of all wells producing oil or gas, or both oil and gas from the "J" Sand pool of the Dakota Series of the Little Beaver Field should not produce gas from any one well unless:

(1)	The gas so produced is marketed to supply domestic or municipal needs; or

(2)	The gas so produced is required for lease development or operations and fuel.

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 or 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 gas-oil-ratio tests should be made in accordance with sound engineering practices; 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° degrees Fahrenheit.

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 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.

7. That the operators and owners of wells producing from the "J" Sand pool of the Dakota Series of the Little Beaver Field who appeared at the hearing were in agreement with this order, and that the same should be effective until December 1, 1955.

8. That the rules and regulations of Order No. 30-6 affecting the "D" Sand pool of the Dakota Series of the Little Beaver Field should remain in full force and effect as to said "D" Sand pool, except as amended in Rule 3 of the following order.

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 pool of the Little Beaver Field in Washington and Adams Counties, Colorado.

Rule 1. That in order to prevent reasonably avoidable drainage of oil and gas across property lines, and to permit the operators and owners an equal opportunity to obtain and produce their just and equitable share of the recoverable oil and gas underlying the "J" Sand pool, common source of supply; and in order to protect the correlative rights of owners of wells in the gas cap; and to further prevent the 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 both oil and gas with a gas-oil-ratio of less than Thirty Thousand (30,000) cubic feet of gas to one (1) barrel of oil from the "J" Sand pool shall not, during any one (1) month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil and/or One Hundred Twenty-five Thousand (125,000) cubic feet of gas, whichever comes first; and that no such 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 (1) month by not in excess of three (3) days' allowable production; provided, however, that any such excess production shall be deducted in producing the next month's allowable, and that any underproduction may be produced only during the month immediately following that in which the underproduction occurred; and that the maximum production of gas from any one (1) well producing gas only, or producing oil and gas with a gas-oil-ratio in excess of Thirty Thousand (30,000) cubic feet of gas to one (1) barrel of oil from the "J" Sand pool shall not, during the effective period of this order, exceed a daily average of Three Hundred Thousand (300,000) cubic feet of gas; and that the allowable gas production may be exceeded during the effective period of this order by not in excess of six (6) days' allowable gas production; provided, however, that any such over production or underproduction shall be produced in accordance with Commission requirements.

Rule 2. That since there is now a market for the gas produced from the "J" Sand pool reservoir of the Little Beaver Field, the operators and owners of all wells producing oil or gas or both oil and gas from the "J" Sand pool of the Dakota Series of the Little Beaver Field shall not produce gas from any one well unless;

(1)	The gas so produced is marketed to supply domestic or municipal needs; or

(2)	The gas so produced is required for lease development or operations and fuel.

Rule 3. That the operators and owners of wells producing from the "D" and "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 gas-oil-ratio tests shall be made in accordance with sound engineering practices; 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 degrees Fahrenheit.

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. 30-7 as to the "J Sand pool of the Dakota Series of the Little Beaver Field, and that Order No. 30-6 shall remain in full force and effect as to the "D" Sand pool of the Dakota Series of the Little Beaver Field, except as amended in Rule 3 herein.

IT IS FURTHER ORDERED, that this Order shall become effective on October 1, 1955, or until further order of this Commission, pursuant to notice and hearing.

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 26th day of September, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Annabel Hogsett, Secretary