REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 17, 1971 at 9 A.M., in the Auditorium, Social Services Building, 1575 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, to review addi-tional information obtained from drilling to determine if the 80-acre spacing, as estab-lished by Order No. 237-1, should be continued in the Poncho Field, Adams and Arapahoe Counties, 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 em-braced in said Notice, and of the parties interested therein, and jurisdiction to promul-gate the hereinafter prescribed order.

3. That on February 16, 1971, the Commission issued its Order No. 237-1 which, among other things, established 80-acre drilling and spacing units for the produc-tion of oil from the "J" Sand, with the permitted well to be located in the NW/4 and SE/4 of each quarter section.

4. That the evidence presented at the hearing indicates that one well will efficiently and economically drain an area of 80 acres and that the provisions of Order No. 237-1 should be continued; however, the Commission further finds that particular conditions may exist which, upon proper evidence, may justify the granting of exceptions to the 80-acre spacing.

ORDER

NOW, THEREFORE, IT IS ORDERED that Order No. 237-1 shall remain in effect and operations in the area known as the Poncho Field shall continue to be governed by the provisions of said Order No. 237-1.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above order.

ORDERED this 17th day of August 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary