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 ASBURY CREEK FIELD, MESA COUNTY, COLORADO	) ) ) )	CAUSE NO. 186 ORDER NO. 186-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 17, 1986, at 9:00 a.m., in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, on the application of Fuel Resources Development Company (Fuelco), for an order establishing a 640-acre drilling and spacing unit for the production of oil and gas from the Buckhorn formation underlying certain lands in Mesa County, Colorado.

FINDINGS

The Commission finds as follows:

1.      Fuelco, 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.      Evidence presented at the hearing indicates that the Buckhorn formation constitutes a common source of supply of oil and gas underlying the 640-acre unit consisting of the following described lands in Mesa County, Colorado:

	Township 9 South, Range 101 West 6th P.M.
Section 13:		W1/2
Section 14:		E½

5.      In order to prevent the waste of oil and gas, as defined by law; to protect correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources of the state, an order should be made establishing a 640-acre drilling and spacing unit, consisting of the lands described herein above, for the production of oil and gas from the Buckhorn formation underlying said lands.  The permitted well for the unit should be well No. 13 Federal located in the NW1/4 SW1/4 of Section 13, Township 9 South, Range 101 West, 6th P.M.

6.      All available geological and engineering data concerning said Buckhorn formation indicate that one well will efficiently and economically drain an area of approximately 640 acres, and that the drilling unit of the size and shape herein above described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Buckhorn formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules shall apply hereafter to wells drilled, completed, or recompleted in the Buckhorn formation underlying certain lands in the Asbury Creek Field herein described, in addition to other applicable rules and regulation and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1.    A six hundred forty (640) acre drilling and spacing unit shall be and the same is hereby established for the production of oil and gas from the Buckhorn formation.  Said unit shall consist of the following described lands in Mesa County, Colorado:

	Township 9 South, Range 101 West 6th P.M.
Section 13:		W1/2
Section 14:		E½

Rule 2.    The permitted well for the unit shall be well No. 13 Federal, located in the NW1/4 SW1/4 of said Section 13.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

IT IS FURTHER ORDERED, that the Commission expressly reserves its rights, after notice and hearing, to alter, amend or repeal any and/or all of the above order.

ENTERED this day of 15th December, 1986, as of November 17, 1986.

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