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 "D" SAND OF THE BIJOU FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 116

 

ORDER NO. 116-8

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on February 21, 1961, at 10:00 a.m., in Room 227, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Prairie Petroleum, Inc., for an order establishing a 160-acre drilling and spacing unit for the D2 sand underlying the SE¼ of Section 8, Township 4 North, Range 59 West of the 6th P.M., Morgan County, Colorado; and permitting the unrestricted production of gas from said unit, provided that no gas shall be released directly or indirectly into the open air.  At the hearing, Applicant amended said application to request an order permitting production of 600,000 cubic feet of gas per day from the No. 1 Williams well located in the center of the NW¼ SE¼ of Section 8, Township 4 North, Range 59 West of the 6th P.M., Morgan County, Colorado, provided that no gas shall be released directly or indirectly into the open air.

 

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      That the engineering testimony presented at the hearing indicates that gas can be withdrawn from the D2 Sand reservoir through the Prairie Petroleum, Inc. No. 1 Williams well located in the center of the NW¼ SE¼, Section 8, Township 4 North, Range 59 West, 6th P.M., Morgan County, Colorado, at a rate not to exceed 600,000 cubic feet per day, without waste or adversely affecting the correlative rights of the various parties in the Bijou Field, and will permit the owners of the SE¼ of Section 8 to recover their just and equitable share of the gas under said SE¼.

 

4.      That by maintaining the reservoir pressure in the gas cap of the D2 Sand at a level higher than the pressure in the oil zone, there will be no migration of oil into the gas cap.

 

5.      That all of the SE¼ of said Section 8 is of common ownership, and said No. 1 Williams well should be the only D2 Sand gas well allowed in said quarter section.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the No. 1 Williams well located in the center of the NW¼SE¼ [sic] of Section 8, Township 4 North, Range 59 West of the 6th P.M., Morgan 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.    Said No. 1 Williams well shall be allowed to produce gas from the D2 Sand of the Bijou Field at a rate not to exceed 600,000 cubic feet per day, provided that no gas shall be released directly or indirectly into the open air.

 

Rule 2.    Under and over production of gas from said No. 1 Williams well from the D2 Sand formation shall be adjusted on a quarterly basis.  Underproduction of gas during any one quarter may be made up only during the quarter immediately following; and any overproduction of gas during any one quarter shall be made up during the quarter immediately following.  A quarter, as used within this order, shall mean three consecutive months, beginning with January, April, July or October.

 

Rule 3.    Said No. 1 Williams well shall be the only permitted well for the production of gas from the D2 Sand reservoir in the SE¼ of said Section 8.

 

IT IS FURTHER ORDERED, that this order shall become effective March 1, 1961.

 

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 13th day of March 1961.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

D.V. Rogers, Secretary