IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE McCLAVE FIELD, BENT, KIOWA AND PROWERS COUNTIES, COLORADO Cause No. 105 Order No. 105-23

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19. 1979 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 Texas Oil and Gas Corporation for an order to extend the limits of the gas spaced area of the McClave Field, Bent. Kiowa and Prowers Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. Texas Oil & Gas Corporation. 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. On May 15. 1957. the Commission issued Order No. 105-1 which estab-lished 640-acre drilling and spacing units for the production of gas from the McClave Sand, common source of supply underlying certain lands in Bent and Kiowa Counties. Colorado. The spaced area was extended by subsequent orders and the permitted well is to be located within a radius of 990 feet from the center of the unit. with exceptions for topography. 5. There is sufficient data to justly a determination that the common source of supply of gas from the McClave Sand extends beyond the present limits of the spaced area as established by Order No. 105-1 and subsequent orders. Therefore. the application should be granted and the following described lands should be included in the spaced area of the McClave Field:

Township 21 South. Range 47 West. 6th P.M.

Sections 5 thru 8: All Sections 17 thru 20: All Sections 29 thru 32: All

Township 21 South, Range 48 West, 6th P.M.

Sections 10 thru 16: All Sections 21 thru 28: All Sections 34 thru 36: All

6. Said area should be made subject to the provisions of Order No. 105-1 and subsequent orders concerning said McClave Sand; however. the permitted well location for the 640-acre units in the area described in Finding 5 herein should be at a location no closer than 990 feet to the boundaries of the unit. and well locations heretofore permitted and wells heretofore drilled and capable of production from the McClave Sand should be considered the permitted wells For the units upon which they are located.

7. Since Sections 5 and 6. Township 21 South. Range 47 West. 6th P.M. contain in excess of 640-acres, certain drilling and spacing units of approximately 640--acres each should be designated.

(over)

ORDER NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be, subject to the provisions of Order No. 105-1 and subsequent orders concerning the McClave Sand, and the spaced area of the McClave Field for the produc-tion off gas from the McClave Sand, shall henceforth include the following described lands in Bent, Kiowa and Prowers Counties, Colorado, to-wit:

Kiowa County Township 19 South, Range 48 west, 6th P.M. Sections 28, 31 thru 36: All Township 19 South, Range 49 West, 6th P.M. Sections 35 and 36: All

Township 20 South, Range 48 West, 6th P.M. Sections 1 thru 36: All

Township 20 South Range 49 West, 6th P.M. Sections 1 thru 3: All Sections 10 thru 14: All Sections 23 thru 26: All Sections 35 thru 36: All

Prowers County Township 21 South Range 47 West, 6th P.M. Sections 5 thru 8: All Sections 17 thru 20: All Sections 29 thru 32: All Bent County Township 21 South, Range 48 West, 6th P.M. Sections 1 thru 6: All Sections 8 thru 16: All Sections 21 thru 28: All Sections 34 thru 36: All

IT IS FURTHER ORDERED, that the additional area as described in Finding 5 herein shall be subject to the provisions of Order No. 105-1 and subsequent orders con-cerning the McClave Sand; however, the permitted well locations for the units in the addi-tional area shall be at a location no closer than 990 feet to the boundaries of the unit, and wells heretofore permitted or drilled and capable of production from said McClave Sand. shall be considered the permitted wells for the units upon which they are located.

IT IS FURTHER ORDERED, that the following drilling and spacing units shall be designated consisting of approximately 640-acres each:

Unit No. 1 Township 21 South, Range 47 West, 6th P.M.

Section 5: Lots 1 thru 10

Unit No. 2 Township 21 South, Range 47 West, 6th P.M.

Section 6: Lots 1 thru 13

Unit No. 3 Township 21 South, Range 47 West, 6th P.M.

Section 5: S/2

Section 6: SE/4, E/2SW/4, Lots

. 14 and 15 - 2 -(#105-23)

IT IS FURTHER ORDERED, that the provisions contained in the above orders shall become effective forthwith.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above orders.

ORDERED this 19th day 06 November, 1979.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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(#105-23) DATE OF ENTRY 12/12/79