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. 224-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19, 1979 at 9:00 a.m. in Room 110, State Centennial building, Denver Colorado, after giving Notice of Hearing as required by law, on the amended application off Kenai Oil and Gas Inc, [sic] Lexicon Resources Corporation and Minoco ‘78 Oil Program for an order to establish 160-acre drilling and spacing units for the reduction of gas and associated hydrocarbons from the "D" and "J" Sands underlying certain lands in Adams County, Colorado.  The application was further amended at the hearing to delete Sections 13 and 14, Township 2 South, Range 61 West, 6th P.M. from the area to be spaced.

FINDINGS

The Commission finds as follows:

1.      Kenai Oil and Gas, Inc., Lexicon Resources Corporation and Minoco ‘78 Oil Program, as applicants herein, are interested parties 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.      The "D" and "J" Sands each constitute a common source of supply of gas and associated hydrocarbons underlying the following described lands in Adams County, Colorado to-wit:

Township 2 South. Range 61 West. 6th P.M.
Section	11:	All	Section	12:	All

5.      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, an order should be made establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" and "J" Sands, common sources of supply underlying the lands defined herein; that said units should be 160-acre sand consist of a quarter section of land according to the governmental survey thereof and the permitted well for said unit should be located no closer than 600 feet to the boundaries of the unit survey and no closer than 1200 feet from another well producing from the same zone and Well No. 1 Champlin 459 "A", located in the N½NE¼NW¼ of said Section 11 should be considered an exception and be the permitted well for the unit upon which it is located.

6.      All geological and engineering data concerning the "D" and "J" Sands indicate that one well will efficiently and economically drain an area of approximately 160-acres and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said "D" and "J" Sands.

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" and "J" Sands 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:

Rule 1.    One hundred-sixty [sic] (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "D" and "J" Sands underlying the following described lands in the Sun Field, Adams County, Colorado, to-wit:

Township 2 South. Range 61 West. 6th P.M.
Section	11:	All	Section	12:	All

Rule 2.    Said drilling units shall consist or 160-acres and consist of a quarter section of land according to the governmental survey thereof, and the permitted well shall be located no closer than 800 feet to the boundaries of the unit and no closer than 1200 feet from another well producing from the same zone and Well No. 1 Champlin 459 "A", located in the N½NE¼NW/4  off said Section 11, shall be considered an exception and be the permitted well for the unit upon which it is located.

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

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.

ORDERED this 19th day of November, 1979.

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