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 RANGELY FIELD IN THE STATE OF COLORADO

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CAUSE NO. 2

 

ORDER NO. 2-23         (Temporary)

 

REPORT OF THE COMMISSION

 

On the 14th day of July, 1955, pursuant to Notice upon the Commissions own motion, a hearing was held at 330 State Office Building, Denver, Colorado, for the purpose of establishing rules and regulations for the Rangely Field. This hearing was continued to the 16th day of August, 1955, at 10:00 A.M., in Room 330 State Office Building, Denver, Colorado.

 

On the 1st day of July, 1955, the Commission issued its Order No. 2-22 (Emergency), which was for the purpose of maintaining the status quo insofar as possible until a hearing could be held and an order issued on the rules and regulations governing the Rangely Field. Said Emergency Order expires July 19, 1955, and in order to maintain the status quo insofar as possible, and to permit the Commission to analyze the evidence presented at the hearing on July 14, 1955, and to determine whether or not it needs additional information from the operators, this Order should be entered.

 

FINDINGS

 

The Commission finds as follows:

 

1.      That in order to maintain the status quo insofar as possible in the Rangely Field during the period in which the Commission is analyzing the evidence presented to it on the 14th day of July, 1955, by the operators of the Rangely Field, and in order to determine whether or not said evidence is sufficient to enable the Commission to enter its final order in this matter, a temporary order should be entered based upon the average daily production of oil and an estimate of the so-called hardship gas needed to be flared during the months of July and August, as submitted by the operators at the request of the Commission.

 

2.      That said temporary order should be in force and effect during the continuation of the hearing held on July 14, 1955, and continued to the 16th day of August, 1955.

 

3.      That during said temporary period, the operators of the Rangely Field should be permitted to produce their average daily production of oil for the six-months period commencing November 1, 1954, and ending May 1, 1955, said allowable being based upon the assumption that the operators will utilize all gas injection equipment now installed and in use in the field; and that the operators may flare over and above gas flared for operational and emergency purposes (which heretofore has averaged about 1,500,000 cubic feet per day), the gas that, would cause hardship to any operator, and which is necessary for him to produce his daily production of oil during the temporary period.

 

 

ORDER

 

IT IS ORDERED, that each of the operators in the Rangely Field be permitted to produce his average daily production of oil as determined by the six-months period commencing November 1, 1954, and ending May 1, 1955. This is on the assumption and expectation that the operators will utilize all gas injection equipment now installed and in use in the field; that the operators may flare gas over and above the gas required for operational and emergency flare, so-called hardship gas as limited in the following schedule:

 

 

 

 

Hardship Flare (McfPD)

Company

Oil Production (BOPD)

July

August

 

California

31,890

 

500

3,000

Phillips

3,692

 

525

600

Sharples

1,297

 

1,000

1,250

Stanolind

15,047

 

800

900

Texas

12,437

 

        0

         0

Totals

64,363

 

2,825

5,750

 

Any operator shall be permitted to produce in excess of his average daily production of oil in the event he utilizes his injection equipment to full capacity.

 

This order is subject to change or revocation at any time, and the Commission will at any time hear any complaint from any party in interest for the purpose of so correcting any of the provisions hereof.

 

IT IS FURTHER ORDERED, that this order shall become effective July 20, 1955, and remain in effect through the 16th day of August, 1955.

 

ORDERED this day of July, 1955.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary