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 LEADER FIELD, ADAMS COUNTY, COLORADO

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CAUSE NO. 59

ORDER NO. 59-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 26, 1956, 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 Commission's own motion to consider the establishment of field rules and regulations to govern the production of oil and gas from the Leader 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 the said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. That the "J" sand constitutes a common source of supply of oil and gas underlying the following described lands in Adams County, Colorado, to-wit;

Township 2 South, Range 59 West, 6th P.M.

Section 8: All Section 17: All

Section 20: All

and is known as the Leader Field.

4. That the predominant driving force of the "J" sand reservoir of the Leader Field is a gas cap which covers a considerable portion of said reservoir, and that the operators and owners of all wells producing oil or gas, or both oil and gas, from the "J" sand reservoir should not produce gas from any one well unless (1) the gas so produced is returned to the "J" sand reservoir; (2) the gas so produced is used for lease development, operations or as lease fuel; and/or (3) the gas so produced is marketed and sold to supply domestic, industrial, commercial or municipal needs.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the operators and owners of all wells producing oil or gas, or both oil and gas from the "J" sand reservoir of the Leader Field shall not produce gas from any one well unless:

(1) That gas so produced is returned to the "J" sand reservoir; or

(2) The gas so produced is used for lease fuel, development, or operations; or

(3) The gas so produced is marketed and sold to supply domestic, industrial, commercial or municipal needs.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall be-come effective forthwith.

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 rules and regulations.

ORDERED this 9th day of July, 1956.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary