IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

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 DUNE RIDGE FIELD, LOGAN COUNTY, COLORADO.

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CAUSE NO. 54

ORDER NO. 54-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 18, 1955, at 10:00 A.M., in Room 704, State Capitol Annex, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company for an Order from the Commission authorizing pressure maintenance operation by gas injection, in the Muddy Sand Reservoir of the Dune Ridge Field.

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 gathering of all casinghead gas produced in the Dune Ridge field, the compression and dehydration of that gas, and the reinjection into the Muddy Sand Reservoir in the intake well, State of Colorado 688-1, located in the center of the Northwest Quarter of the Southeast Quarter (NW¼SE¼) of Section Thirty-two (32), Township Seven (7) North, Range Fifty-two (52) West of the 6th P.M., for the purpose of pressure maintenance, and conservation through increased oil recovery and the saving of casinghead gas for future disposition, is in the public interest for conservation and is reasonably necessary to increase ultimate recovery; and to prevent the waste of oil or gas, or both oil and gas, as defined and prohibited by the Colorado Oil and Gas Conservation Act of 1951, as amended.

4. That the pressure maintenance program for the Muddy Sand Reservoir of the Dune Ridge field, as proposed by the Shell Oil Company, should be adopted and approved.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the pressure maintenance program for the Muddy Sand Reservoir of the Dune Ridge Field, as proposed by the Shell Oil Company, is hereby adopted and approved.

ORDERED this 18th day of March, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary