170-1

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 "J" SAND OF THE HUNTER FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 170

ORDER NO. 170-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 19, 1963, at 10 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Allison Drilling Company, Inc. for an order establishing a drilling unit for the production of gas from the "J" sand formation underlying certain lands in Morgan County, Colorado, with the Allison Drilling Company, Inc. No. 1 Bolinger the permitted well for such a 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 the "J" sand formation constitutes a common source of supply of gas underlying the following described lands in Morgan County, Colorado, to-wit:

Township 1 North, Range 55 West, 6th P.M.

Section 31:	W½NE¼, E½NW¼, NW¼SE¼, NE¼SW¼, and Lots 1, 2 and 3

4. That in order to prevent waste of oil and gas, as defined in the Colorado Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing a drilling unit of approximately 360 acres comprised of the above described lands, for the production of gas from said "J" sand formation; and that the permitted well for such drilling unit should be the Allison Drilling Company, Inc. No. 1 Bolinger, located in the SW¼NW¼ (Lot 2) of Section 31, Township 1 North, Range 55 West, 6th P.M., 1987 feet from the north section line and 637 feet from the west section line of said Section 31.

5. That all available geological and engineering data concerning the "J" sand formation underlying the land set forth herein indicate that one well will efficiently and economically drain an area of approximately 360 acres; and that a drilling unit of the size and shape herein described is not smaller than the maximum area that can be efficiently drained by one gas well producing from said "J" sand formation.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to the "J" sand formation underlying the lands 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. A drilling unit of approximately 360 acres shall be, and the same is hereby established for the production of gas from the "J" sand formation, common source of supply of gas underlying the following described lands in Morgan County, Colorado, to-wit:

Township 1 North, Range 55 West, 6th P.M.

Section 31:	W½NE¼, E½NW¼, NW¼SE¼, NE¼SW¼, and Lots 1, 2 and 3

and the permitted well for such drilling unit shall be the Allison Drilling Company, Inc. No. 1 Bolinger, located in the SW¼NW¼ (Lot 2) of Section 31, Township 1 North, Range 55 West, 6th P.M., 1987 feet from the north section line and 637 feet from the west section line of said Section 31.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the "J" sand formation, as defined herein, for the purpose of producing gas therefrom, at a location other than authorized by this order, is hereby prohibited.

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.

ORDERED this 19th day of February 1963.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Secretary