IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE McCLAVE FIELD, BENT AND KIOWA COUNTIES, COLORADO Cause No. 105 Order No. 105-9

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 20, 1970, at 10 A.M., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Cabot Corporation, which application was amended at the hearing, for an order establishing 640-acre drilling and spacing units for the production of gas from the Atoka Sand for-mation underlying certain lands in Kiowa 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 Atoka Sand formation constitutes a common source of supply of gas underlying the following' described lands in Kiowa County, Colorado, to-wit:

Township 19 South, Range 48 West, 6th P.M.

Section 28: All Section 29: All

4. That in order to prevent 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 640-acre drilling and spacing units according to the governmental survey thereof, for the production of gas from the Atoka Sand formation, common source of supply underlying the lands defined herein, and that no more than one well should be completed from the Atoka Sand forma-tion on any such drilling unit, and that any such well be located not less than 990 feet from the center of the drilling unit.

5. That all available geological and engineering data concerning said Atoka Sand formation indicate that one well will efficiently and economically drain an area of approximately 640-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 Atoka Sand formation.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the Atoka Sand formation underlying that portion of the McClave 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. Six Hundred Forty (640) acre drilling and spacing units shall be Sand and the same are hereby established for the production of gas from the Atoka

County, formation underlying the following described lands in the McClave Field, Kiowa Colorado, to-wit:

Township 19 South, Range 48 West, 6th P.M.

Section 28' All Section 29' All Rune 2: Said drilling units shall consist of Six Hundred Forty (640) acres, shall be according to the governmental survey thereof; and that no more than one well such completed from the Atoka sand formation on any such drilling unit, and that any well be located not less than 990 feet from the center of the drilling unit.

IT IS FURTHER ORDERED, that the Commission expressly reserve its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

ORDERED this 20th day of January 1970.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Asst. Secretary