BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION OF FIELD RULES TO GOVERN OPERATIONS IN THE "D" SAND OF THE ADENA FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 26 ORDER NO. 26-37

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 28, 1958, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of The Pure Oil Company for an order amending the provisions of Rule 2 of Order No. 26-32 dated November 28, 1956, and Rule 2 of Order No. 26-25 dated October 28, 1955, and any other orders issued by the Commission pertaining to limitation of gas production in the "D" sand of the Adena Field, so as to provide that the allowable for production of gas from gas wells in the Adena "D" Sand Field be established on the basis of two six-month periods each year, with appropriate provision to allow production of larger quantities of gas during the periods of greater efficiency, and compensating production of, lesser quantities during the periods of lesser efficiency.

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 more gas can be produced without waste during periods of cold weather than during periods of hot weather.

4.      That in order to recognize seasonal variations, and to better prevent waste, Rule 2 of Order No. 26-25 should be amended, and Rule 2 of Order No. 26-32 should be revised to allow greater flexibility in the rate of allowable production for gas wells.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Rule 2 of Order No. 26-32 shall be and the same is hereby revised as follows:

(a)     The maximum "D" sand allowable for any one 160-acre drilling and spacing gas unit located within the area as defined in Rule 1 of Order No. 26-32 shall be One Hundred Fifty Thousand (150,000) cubic feet of gas per day except as otherwise provided for in Rule 3 of Order No. 26-32.

(b)     Six-month allowable periods are hereby established for the purpose of balancing or averaging the rate of daily gas production from each "D" sand gas well in the Adena Field, the first period beginning at 7:00 a.m. on March 1 and ending at 7:00 a.m. on September 1, and the second period beginning at 7:00 a.m. on September 1 and ending at 7:00 a.m. on March 1 each year.

(c)     The daily "D" sand allowable production from each gas well in said pool, as heretofore prescribed by Order No. 26-25 and Order No. 26-32 of this Commission for such respective well, may be exceeded on any day or days during each six-month balancing period but shall not, during any such six-month period, exceed such daily allowable heretofore prescribed for such well multiplied by the number of days included in such six-month period; which total allowable is herein referred to as "current allowable" for each six-month period. It is provided, however, that at any overproduction and underproduction of current allowable occurring in any such six-month allowable period shall be adjusted and carried to the extent hereinafter provided.

(d)     For the purpose of computing and balancing overproduction and underproduction of gas wells in said pool, March 1 and September 1 at 7:00 a.m. are designated as "balancing dates", and each six-month balancing period shall be considered as a separate entity:  No gas well in said pool shall produce during any balancing period more than its current allowable for such period plus the amount of underproduction, if any, of current allowable, occurring during the preceding six-month period. In the event a gas well fails to produce its current allowable during a balancing period, the underproduction of such current allowable occurring during such period may be carried forward to and produced during the next ensuing six-month period, in addition to the current allowable for such ensuing period. All gas produced from such gas well during said ensuing period shall be attributed primarily to the current allowable for said ensuing period, and any gas production from the well in excess of such current allowable shall be attributed to makeup of underage, if any, of current allowable for the preceding six-month period, to the extent of such underage. Any underage in current allowable for a gas well during any six-month balancing period which is not produced during the next succeeding balancing period shall be canceled at the end of such succeeding period.

(e)     Overproduction from a gas well occurring during a balancing period shall be subtracted from the overproducing gas well’s allowable for the next balancing period. Any gas well overproduced as of a balancing date, and which well was also overproduced on the balancing date immediately preceding and remained overproduced for the entire period between the balancing dates, shall be shut in until the cumulative overproduction existing on the latter of such two balancing dates is made up.

Except where a well is required to be shut in due to overproduction as above provided, the overproduction existing as of any balancing date shall be made up during the balancing period immediately following, and may be made up at any time during such period.

IT IS FURTHER ORDERED, that Rule 2 of Order No. 26-25, insofar as it pertains to gas wells, shall be and the same is hereby amended as set forth above in Rule 2(b), (c), (d) and (e).

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, rules and regulations.

ORDERED this 28th day of January, 1958.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary