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 GOLDEN SPIKE FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO. 214 ORDER NO. 214-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1969, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado after publication of Notice of Hearing as required by law, on the application of International Nuclear Corporation, for an order establishing 80-acre, more or less, drilling and spacing units for the production of oil from the Mississippian formation underlying certain lands in Cheyenne County, 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 Mississippian formation constitutes a common source of supply of oil underlying the following described lands in Cheyenne County, Colorado, to-wit:

Township 16 South, Range 44 West, 6th P.M.

Sections 6, 7, 18, and 19

Township 16 South, Range 45 West, 6th P.M.

Sections 1, 2, 11, 12, 13, 14, 23, and 24

4.      That in order to prevent waste of oil and 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 oil and gas resources of the State, an order should be made establishing 80-acre, more or less, drilling and spacing units for the production of oil from the Mississippian formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, except those units in certain irregular governmental short sections, which may be more or less than 80-acres, and consisting of the W½ or E½ of each quarter section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction to allow for topography, surface hazards, or irregularity.

5.      That all available geological and engineering data concerning said Mississippian formation indicate that one well will efficiently and economically drain an area of approximately 80 acres, more or less, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said Mississippian formation.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Mississippian formation underlying the Golden Spike Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    Eighty (80) acre, more or less, drilling and spacing units shall be and the same are hereby established for the production of oil from the Mississippian formation underlying the following described lands in the Golden Spike Field, Cheyenne County, Colorado, to-wit:

Township 16 South, Range 44 West, 6th P.M.

Sections 6, 7, 18, and 19

Township 16 South, Range 45 West, 6th P.M.

Sections 1, 2, 11, 12, 13, 14, 23, and 24

Rule 2.    Said drilling units shall consist of eighty (80) acres, except those units in certain irregular governmental short sections, which may be more or less than 80 acres, and each such drilling unit shall be the W½ or E½ of each quarter section, according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction for topography, surface hazards, or irregularity.

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 20th day of May 1969.

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