49-6

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 FORT MORGAN FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 49

ORDER NO. 49-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 26, 1962, at 10 a.m., in Room 320E, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Natural Gas Producers, Inc., as Operator of the Fort Morgan Unit Area, for an order amending the provisions of Order No. 49-4, so as to allow applicant to drill and complete such new wells, or recomplete such old wells, as in applicant's opinion are necessary or convenient to accomplish applicant's planned operations in said field; provided, however, that no wells for any purpose be drilled nearer than 600 feet to the exterior boundary line of the Fort Morgan Field, and such authority to be subject to furnishing the Commission with complete information concerning such well, or wells, when drilled or recompleted.

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 on September 26, 1958, the Commission issued its Order No. 49-4, which, among other things, defined the Fort Morgan Unit Area as coinciding with the Fort Morgan Field, and approved a Unit Agreement and pressure maintenance program for injection and recycling of gas into and from the "D" sand reservoir underlying such Fort Morgan Unit Area.

4. That Applicant's proposed plan of operations to include the drilling of such additional wells and recompletion of such existing wells as may prove necessary for the reinjection of gas into the "D" Sand reservoir; and the recycling of such gas into and from said reservoir until the conditions of the reservoir permit the utilization thereof for gas storage purposes, should prevent avoidable waste of oil and gas and should therefore be approved as being in the public interest for conservation.

5. That the location of all wells to be drilled for oil or gas, or as injection wells, should be governed by this Commission's Rules and Regulations effective April 30, 1956, provided that no well should be located closer than 600 feet to the boundaries of' the Fort Morgan Unit Area.

6. That the correlative rights of all parties in the Fort Morgan Field will not be adversely affected and will be reasonably protected under the Applicant's proposed plan of operations; and that in the interest of securing the greatest ultimate recovery of oil and gas from said "D" Sand reservoir, the prevention of waste and protection of correlative rights, this application should be granted.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the Fort Morgan Field, 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 revised plan of operations as submitted by Natural Gas Producers, Inc., as Operator of the Fort Morgan Unit Area, and outlined in Finding 4 hereof, is hereby authorized, subject to administrative approval.

Rule 2. The location of all wells to be drilled for oil or gas, or as injection wells, shall be governed by this Commission's Rules and Regulations, effective April 30, 1956; provided, however, that no well shall be located closer than 600 feet to the boundaries of the Fort Morgan Unit Area.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, upon notice and hearing, to alter, amend, or repeal any and/or all of the above rules, regulations and orders.

ORDERED this 26th day of June, 1962.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By D.V. Rogers, Secretary