BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE "J" SAND OF THE LITTLE BEAVER FIELD, WASHINGTON AND ADAMS COUNTIES, COLORADO

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CAUSE NO. 30

 

ORDER NO. 30-13

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on January 28, 1958, at 10 A.M., in the Game Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion to accept reports from the operators regarding the progress made since September 17, 1957, with reference to unitization of the "J" sand reservoir of the Little Beaver Field, Washington and Adams Counties, Colorado, and to accept testimony supporting possible revision of field rules.

 

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.      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 since the hearing held on September 17, 1957, the operators have continued in their effort to unitize the "J" sand reservoir of the Little Beaver Field without success.

 

4.      That the theoretical maximum ultimate recovery of oil from the "J" sand reservoir of the Little Beaver Field cannot be produced until the operators compromise their differences and voluntarily agree upon a joint plan of production operations.

 

5.      That there is a possibility that oil is migrating toward the gas cap in certain portions of the "J" sand reservoir, and that if a one-foot vertical migration of oil into the gas cap did occur, One Hundred Ninety-five Thousand (195,000) stock tank barrels may be irrecoverably lost.

 

6.      That Rule 1 of Order No. 30-8, provisions of which were continued by Orders No. 30-9, 30-10, and 30-12, should be modified so as to reduce by One Hundred Thousand (100,000) cubic feet of gas per day, the allowable production from gas wells or wells producing oil and gas with a gas-oil ratio in excess of Thirty Thousand (30,000) cubic feet of gas to one (1) barrel of oil; and to provide for the transfer of oil allowables on a common lease.

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that Rule 1 of Order No, 30-8 shall be and the same is hereby revised as follows:

 

Rule 1.    In order to prevent reasonably avoidable drainage of oil and gas across property lines, and to permit the operators and owners an equal opportunity to obtain and produce their just and equitable share of the recoverable oil and gas under lying the "J" sand pool, common source of supply; and in order to protect the correlative rights of owners of wells in the gas cap; and to further prevent the undue waste of oil and gas; and to prevent the escaping, blowing and releasing of gas in an excessive or unreasonable amount from wells producing both oil and gas; and to prevent underground waste, inefficient, excessive and improper use and dissipation of reservoir energy, the allowable production from any one well producing both oil and gas with a gas-oil ratio of less than Thirty Thousand (30,000) cubic feet of gas to one (1) barrel of oil from the "J" sand pool shall not, during any one (1) month, exceed a daily average of One Hundred Twenty-five (125) barrels of oil and/or One Hundred Twenty-five Thousand (125,000) cubic feet of gas, whichever comes first, and the oil allowable of any one well or combination of wells on any given lease may be transferred and produced from any other well or combination of wells on the same lease, provided that such a transfer will result in the production of less gas; and the allowable production may be exceeded for any one (1) month by not in excess of three (3) days allowable production; provided, however, that any such excess production shall be deducted in producing the next month's allowable, and that any underproduction may be produced only during the month immediately following that in which the underproduction occurred; and the maximum production of gas from any one (1) well producing gas only, or producing oil and, gas with a gas-oil ratio in excess of Thirty thousand (30,000) cubic feet of gas to one, (1) barrel oil from the " J" sand pool shall not exceed a daily average of Two Hundred Thousand (200,000) cubic feet of gas; and the allowable gas production may be exceed during the effective period of this order by not in excess of six (6) days allowable gas production; provided, however, that any such overproduction or underproduction shall be produced in accordance with Commission requirements.

 

IT IS FURTHER ORDERED, that this order shall become effective on March 1, 1958, and remain in full force and effect until further order of this Commission, pursuant to notice and hearing.

 

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 26th day of February, 1958.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  Annabel Hogsett, Secretary