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 XENIA-WEST FIELD, WASH-INGTON COUNTY, COLORADO

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CAUSE NO. 55

ORDER NO. 55-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1960, at 10:00 a.m., in Room 720, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Kingwood Oil Company for an order approving a proposed project for the injection of water into the "D" sand underlying the Xenia-West Unit Area.

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 October 20, 1959, the Commission issued its Order No. 55-3 which, among other things, approved a Unit Agreement covering operations in the "D" and "J" sands, and also approved a water injection program for the "J" sand formation underlying the Xenia-West Unit Area Washington County, Colorado.

4. That the water injection project presented by Applicant, for the "D" sand formation underlying said Xenia-West Unit Area, 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.

5. That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in the Xenia-West Unit Area 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 "D" sand formation, 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, is any, heretofore adopted and not in conflict herewith:

Rule 1. The project presented by the Kingwood Oil Company, for the injection of water into the "D" sand formation underlying the Xenia-West Unit Area, is hereby approved, and Applicant is authorized to inject water into said "D" sand formation through five injection wells in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.

Rule 2. 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 operation of the water injection project, the Unit Operator is authorized to make such changes in the operation of such project as may be required to facilitate the efficient development thereof, subject to the approval of the Director of the Commission.

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 18th day of October 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By D.V. Rogers, Secretary