210-1

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 MARKS BUTTE FIELD, SEDGWICK COUNTY, COLORADO

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CAUSE NO. 210

ORDER NO. 210-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1968, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of E. Lyle Johnson for an order establishing 640-acre drilling units for production of gas from the "D" Sand formation underlying certain lands in Sedgwick 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 from the application as presented at the hearing, the "D" Sand formation constitutes a common source of supply of gas underlying the following described lands in Sedgwick County, Colorado, to-wit:

Township 10 North, Range 47 West, 6th P.M.

Sections 23, 25, 26, 27, 35 and 36

4. That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells and to insure proper and efficient development and promote conservation of the gas resources of the State, an order should be made establishing 640-acre drilling units for the production of gas from the "D" Sand formation, common source of supply underlying said lands, as defined herein; that said units should be 640-acre drilling units consisting of a section of land as established by governmental survey thereof; and that the permitted gas well for any such drilling unit should be located no closer than 1980 feet from the outer boundary of each drilling unit.

5. That an exception should be allowed for the applicant's well, No. 1 Franson, located in the C SW¼ Section 26, Township 10 North, Range 47 West, 6th P.M., and that said well should be the permitted gas well for the drilling and spacing unit on which it is located.

6. That no objections to the application were offered at the time of the hearing.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the "D" Sand formation, as herein defined, in addition to other rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. Six Hundred Forty (640) acre drilling units shall be and the same are hereby established for the production of gas from the "D" Sand formation, common source of supply underlying the following described lands in Sedgwick Count)r, Colorado, to-wit:

Township 10 North, Range 47 West, 6th P.M.

Sections 23, 25, 26, 27, 35 and 36

and such area shall henceforth be known as the Marks Butte Field.

Said drilling units shall consist of 640 acres, and shall consist of a section of land, as established by governmental survey thereof; and the permitted gas well for any such drilling unit shall be located no closer than 1980 feet from the outer boundary of the drilling unit.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the applicant's well No. 1 Franson, located in the C SW¼ of Section 26, Township 10 North, Range 47 West, 6th P.M., and that said well shall be the permitted gas well for the drilling unit on which it is located.

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 or regulations.

ORDERED this 20th day of August 1968.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary