121-1

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE LYONS SAND OF THE BLACK HOLLOW FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 121

ORDER NO. 121-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 22, 1958, at 10 A.M., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The California Company for approval of a certain Unit Agreement covering operations in the Black Hollow Field, and further approving a proposed program for the operation of said unit, including the injection of water into the oil section of the Lyons sand pool, Permian Age, underlying said 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 the Lyons sand pool, Permian Age, underlying the Black Hollow Field as set forth in the Unit Agreement presented by The California Company, as Unit Operator, constitutes a common source of supply of oil and gas, and that said Unit Area is composed of the following lands in Weld County, Colorado, to-wit:

Township 8 North, Range 66 West, 6th P.M.
	Section 30: Lot 4, SE¼ SW¼, S½ SE¼
	Section 31: All

		Township 7 North: Range 66 West, 6th P.M.
		Lots 1 through. 7, SW¼ NE¼, SE¼ NW½, NE¼ SW¼

		Township 8 North Range 67 West, 6th P.M.
		Section. 25: SE¼ SE¼ Section 36: E½

		Township 7 North, Range 67 West, 6th P.M.
	Section 1: Lots 1 and 2, S½NE¼, SE¼

4. That the Unit Agreement, as presented by Applicant, is necessary to increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

5. That the pressure maintenance program by water injection into the oil section of the Lyons sand pool, Permian Age, underlying the Black Hollow Unit Area, as presented by Applicant, will increase the ultimate recovery of oil and gas from said Unit Area, and should therefore be approved as being in the public interest for conservation.

6. That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative right of all parties in the Black Hollow Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said pool, the prevention of waste and protection of correlative rights, this application should be granted.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the 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 Lyons sand pool, Permian Age, underlying the Black Hollow Unit Area as set forth in the Unit Agreement submitted by Applicant as Exhibit "B", constitutes a common source of supply of oil and gas. Said Unit Area is composed of the following lands in Weld County, Colorado to-wit:

Lots One (1) through Seven (7), Southwest Quarter of Northeast Quarter (SW¼ NE¼), Southeast Quarter of Northwest Quarter (SE¼ NW¼), and Northeast Quarter of Southwest Quarter (NE¼ SW¼) of Section Six (6), Township Seven (7) North, Range Sixty-six (66) West, 6th P.M.; Lot Four (4), Southeast Quarter of Southwest Quarter (SE¼ SW¼), South Half of Southeast Quarter (S½ SE¼) of Section Thirty (30), and all of Section Thirty-one (31), Township Eight (8) North, Range Sixty-six (66) West, 6th P.M.; Lots One (1), and Two (2), South Half of Northeast Quarter (S½ NE¼), and Southeast Quarter (SE¼) of Section One (1), Township Seven (7) North, Range Sixty-seven (67) West, 6th P.M.; Southeast Quarter of Southeast Quarter (SE¼ SE¼ ) of Section Twenty-five (25), and East Half (E½) of Section Thirty-six (36), Township Eight (8) North, Range Sixty-seven (67) West, 6th P.M.

Rule 2. Said Unit Agreement covering the Black Hollow Unit Area herein defined, and providing for unit operations of the Lyons sand pool underlying said Unit Area, is hereby approved.

Rule 3. The pressure maintenance program by water injection into the oil section of the Lyons sand pool underlying the Black Hollow Unit Area is hereby approved, and Applicant is authorized to inject water into said pool through the UPRR #5 injection well in such quantities as shall be reasonably determined by Applicant to best achieve the maximum recovery of oil without waste.

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 22nd day of July, 1958.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Annabel Hogsett, Secretary