BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE PIERCE FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 104 ORDER NO. 104-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1957, at 10 a.m., in Room 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing, and service of said Notice or appropriate waiver thereof, all as required by law, on the application of Fred Kerbs requesting the establishment of two 80-acre drilling and spacing units in the Northwest Quarter of Section 34, Township 8 North, Range 66 West, 6th P.M., in the Pierce Field, Weld County, Colorado, and on the Commission's own motion to accept additional testimony and give further consideration to testimony presented at the July 16, 1957 hearing in this cause in connection with the pooling of the two units described above, and to the possibility of establishing an irregularly- shaped drilling unit.

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 William H. Southard, attorney for Fred Kerbs; Karl Ahlborn, attorney for Fred McCrory, and Virgil P. Cline, attorney for The California Company, agreed at the hearing to the following stipulation:

"First, the Commission, at the request of the parties, will continue The California Company's application for forced pooling and the Fred Kerbs application for modification and exception to Order No. 104-1 without prejudicing any rights of the applicants or any other interested parties for 60 days following the completion (the word ‘completion’ as used herein should mean the date on which the load oil is returned) of a well on the Northwest Quarter of the Northwest Quarter of Section 34, Township 8 North, Range 66 West, Pierce Field, Weld County, Colorado.

"Second, that at the proposed hearing, the Commission will consider all geological data available pertaining to this area of Pierce Field.

“Third, the parties hereto being Fred Kerbs, Fred McCrory, and The California Company, will enter into separate stipulations to withhold payment of the royalty on any production prior to issuance of an order by the Commission on the two continued hearings.

"Fourth, The California Company will proceed to drill the well on the Northwest Quarter of the Northwest Quarter of Section 34 on the pattern location in an orderly manner.”

4.      That the stipulation set forth in Finding 3 hereof should be approved, and that The California Company should proceed to drill a well at the location herein set forth as soon as practicable.

5.      That Rule 3 of Order No. 104-1 should not apply to the pattern well to be drilled in the Northwest Quarter of the Northwest Quarter (NW/4 NW/4) of Section Thirty-four (34), Township Eight (8) North, Range Sixty-six (66) West, Weld County, Colorado, so that the provisions of the Third part of the stipulation cited in Finding 3 hereof may be complied with.

6.      That The California Company should notify the office of the Commission, Fred Kerbs, and Fred McCrory of the date of completion of subject well as soon as practicable.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Rule 3 of Order No. 104-1 shall not apply to the pattern well drilled in the Northwest Quarter of the Northwest Quarter (NW/4 NW/4) of Section Thirty-four (34), Township Eight (8) North, Range Sixty-six (66) West, Weld County, Colorado, until further ordered.

IT IS FURTHER ORDERED, that the stipulation set forth in Finding 3 hereof is hereby approved.

IT IS FURTHER ORDERED, that The California Company shall notify the office of the Commission, Fred Kerbs, and Fred McCrory of the date of completion of subject well as soon as practicable.

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 rules and regulations.

ORDERED this 20th day of August, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary