BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE "D" SAND OF THE ZORICHAK FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 70 ORDER NO. 70-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 22, 1958, at 10 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the Commission's own motion to consider measures to prevent the waste of oil and gas in the "D" sand of the Zorichak Field in Morgan County, 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 in order to prevent waste, as defined by the Colorado Oil and Gas Conservation Act, a limitation of 150,000 cubic feet of gas per day should be imposed on each well producing from the "D" sand reservoir of the Zorichak Field, as defined by Order No. 70-2.

4.      That in order that operators may produce any one lease in the most efficient manner, the allowed gas production for any 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.

5.      That in order to obtain additional reservoir information, quarterly gas-oil-ratio tests and annual bottom-hole-pressure surveys should be conducted.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed or recompleted in the "D" sand formation underlying the Zorichak Field, as defined by Order No. 70-2, in addition to other applicable rules and regulations and orders of this Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1.    Gas production from each well producing from the "D" sand reservoir of the Zorichak Field, as defined by Order No. 70-2, shall not exceed a daily average of One Hundred Fifty Thousand (150,000) cubic feet; and in order that operators may produce any one lease in the most efficient manner, the allowed gas production for any 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.

Rule 2.    Under and over production of gas 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 gas during any one (1) quarter may be made up only during the quarter immediately following; and any overproduction of gas during any one (1) quarter shall be made up during the quarter immediately following.

Rule 3.    Operators and owners of wells producing from the "D" sand formation of the Zorichak Field shall make a gas oil-ratio test of each of his producing wells during every quarter, such tests shall be taken during the first fifteen (15) days of the last month of every quarter; the results of the tests shall be reported to the Commission on OGCC Form 9 on or before the last day of the testing month; each well shall be produced at its normal stabilized rate 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 twenty-four (24) hours of said forty-eight (48) hour period; a schedule shall be submitted to the Commission and to offset operators prior to such 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.

Rule 4.    Datum reservoir pressure of certain key wells in the Zorichak Field shall be determined annually during the first fifteen (15) days of September; the key wells shall be selected by the operators with the approval of the Commission; the re-suits of each survey shall be reported by the operators to the Commission on OGCC Form 13, on or before twenty (20) days after completion of said survey; all pressure determinations shall be made at a datum of Four Hundred Sixty (460) feet below sea level; all wells in the field shall be shut in forty-eight (48) hours prior to testing unless the pressure stabilizes before the end of the forty-eight-hour period, and shall remain shut in until completion of the survey.

IT IS FURTHER ORDERED, that the provisions of this order shall apply to all operators and owners of wells capable of producing from the "D" sand of the Zorichak Field, and shall remain in effect unless otherwise authorized by the Commission.

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 22nd day of July, 1958.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary