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 DANCE FIELD, ADAMS COUNTY, COLORADO	) ) ) )	CAUSE NO. 218 ORDER NO. 218-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 21, 1969, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sundance Oil Company, for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand formation underlying certain lands in Adams 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 evidence presented at the hearing indicates that the "D" Sand formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:

Township 1 South, Range 60 West, 6th P.M.
Section	19:	S½	Section	30:	All
Section	20:	S½	Section	31:	All
Section	29:	All	Section	32:	All

4.      That in order to prevent waste of oil and 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 oil and gas resources of the State, an order should be made establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the W½ and the E½ of each quarter section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 200 feet in any direction.

5.      That all available geological and engineering data concerning said "D" Sand formation indicate that one well will efficiently and economically drain an area of approximately 80 acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said "D" Sand formation.

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 Dance Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil and associated hydrocarbons from the "D" Sand formation underlying the following described lands in the Dance Field, Adams County, Colorado, to-wit:

Township 1 South, Range 60 West, 6th P.M.
Section	19:	S½	Section	30:	All
Section	20:	S½	Section	31:	All
Section	29:	All	Section	32:	All

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W½ and the E½ of each quarter section, according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 200 feet in any direction.

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 21st day of October 1969.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary