REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1975 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 Bobcat Oil Company, for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Arapahoe 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 "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Arapahoe County, Colorado, to-wit: Township 4 South, Range 61 West, 6th P.M. Section 14: All Section 22: All . Section 15: All Section 23: All

4. That in order to prevent the waste of gas, as defined by law; to protect 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 gas re-sources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 320-acre drilling units, and consisting of the E/2 and W/2 or the N/2 and S/2 of each 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 SE/4 and NW/4 of each section, with a tolerance of 200 feet in any direction; however, the Well No. 1 UPRR-D.O. Miller, located in the C SE/4SE/4 Section 15, Township 4 South, Range 61 West, 6th P.M., should be considered an excep-tion and be the permitted well for the designated unit consisting of the E/2 of said Section 15.

5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an ares of approximately 320-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.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "j" Sand underlying the Muskrat 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. Three Hundred Twenty (20) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Muskrat Field, Arapahoe County, Colorado, to-wit:

Township 4 South, Range 61 West, 6th P.M. Section 14: All Section 22: All Section 15: All Section 23: All

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 of each section, accord-ing 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 SE/4 and NW/4 of each section, with a tolerance of 200 feet in any direction; however the Well No. 1 UPRR-D. O. Miller located in the C SE/4SE/4 Section 15, Township South, Range 61 West, 6th P.M., shall be considered an exception and be the permitted well for the designated unit consisting of the E/2 of said Section 15.

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 order, rules and regulations.

ORDERED this 20th day of May, 2975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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