REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1974, at 9 A.M., in the Department of Revenue Hearing Room, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of E. Doyle Huckabay, Ltd., for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "J" Sand underlying certain lands in Adams and Arapa-hoe 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 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 "J" Sand constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams and Arapahoe Counties, Colorado, to-wit:

Adams County Township 3 South, Range 59 West, 6th P.M. Section 19: S/2 Section 31: All Section 29: SW/4 Section 32: W/2 S/2NW/4 Section 30: All Township 3 South, Range 60 West,6th P.M. Section 36: E/2 A rapahoe County Township 4 South, Range 59 West, 6th P.M. Section 5: NW/4 Section 6: All Township 4 South, Range 60 West,6th P.M. Section 1: All Section 12: N/2

4. That in order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unneces-sary wells, and to insure proper and efficient development and promote conservation of

(over) 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 "J" Sand, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the E/2 and W/2 or the N/2 and S/2 or 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 NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direction.

5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approxima-tely 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 "J" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regu-lations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand, underlying the Lone Tree 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 "J" Sand underlying the following described lands in the Lone Tree Field, Adams and A rapahoe Counties, Colorado, to-wit:

A dams County Township 3 South, Range 59 West, 6th P.M. Section 19: S/2 Section 31: A 11 Section 29: SW/4 Section 32: W/2 S/2NW/4 Section 30: All Township 3 South, Range 60 West, 6th P.M. Section 36: E/2 A rapahoe County Township 4 South, Range 59 West, 6th P.M. Section 5: NW/4 Section 6: All Township 4 South, Range 60 West, 6th P.M. Section 1: All Section 12: N/2

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 drill; and the permitted well for each such drilling unit shall be located in the center of the NE/4 and SW/4of each quarter section, with a tolerance of 200 feet in any direction.

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IT IS FURTHER ORDERED, that the rules and regulations contained herein shall 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 19th day of March, 1974.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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