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 DIVIDE FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 38

 

ORDER NO. 38-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 26, 1960, at 10 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an order amending Order No. 61-1 by deleting the "D" sand and leaving only the "J" sand in Cause No 61, Minto-West, leaving the area as defined in said Order No. 61-1; and amending Order No. 38-1 to redefine the Divide Field by deleting portions of the area and including part of the "D" sand reservoir now underlying the Minto-West Field, as defined in said Order No. 61-1, and adding lands outside the present limits of the Divide Field by extending the area defined in said Orders No. 38-1 and No 61-1, by the addition of certain lands in Logan County, Colorado.  Applicant also requested an order approving a certain Unit Agreement and water flood operations in the "D" sand of the Unit Area, as presented by Applicant in said Unit Agreement. Also, at the above hearing, on the Commission's own motion, consideration was given to the deletion of portions of the "J" sand area set forth in Order No. 61-1, Minto-West Field, and to the inclusion of both the "D" and "J" sand formations of the Minto-West Field, Cause No. 61, in the Divide Field, Cause No. 38.

 

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 Described order.

 

3.      That the Commission by its Order No. 61-1 established field limits for the Minto-West Field, and by its Order No. 38-1, established the field limits for the Divide Field.

 

4.      That the testimony presented at the hearing indicates that the field limits of the Divide and Minto-West fields should be revised to make one field to be known as the Divide Field by the extension of certain area and the deletion of certain other areas, as follows:

 

Deletion of Area

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 33:

S½ NE¼, W½ SE¼

Section 34:

N½ N½, SE¼ NE¼, E½ SE¼

Section 35:

W½

 

 

Township 8 North, Range 53 West, 6th P.M.

 

 

Section 2:

Lots 1, 2 and 3

Section 4:

N½ S½, SE¼ SE¼, SW¼ SW¼

Section 11:

S½ NW¼

 

 

Extension of Area

 

Township 8 North, Range 53 West, 6th P.M.

 

 

Section 4:

Lot 1, SE¼ NE¼

Section 9:

N½ SW¼, SE¼

Section 10:

SW¼, N½ SE¼, SW¼ SE¼

 

leaving the area of the divide Field as follows:

 

SW¼, S½ NW¼, W½ SE¼, SW¼ NE¼ of Section 34; E½ SE¼ of Section 33, Township 9 North, Range 53 West, 6th P.M.; SW¼, S½ NW¼, and Lot 4 of Section 2; all of Section 3; Lot 1, SE¼ NE¼, SW¼ SE¼, SE¼ SW¼ of Section 4; E½, NW¼, N½ SW¼ of Section 9; W½, NE¼, N½ SE¼, SW¼ SE¼ of Section 10; and N½ NW¼ of Section 11, Township 8 North, Range 53 West, 6th P.M., all in Logan County, Colorado.

           

5.      That the "D" sand formation underlying the Divide Field Unit Area, as set forth in the application and Unit Agreement of the Shell Oil Company, constitutes a common source of supply of oil and gas; and that said Unit Area is composed of the following lands in Logan County, Colorado, to-wit:

 

Unit Area

 

SW¼, S½ NW¼ of Section 34; SE¼ SE¼ of Section 33, Township 9 North, Range 53 West, 6th P.M.; SW¼, S½ NW¼, and Lot 4 of Section 2; all of Section 3; Lot 1, SE¼ NE¼ and SE¼ SW¼ of Section 4; E½, NW¼, and N½ SW¼ of Section 9; W½, NE¼, N½ SE¼, and SW¼ SE¼ of Section 10; N½ NW¼ of Section 11, all in Township 8 North, Range 53 West, 6th P.M.

 

6.      That the Unit Agreement, as presented by Applicant, 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.

 

7.      That the water flood project for the "D" sand formation underlying said Divide Unit Area as presented by Applicant, will 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.

 

8.      That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in the Divide "D" Sand Unit Area, as herein defined, will not be adversely affected and will be reasonable [sic] protected under such plan of operations; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and the protection of correlative rights this 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 Divide "D" Sand Unit Area shall be composed of the following lands in Logan County, Colorado, to-wit:

 

Unit Area

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 34:

SW¼, S½ NW¼

Section 33:

SE¼ SE¼

 

Township 8 North, Range 53 West, 6th P.M.

 

 

Section 2:

SW¼, S½ NW¼, and Lot 4

Section 3:

All

Section 4:

Lot 1, SE¼ NE¼, SE¼ SW¼

Section 9:

E½, NW¼, N½ SW¼

Section 10:

W½, NE¼, N½ SE¼, SW¼ SE¼

Section 11:

N½ NW¼

 

Rule 2.    The Divide Field shall be composed of the following lands in Logan County, Colorado, in addition to the Divide "D" Sand Unit Area herein defined:

 

Township 9 North, Range 53 West, 6th P.M.

 

 

Section 33:

NE¼ SE¼

Section 34:

SW¼ NE¼, W½ SE¼

 

Township 8 North, Range 53 West, 6th P.M.

 

 

Section 4:

SW¼ SE¼

 

Rule 3.    Said Unit Agreement covering the Divide "D" Sand Unit Area, herein defined, and providing for unit operations of the "D" sand underlying said Unit Area is hereby approved.

 

Rule 4.    The water flood project for the "D" sand formation underlying the Divide Unit Area is hereby approved, provided all proposed tracts in the Unit Area become a part of said Unit Area, and Applicant is authorized to inject water into said pool through sixteen injection wells, as outlined in the application, in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.

 

Rule 5.    In the event that it becomes necessary in the future to convert additional producing wells to input wells, to plug and abandon certain wells in the Unit Area, or to drill additional producing or input wells as dictated by developments in the course of the operation of the water flood, the Unit Operator is authorized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval of the Director of 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 26th day of January 1960.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  D.V. Rogers, Secretary