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BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LITTLE BEAVER FIELD, WASHINGTON AND ADAMS COUNTIES, COLORADO |
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CAUSE NO. 30
ORDER NO. 30-23 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on December 15, 1964, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Monsanto Company (formerly Monsanto Chemical Company) for an order providing, among other things, 160-acre drilling and spacing units for the production of gas from the "J" sand formation underlying the Little Beaver field, and allowing for the combination of certain drilling units, with allowables for such combined units to be produced from one gas well. The hearing originally set for October 15, 1963, was continued from time to time to allow opportunity for possible negotiations relative to unitization of the gas portion of said reservoir which negotiations were unsuccessful.
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 engineering and geological testimony presented at the hearing indicates the "J" sand reservoir is a common source of supply of oil and gas extending beyond the area previously designated by Orders of The [sic] Commission and the Little Beaver Field limits should be extended to include the following described lands in Washington County, Colorado, to-wit:
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W½ W½ Section 29, Township 1 South, Range 56 West, 6th P.M. |
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W½ W½ Section 32, Township 1 South, Range 56 West, 6th P.M. |
4. That development of the gas portion of the "J" sand reservoir of the Little Beaver Field has been predominantly on 80 acre spacing, that one well will efficiently and adequately drain 80 acres as to gas and associated hydrocarbons, and any future development on tracts of less than 80 acres would result in the drilling of necessary wells and should not be allowed.
5. That Rule 1, Order No. 30-13, which restricted production from gas wells, i.e., wells producing with a gas-oil ratio in excess of Thirty Thousand (30,000) cubic feet of gas per barrel of oil, to Two Hundred Thousand (200,000) cubic feet of gas per day, resulted in a maximum allowable gas production from the gas portion of said "J" sand reservoir of One Million Four Hundred Thousand (1,400,000) cubic feet per day.
6. That the gas reservoir allowable of One Million Four Hundred Thousand (1,400,000) cubic feet per day has prevented waste, by preventing migration of oil into the gas cap, and such restriction should be continued.
7. That the following formula will allocate the allowable production of gas from the gas cap portion of the "J" sand reservoir of the Little Beaver Field among the several different properties in said pool on a reasonable basis, so that each property will have the opportunity to produce or to receive its just and equitable share, subject to the reasonable necessities for the prevention of waste:
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Operator Daily Gas
Allowable = 1400 x (½ |
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a = |
acre feet of gas reservoir contained within tracts owned by said operator which tracts are either: |
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1. |
Developed. |
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2. |
Cornering or contiguous to any producing tract within said gas reservoir. |
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Note: |
Before the production credit permitted under this formula to an undeveloped tract may be produced from a developed tract, the operator should file with the Commission a copy of an approved division order (or other similar and authorized instrument) allocating the production among the different owner-ship interest, in each of the tracts. |
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A = |
total acre feet of gas reservoir capable of producing free gas. |
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b = |
number of gas wells owned by said operator. |
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B = |
total number of gas wells completed in the reservoir |
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provided, however, that a minimum allowable of 150 MSF per well per day should be assigned to those wells capable of producing such an allowable.
8. That the provisions of Order No. 30-19 as they pertain to method of producing gas allowables should remain in effect; and, the allowables resulting from the above mentioned formula produced in accord therewith will not result in waste.
9. That the provisions of Order No. 30-22 should be rescinded.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the "J" sand formation of the Little Beaver Field, Washington and Adams Counties, 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 area of the Little Beaver Field "J" sand, Washington and Adams Counties, Colorado, is hereby amended to include the lands set forth in finding 3 hereof, and shall hereafter be defined as follows:
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Township 1 South. Range 56 West. 6th P.M. |
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Section 19: S½ |
Section 31: All |
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Section 29: W½ W½ |
Section 32: W½ W½ |
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Section 30: All |
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Township 2 South. Range 56 West. 6th P.M. |
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Section 6: NW¼ NW¼ |
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Township 1 South. Range 57 West. 6th P.M. |
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Section 36: E½ E½ |
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Township 2 South. Range 57 West. 6th P.M. |
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Section 1: NE¼ NE¼ |
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Rule 2. The maximum allowable production of gas from the gas portion of the Little Beaver "J" sand reservoir shall be One Million Four Hundred Thousand (1,400,000) cubic feet of gas subject to slight adjustment for minimum allowables as provided for in Rule 3 hereof.
Rule 3. In order to allow each of the several different properties capable of producing gas from said "J" sand reservoir of the Little Beaver Field an opportunity to produce or receive its just and equitable share of said reservoir, the maximum production as set forth in Rule 2 hereof shall be allocated among said properties according to the following formula:
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Operator Daily Gas
Allowable = 1400 x (½ |
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a = |
acre feet of gas reservoir contained within tracts owned by said operator which tracts are either: |
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1. |
Developed. |
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2. |
Cornering or contiguous to any producing tract within said gas reservoir. |
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Note: |
Before the production credit permitted under this formula to an undeveloped tract may be produced from a developed tract, the operator should file with the Commission a copy of an approved division order (or other similar and authorized instrument) allocating the production among the different owner-ship interest, in each of the tracts. |
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A = |
total acre feet of gas reservoir capable of producing free gas. |
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b = |
number of gas wells owned by said operator. |
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B = |
total number of gas wells completed in the reservoir |
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provided, however, that the minimum gas allowable for a gas well capable of producing from said "J" sand reservoir shall be One Hundred Fifty Thousand (150,000) cubic feet per day.
Rule 4. Rule 1 of Order No. 30-13 as amended by Order No, 30-19 is hereby revised to provide as follows:
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Operators of wells producing gas only, or producing oil and gas with a gas-oil ratio in excess of 30,000 cubic feet of gas to one barrel of oil, are hereby allowed to produce their annual gas allowable, as determined by Rule 3 above times the number of days in the year, according to a schedule prepared by the Director of the Oil and Gas Conservation Commission, which schedule may be revised from time to time; provided, however, that at no time shall a well be produced at a rate in excess of 650,000 cubic feet of gas per day; and provided, further, that any overproduction of gas from any well during a producing period shall be made up during its next producing period, and any underproduction of gas from any well shall, be made up as directed. |
Rule 5. The provisions of Order No. 30-22 are hereby rescinded.
IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective Monday, February 1, 1965.
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, regulations and orders.
ORDERED this 12th day of January, 1965.
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OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
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By William R. Smith, Secretary |