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 WALSH FIELD (WABAUNSEE FORMATION), BACA COUNTY, COLORADO	) ) ) )	CAUSE NO. 171 ORDER NO. 171-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 17, 1980 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 Sage Drilling, Inc., for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wabaunsee formation underlying certain lands in the Walsh Field, Baca County, Colorado.

FINDINGS

The Commission finds as follows:

1.      Sage Drilling, Inc., 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 March 19, 1963, the Commission issued Order No. 171-1 which established 640-acre drilling and spacing units for the production of gas from the Virgilian Series (Pennsylvanian) underlying certain lands in the Walsh Field, Baca County, Colorado.  The Wabaunsee formation is part of this series; however, most of the production from the spaced area is from the Topeka formation of said series.

5.      Evidence presented at the hearing was insufficient to indicate that 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wabaunsee formation are not smaller than the maximum area that can be efficiently and economically drained by one well; therefore, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Sage Drilling, Inc., requesting 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wabaunsee formation underlying certain land in the Walsh Field, Baca County, Colorado is hereby denied.

ENTERED this 1st day of December, 1980, as of November 17, 1980.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary