BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE "J" SAND OF THE BEALL CREEK FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 89

 

ORDER NO. 89-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on December 11, 1956, at 10:00 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, to accept additional testimony including results of the gas-oil-ratio and bottom-hole pressure surveys required in Order No. 89-2.

 

At the hearing, results of the bottom-hole pressure survey and gas-oil-ratio tests ordered by the Commission by Order No. 89-2 were submitted.  There was a difference of opinion among the operators as to the driving mechanism of the reservoir, pertaining specifically to the existence and effectiveness of a water drive. The Commission reviewed the testimony presented at the hearing, and came to the conclusion that there is an effective water-drive existing in the Beall Creek Field, and that uncontrolled production is causing underground waste and abuse of the correlative rights of some of the owners in the field, due to non-uniform, disproportionate and excessive withdrawal of oil, causing reasonably avoidable drainage between tracts of land, and will unreasonably diminish the quantity of oil that might ultimately be produced from the Beall 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.

 

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 excessive and disproportionate withdrawal of oil from the "J" sand reservoir of the Beall Creek Field is causing serious pressure differentials which result in reasonably avoidable drainage between tracts of land of separate ownership.

 

4.      That there is evidence of a substantial water drive supplemented by a solution gas drive in the "J" sand reservoir of the Beall Creek Field.

 

5.      That continued excessive and disproportionate withdrawal of oil from the "J" sand reservoir of the Beall Creek Field will cause non-uniform encroachment of water into the oil zone, and will exaggerate the low pressure area now existing in the field, thereby resulting in underground waste.

 

6.      That a restriction of 200 barrels of oil per well per day for wells producing from the "J" sand reservoir of the Beall Creek Field will tend to eliminate non-uniform encroachment of water, and will tend to eliminate the pressure sink now existing, thereby protecting correlative rights and increasing the ultimate recovery of oil.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations be, and the same are hereby adopted for the "J" sand reservoir of the Beall Creek Field in Logan County, Colorado:

 

Rule 1.    Production Limitation.

 

(a)  That in order to prevent reasonably avoidable drainage of oil across property lines, and to permit owners and operators their just and equitable share of recoverable oil; and to prevent waste caused by the non-uniform encroach-ment of water, the maximum production of any one well producing from the "J" sand reservoir of the Beall Creek Field shall not, during any one month, exceed a daily average of Two Hundred (200) barrels of oil; and that no one well shall produce during any twenty-four (24) hour period more than twice its daily allow-able.

 

(b)     Under and over production of oil shall be adjusted on a quarterly basis.  A quarter as used herein shall mean any three consecutive months of a year, beginning with the months of January, April, July and October.  Underproduction of oil during any one quarter may be made up only during the quarter immediately following; and any overproduction of oil obtained during any one quarter shall be made up during the quarter immediately following.  Any overproduction of oil in excess of five percent (5%) of the total quarterly allowable shall be considered a violation, unless a valid reason is given.

 

Rule 2.    Gas-Oil-Ratio Tests.

 

(a)     That operators and owners of wells producing from the "J" sand reservoir of the Beall Creek Field shall make a gas-oil-ratio test of each of their producing wells during every quarter, until otherwise directed by the Commission; and that such test shall be taken during the first twenty (20) days of the last month of each quarter; the results of which such tests shall be reported to the Commission on or before the twentieth (20th) day of the last month of every quarter; and that such tests shall be the basis for calculating the volume of oil allowed to be produced for the following quarter; and that each such well shall be produced at its normal stabilized rate of production for a period of forty-eight (48) consecutive hours; and that the gas-oil ratio shall be computed on the basis of the measurement of oil and gas during the last twenty-four (24) hours of said period; and that water production during the test period shall be measured by means of a volume meter unless otherwise authorized by the Commission.  A schedule shall be submitted to the Commission and to offset operators prior to testing, showing the wells and respective dates of testing.  Volumes of gas measured shall be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.

 

(b)     That any operator may apply for an amended or additional allowable upon submission of an authorized test or re-test.

 

Rule 3.    Bottom-Hole Pressure Survey.

 

Reservoir pressure surveys necessary for reservoir studies will be prescribed as set forth in Rule 330 of the State-wide rules and regulations.

 

Rule 4.    Production Reports.

 

That operators and owners of wells producing from the "J" sand reservoir shall file with the Commission the production of individual wells on monthly production reports required by this office.

 

Rule 5.

 

That the allowable production for the first quarter of 1957 shall be determined from tests taken in accordance with Order No. 89-2, unless revised by provisions of Rule 2(b) hereof.

 

IT IS FURTHER ORDERED, that this order shall become effective January 1, 1957.

 

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 21st day of December, 1956.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary

 

 

 

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE "J" SAND OF THE BEALL CREEK FIELD, LOGAN COUNTY, COLORADO

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CAUSE NO. 89

 

TO ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN:

 

NOTICE IS HEREBY GIVEN, that on January 11, 1957, The Oil and Gas Conservation Commission of the State of Colorado, in Division I of the District Court, Second Judicial District, City and County of Denver, State of Colorado, before Justice William Black, agreed to withdraw Order No. 89-3, Beall Creek Field, dated December 21, 1956.

 

Dated at Denver, Colorado, this 11th day of January, 1957.

 

IN THE NAME OF THE STATE OF COLORADO.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary