IN THE MATTER OF THE APPLICATION OF THE CRAMER COMPANY, LIMITED, FOR AN ORDER ESTABLISHING A DRILLING UNIT CONSISTING OF THE NW/4 SE/4 OF SECTION 5, TOWNSHIP 2 SOUTH, RANGE 56 WEST, 6th P.M., WASHINGTON COUNTY, COLORADO Cause No. 172 Order No. 172-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 16, 1963, at 10 A.M., in Room 132, State Services Building, Denver, Colorado, after publica-tion of Notice of Hearing as required by law, on the application of The Cramer Com-pany, Limited, subsequently amended on March 12, 1963, and requesting an order establishing a drilling unit consisting of the NW/4 SE/4 of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado; and providing that the permitted well for said drilling unit be a well to be drilled by Applicant and located in the Center of the W/2 NW/4 SE/4 of said Section 5, 1980 feet north of the south line and 2310 feet west of the east line of said section, with a tolerance of 100 feet in any direction.

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 all available geological and engineering data indicate that, down to the top of the Skull Creek Shale, all common sources of supply of oil and gas under-lying the NW/4 SE/4 of Section 5, Township 2 South, Range 56 West, 6th P.M., Washing-ton County, Colorado, are of such nature that one well will efficiently and economically drain an area of approximately forty (40) acres; and that a drilling unit of the size hereinabove described is not smaller than the maximum area that can be efficiently drained by one well.

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 or-der should be made establishing a 40-acre drilling unit for the production of oil and gas; and that such drilling unit should consist of the NW/4 SE/4 of Section 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado; and that the permitted well for such unit should be located in the Center of the W/2 NW/4 SE/4 of said Section 5, with a tolerance of 100 feet in any direction from said location to avoid surface hazards or ob-structions.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regu-lations shall apply as herein set forth, in addition to other applicable rules, regula-tions and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. A forty (40) acre drilling unit comprised of the NW/4 SE/4 of Sec-tion 5, Township 2 South, Range 56 West, 6th P.M., Washington County, Colorado, shall be and the same is hereby established for the production of oil and gas from all common sources of supply down to the top of the Skull Creek Shale underlying said drilling unit.

Rule 2. The permitted well for the above described drilling unit shall be located in the Center of the W/2 NW/4 SE/4 of said Section 5, with a tolerance of 100 feet in any direction from said location to avoid surface hazards or obstructions.

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 16th day of April 1963. THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By William R. Smith, Secretary

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