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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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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. 116-9 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on August 15, 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 Gulf Oil Corporation for an order approving the Unit Agreement attached to said application and covering operations in the Bijou Unit Area defined in said application; and further approving a proposed water injection program for the D-1 and D-2 sand reservoirs underlying said Bijou Unit Area; and further amending Rules 6 and 7 of Order No. 116-5, issued by the Commission on February 11, 1959.
Applicant, the Gulf Oil Corporation, reported that 85.87 per cent of the working interests, and 67.69 per cent of the royalty interests within the proposed Unit Area had signed the Unit Agreement at the time of the hearing. Texaco, Inc. and the Bel-Air Oil Company appeared in support of the application, and no owners of working interest appeared in opposition. The only opposition at the hearing was presented by Mrs. Helen A. Williams, an owner of certain royalty interests within the proposed Bijou Unit Area.
The following order approves the Unit Agreement and plan of operation for increasing the recovery of oil in the Bijou Field, as to those interests who have signed the Unit Agreement; however, should a later hearing reveal a violation of correlative rights because (among other things) of the various unsigned interests, the Unit Operator should be cognizant of the Commission's intent to protect the correlative rights of all interests involved, both signed and unsigned.
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 Commission's Order No. 116-5, as amended by Order No. 116-7, established, among other things, the field limits of the Bijou Field.
4. That the "D" sand formation underlying the Bijou Unit Area, as set forth in the Unit Agreement presented by Applicant, constitutes common sources of supply of oil and gas; and that said Bijou Unit Area is composed of the following lands in Morgan County, Colorado, to-wit:
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Bijou Unit Area |
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Township 4 North, Range 59 West, 6th P.M. |
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Section 5: |
Lots 3 and 4, S½NW¼, SW¼, SW¼NE¼, W½SE¼ |
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Section 6: |
All |
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Section 7: |
Lots 1 and 2, E½NW½, NE¼ |
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Section 8: |
All |
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Section 17: |
NW¼, W½NE¼ |
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Township 4 North, Range 60 West, 6th P.M. |
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Section 1: |
Lots 1 and 2, SE¼ NE¼, E½SW¼ NE¼, E½SE¼, E½W½SE¼ |
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Township 5 North, Range 59 West, 6th P.M. |
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Section 31: |
S½S½ of Lot 3, Lot 4, SE¼SW¼, S½SE¼ |
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Township 5 North, Range 60 West, 6th P.M. |
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Section 36: |
SE¼, SE¼SW¼ |
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5. That the limits of the Bijou Field should be revised to coincide with said Bijou Unit Area by the sedition and deletion of certain areas, as follows:
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Area to be added |
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Township 4 North, Range 59 West, 6th P.M. |
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Section 7: |
Lots 1 and 2 |
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Township 4 North, Range 60 West, 6th P.M. |
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Section 1: |
SE¼ NE¼, E½SW¼ NE¼, [sic] E½SE¼, E½W½SE¼ |
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Township 5 North, Range 59 West, 6th P.M. |
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Section 31: |
S½S½ Lot 3 |
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Township 5 North, Range 60 West, 6th P.M. |
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Section 36: |
N½SE¼, SE¼SW¼ |
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Area to be deleted |
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Township 4 North, Range 59 West, 6th P.M. |
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Section 5: |
Lot 2 |
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Section 7: |
SE¼ |
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Section 17: |
E½NE¼ |
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Section 18: |
NE¼ |
6. That the Unit Agreement and water injection program, as presented by Applicant, are in the public interest for conservation; are necessary to increase the ultimate recovery of oil and gas from the Bijou Field, and will tend to prevent waste of oil and gas and therefore should be approved; however, said Agreement should bind only the persons who have executed it and their successors in interest.
7. That the Commission recognizes that the water injection program may, from time to time, require changes in the operation of the project in order to facilitate the efficient development thereof; and that such changes may be performed subject to the approval of the Director.
8. That Rules 6 and 7 of Order No. 116-5 should be amended to provide for semi-annual gas-oil ratio tests, and annual reservoir pressure tests.
ORDER
NOW, THEREFORE, IT IS ORDERED that he following rules and regulations shall apply hereafter to the lands set forth in this order, 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 "D" sand formation of the Bijou Unit Area, as shown on Exhibit "B" attached to the Gulf Oil Corporation application as a part of the Unit Agreement, constitutes common sources of supply of oil and gas underlying said Bijou Unit Area comprised of the following described lands in Morgan County, Colorado, to-wit:
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Bijou Unit Area |
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Township 4 North, Range 59 West, 6th P.M. |
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Section 5: |
Lots 3 and 4, S½NW¼, SW¼, SW¼NE¼, W½SE¼ |
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Section 6: |
All |
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Section 7: |
Lots 1 and 2, E½NW½, NE¼ |
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Section 8: |
All |
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Section 17: |
NW¼, W½NE¼ |
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Township 4 North, Range 60 West, 6th P.M. |
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Section 1: |
Lots 1 and 2, SE¼ NE¼, [sic] E½SW¼ NE¼, E½SE¼, E½W½SE¼ |
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Township 5 North, Range 59 West, 6th P.M. |
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Section 31: |
S½S½ of Lot 3, Lot 4, SE¼SW¼, S½SE¼ |
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Township 5 North, Range 60 West, 6th P.M. |
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Section 36: |
SE¼, SE¼SW¼ |
which area shall also define the limits of the Bijou Field.
Rule 2. Said Unit Agreement, covering the Bijou Unit Area herein defined, and providing for Unit operations of the "D" sand formation underlying said Bijou Unit Area, is hereby approved; however, said Agreement shall bind only the persons who have executed it and their successors in interest.
Rule 3. The program proposed by the Gulf Oil Corporation providing for injection of water into the "D" sand formation underlying said Bijou Unit Area is hereby approved, and Applicant is authorized to inject water into said formation in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.
Rule 4. In the event that it becomes necessary in the future to convert additional producing wells to input wells; to plug and abandon certain wells in the Bijou Unit Area; or to drill additional producing or input wells as dictated by developments in the course of the operation of the water injection program, the Unit Operator is authorized to make such changes in the operation of the project as may be required to facilitate the efficient development thereof, subject to the approval. of the Director of the Commission.
Rule 5. Operators and owners of wells capable of producing from the "D" sand formation of the Bijou Field, as defined in Rule 1 hereof shall make a semi-annual gas-oil-ratio test of each of his producible wells. Such tests shall be taken during the first fifteen (15) days of the months of June and December of each year, and the results of such tests shall be submitted to the Commission on or before the 25th day of the month of testing. Each well shall be produced at its normal stabilized rate for a period of forty-eight (48) consecutive hours, and 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 forty-eight (48) hour period. A schedule shall be submitted to the office of the Commission and offset operators prior to testing, showing the wells and respective dates of tests. The volume 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.
Rule 6. A determination of datum reservoir pressure shall be made during the month of April of each year, such tests to be conducted during the first fifteen (15) days of April. All wells capable of producing from said "D" sand formation shall be shut in and shall remain shut in until completion of the survey. Datum reservoir pressure shall be determined after the entire field has been shut in for a period of at least twenty-four (24) hours, and such pressure shall be measured at a datum of 1720 feet below sea level. The results of said survey shall be reported to the Commission on or before the 25th day of said test month.
IT IS FURTHER ORDERED, that the provisions of this order shall apply to all operators and owners of wells capable of producing from the "D" sand formation underlying the Bijou Field, and shall remain in effect unless otherwise authorized by the Commission.
IT IS FURTHER ORDERED, that this order shall become effective forthwith.
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 12th day of September 1961.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By |
D.V. Rogers, Secretary |