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 SUN FIELD, ADAMS COUNTY, COLORADO	) ) ) )	CAUSE NO. 224 ORDER NO. 224-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 25, 1970, at 10 a.m., in the P.U.C. Hearing Room, 5th Floor, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sundance Oil Company, for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand formation underlying certain lands in Adams 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 "D" Sand formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:

Township 1 South, Range 61 West, 6th P.M.
Section	34:	All	Section	36:	All
Section	35:	All
Township 2 South, Range 61 West, 6th P.M.
Section	1:	All	Section	10:	All
Section	2:	All	Section	11:	All
Section	3:	All	Section	12:	All

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 drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the W½ and the 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 200 feet in any direction.

5.      That all available geological and engineering data concerning said "D" Sand formation indicate that one well will efficiently and economically drain an area of approximately 80 acres, 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 "D" Sand 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 "D" Sand formation underlying the Sun 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:

Township 1 South, Range 61 West, 6th P.M.
Section	34:	All	Section	36:	All
Section	35:	All
Township 2 South, Range 61 West, 6th P.M.
Section	1:	All	Section	10:	All
Section	2:	All	Section	11:	All
Section	3:	All	Section	12:	All

Rule 2.    Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the W½ and the 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 200 feet in any direction.

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 order, rules and regulations.

ORDERED this 25th day of February 1970.

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