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 WILLOW CREEK FIELD, RIO BLANCO AND GARFIELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 209 ORDER NO. 209-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1968, at 10 a.m., in Room 260, Columbine Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Lario Oil & Gas Company for an order establishing drilling and spacing units of approximately 640 acres for production of gas from the Fort Union and Wasatch formations underlying certain lands in Garfield and Rio Blanco Counties, Colorado.

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 evidence presented at the hearing indicates that the Fort Union and Wasatch formations constitute common sources of supply of gas and associated hydrocarbons underlying substantially all of the following described lands in Rio Blanco and Garfield Counties, Colorado, to-wit:

Township 4 South, Range 97 West, 6th P.M.
Rio Blanco County, Colorado
Sections 6, 7, 8, 9, 16, 17, 18:  All
Township 4 South, Range 97 West 6th P.M.
Garfield County, Colorado
Section 19:  All	Section 21:  N½, SW¼
Section 20:  All
Township 4 South, Range 98 West, 6th P.M.
Rio Blanco County, Colorado
Sections 1, 2, 11, 12, 13, 14:  All
Township 4 South, Range 98 West, 6th P.M.
Garfield County, Colorado
Sections 23 and 24:  All

4.      That in order to prevent waste of gas, as defined by law; to protect the 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 gas resources of the State, an order should be made establishing drilling units of approximately 640 acres, as described in the following order, for the production of gas and associated hydrocarbons from said Fort Union and Wasatch formations underlying the lands as defined herein; and that the permitted gas well for any such drilling unit should be located not less than 1320 feet from the outer boundaries thereof.

5.      That all available geological and engineering data concerning said Fort Union and Wasatch formations indicate that one well will adequately and efficiently drain an area of approximately 640 acres; and that such drilling units are not smaller than the maximum area that can be efficiently drained by one well producing from said Fort Union and Wasatch formations.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Fort Union and Wasatch formations, as herein defined, in addition to other rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

1. Drilling units of approximately 640 acres shall be, and the same are hereby established for the production of gas and associated hydrocarbons from the Fort Union and Wasatch formations, common source of supply underlying the following described lands in Rio Blanco and Garfield Counties, Colorado, to-wit:

Township 4 South, Range 97 West, 6th P.M.
Rio Blanco County, Colorado
Sections 6, 7, 8, 9, 16, 17, 18:  All
Township 4 South, Range 97 West 6th P.M.
Garfield County, Colorado
Section 19:  All	Section 21:  N½, SW¼
Section 20:  All
Township 4 South, Range 98 West, 6th P.M.
Rio Blanco County, Colorado
Sections 1, 2, 11, 12, 13, 14:  All
Township 4 South, Range 98 West, 6th P.M.
Garfield County, Colorado
Sections 23 and 24:  All

and such area shall henceforth be known as the Willow Creek Field.

2. Said drilling units shall consist of approximately 640 acres, comprising a complete section, according to the governmental survey thereof; and the permitted gas well for such drilling unit shall be located not closer than 1320 feet from the outer boundaries of said drilling unit.

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to June 18, 1968, shall be the permitted wells or locations for the respective drilling units.

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 Fort Union and Wasatch formations, 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 or regulations.

ORDERED this 18th day of June 1968.

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