REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 1972, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company, for an order extending the field limits of the Spindle Field, and establishing for the additional area 80-acre drilling and spacing units for the production of oil from the Sussex formation as provided for in. Order No. 250-1.

FINDINGS

The Commission finds as fellows:

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, among other things, established 80-acre drilling and spacing units for the produc-tion of oil from the Sussex formation underlying the Spindle Field, and the permitted well for each unit to be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direction, to avoid surface hazards and obstructions. The spaced area was expanded by Order No. 250-2.

4. That evidence presented at the hearing indicates that there has not been sufficient development to determine if the Sussex formation is the same common source of supply of oil underlying the additional area requested to be spaced as was established by Order Nos. 250-1 and 250-2, In addition, there was insufficient evidence to indicate that one well will efficiently and economically drain 80-acres; therefore, that part of the application as submitted by Amoco Production Company, pertaining to the expansion of the spaced area for the Sussex formation in the Spindle Field should be denied.

5. That a provision should be made for the Spindle (Sussex) Field spaced area, as established by Order Nos. 250-1 and 250-2, that 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 continuous and cornering units toward which the proposed location would be moved, file a waiver or consent in writing, agree-ing to said exceptions.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Amoco Produc-Company pertaining to the expansion of the spaced area of the Sussex formation in Spindle Field, Weld County, Colorado, is hereby denied.

(over)

IT IS FURTHER ORDERED, that for the spaced area of the Sussex format in the Spindle Field, as established by Order Nos. 250-2 and 250-2, 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 source 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 con-sent in writing agreeing to said exceptions.

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.

ORDERED this 20th day of July 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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