REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 21, 1975, at 9 A.M., in Room 532, State Services Building, Denver, Colorado, on the Commission's own motion, in order to determine what measures should be taken to pre-vent the escaping, blowing and releasing of gas in excessive or unreasonable amounts from wells capable of producing both oil and gas in the Bugle Field, Adams 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 in order to prevent waste, as that term is defined in the Oil and Gas Conservation Act, and to prevent the escaping, blowing and releasing of gas in an excessive or unreasonable amount, a maximum limit should be placed on gas production from the "D" Sand reservoir of the Bugle Field.

4. That the maximum daily production of gas from wells capable of produc-ing both oil and gas from the "D" Sand should not exceed a volume of 100,000 cubic feet until such time as additional development in the Field and/or an available gas market indicate that a change would be necessary.

5. That in order to measure the amount of gas that can be produced, the operator should either install gas measuring devices or make a monthly gas-oil ratio test of each producing well.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall be, and the same are hereby adopted for wells capable of producing both oil and gas from the "D" Sand in the Bugle Field, Adams County, Colorado, herein defined:

Township 1 South, Range 66 West, 6th P.M. Section 29: All Section 32: All Section 30: All Section 33: All Section 31: All Township 2 South, Range 66 West, 6th P.M. Section 4: All Section 6: All Section 5: All

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Rule 1. Production Limitation a. The maximum daily production of gas from any one well capable of producing both oil and gas from the "D" Sand underlying said Bugle Field shall not exceed a volume of one hundred thousand (100,000) cubic feet.

b. A 15-day test period is permitted without limitation for new wells completed in the "D" Sand in said field.

Rule 2. Gas Measurement and Production Reports a. The operator shall either install gas measuring devices on all wells capable of producing in the field, and the gas production reported at times as may be requested by the Commission, in addition to the regular monthly production report, or make a monthly gas-oil ratio test of each producing well in accordance with good engineer-ing and oil field practices, and upon notification and approval by the Commission.

b. Operators shall file with the Commission a monthly report of produc-tion by wells as required on OGCC Form 7.

IT IS FURTHER ORDERED, that this limitation shall continue until such time as additional development in the field and/or an available gas market indicate that a change will be necessary, and a hearing shall be held May 20, 1975, at which time the operators in the field will present additional information in order for the Commission to consider what measures should be taken for the production of oil and gas from the field.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective January 22, 1975.

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 21St day of January, 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary