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 SABER FIELD, WELD AND LOGAN COUNTIES, COLORADO

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CAUSE NO. 181

 

ORDER NO. 181-1

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 15, 1964, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Bright & Schiff, being H.R. Bright, H.G. Schiff, John A. Myers, and Ellis Chaney, Jr. of Dallas, Texas, doing business as Bright & Schiff, for an order permitting injection of gas and recycling thereof in certain wells in the D-2 sand reservoir underlying the area known as the Saber Field, Logan and Weld Counties, Colorado.

 

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 geological testimony presented at the hearing indicates that the D-2 sand reservoir is a common source of supply of oil and gas underlying the developed portions of the following described lands in Logan and Weld Counties, Colorado, to- wit:

 

Logan County

Township 10 North, Range 55 West, 6th P.M.

 

Section 6:  SW¼                 Section 7:  NW¼

 

Weld County

Township 10 North, Range 56 West, 6th P.M.

 

Section 12:  E½NE¼

 

4.      That geological and engineering testimony presented at the hearing indicates that the limits of the Saber Field, and major producing mechanisms of the D-2 sand reservoir underlying the area, have not been definitely established.

 

5.      That the injection of gas will keep the rate of depletion of reservoir energy to a practical minimum; allow an increase in rate of oil production without gas flaring, and should encourage rapid development of the field.

 

6.      That there has been a substantial drop in bottom-hole pressure, and that any delay in initiating the proposed pressure maintenance program would result in a substantial loss of ultimate recovery from the field.

 

7.      That the plan proposed by operator for operation of said D-2 sand reservoir by the injection and recycling of gas into injection wells, or alternate injection wells, is necessary in order to increase the ultimate recovery from the reservoir, and should be approved as being in the public interest for conservation.

 

8.      That said plan of operation of the D-2 sand reservoir to reinject gas into the developed tracts in proportion to the amount of gas produced therefrom, should prevent or minimize reasonably avoidable drainage between these tracts and protect correlative rights.

 

9.      That, in order to insure the protection of correlative rights, quarterly gas-oil ratios of each producing well should be taken; provisions made for future possible pressure determinations, and initial bottom-hole pressure and gas-oil ratios determined on all wells completed after the effective date of this order.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that the plan of operation proposed by Applicant for injection and recycling of gas into certain injection wells, or qualified alternate wells, into the. D-2 sand reservoir in the Saber Field, Logan and Weld Counties, Colorado, is hereby approved.  Following are rules governing testing procedures:

 

Rule 1.    Operators of wells producing from the D-2 sand reservoir of the Saber Field shall, unless otherwise authorized by the Director, make a quarterly gas-oil ratio test of each of his producible wells not in injection service.  Such tests shall be taken during the first twenty (20) days of each quarter, and the results shall be submitted to the Commission on or before the 25th day of said month.  A quarter as used herein shall mean three consecutive months, beginning with January, April, July, and October.  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.  The volume of gas measured shall be reported in units of cubic feet at a pressure base of 15.025 psia, and a temperature base of 60° F.

 

Results of said tests shall be submitted to the office of the Commission within twenty (20) days on OGCC Form-9 (Gas-Oil Ratio Report), or on a form containing similar information and approved by the Director.

 

Rule 2.    At the request of the Director, operators shall take pressure measurements of their wells from time to time, as may be necessary to protect correlative rights.

 

Rule 3.    Initial shut in bottom-hole pressure measurements and gas-oil ratio tests shall be taken on all wells completed after the effective date of this order as potential oil or gas producing wells, and located on 40-acre tracts contiguous to or cornering 40-acre tracts that have been previously developed and are capable of producing oil or gas.

 

DST pressures measured with a minimum shut-in time of thirty (30) minutes will be acceptable if the chart indicates a valid test.

 

Gas-oil ratio tests shall be taken in the same manner as outlined in Rule 3 hereof.

 

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 rules and regulations and orders.

 

ORDERED this 15th day of September 1964.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

William R. Smith, Secretary