REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 17, 1976, at 9 A.M., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company for an order to include the production of gas as well as oil from the Sussex and Shannon forma-tions and to add and delete certain lands to the spaced areas as established by the orders in Cause No. 250 for the Sussex and Shannon formations.

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 on March 21, 1972 the Commission issued its Order No. 250-1 which established 80-acre drilling and spacing units for the production of oil from the Sussex for-mation underlying certain lands in Weld County, Colorado, with each drilling unit consisting of the E/2 and W/2 or the N/2 and S/2 of each quarter section, with the permitted well located in the center of the NE/4 and SW/4 of each quarter section with a 200 foot tolerance to avoid surface hazards or obstructions. Subsequent orders extended the limits of the spaced area. Order No. 250-5, issued September 19, 1972, established 80-acre spacing and drilling units as mentioned above, for the production of oil from the Shannon formation underlying certain lands in Weld County. The spaced area for the Shannon formation was extended by Order No. 250-10.

4. That testimony presented at the hearing indicates a common source of supply of gas as well as oil underlies the spaced areas as established by the orders in Cause No. 250 for the Sussex and Shannon formations, and such orders should be amended to include the production of gas from said formations.

5. That testimony presented at the hearing indicates a common source of supply of oil and gas, in addition to the areas set forth in the orders in Cause No. 250 under-lying the following described lands in Weld County, Colorado, to-wit:

Addition to Sussex Formation:

Township 2 North, Range 67 West, 6th P.M. Sections 8; 9; 16 through 19; 30; 31 Township 2 North, Range 68 West, 6th P.M. Sections 13; 14, 23 through 28; 33 through 36 Township 1 North, Range 68 West, 6th P.M. Sections 1 through 4; NE/4 Sec. 9; 10 through 14; NE/4 Sec. 15; NE/4 Sec. 23; 24 (over)

Addition to Shannon Formation: Township 2 North, Range 67 West, 6th P.M. Sections 8; 9; 21; W/2 Sec. 28; SW/4 Sec. 3; W/2 Sec. 10 Township 2 North, Range 68 West, 6th P.M. Sections 13; 14; 23; 24; 27; 28; 33 Township 1 North, Range 68 West, 6th P.M. Section 4; NE/4 Sec. 9; 13; 14; NE/4 Sec. 15; NE/4 Sec. 23; Sec. 24 and that such area be made subject to the provisions of the orders in Cause No. 250 and further that the following described lands should be deleted from the spaced area for the Sussex formation and said lands be made subject to the general rules and regulations of the Commission: Deletion from Sussex Formation: Township 2 North, Range 66 West, 6th P.M. Section 6 Township 2 North, Range 67 West, 6th P.M. Sections 1; 2; 3; 10; 11; 12; 15

6. That for the revised spaced areas, each future well for the production of oil and/or gas from the Sussex and Shannon formations should be located in the NE/4 and SW/4 of the quarter section with a tolerance of 200 feet in any direction, and that exceptions should be granted for any well previously drilled for production from the Sussex and Shannon formations that were not in conformance with the spacing pattern. In addition, the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources or surface obstructions, provided the owners of the contiguous and cornering drilling units toward whom the proposed locations would be moved, file a waiver or consent in writing agreeing to said exceptions.

7. That downhole commingling or multiple zone completion should be per-mitted in the Sussex and Shannon formations in each future or previously drilled well in the revised spaced area, except within a half mile of the boundaries of the spaced area, by, pro-approval of the Director by submitting Sundry Notice OGCC Form 4; however, initial pro-duction tests should be required in order to determine what the rate of production is from each formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the previous orders in Cause No. 250 pertaining to 80-acre spacing and drilling units for the production of oil from each of the Sussex and Shannon formations, are hereby amended and the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in each of the Sussex and Shannon formations underlying the Spindle Field, as described herein, in addition to other applicable rules and regulations and orders of the Commission is 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 gas from the Sussex and Shannon formations underlying the following described lands for each formation, in the Spindle Field, Weld County, Colorado to-wit:

2

(#250-11)

SPINDLE SUSSEX 80-ACRE SPACED AREA: Township 1 North; Range 66 West, 6th P.M. Section 6:W/2 Section 18: W/2 Section 7:W/2 Section 19: W/2 Township 1 North, Range 67 West, 6th P.M. Sections 1 thru 24: All Section 27: N/2 Township 1 North, Range 68 West, 6th P.M. Sections 1 thru 4: All Section 15: NE/4 Section 9: NE/4 Section 23: NE/4 Sections 10 thru 14: All Section 24: All Township 2 North, Range 66 West, 6th P.M. Section 7: All Section 30: All Section 18: All Section 31: NE/4 Section 19: All W/2 Township 2 North, Range 67 West, 6th P.M. Section 8: All Section 9: All Section 13: All Section 14: All Sections 16 thru 36: All Township 2 North, Range 68 West, 6th P.M. Section 13: All Section 14: All Sections 23 thru 28: All Sections 33 thru 36: All SPINDLE SHANNON 80-ACRE SPACED AREA: Township l North, Range 67 West 6th P.M. Section 5. W/2 Section 7: All Section 6: All

Township 1 North, Range 68 West, 6th P.M. Sections 1 thru 4: All Section 9: NE/4 Sections 10 thru 12: All

Township 2 North, Range 67 West, 6th P.M. Section 8: SW/4 Section 28: W/2 Section 8: All Section 29: All Section 9: All Section 30: All Section 10: W/2 Section 31: All Sections 16 thru 21: All Section 32: All

Township 2 North, Range 68 West, 6th P.M. Section 13: All Section 14: All Sections 23 thru 28: All Sections 33 thru 36: All

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drilling and the permitted well for each such drilling unit shall be located in the - 3 - #250-11) center of the NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direc-tion from said location to avoid surface hazards or obstructions; however, exceptions shall be granted for any well previously drilled to the Sussex and/or Shannon formations and in conformance with the spacing pattern. In addition the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources, or surface obstructions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

IT IS FURTHER ORDERED, that downhole commingling or multiple zone com-pletion shall be permitted for production from the Sussex and Shannon formations in each future or previously drilled well in the spaced area described herein, except for wells located within one-half (/2) mile from the boundaries of the spaced area, by approval of the Director by submitting Sundry Notice OGCC Form 4. Initial production tests shall be taken in such a manner as to determine the initial rate of production from each formation. Approval to commingle production in wells located within the half-mile limit shall be done in accordance with Rule 320 of the Rules and Regulations of the Commission.

IT IS FURTHER ORDERED, that the provision is contained in this order shall be 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, rules and regulations.

ORDERED this 17th day of February, 1976.

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

- 4 -(#250-11)

BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION ) AND ESTABLISHMENT OF FIELD RULES TO ) CAUSE NO. 250 GOVERN OPERATIONS IN THE SPINDLE ) FIELD, WELD COUNTY, COLORADO ) ORDER NO. 250-11

CORRECTION OF ORDER ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN:

On February 17, 1976, the Commission issued its Order No. 250-11, which established 80-acre drilling and spacing units for the production of oil and gas from the Sussex and Shannon formations underlying the Spindle Field, Weld County, Colorado.

The description of lands for the Spindle Shannon 80-Acre Spaced Area in Rule 1 of the Order is in error and the following lands should be deleted from such description:

Township 1 North, Range 67 West, 6th P.M. Section 5: W/2 Section 7: All Section 6: All DATED this 7th day of April, 1976.

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