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 THE WASTE OF OIL AND GAS IN THE "J" SAND OF THE PLUM BUSH CREEK FIELD, WASHINGTON COUNTY, COLORADO

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CAUSE NO. 57

ORDER NO. 57-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 26, 1959, at 10 A.M., in the Spruce Room of the Albany Hotel Denver, Colorado, after publication of Notice of Hearing as required by statute and mailing of copies of the application, pursuant to the regulations of this Commission, on the application of Continental Oil Company, as Operator of the "J" Sand Unit of the Plum Bush Creek Field, Washington County, Colorado for an order permitting applicant to initiate a waterflood project for secondary recovery purposes by conversion to water injection wells of twenty producing wells inside the Plum Bush Creek "J" Sand Unit Area and for establishment of the forty acre pattern of drilling and spacing units previously established by this Commission for the "J" Sand Reservoir underlying the Plum Bush Creek 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, and that all prerequisites to the granting of this order have been performed.

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 a waterflood project for secondary recovery in the "J" Sand Reservoir underlying the Plum Bush Creek Unit Area is necessary in order to minimize waste and to increase the ultimate recovery of oil and gas in the Plum Bush Creek Field, and that the conversion of certain producing wells and the drilling of additional wells, which wells may be used for water injection wells, is necessary.

4. That for the most efficient operation of applicant's waterflood project for secondary recovery, it is necessary at the present time, and may be necessary in the future, to drill additional producing oil wells and additional water injection wells, which wells will be located at the site or sites which are geologically deemed to be the best site or sites for the location of such well or wells, which site or sites may not be consistent with the location of wells as prescribed by the Commission's forty acre drilling and spacing units previously ordered for this field.

5. That each of the proposed water injection wells located on the unit and the injection of water into such wells, according to the expert testimony presented, will not adversely affect the correlative rights of any owner outside of said unit.

6. That all wells capable of producing oil and gas or either from the "J" Sand underlying the Plum Bush Creek Field are located within the boundaries of the Plum Bush Creek Unit area.

7. That there are no wells in the Plum Bush Creek Field capable of producing oil and gas or either from any formation other than the "J" Sand underlying such field.

8. That the provisions of Order Number 57-1, establishing forty acre drilling and spacing units for the Plum Bush Creek Field, continued by subsequent orders, insofar as they pertain to the "J" Sands underlying said field, should be modified to allow the drilling of water injection wells and other producing wells at locations other than those authorized by said order.

9. That the use and operation of said wells as water injection wells well increase the ultimate recovery of oil and gas from the "J" Sand underlying the Plum Bush C reek Unit Area, and prevent waste.

10. That the unit area as defined by Order Number 57-6 should be considered as one lease.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the applicant herein, as Operator of the Plum Bush Creek "J" Sand Unit, is hereby permitted and authorized to convert certain presently producing oil wells to wells for the injection of water, to drill certain additional wells as necessary to be used as water injection wells, and to drill additional wells as necessary for the producing of oil in order to conduct a waterflood project for secondary recovery purposes in the "J" Sand underlying the Plum Bush Creek Field.

IT IS FURTHER ORDERED, that applicant's waterflood project for the secondary recovery program as proposed to the Commission for the "J" Sand underlying the Plum Bush Creek Field is hereby approved and applicant is authorized to inject water into said "J" Sand through the injection wells designated at the hearing 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 Order Number 57-1 establishing forty acre drilling and spacing units and the location of wells thereon for the "J" Sand of the Plum Bush Creek Field is hereby repealed insofar as it pertains to the spacing of wells; provided, however, that no well shall be drilled at a location other than that provided for in said Order Number 57-1, unless such well is necessary as an injection well or producing well for the efficient conduct of the water flood project hereby approved; and provided that no such well shall be drilled without prior written consent obtained from the office of the Commission.

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

ORDERED this 26th day of March, 1959.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary