33-5

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 "J" SAND OF THE ADENA-SOUTH FIELD IN MORGAN AND ADAMS COUNTIES, COLORADO.

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CAUSE NO. 33

ORDER NO. 33-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 29, 1954, at 10:00 A.M., in Room 704 State Capitol Annex, 14th Avenue and Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion to take measures to prevent the waste of oil and gas in the "J" sand in the Adena-South Field, Morgan and Adams Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, places 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 "J" sand formation of the Dakota Series in the Adena-South Field, as used herein, constitutes the common source of supply underlying the following described lands in Morgan and Adams Counties, Colorado:

Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township One (1) North, Range Fifty-eight (58) West of the Sixth (6th) P.M.; and the South Half (S/2) of Section Thirty (30), and all of Section Thirty-one (31), Township One (1) North, Range Fifty-seven (57) West of the Sixth (6th) P.M., all in Morgan County, Colorado, and all of Sections One (1), Two (2), Three (3), and Four (4), Township One (1) South, Range Fifty-eight (58) West of the Sixth (6th) P.M., and all of Section Six (6), Township One (1) South, Range Fifty-seven (57) West of the Sixth (6th) P.M., all in Adams County, Colorado.

4. That the "J" sand pool of the Dakota Series, as used herein, shall be construed to mean that underground [sic] reservoir containing a common accumulation of oil and gas, the top of which "J" sand pool is found at a depth of approximately One Thousand and Ninety-four (1094) feet subsea in the Eddie-Fisher No. 1 State well, located in the Northeast Quarter of the Northeast Quarter of the Southwest Quarter (NE/4 NE/4 SW/4) of Section Thirty-five (35), Township One (1) North, Range Fifty-eight (58) West of the Sixth (6th) P.M., Morgan County, Colorado.

5. That there has been and now is waste of gas caused by the escaping, blowing, and releasing into the open air of gas from the wells in an excessive or unreasonable amount as will unreasonably reduce reservoir pressures, and unreasonably diminish the quantity of oil that might ultimately be produced by effective conservation method, and will cause underground waste, inefficient, excessive, and improper use and dissipation of reservoir energy in the "J" sand pool of the Dakota Series of the Adena-South Field.

6. That, 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 the "J" sand pool of the Dakota Series of the Adena-South 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 produce during any 24-hour period more than twice its daily allowable except during prescribed testing periods; and that any production of oil and/or gas produced in excess of the allowed production for any one month should be deducted in producing the next month's allowable.

7. That the operators and owners of wells producing from the "J" sand pool of the Dakota Series of the Adena-South 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 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 such tests should be conducted for a period of not less than eight (8) consecutive hours, and reported on a twenty-four (24) hour basis; 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.

8. That the operators and owners of wells producing from the "J" sand pool 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.

9. That the operators in the Adena-South Field, appearing before the Commission, recommended to this Commission the limitations on the production of both oil and gas, as contained herein.

10. That this Order should be in full force and effect until further action taken by the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following Rules and Regulations be, and the same are, hereby adopted for the "J" sand pool of the Adena-South Field in Morgan and Adams Counties, Colorado, as hereinabove defined in the Findings, in addition to Order No. 33-1.

Rule 1. The "J" sand pool of the Dakota Series of the Adena-South Field constitutes a common source of supply underlying:

Sections Twenty-five (25), Twenty-six (26), Twenty-seven (27), Twenty-eight (28), Thirty-three (33), Thirty-four (34), Thirty-five (35), and Thirty-six (36), Township One (1) North, Range Fifty-eight (58) west of the Sixth (6th) P.M., and the South Half (S/2) of Section Thirty (30), and all of Section Thirty-one (31), Township One (1) North, Range Fifty-seven (57) West of the Sixth (6th) P.M., all in Morgan County, Colorado; and all of Sections One (1), Two (2), Three (3), and Four (4), Township One (1) South, Range Fifty-eight (58) West of the Sixth (6th) P.M., and all of Section Six (6), Township One (1) South, Range Fifty-seven (57) West of the Sixth (6th) P.M., all in Adams County, Colorado.

Rule 2. That, 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 the "J" sand pool of the Dakota Series of the Adena-South 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 24-hour period more than twice its daily allowable, except during pre-scribed testing periods; and that any production of oil and/or gas produced in excess of the allowed production for any one (1) month shall be deducted in producing the next month’s allowable.

Rule 3. That the operators and owners of wells producing from the "J" sand pool of the Dakota Series of the Adena-South 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 such tests shall be conducted for a period of not less than eight (8) consecutive hours and reported on a twenty-four (24) hour basis; 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 "J" sand pool 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 become effective August 15 1954, and shall remain in full force and effect until further action is taken by the Commission.

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 day of July, 1954.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary