170-3

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. 170-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 12, 1965, in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, upon the Commission's own motion, as a result of production records submitted to the Commission which required that they consider changes, modification or possible adjustment of the spacing and/or pooling orders hereinbefore entered and pertaining to the Hunter Field, Morgan County, Colorado, and as a continuation of a hearing originally called for November 17, 1964, upon application of Charles and Edith Killough, Hattie Laffoon, and Eddie Cotton for an order dissolving a gas unit consisting of the NW¼, W½ NE¼, N½ SW¼, and NW¼ SE¼ of Section 31 Township 1 North, Range 55 West, 6th P.M., in said Hunter Field, and requesting that the Commission reinstate its general rules and regulations in lieu of provisions of Order No. 170-1 and No. 170-2.

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 geological and engineering testimony presented at the hearing indicates that the pool limit, of the "J" sand reservoir of the Hunter Field as defined by Order No. 170-1 should be contracted and the size of the 360 acre drilling unit should be decreased to 80 acres in accord with Section 100-6-4 (4) of the Oil and Gas Conservation Act and redefined to include the S½ NW¼ of Section 31, Township 1 North Range 55 West, 6th P.M., Morgan County, Colorado.

4. That testimony presented at the hearing indicates that all available gas and associated hydrocarbons contained in the "J" sand reservoir of the Hunter Field as redefined can be efficiently and economically produced by the Allison Drilling Company, Inc., No. 1 Bolinger well located in the SW¼ NW¼ Section 31, Township 1 North, Range 55 West, 6th P.M., and said well should be the authorized well for the drilling unit set out in Finding 3 hereof.

5. That the production of all gas and associated hydrocarbons obtained from said Allison No. 1 Bolinger well should be allocated among the separately owned tracts in the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit and such allocation will allow each owner an opportunity to recover his just and equitable share of the reservoir.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the "J" sand reservoir of the Hunter Field, Morgan County, Colorado, in addition to the applicable rules and regulations, if any, heretofore adopted and not in conflict herewith.

Rule 1. The size of the drilling unit established by Rule 1, Order No. 170-1, is hereby decreased and an 80-acre unit is hereby established for the production of gas and associated hydrocarbons from the "J" sand formation, common source of supply of gas and associated hydrocarbons underlying the following described lands in Morgan County, Colorado, to-wit:

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

Section 31:	S½ NW¼

and the permitted well for such redefined drilling unit shall be the Allison Drilling Company, Inc., No. 1 Bolinger, located in the SW¼ NW¼ 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.

Rule 2. Pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as the S½ NW¼, Section 31, Township 1 North, Range 55 West, 6th P.M., Morgan County, Colorado, are hereby pooled for the development and operation of the Allison Drilling Company, Inc., No. 1 Bolinger well, located in the SW¼ NW¼ of said Section 31, and all gas and associated hydrocarbon production obtained from the "J" sand formation underlying said drilling unit shall be allocated among the separately owned tracts in the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective Monday, February 1, 1965.

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, regulations and orders.

ORDERED this 12th day of January, 1965.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

William R. Smith, Secretary