BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LIBERTY FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 37

 

ORDER NO. 37-2

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 18, 1962 at 10 a.m., in Room 132 State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The British American Oil Producing Company for an order approving a certain Unit Agreement covering operations in the unitized area and further approving a water injection program for the J-1 and J-2 sands underlying said unitized area in Logan County, Colorado.

 

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 "J" sand formation underlying the Liberty Field "J" Sand Unit Area, as set forth in subject application, constitutes a common source of supply of oil and gas; and that said Unit Area is composed of the following described lands in Logan County, Colorado to-wit:

 

Township 8 North, Range 54 West, 6th P M.

 

 

Section 4:

Lots 8 and 9; SW

Section 5:

All, including Lots 1 through 6

Section 8:

NNWNE, NENE

Section 9:

NNW

 

 

Township 9 North, Range 54 West, 6th P.M.

 

 

Section 32:

SSW, SWSE

 

4. That said Unit Agreement covering operations in the Liberty Field "J Sand Unit Area is necessary to increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

5. That the proposed water injection program, as presented by the Unit Operator, for injection of water into the J-1 and J-2 sand reservoirs underlying said Unit Area, by converting to water injection wells the British-American Zuhlke B-1 well located in the NWSW, Section 4, Township 8 North, Range 54 West; and the Shell-Warnecke No. 3 well located in Lot 1, Section 5 Township 8 North, Range 54 West, 6th P.M., Logan County, Colorado, will increase the ultimate recovery of oil from said Unit Area, and should therefore be approved as being in the public interest for conservation.

 

6. That Applicant's request for authorization to convert to injection wells at such future date as Applicant may determine to be beneficiary and advantageous to the performance of the water injection program, the British-American Mallo No 5 well located in the center of the E of Lot 7, Section 5, and the British-American Yenter No, 1 well located in the center of the W of Lot 9, Section 4, in Township 8 North, Range 54 West, 6th P.M., Logan County, Colorado; and to inject water therein in either or both the J-1 and J-2 sands, should be granted as being in the public interest, for conservation, provided Applicant will notify the Director of the Commission at such time as it shall actually propose to effect such conversion of either of said wells, and shall convert same and commence injection of water in same only after written approval of the Director.

 

7. That avoidable waste of oil and gas will be prevented by the operations proposed by the Unit Operator, and the correlative rights of all parties in the Liberty Field "J" Sand Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such a plan of operation; and that in the interest of securing the greatest ultimate recovery of oil from said reservoirs; the prevention of waste and protection of correlative rights big application should be granted.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this order, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

 

Rule 1. The "J" sand formation underlying the Liberty Field "J" Sand Unit Area as set forth in the Unit Agreement entered into June 1, 1962, constitutes a common source of supply of oil and gas, and sand Unit Area is composed of the following described lands in Logan County, Colorado, to-wit:

 

Township 8 North, Range 54 West, 6th P M.

 

 

Section 4:

Lots 8 and 9; SW

Section 5:

All, including Lots 1 through 6

Section 8:

NNWNE, NENE

Section 9:

NNW

 

 

Township 9 North, Range 54 West, 6th P.M.

 

 

Section 32:

SSW, SWSE

 

Rule 2. Said Liberty Field "J" Sand Unit Agreement covering operations in the Unit Area herein defined is hereby approved.

 

Rule 3. The water injection program presented by Applicant, for injection of water into the J-1 and J-2 sand reservoirs underlying said Unit Area by converting to water injection wells the British-American Zuhlke B-1 well and the Shell-Warnecke No. 3 well, is hereby approved, and The British-American Oil Producing Company is authorized to inject water into said reservoirs through said injection wells in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste

 

Rule 4. In the event it becomes necessary in the future to convert additional wells to water injection wells because of developments in the course of the operation of said water flood project, the Unit Operator is authorized to convert to water input wells the British-American Mallo No. 5 well and the British-American Yenter No. 1 well, and to inject water therein in either or both the J-1 and J-2 sands, provided such Unit Operator will notify the Director of the Commission at such time as it shall actually propose to effect such conversion of either of said wells, and shall convert same and commence injection of water in same only after written approval of the Director,

 

IT IS FURTHER ORDERED, that the Commission expressly reserves its rights, after notice and hearing, to alter amend or repeal any and/or all of the above orders, rules and regulations.

 

ORDERED this 18th day of December 1962.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By D.V. Rogers, Secretary