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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 BOXER UNIT, MORGAN COUNTY, COLORADO |
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CAUSE NO. 204
ORDER NO. 204-8 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on May 17, 1993 at 8:30 a.m. in the 2nd Floor Auditorium, Colorado Department of Transportation, 4201 East Arkansas Avenue, Denver, Colorado, after giving Notice of Hearing, as required by law, on the verified application of DNR Oil & Gas, Inc. to rescind Commission Order No. 204-6, entered April 20, 1971, which approved a certain Unit Agreement and Unit Operating Agreement for the "D" Sand Formation reservoir in the Boxer Unit, Morgan County, Colorado.
FINDINGS
The Commission finds as follows:
1. DNR Oil & Gas, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. 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.
4. On June 20, 1967, the Commission entered Order No. 204-3 which established production restrictions for gas produced from the "D" Sand Formation underlying the below-described lands, to-wit:
Township 1 North, Range 58 West, 6th P.M.
Section 5: N1/2
Township 2 North, Range 58 West, 6th P.M.
Section 16: E1/2 SW1/4
Section 20: All
Section 21: All
Section 28: W1/2
Section 29: All
Section 31: E1/2 E1/2
Section 32: All
Section 33: W1/2 W1/2
5. On April 20, 1971, the Commission entered Order No. 204-6 which approved a certain Unit Agreement and Unit Operating Agreement for operation of the "D" Sand Reservoir underlying the below- described lands, to-wit:
Township 1 North, Range 58 West, 6th P.M.
Section 5: N1/2, SW1/4
Township 2 North, Range 58 West, 6th P.M.
Section 20: All
Section 28: W1/2
Section 29: All
Section 31: E1/2 E1/2
Section 32: All
Section 33: W1/2 W1/2
and further approved a program of water injection for secondary recovery, and further rescinded some, but not all, provisions of Order No. 204-3.
6. That the records of the Commission show that no production has been reported for the Boxer Unit since December 1990 and that all water injection wells have been properly plugged and abandoned and that no water injection has occurred during the time from December 1990 to the present.
7. Based on the facts stated in the verified application and having been heard by the Hearing Officer on May 13, 1993, and recommended for approval, the Commission should enter an order approving the application.
ORDER
NOW, THEREFORE, IT IS ORDERED that Commission Order No. 204-3, entered June 20, 1967, is hereby rescinded, and that Order No. 204-6, entered April 20, 1970, is hereby rescinded, and that the Rules and Regulations of the Oil and Gas Conservation Commission shall govern future operations for the lands described in Finding Nos. 5 and 6 contained herein above.
IT IS FURTHER ORDERED that no injection of water in the above-described area may be initiated without the approval of the Director.
IT IS FURTHER ORDERED that the Commission should review all aspects of field conditions in the Boxer Unit Area described in Finding No. 6 herein above for conformance with all applicable rules and regulations of the Commission.
IT IS FURTHER ORDERED that the Commission should review the provisions of Order No. 204-7 and if the order is found to be unneeded, the Commission should give Notice of Hearing to consider rescinding Order No. 204-7.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.
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.
ENTERED this _____________ day of ______________, 1993, as of May 17, 1993.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By _______________________________________
Patricia C. Beaver, Secretary
Dated at Suite 380
1580 Logan Street
Denver, Colorado 80203
May 20, 1993