IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE KATIE FIELD, ADAMS COUNTY, COLORADO Cause No. 358 Order No. 358-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 19, 1986 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Rocky Mountain Production Co. for approval to use Well 23-27 Antelope Farms (UPRR), located in the NE/4SW/4 Section 27, Township 2 South, Range 63 West, 6th P.M., Katie Field, Adams County Colorado, as a water disposal well into the "J" Sand formation. A protest to the granting of the application was received.

FINDINGS

The Commission finds as follows:

1. Rocky Mountain Production Co., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. 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.

4. Testimony by Champlin Petroleum Co., as protestant, showed concern of prematurely watering out of their offset wells by the injection of water in the disposal well.

5. Evidence presented at the hearing indicates that such movement of water from the disposal well to offset wells should not occur. However, in order to protect the correlative rights of Champlin certain conditions should be placed on the disposal well.

6. The application to use Well 23-27 Antelope Farms (UPRR), located in the NE/4SW/4 Section 27, Township 2 South, Range 63 West, 6th P.M. as a water disposal well into the "J" Sand should be approved and that operation of this well as a water disposal well should be in accordance with Rule Nos. 326 and 327 of the rules and regulations of the Commission and in addition to the following conditions:

a. Injection press should be maintained no greater than zero (0) psig or at vacuum.

b. Maximum disposal of water should be 60 bbls/day calculated on a monthly basis.

c. Water/oil ratio tests should be taken periodically based upon a procedure agreed upon by Rocky Mountain Production Co. and Champlin Petroleum and approved by the Director on Well No. 1. Antelope Farms 32-27, located in the SE/4NE/4 Section 27 and Well No. 33-27 UPRR Compton located in the NW/4SW/4 Section 24, Township 2 South, Range 63 West, 6th P.M. Such oi/water ratio should be the basis for water production reporting on the operators monthly production report.

ORDER

NOW, THEREFORE, IT IS ORDERED, that approval is hereby granted for Well 23-27 Antelope Farms (UPRR), located in the NE/4SW/4 Section 27, Township 2 South, Range 63 West, 6th P.M., Katie Field, Adams County, Colorado, as a water disposal well into the "J" Sand.

IT IS FURTHER ORDERED that operation of the hereinabove described well as a water disposal well shall be in accordance with Rule Nos. 326 and 327 of the rules and regulations of the Commission and the the following conditions:

a. Injection press shall be maintained no greater than zero (0) psig or at vacuum.

b. Maximum disposal of water shall be 60 bbls/day calculated on a monthly basis.

c. Water/oil ratio tests shall be taken Periodically based upon a Procedure agreed upon by Rocky Mountain Production Co. and Champlin Petroleum and approved by the Director on Well No. 1. Antelope Farms 32-27, located in the SE/4NE/4 Section 27 and Well No. 33-27 UPRR Compton located in the NW/4SW/4 Section 24, Township 2 South, Range 63 West, 6th P.M. Such ratio tests shall be the basis for water Production reporting on the operators monthly Production report.

IT IS FURTHER ORDERED, that the Provisions contained in the above order shall become effective forthwith. ENTERED this day of 1986, as of May 19, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary