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 RANGELY FIELD, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 2

 

ORDER NO. 2-38           (Corrected)

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on November 18, 1985 at 9:00 A.M., in Room 110, State Centennial Building, 1313 Sherman Street Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Chevron U.S.A., Inc., for an order approving a Miscible Carbon Dioxide Water Alternating Gas tertiary enhanced recovery project in the Weber formation underlying a portion of the Weber Sand Unit Area, Rio Blanco County, Colorado, pursuant to the provisions of 26 U.S.C.A., Section 4993.

 

FINDINGS

 

The Commission finds as follows:

 

1.      Chevron U.S.A., Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

 

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

 

3.      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.

 

4.      On November 2, 1983, pursuant to Internal Revenue Service Code Section 4993 (d) (5) (A) (i), Richard D. Lamm, Governor of the State of Colorado, appointed the Colorado Oil and Gas Conservation Commission as the jurisdictional agency to approve projects for enhanced recovery of crude oil in the State.

 

5.      Evidence presented at the hearing indicates that the project will prevent waste and protect correlative rights and that:

 

(a)     the proposal to inject carbon dioxide in accordance with sound engineering principles to initiate a Miscible Carbon Dioxide Water Alternating Gas tertiary recovery project can reasonably be expected to result in more than an insignificant increase in the amount of crude oil which will be ultimately recovered;

 

(b)     the commencement date of the Rangely Weber Sand Unit Miscible Carbon Dioxide Water Alternating Gas tertiary enhanced recovery project is after May, 1979;

 

(c)     the portion of the Rangely Weber Sand Unit Area which will be affected by the project has been adequately delineated in Exhibit 2.

 

6.      Pursuant to such evidence, the project should be approved.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED that the application of Chevron U.S.A., Inc., for a Miscible Carbon Dioxide Water Alternating Gas tertiary enhanced recovery project in the Weber formation underlying certain lands in the Rangely Weber Unit Area, Rio Blanco Colorado, is hereby approved.

 

IT IS FURTHER ORDERED, that the provisions contained in the above 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.

 

ENTERED this 10th day of December, 1985, as of November 18, 1985.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Frank J. Piro, Secretary