REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 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 Pennzoil United, Inc., for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" and "J" Sands 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" and "J" Sands constitute common sources of supply of oil and associated hydrocarbons under-lying the following described lands in Adams County, Colorado, to-wit: Township 2 South, Range 62 West, 6th P.M. Section 13: S/2 Section 24: All Section 14: SE/4 Section 25: N/2 Section 23: E/2 Section 26: NE/4 Township 2 South, Range 61 West, 6th P.M. Section 18: SW/4 Section 30: NW/4 Section 19: W/2 4. That in order to prevent waste of oil and gas, as defined by law; to pro-tect 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" and "J" Sands, common sources of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the W/2 and E/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units should be designated at the time of filing the permit to drill; and that the permitted well for each such drilling unit should be located in the center of the NW/4 and SE/4 of each quarter section, with a tolerance of 200 feet in any direction from said location to avoid surface hazards or obstructions. (over)

5. That all available geological and engineering data concerning said "D" and "J" Sands 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" or "J" Sands.

6. That any well drilled and any location approved by the Commission prior to March 21, 1972, should be the permitted well or location for the respective drilling unit.

7. That approval for multiple zone completions or commingling in one well bore should be requested in accordance with Rule 3 18 of the Rules and Regulations of the Oil and Gas Conservation Commission.

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" and "J" Sands underlying the Irondale 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" and "J" Sands underlying the following described lands in the Irondale Field, Adams County, Colorado, to-wit:

Township 2 South, Range 62 West, 6th P.M. Section 13: S/2 Section 24: All Section 14: SE/4 Section 25: N/2 Section 23: E/2 Section 26: NE/4 Township 2 South, Range 61 West, 6th P.M. Section 18: SW/4 Section 30: N/2 Section 19: W/2 Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W/2 and E/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 drill; and the permitted well for each such drilling unit shall be located in the center of the NW/4 and SE/4 of each quarter section, with a tolerance of 200 feet in any direction from said location to avoid surface hazards or obstructions.

IT IS FURTHER ORDERED that any well drilled and any location approved by the Commission prior to March 21, 1972, shall be the permitted well or location for the respective drilling unit.

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

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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 order, rules and regulations.

ORDERED this 21st day of March 1972.

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

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