BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE INVESTIGATION TO MEASURES TO PREVENT WASTE OF AND GAS IN THE BADGER CREEK FIELD ADAMS COUNTY, COLORADO

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CAUSE NO. 21

 

ORDER NO. 21-5

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission July 21, 1959, 10:00 a.m., in the Green Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Sinclair & Gas Company for an order permitting Applicant to continue pressure maintenance operations approved by the Commission in its Order No. 21-4, issued June 17, 1958, in the "D" sand reservoir of the Badger Creek Field, by converting four producing wells to water injection wells; and for an order approving a certain Royalty Owners Unitization Agreement attached to said application as Exhibit "A"; and for other and further relief as the Commission may direct.

 

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 said Notice, and of the parties interested therein, and jurisdiction to promulgate hereinafter prescribed order.

 

3.      That the "D" sand formation underlying the Badger Creek Field constitutes a common source of supply of oil and gas, and that the Unit Area as described that certain Royalty Owners Unitization Agreement attached to said application as Exhibit "A" is composed of the following lands in the Badger Creek Field Adams County, Colorado, to-wit:

 

Township 2 South, Range 57 West, 6th P.M.

 

 

   Section 14:

W½ SW¼

   Section 15:

S½ S½ SE¼, SE¼ SE¼ SW¼

   Section 27:

NE¼

   Section 22:

All

 

4.      That the Royalty Owners Unitization Agreement, as presented by Applicant, is necessary to increase the ultimate recovery of oil and gas from said Unit Area and should therefore be approved as being in the public interest for conservation.

 

5.      That pressure maintenance operations in the Badger Creek Unit Area should be continued to completion in order to minimize waste of oil and gas in said field, and that the conversion of four producing Wells to water injection wells, as reflected in Applicant's Exhibit "A" in this cause, is essential for such purposes.

 

6.      That each of said wells is located on the Unit Area within one mile of certain tracts outside the Unit Area, but that pressure maintenance by injection of water in such wells, according to the expert testimony presented, will not adversely affect the correlative rights of any owner outside of said Unit Area.

 

7.      That the use and operation of said wells as water injection wells will increase the ultimate recovery of oil and gas from said pool and prevent waste.

 

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 Badger Creek Unit Area, as set forth in the Royalty Owners Unitization Agreement submitted by Applicant as Exhibit "A" is composed of the following lands in Adams County, Colorado, to-wit:

 

West Half of the Southwest Quarter (W½ SW¼) of Section Fourteen (14); South Half of South Half of Southeast Quarter (S½ S½ SE¼) and Southeast Quarter of Southeast Quarter of the Southwest Quarter (SE¼ SE¼ SW¼) of Section Fifteen (15); all of Section Twenty-two (22), and Northeast Quarter (NE¼) of Section Twenty-seven (27), Township Two (2) South, Range Fifty-seven (57) West of the 6th P.M.

 

Rule 2.    Said Royalty Owners Unitization Agreement covering the Badger Creek Unit Area herein defined, and providing for Unit operations of the "D" sand reservoir underlying said Unit Area, is hereby approved.

 

Rule 3.    The Sinclair Oil & Gas Company, as Operator of the Badger Creek Unit Area, is hereby permitted and authorized to convert the following four producing wells to water injection wells:

 

1.

Earl N. Johnson Well No. 3, located in the

 

     NE¼ SE¼ NW¼ of Section 22

 

 

2.

Earl N. Johnson Well No. 2, located in the

 

     NE¼ NE¼ NW¼ of Section 22

 

 

3.

Sidney and Grace Causey Well No. 9, located

 

     in the SW¼ SW¼ SE¼ of Section 15

 

 

4.

Sidney and Grace Causey Well No. 10, located

 

     in the SW¼ SE¼ SE¼ of Section 15

 

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.

 

 

ORDERED this 21st day of July, 1959.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary