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 ELM GROVE FIELD, LOGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 110 ORDER NO. 110-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 3, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Exeter Drilling Company for an order granting permission and authority to dually complete the Smart Well No. 1 in the "D" and "J" sand formations, separate common sources of supply, and to produce same separately and without commingling.

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 Applicant operates oil and gas leases which cover, among other lands, the W½NE¼ of Section 21, Township 6 North, Range 53 West, 6th P.M., and has drilled the Smart Well No. 1, located 660 feet from the north line and 1980 feet from the east line of the NE¼ of said Section 21.

4.      That in the drilling of said well, the "D" sand formation was encountered between the approximate depths of 4490 feet to 4532 feet, and the "J" sand formation was encountered between the approximate depths of 4590 feet to 4652 feet; and that said well is currently producing from the "D" sand formation through perforations between the approximate depths of 4528 feet to 4530 feet; and that production tests indicate that said well is now capable of producing from the "D" sand formation and from the "J" sand formation.

5.      That all available geological and engineering data concerning the Smart Well No. 1 indicate that said well can be dually completed by perforating the casing opposite the "J" sand between the approximate depths of 4615 feet and 4619 feet, and permitting the production of gas from either or both of said formations without any commingling prior to the point of delivery of gas into the gathering pipeline, as set forth in Applicant's Exhibit "A".

6.      That the operators and owners of the Smart Well No. 1, located 660 feet from the north line and 1980 feet from the east line of the NE¼ of Section 21, Township 6 North, Range 53 West, 6th P.M., Logan County, Colorado, should make a gas-oil ratio test of said well for each producing zone during every quarter, beginning with the months of January, April, July and October, unless otherwise authorized; and such tests should be taken during the first fifteen (15) days of the last month of each quarter, and the results of such tests should be reported to the Commission on or before the 25th day of the last month of every quarter; and, immediately prior to making the test for a gas-oil ratio, subject well should be produced in its normal manner for at least twenty-four (24) hours; and a schedule should be submitted to the office of the Commission and offset operators prior to testing, showing the dates of tests; and the volume of gas measured during the 24-hour testing period should be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the Smart Well. No. 1, located 660 feet from the north line and 1980 feet from the east line of the NE¼ of Section 21, Township 6 North, Range 53 West, 6th P.M., Logan County, Colorado, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    The Exeter Drilling Company is hereby authorized and granted the right to dually complete said Smart Well No. 1 by perforating the casing opposite the "J" sand between the approximate depths of 4615 feet and 4619 feet, and permitting the production of gas from the "D" and "J" sand formations without any commingling of such production prior to the point of delivery of gas into the gathering pipeline, as set forth in Applicant's Exhibit "A".

Rule 2.    The operators and owners of said Smart Well No. 1 shall make a gas-oil ratio test of said well for each producing zone during every quarter, beginning with the months of January, April, July and October, unless otherwise authorized; and such tests shall between during the first fifteen (15) days of the last month of each quarter, and the results of such tests shall be reported to the Commission on or before the Twenty-fifth (25th) day of the last month of every quarter; and, immediately prior to making the test for a gas-oil ratio, subject well shall be produced in its normal manner for at least twenty-four (24) hours; and a schedule shall be submitted to the office of the Commission and offset operators prior to testing, showing the dates of tests and the volume of gas measured during the 24-hour testing period shall be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.

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 3rd day of October 1961.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D.V. Rogers, Secretary