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 BOXER FIELD, MORGAN COUNTY, COLORADO

)

)

)

)

CAUSE NO. 204

 

ORDER NO. 204-7

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on May 16, 1972, at 9 a.m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Patrick A. Doheny for an order approving a certain Unit Agreement and Unit Operating Agreement, and further approving a proposed plan for injection of water into the "D" Sand underlying certain lands in Morgan County, 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 the "D" Sand underlying the Boxer "D" Sand North Unit, as set forth in the Unit Agreement by the applicant, constitutes a common source of supply of oil and gas, and that said Boxer "D" Sand North Unit consists of the following described lands in Morgan County, Colorado, to-wit:

 

Township 2 North, Range 58 West, 6th P.M.

 

Section 21:  All

 

4.      That the terms and conditions provided in the Unit Agreement and Unit Operating Agreement are just and reasonable to all interests contained within said "D" Sand Unit Area and that said Agreements as presented by the Applicant are necessary to increase the ultimate recovery of oil and gas from said reservoir, and that the operator of the adjacent Boxer Unit to the south supports the application.

 

5.      That the proposed water flood operation for secondary recovery is necessary to increase the ultimate recovery of oil and gas, and that such operation, pursuant to said Unit Agreement and Unit Operating Agreement, will result in an estimated additional recovery of oil and gas with a value in excess of the estimated additional cost incident to conducting such operation.

 

6.      That testimony presented at the hearing stated that said Unit Agreement and Unit Operating Agreement have been approved in writing by one hundred percent (100%) of those persons who, under the agreement, will be required to pay the costs of the unit operation, and also by one hundred percent (100%) of the owners of the production or proceeds attributable to royalty, overriding royalty, and production payments.

 

7.      That because of the water injection program and unitized operations planned for the Boxer Field North Unit, Rules 1, 2, and 3 of Order No. 204-3, issued July 7, 1967, are no longer necessary and should be rescinded for the Unit Area as described in Finding 3 herein, and Rule 4 of said Order revised to allow the operators to file the monthly production report as a unit total rather than on an individual well basis.

 

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 "D" Sand underlying the Boxer "D" Sand North Unit Area as set forth in the Unit Agreement presented by Applicant constitutes a common source of supply of oil and gas underlying said Unit Area composed of the following lands in Morgan County, Colorado, to-wit:

 

Township 2 North, Range 58 West, 6th P.M.

 

Section 21:  All

 

Rule 2.    Said Unit Agreement and Unit Operating Agreement covering the Boxer "D" Sand North Unit Area herein defined, and providing for unit operations of the "D" Sand underlying said Unit Area, is [sic] hereby approved.

 

Rule 3.    The waterflood project for the "D" Sand reservoir of the Boxer "D" Sand North Unit Area, as presented by Applicant, is hereby approved as being necessary to increase the ultimate recovery from said reservoir, and the operator is authorized to inject water into said reservoir through injection wells in such quantities as shall be reasonably determined by the operator 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 Unit Area, or to drill additional producing or input wells as dictated by developments in the course of the operation of the waterflood, 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.

 

Rule 5.    Rules 1, 2, and 3 of Order No. 204-3 are hereby rescinded for that Unit Area as described in Rule 1 of this Order, and Rule 4 of said Order No. 204-3 is revised to allow operators in the Unit Area to file monthly production reports as a unit total.

 

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith.


 

ORDERED this 16th day of May 1972.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By 

Frank J. Piro, Secretary