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. 59-9

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 25, 1962, at 10 a.m., in Room 320E, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion to consider the vacating of Order No. 59-6 and all subsequent orders which may have been issued in this cause which pertain to production restrictions, and to substitute in lieu thereof the provisions of the general rules and regulations of the Commission.

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 That Order No. 59-6 should be rescinded in order to allow the operators of the Leader Field an opportunity to produce to depletion the oil section of the "J" sand reservoir.

4. That, except for testing, production to depletion, as outlined in Finding 3 above, should be restricted to wells with gas-oil ratios of less than 10,000 cubic feet per barrel, or with a capacity of less than 75,000 cubic feet per day.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the provisions of Order No. 59-6 and all subsequent orders which pertain to production restrictions governing operations of the "J" sand reservoir of the Leader Field, are hereby rescinded.

IT IS FURTHER ORDERED, that, except for testing purposes, no well with a producing gas-oil ratio in excess of 10, 000 [sic] cubic feet per barrel and a capacity in excess of 75, 000 [sic] cubic feet per day shall be produced unless the gas produced therefrom is put to a beneficial use.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above order.

ORDERED this 30th day of April, 1959.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary