IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE "J" SAND (LOWER MASSIVE BENCH) OF THE PAWNEE CREEK FIELD-SOUTH POOL, LOGAN COUNTY, COLORADO Cause No. 68 Order No. 68-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 17, 1966, at 10 A.M., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Maverick Oil Com-pany for an order establishing the boundaries of the Pawnee Creek Field (South Pool); determining that the "J" Sand (Lower Massive Bench) formation underlying certain lands in Logan County, Colorado, is one separate pool or common source of supply of oil and gas establishing the maximum efficient rate of production in said field or pool, and limiting production therefrom accordingly; and allocating the allowable production among the several wells or producing properties in the field, or pool, on a reasonable basis, as prescribed in the Act.

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 "J" Sand (Lower Massive Bench) formation constitutes a common source of supply of oil and gas underlying all or portions of the following described lands, to-wit:

Township 7 North, Range 54 West, 6th P.M. Section 2. S/2 N/4 SW/4 NE/4 SW/4 NW/4 SE/4 Section 3. SE/4 NE/4, SE/4 Section 10: N/2 NE/4 Section 11: NW/4 NW/4 and such reservoir should hereafter be referred to as the Pawnee Creek Field-South Pool.

4. That testimony presented at the hearing indicated that previous operation of wells producing from the Pawnee Creek Field-South Pool was in a non-wasteful man-ner, and that a maximum allowable production of 150 barrels of oil per day will not re-sult in waste, as defined by the Oil and Gas Conservation Act.

5. That all parties present at the hearing agreed that edge water is an effective producing mechanism in the production of oil from wells on the edge of said reservoir and adjacent to the oil-water contact.

6. That the Bander & Couch No. 1 North Sterling Irrigation District Well in the SE/4 NE/4 SE/4 of Section 3, Township 7 North, Range 54 West, 6th P.M., Logan County, Colorado, is located adjacent to such oil-water contact, and that the encroachment of edge water will more than compensate for the advantage gained by the well being drilled as an exception, and that correlative rights of offsetting properties will be reasonably protected by the natural producing mechanism of this reservoir.

7. That the Commission should review production history of said Bander & Couch No. 1 North Sterling Irrigation District Well at six-month intervals.

8. That monthly off-water ratio determinations should be made on said well, and pressure surveys should be taken in accord with Rule 328 of the Rules and Regula-tions of the Commission, if deemed necessary.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the "J" Sand (Lower Massive Bench) formation, as herein defined, in addition to other rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. The "J" Sand (Lower Massive Bench) formation constitutes a common source of supply underlying the following described lands in Logan County, Colorado, to-wit:

Township 7 North, Range 54 West, 6th P.M. Section 2: S/2 NW/4, SW/4, NW/4 SE/4 Section 3: SE/4 NE/4, SE/4 Section 10: N/2 NE/4 Section 11: NW/4 NW/4 and such area shall henceforth be known as the Pawnee Creek Field-South Pool.

Rule 2. Maximum production from wells producing from the Pawnee Creek Field-South Pool, as defined in Rule 1 herein, shall not exceed One Hundred Fifty (150) barrels of oil per day.

Rule 3. Monthly oil--water ratio determinations shall be made on the Bander & Couch No. 1 North Sterling Irrigation District Well, located in the SE/4 NE/4 SE/4 of Section 3, Township 7 North, Range 54 West, 6th P.M., Logan County, Colorado, in a manner acceptable in oil field practices; provided, however, that the ratio used in determining monthly production shall be from at least three (3) samples taken at not closer than two-hour intervals; and the results of each such test shall be included under "Remarks" on the OGCC Form-7, Operator's Monthly Production Report, for the months in which the tests were taken. Such comments shall include the date, approximate time, and per cent cut of each individual test.

IT IS FURTHER ORDERED, that the rules and regulations and orders contained herein shall become effective forthwith.

ORDERED this 1st day of June 2966.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By William R. Smith, Secretary

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