REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 21, 1971, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, as the result of Order No. 237-4 (Emergency) which limited the maximum daily production of oil from any one well in the Poncho Field to 100 barrels and further ordered the operators in the field to present all available production, and reservoir data in order for the Com-mission to determine field rules for the production of oil and gas in the field.

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 the Commission by its Order No. 237-4 (Emergency) limited the production of oil from the Poncho Field to 100 barrels per day per well and that said limitation has reduced the flaring of casinghead gas from said field to a level that is not excessive.

4. That insufficient evidence was submitted at the hearing to determine, at this time, the most efficient production practice for the field and operators should present additional date at the hearing scheduled for February 15, 1972 in order for the Commission to determine this matter.

5. That evidence presented at the hearing indicates that in order to pre-vent waste, as that term is defined in the Oil and Gas Conservation Act, and until such time as the scheduled February hearing, the maximum daily production of oil from any one well producing from the "J" Sand should be continued at a rate not to exceed a volume of 100 barrels.

6. That in order to measure the gas that is being flared and to detect any abnormal increase in gas production, meters should be installed on all flare lines.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regula-tions shall be, and the same are hereby adopted for the "J" Sand, common source of supply of oil and gas, of the Poncho Field, Adams and Arapahoe Counties, Colorado, underlying the following described lands: Adams County Township 3 South, Range 59 West, 6th P.M. Section 33: All Section 34: All (over)

Arapahoe County Township 4 South, Range 59 West, 6th P.M. Section 3: All Section 10: All Section 4: All Section 15: All Section 9: All Section 16: All Rule 1. Production Limitation a. The maximum daily production of oil from any one (1) well capable of producing both oil and gas from the "J" Sand underlying said Poncho Field shall not exceed a volume of One Hundred (100) barrels. This limitation shall be for 60 days or until the February 1972 scheduled hearing.

b. A thirty (30) day test period is permitted, without limitation, for new wells completed in the "J" Sand in said Field.

Rule 2. Installation oil Gas Measuring Devices

a. Gas measuring devices shall be installed as soon as possible on all wells capable of producing in the Field and the gas production reported at times as may be requested by the Commission in addition to the regular monthly production report.

IT IS FURTHER ORDERED that a hearing shall be held February 15, 1972, at which time all operators in the Poncho Field are hereby requested to present addi-tional production and reservoir data in order for the Commission to determine what field rules should be adopted for the production of oil and gas in said field and plans for the disposition of the casinghead gas.

IT IS FURTHER ORDERED that the rules and regulations contained herein shall become effective forthwith.

ORDERED this 21st day of December 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#237-5)