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 FORT MORGAN FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 49

 

ORDER NO. 49-4

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 26, 1958, 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 B.F. Allison, Tokay Oil Company, Ramona Oil Corporation, and J.M. Loffland, Jr., on behalf of himself and all other interested parties, for an order approving a certain "Unitization Agreement for the Development and Operation of the "D" Sand Reservoir Unit Area, Fort Morgan Field, Morgan County, Colorado"; and for an order permitting the reinjection of gas into said reservoir and the re-cycling of gas into and from said reservoir; and for an order redefining the field limits.

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 on November 26, 1954, the Commission issued its Order No. 49-1 in Cause No. 49, Fort Morgan Field, which, among other things, defined the area to be known as the Fort Morgan Field.  Subsequent development reveals that the following changes should be made in the field limits of said Fort Morgan Field:

 

Area to be deleted

 

Township 3 North, Range 57 West, 6th P.M.

 

                     Section 19:  SE¼

                     Section 30:  E½

                     Section 31:  NE¼

 

Township 3 North, Range 58 West, 6th P.M.

 

                     Section 26:  E½

                     Section 35:  E½

 

Area to be added

 

Township 3 North, Range 57 West, 6th P.M.

                     Section 31:  SW¼

 

4.      That the "D" sand formation underlying the Fort Morgan Field as set forth in the Unit Agreement presented by Applicants, constitutes a common source of supply of oil and gas, and that the Unit Area defined in said Unit Agreement is composed of the following lands in Morgan County, Colorado, to-wit:

 

Southwest Quarter (SW¼) of Section Nineteen (19), West Half (W½) of Section Thirty (30), and West Half (W½) of Section Thirty-one (31), Town-ship Three (3) North, Range Fifty-seven (57) West, 6th P.M.; and the South Half (S½) of Section Twenty-four (24), and all of Sections Twenty-five (25) and Thirty-six (36), Township Three (3) North, Range Fifty-eight (58) West, 6th P.M.

 

5.      That the Unit Agreement as presented by Applicants, 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.

 

6.      That avoidable waste of oil and gas will be prevented by the operations proposed by Applicants, such operations to include the reinjection of gas into the "D" sand reservoir, and the re-cycling of gas into and from said reservoir and that the correlative rights of all parties in the Unit Area, in the Fort Morgan Field, as herein defined, will not be adversely affected and will be reasonably protected under such plan of operation; and that in the interest at securing the greatest ultimate recovery of oil and gas from said reservoir, the prevention of waste and 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 Fort Morgan Field, as defined in Order No. 49-1, is hereby re-defined by the deletions and additions set forth in Finding 3 hereof, leaving the following described area as the field limits, which area coincides with the Fort: Morgan Unit Area, as defined in the Unit Agreement; presented by Applicants:

 

Southwest Quarter (SW¼) of Section Nineteen (19), West Half (W½) of Section Thirty (30), and West Half (W½) of Section Thirty-one (31), Township Three (3) North, Range Fifty-seven (57) West, 6th P.M.; and the South Half (S½) of Section Twenty-four (24), and all of Sections Twenty-five (25) and Thirty-six (36), Township Three North, Range Fifty-eight (58) West of the 6th P.M., Morgan County, Colorado.

 

Rule 2.    The Unit Agreement presented by Applicants, covering the Fort Morgan Unit Area herein defined, and providing for unit operations of the "D" sand underlying said Unit Area, is hereby approved.

 

Rule 3.    That the provisions of all previous orders in Cause No. 49, where applicable, are hereby extended to include the additional area set forth above.

 

Rule 4.    The pressure maintenance program by the injection and re-cycling of gas into and from the "D" sand reservoir of the Fort Morgan Unit Area through the Luhrs No. 1 well located in the Southwest Quarter (SW¼) of Section Thirty (30), Township Three (3) North, Range Fifty-seven (57) West of the 6th P.M., Morgan County, Colorado, is hereby approved, and Applicants are authorized to inject gas into said reservoir through said injection well in such quantities as shall be reasonably determined by them to best achieve the maximum recovery of oil without waste.

 

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 September, 1958.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary