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	) ) ) )	CAUSE NO. 54 ORDER NO. 54-4

REPORT OF THE COMMISION

This cause came on for hearing before the commission on December 10, 1957, at 10:00 A.M. , in Room 330 State Office Building,  Denver,  Colorado,  after publication of Notice of Hearing as required by law, on the application of the Shell Oil Company, as operator of the Dune Ridge  “D”  Sand Unit,  for an order permitting applicant to institute a water injection method of pressure maintenance in said Unit.

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  “D”  sand information underlying the Dune Ridge Unit Area, as set forth in the Unit  Agreement presented by the applicant, 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:

Township 7 North, Range 52 West, 6th P. M.

Section 29: SE¼ SW¼, SW¼ SE¼,

Section 31: E½ SE¼

Section 32: E½ NW¼, SW¼ NW¼, W½ NE¼, SW¼ , NW¼ SE¼

            4. That the Unit Agreement, as presented by the 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.

            5. That the pressure maintenance program by water injection into the “D” sand underlying the Dune Ridge Unit Area, as presented by the 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.  

            6. That avoidable waste of oil and gas will be prevented by the operation proposed by Applicant, and the correlative rights of all parties in the Dune Ridge Field will not be adversely affected and will be reasonably protected under such a plan of operation.

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 “D” Sand formation constitutes a common source of supply of oil and gas underlying the following described lands in Logan County, Colorado, which include the Dune Ridge Unit Area as set forth in order No. 54-4, and the additional area herein described in Finding 3 which,  by reference, is made a part hereof:

Northeast Quarter of the Southwest Quarter

(NE¼ Sw¼), Northwest Quarter of the Southeast

Quarter (NW¼ SE¼), and South Half of the South

Half (S½ S½) of Section Twenty-nine (29); Southeast

Quarter of the Northeast Quarter (SE¼ NE¼), and East

Half of the Southeast Quarter (E½ SE¼) of Section Thirty

-one (31); all of Section Thirty-two (32), Township Seven

(7) North, Range Fifty-two (52) West of the 6^th P.M.; and

Lots One (1), Two (2), Three (3) and Four (4); Southwest

Quarter of the Northwest Quarter (SW¼ NW¼) of the

Section Five (5), and East Half of the Northeast Quarter

(E½ NE¼) of Section Six (6), all in Township Six (6) North,

Range Fifty- two (52) West of the 6^th P.M.,

which area is presently known as the Dune Ridge Unit Area.

Rule 2. The Amendatory Agreement covering the Dune Ridge Unit Area Herein Defined, and providing for Unit operations of the “D” Sand underlying said Unit Area, is hereby approved.

Rule 3. The expansion of the waterflood project by the completion of the C. Luft, Sr. “A” No. 3 well, located in the center of the Southeast Quarter of the Northeast Quarter (C SE¼ NE¼) of Section Six (6), Township Six (6) North, Range “D” Sand of the Dune Ridge Unit Area, is hereby approved, Applicant is authorized to inject water into said formation through said  well in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil and gas without waste.

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

ORDERED this 20^th day of October, 1959.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogset, Secretary