|IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BLUEBIRD FIELD, ELBERT COUNTY, COLORADO||Cause No. 455 Order No. 455-1|
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on November 16, 1987, 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 Standard Oil Production Company, for an order approving a certain Unit Agreement and Unit Operating Agreement for the Bluebird (,J, Sand) Unit Area, providing for involuntary unit operations of the reservoir consisting of the J' Sand underlying certain lands in the Bluebird Field, Elbert County, Colorado.
The Commission finds as follows:
1. Standard Oil Production Company, 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. The J' Sand was encountered in the interval between the depths of 5056 feet to 5072 feet in Well No. Sohio State 1-36, located in the NW/4 SE/4 Section 36, Township 8 South, Range 57 West, 6th P.M. Said J' Sand, as so encountered, is a common source of supply and has been defined and determined by drilling, to be productive underlying the following described lands in Elbert County, Colorado, to-wit: Township 8 South, Range 57 West 6th PM Section 36: All
containing 640 acres, more or less.
5. The terms and conditions provided by the Unit Agreement and Unit Operating Agreement meet the requirements of the statute in accordance with 34-60-118 C.R.S., as amended, and are just and reasonable to all interests contained within said unit area. The plan for unit operations as presented by the Applicant, providing for a secondary recovery program by the injection of water into the J' Sand reservoir underlying the Bluebird ('J, Sand) Unit Area, as described herein is necessary to increase the ultimate recovery of oil and gas and the value of the estimated additional recovery of oil and gas exceeds the estimated additional cost incident to conducting such operations.
6. Testimony presented at the hearing indicates that said Unit Agreement and Unit Operating Agreement have been approved in writing by more than 80% of the working interest owners and owners of the production and proceeds attributable to royalty, overriding royalty and production payments.
NOW, THEREFORE IT IS ORDERED,
1. The Unit Agreement and Unit Operating Agreement covering lands in the Bluebird ('J' Sand) Unit Area, which agreements a, attached to, and made a part of the original order of this Commission on file in the office of the Commission, are approved as being in the public interest for conservation.
2. The J' Sand reservoir, common source of supply, underlies the following lands in Elbert County, Colorado, to-wit: Township 8 South, Range 57 West 6th PM Section 36: All containing 640 acres, more or less.
3. The provisions contained in said Unit Agreement and Unit Operating Agreement as they pertain to 34-60-118 of the Oil and Gas Conservation Act are just and reasonable, and are incorporated herein as the Commission's plan of involuntary unit operations for such lands.
4. The secondary recovery project by the injection of water into the J' Sand reservoir of the Bluebird ('J' Sand) Unit Area, as presented by applicant, is hereby approved as being necessary to increase the ultimate recovery from said reservoir, and the operator authorized to inject into said reservoir through injection wells in such quantities as shall be reasonably determined by the operator to best achieve the maximum recovery of oil without waste.
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 operations of the waterflood, 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.
6. All injection wells shall be approved by the Director in accordance with the rules and regulations of the Commission.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.
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.
ENTERED this 14th day of December 1987, as of November 16, 1987.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary