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 "D" SAND OF THE CLIFF FIELD, LOGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 66 ORDER NO. 66-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 20, 1961, at 10 a.m., in Room 320C, State Capitol, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion, to consider modification of Order No. 66-4 by the elimination of Rule 3.

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 at the present stage of depletion of the Cliff Field, the data obtained from reservoir pressure tests do not warrant shutting in the field for said tests, and that Rule 3 of Order No. 66-4, Cause No. 66, should therefore be eliminated.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 66-4 is hereby amended to read as follows:

Rule 1.    Production Limitation

a.  The total daily oil allowable for a given lease shall be the sum of the daily oil allowables of the producible wells on a given lease.  The daily oil allowable for any one well shall be the maximum amount of oil it is capable of producing as determined by the tests required by Rule 2 hereof, not to exceed 200 barrels; provided, however, that wells which have a gas-oil ratio in excess of 1500 cubic feet of gas per barrel of oil shall be granted an oil allowable as determined by the following formula, not to exceed the oil capacity of such a well, as determined by tests required in Rule 2 hereof:

Daily oil allowable =	300,000 cubic feet of gas
	gas-oil ratio of well

b.  In order that the operators may produce any one lease in the most efficient manner possible, 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.

c.  Under and over production of oil shall be adjusted on a quarterly basis.  A quarter as used herein shall mean any three consecutive months of a year, beginning with the months of January, April, July and October.  Underproduction of oil during any one quarter may be made up only during the quarter immediately following, and any overproduction of oil obtained during any one quarter shall be made up during the quarter immediately following.  All operators shall produce their wells as efficiently as is practicable, and any overproduction of oil in excess of five (5) per cent of the total quarterly lease allowable shall be considered a violation of this order, unless a valid reason is given.

Rule 2.    Gas-Oil-Ratio Tests

a.  Operators and owners of wells producing from the "D" sand formation of the Cliff Field shall make a gas-oil-ratio test of each of his producing wells during every quarter, unless otherwise authorized by the Director; and such tests shall be taken during the first twenty (20) days of the last month of each quarter, the results of which such tests shall be reported to the Commission on OGCC Form 9 on or before the 20th day of the last month of every quarter; and such tests shall be the basis for calculating the volume of oil allowed to be produced for the following quarter, and subject well shall be produced at its normal stabilized rate of production for a period of forty-eight (48) consecutive hours; and the gas-oil ratio shall be computed on the basis of the measurement of oil and gas during the last 24 hours of said period; and a schedule shall be sub-mitted to the Commission and to offset operators prior to testing, showing the wells and respective dates of tests; and the volume of gas measured shall be reported in units of cubic feet at a base pressure of 15.025 psia, and a base temperature of 60° Fahrenheit.

b. Any operator may apply for an amended or additional allowable upon submission of an authorized test or retest.

Rule 3.

Operators and owners of wells producing from the "D" sand reservoir shall file with the Commission a monthly report of production by wells, as required on a form prescribed by the Commission, covering the month next preceding the date of filing, on or before the 20th day of each month.

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 20th day of June 1961.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D.V. Rogers, Secretary