REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 18, 1981 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Norris Oil Company, for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying certain lands in Mesa County, Colorado.

FINDINGS

The Commission finds as follows:

1. Norris Oil Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. 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. 4. Evidence presented at the hearing indicates that the Mesaverde forma-tion, constitutes a common source of supply of gas and associated hydrocarbons under-lying the following described lands in Mesa County, Colorado, to-wit:

Township 9 South, Range 94 West, 6th P.M. Section 17: All Section 20: All Section 18: All Section 29: All Section 19: All Section 30: All Township 9 South, Range 95 West, 6th P.M. Section 13: All Section 24: All

5. 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 resources of the State, an order should be made establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from said Mesaverde forma-tion, common source of supply underlying the lands defined herein; that said units should be 160-acre drilling units, and consist of a quarter section according to the governmental survey and that the permitted well should be located no closer than 660 feet from the boundaries of the unit upon which it is located and the wells heretofore drilled and comple-ted in the Mesaverde formation be designated the permitted wells for the units upon which they are located.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regu-lations shall apply hereafter to wells drilled, completed, or recompletcd in the Mesa-verde formation underlying the Buzzard Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopt-ed and not in conflict herewith:

Rule 1. One hundred sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Mesaverde formation underlying the following described lands in the Buzzard Field, Mesa County, Colorado, to-wit:

Township 9 South, Range 94 West, 6th P.M. Section 17: All Section 20: All Section 18: All Section 29: All Section 19: All Section 30: All Township 9 South, Range 95 West, 6th P. M. Section 13: All Section 24: All

Rule 2. Said drilling units shall consist of 160-acres and shall consist of a quarter section according to the governmental survey and the permitted well shall be located no closer than 660 feet from the boundaries of the unit, and wells heretofore drilled and completed in the Mesaverde formation shall be the permitted wells for the units upon which they are located.

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.

ENTERED this 15th day June 1981 as of May 18. 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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