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 CACHE FIELD, MONTEZUMA COUNTY, COLORADO	) ) ) )	CAUSE NO. 206 ORDER NO. 206-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1967, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, and mailing of copies of the application pursuant to regulations of the Commission, on the application of Pan American Petroleum Corporation for an order permitting a waterflood project for the Ismay reservoir underlying the Cache Unit in Montezuma County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That due nonce 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 Ismay reservoir underlying the Cache Unit Area, as set forth in Applicant's Exhibit "A" constitutes a common source of supply of oil and gas, and that said Cache Unit Area is comprised of the following described lands in Montezuma County, Colorado, to-wit:

Township 34 North, Range 20 West, 6th P.M.
Section	1:	SW¼, W½NW¼, SE¼NW¼
Section	2:	S½N½, N½S½, SE¼SE¼
Section	3:	S½NE¼
Tract 37 (a part of Sections 2 and 3)
Township 35 North, Range 20 West, 6th P.M.
Section	34:	Lots 1, 2, 3 4, SE¼, W½NE¼, SE¼NE¼
Section	35:	SW¼, W½SE¼

4.      That the proposed secondary recovery operation by injection of water into the Ismay reservoir underlying the Cache Unit Area, as set forth in the Unit Agreement presented by Applicant will increase the ultimate recovery of oil from the Cache Field and dispose of water being produced from other wells, and should therefore be approved.

5.      That, initially, Applicant proposes to convert to injection wells four producing wells located on the periphery of the field and described in the following order.

6.      That the Unit Operator will conduct said water injection project pursuant to the terms and provisions of the Unit Agreement and Unit Operating Agreement covering said Cache (Ismay) Unit Area.

7.      That avoidable waste of oil and gas will be prevented by the operations proposed by Applicant, and the correlative rights of all parties in the Cache Unit Area, as herein defined, will not be adversely affected and will be reasonably protected under such a plan of operation; and that in the interest of securing the greatest ultimate recovery of oil and gas from said reservoir, and 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 Ismay reservoir is a common source of supply underlying the following described lands known as the Cache Unit Area in Montezuma County, Colorado, to-wit:

Township 34 North, Range 20 West, 6th P.M.
Section	1:	SW¼, W½NW¼, SE¼NW¼
Section	2:	S½N½, N½S½, SE¼SE¼
Section	3:	S½NE¼
Tract 37 (a part of Sections 2 and 3)
Township 35 North, Range 20 West, 6th P.M.
Section	34:	Lots 1, 2, 3 4, SE¼, W½NE¼, SE¼NE¼
Section	35:	SW¼, W½SE¼

Rule 2.    The proposed secondary recovery operation by injection of water into the Ismay reservoir underlying said Cache Unit Area is hereby approved, and the Unit Operator is authorized to convert to injection service the following wells:

G. D. Fehr No. 8	NE¼SE¼, Section 34, T-35N, R-20W
G. D. Fehr No. 2	SE¼SW¼, Section 35, T-35N, R-20W
G. L. Veach No. 3	NE¼NE¼, Section 39 T-34N, R-20W
Ute Mountain Tribal       "G" No. 4	SW¼NE¼, Section 2, T-34N, R-20W

and to inject water into said reservoir through injection wells in such quantities as will be reasonably determined by the Unit Operator to best achieve the maximum recovery of oil without waste.

Rule 3.    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 water flood, 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.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ORDERED this 19th day of September 1967.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary