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. 54-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 20, 1959, at 10:00 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 authorizing completion of the C. Luft, Sr. "A" No. 3 well as an injection well, and approving the proposed enlargement of its water flood operation to include within the previously approved Unit Area additional lands located in Logan County, Colorado.

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 formation constitutes a common source of supply of oil and gas underlying in addition to the Unit Area set forth in Order No. 54-4 the following described lands in Logan County, Colorado, to-wit:

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

Section 29:	NE¼ SW¼, SW¼ SW¼, NW¼ SE¼, and SE¼ SE¼
Section 31:	SE¼ NE¼
Section 32:	NW¼ NW¼, SW¼ SE¼, and E½ E½

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

Section 5:	Lots 1, 2, 3, 4, and SW¼ NW¼
Section 6:	E½ NE¼

4. That the Amendatory Agreement, as presented by Applicant, sets forth a proposed enlargement of the water flood operation to include within the Unit Area the additional lands described in Finding 3 above, and is necessary to increase the ultimate recovery of oil and gas from the Dune Ridge Field, and should therefore be approved as being in the public interest for conservation.

5. That the expansion of the waterflood project as requested by applicant by the completion of the C. Luft, Sr. "A" No. 3 well as an injection well is essential for efficient operation of said waterflood project and should be approved.

6. That avoidable waste of oil and gas will be prevented by the operations proposed by the applicant, and the correlative rights of all parties in the Dune Ridge Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and protection 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 "D" sand formation underlying the Dune Ridge Unit Area as set forth in the Unit Agreement dated October 1, 1957, constitutes a common source of supply of oil and gas. Said Unit Area is composed of the following lands in Logan County, Colorado, to-wit:

Southeast Quarter of the Southwest Quarter (SE/4 SW/4), and the Southwest Quarter of the Southeast Quarter (SW/4 SE/4) of Section 29; East Half of the Southeast Quarter (E/2 SE/4) of Section 31; East Half of the Northwest Quarter (E/2 NW/4), Southwest Quarter of the Northwest Quarter (SW/4 NW/4), West Half of the Northeast Quarter (W/2 NE/4), Southwest Quarter (SW/4), and the Northwest Quarter of the Southeast Quarter (NW/4 SE/4) of Section 32, all in Township Seven (7) North, Range Fifty-two (52) West of the 6th P.M.

Rule 2. The Unit 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 pressure maintenance program by the injection of water into the "D" sand of the Dune Ridge Unit Area is hereby approved, and Applicant is authorized to inject water into said formation through the wells designated in its application 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 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 10th day of December, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary