166-5

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 PLATEAU FIELD, MESA COUNTY, COLORADO

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CAUSE NO. 166

ORDER NO. 166-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1963, at 10 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing and proper service or waiver of service thereof, all as required by law and the rules and regulations of the Commission, on the application of The Sidwell Corporation for an order requiring the pooling of tracts of land lying within the drilling unit described as Section 24, Township 10 South, Range 96 West, 6th P.M., in the Plateau Field, Mesa 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 on April 17 1962, the Commission issued its Order No. 166-1 which, among other things, established 640-acre drilling units for production of gas from the Mesaverde formation, and designated Section 24, Township 10 South, Range 96 West, 6th P.M., Mesa County, Colorado, as one of such drilling units.

4. That Applicant is an "interested person" within the meaning of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado.

5. That reasonable effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all owners of interests in said drilling unit for the voluntary pooling thereof.

6. That in order to insure proper and efficient development of said drilling unit, an order should be made pooling all interests in the 640-acre drilling unit defined herein.

7. That an order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas produced from the Mesaverde formation underlying said drilling unit.

8. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, with each owner of interest in said tracts to be entitled to receive his share of the production of the well to be located on said drilling unit, applicable to his interest in said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit defined as Section 24, Township 10 South, Range 96 West, 6th P.M., in the Plateau Field, Mesa County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, with each owner of interest in said tracts to be entitled to receive his share of the production of the well to be located on said drilling unit, applicable to his interest in said drilling unit.

ORDERED this 18th day of June 1963.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

William R. Smith, Secretary