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 A ND GAS IN THE FORT MORGAN FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 49

 

ORDER NO. 49-7

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission on September 20, 1966, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing and receipt of appropriate waiver of service thereof, on the application of Stafford Rogers for an order granting an exception to Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of 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 geological and engineering testimony presented at the hearing indicates that the SEžSEž of Section 26, Township 3 North, Range 58 West, 6th P.M. Morgan County, Colorado, is located partly outside the "D" sand reservoir of the Fort Morgan Field, and is adjacent to a producible tract; and that, therefore, in order to protect correlative rights and to afford the owner of said quarter-quarter section an opportunity to produce the oil, gas, and associated hydrocarbons contained therein, an exception to Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado should be granted for a well to be drilled in the center of the SEžSEžSEž of said Section 26.

 

4.      That the "D" sand reservoir of the Fort Morgan Field is currently being utilized as a gas storage project, and that in order to protect said storage reservoir, special rules should be established to govern production if the well described in Finding 3 hereof is completed as a producible well and that special rules should be established for plugging in the event said well is plugged and abandoned as a non-productive well in the "D" sand reservoir.

 

5.      That the Commission should take such action as may be reasonable to protect adjoining producers by reason of the drilling of the well as an exception.

 

6.      That in the event production information indicates said well is either draining or damaging said storage reservoir, the Director should be authorized to require the well to be shut in pending further action of the Commission.

 

 

ORDER

 

NOW, THEREFORE, IT IS ORDERED, that an exception shall be granted a well to be drilled in the center of the SEžSEžSEž of Section 26, Township 3, Range 58 West, 6th P.M., Morgan County, Colorado, provided that said well be located in such a manner that the location at the point of penetration of the sand reservoir be no closer than 330 feet from the south line and 330 feet from east line of the SEžSEž of said Section 26.

 

IT IS FURTHER ORDERED, that prior to completion as an oil and gas well, following such completion, the operator shall:

 

(a)

Run a directional survey to assure that the bottom-hole location of the well is in compliance with the order as set forth above.

 

 

(b)

Sample and analyze produced gas at the time of completion and at routine intervals thereafter, as requested by the Director.

 

 

(c)

Take such tests as may be necessary to determine reservoir characteristics and conditions.

 

 

(d)

Allow a representative of the Oil and Gas Conservation Commission and a representative of Natural Gas Producers, Inc. access to the location, and to information relative to operations.

 

 

(e)

Take production tests requested by the Director when deemed necessary to determine the gas-oil ratio and water-oil ratio.

 

IT IS FURTHER ORDERED, that if completion of said well as a "D" sand is not attempted by the operator, or is not permitted by the Director of the Oil and Gas Conservation Commission, the well shall be plugged by the placing of a plug from the total depth to a point at least 100 feet above the top of the "D" sand formation by the displacement method through open-ended drill pipe in a normal manner; and if a "J" sand completion is attempted, the annular space between the production casing and the edges of the hole shall be filled with cement by the pump plug method to a point at least 500 feet above the top of the "D" sand formation; provided, however, that these plugging requirements may be modified if, in the opinion of the Director, the "D" sand is not developed at said location, and that no harm the storage reservoir could result with a lesser plugging requirement.

 

IT IS FURTHER ORDERED, that the operator shall advise the Oil and Gas Conservation Commission within 24 hours after spudding said well, the estimated date when penetration of the "D" sand reservoir will be anticipated.

 

IT IS FURTHER ORDERED, that if a well is drilled on the location set forth above, instead of on a location as provided in Rule 316 of the Rules and Regulations of Oil and Gas Conservation Commission, the Commission may take such action as be necessary to protect adjoining producers and the storage reservoir.

 

IT IS FURTHER ORDERED, that in the event production indicates possible drainage or damage to said storage reservoir, the Director shall shut in operation said well pending further action of the Commission.

 

IT IS FURTHER ORDERED that the provisions contained in the above order become effective forthwith.

 

ORDERED this 20th day of September 1966.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By  William R. Smith, Secretary