230-1

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 SOONER FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 230

ORDER NO. 230-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 20, 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 Davidor and Davidor, Inc., which application was amended at the hearing for an order establishing 320-acre drilling and spacing units for the production of gas from the "D" sand formation underlying certain lands in Weld 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 as presented at the hearing does not substantiate the granting of the application as presented, but does indicate that the "D" sand formation would constitute a common source of supply of gas underlying the following described lands in Weld County, Colorado, to-wit:

Township 8 North, Range 58 West, 6th P.M.

Section	22:	All	Section	27:	All
Section	23:	W½	Section	34:	All
Section	26:	W½	Section	35:	W½

4. That in order to prevent the 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 320-acre drilling and spacing units for the production of gas from the "D" sand, common source of supply underlying the lands defined herein; that said units should be 320-acres and consisting of the E½ and the W½ or the N½ and the S½ of Sections 22, 27 and 34, and the W½ of Sections 23, 26 and 35, Township 8 North, Range 58 West, 6th P.M.; and that the permitted well for each such drilling unit should be located in the Center of the NW¼ and SE¼ of each section, with a tolerance of 150 feet in any direction for surface hazards or obstructions.

5. That the No. 1-27 Government Well, located 660 feet from the South line, and 810 feet from the East line, Section 27, Township 8 North,Range [sic] 58 West, 6th P.M., be considered an exception and be the permitted well for the drilling unit upon which it is located.

6. That all available geological and engineering data concerning said "D" sand indicate that one well will efficiently and economically drain an area of approximately 320 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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the "D" sand formation underlying the Sooner 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: Three hundred twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of from the "D" sand formation underlying the following described lands in the Sooner Field, Weld County, Colorado, to-wit:

Township 8 North, Range 58 West, 6th P.M.

Section	22:	All	Section	27:	All
Section	23:	W½	Section	34:	All
Section	26:	W½	Section	35:	W½

Rule 2: Said drilling units shall consist of three hundred twenty (320) acres, and each such drilling unit shall be the E½ and the W½ or the N½ and the S½ of Sections 22, 27 and 34, and the W½ of Sections 23, 26 and 35; and the permitted well for each such drilling unit shall be located in the center of the NW¼ and the SE¼ of each section, with a tolerance of 150 feet in any direction for surface hazards or obstructions.

IT IS FURTHER ORDERED that an exception is hereby granted for the No. 1-27 Government Well, located 660 feet from the South line and 810 feet from the East line, Section 27, Township 8 North, Range 58 West, 6th P.M., and that such well shall be the permitted well for the drilling unit upon which it is located.

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 right, after notice and hearing, to alter, amend or repeal any and/or all of the above . orders, rules and regulations.

ORDERED this 26th day of October 1970.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary

Dated at Denver, Colorado

November 6, 1970