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 WATTENBERG GAS SPACED AREA, ADAMS AND WELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 232 ORDER NO. 232-29    (Corrected)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 1982 at 9:00 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on two (2) applications of Macey & Mershon Oil, Inc. for an order pooling all interests in the drilling and spacing unit consisting of the N1/2 Section 2, Township 1 North, Range 65 West, 6th P.M., Weld County, Colorado, and the drilling and spacing unit consisting of the N1/2 Section 4, Township 1 South, Range 66 West, 6th P.M., Adams County, Colorado, for the development and operation of the "J" Sand underlying said units and the production of gas and associated hydrocarbons from such units, pursuant to 34-60-116 C.R.S. 1973, as amended.

FINDINGS

The Commission finds as follows:

1.      Macey & Mershon Oil, Inc., as applicant herein, is an interested party 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.      On November 17, 1970, the Commission issued Order No. 232-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Wattenberg Field.  By subsequent Order Nos. 232-2, 232-3 and 232-5, the spaced area was expanded and the area became known as the Wattenberg Gas Spaced Area.  Order Nos. 232-20 and 232-23 allowed the drilling of an additional well on each 320-acre unit in the spaced area.

5.      Effort has been made to obtain the voluntary pooling of all interests in each said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all owners of interest in each said unit for the voluntary pooling thereof.

6.      Applicant is an "interested person" within the meaning of 34-60-116 (6), C.R.S. 1973, as amended, of the Oil and Gas Conservation Act of the State of Colorado.

7.      In order to insure proper and efficient development of each said drilling unit and to promote conservation of the gas resources of the State, an order should be made pooling all interests in each 320-acre drilling unit described herein.

8.      An order of the Commission pooling all interests in each said drilling unit is necessary in order to afford each owner of interest in each said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying each said drilling unit.

9.      Production obtained from each said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in each tract bears to the total number of acres within each said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provision 34-60-116, C.R.S. 1973, as amended, of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling and spacing unit consisting of the N1/2 Section 2, Township 1. North, Range 65 West, 6th P.M., Weld County, Colorado, and the drilling and spacing unit consisting of the N1/2 Section 4, Township 1 South, Range 66 West, 6th P.M., Adams County, Colorado, Wattenberg Gas Spaced Area, are hereby pooled for the development of gas and associated hydrocarbons from the "J" Sand underlying each said unit.

IT IS FURTHER ORDERED, that the production obtained from each said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within each said drilling unit, and each owner of interest in said tract in each said drilling unit shall be entitled to receive his share of the production of the well located on each said drilling [sic] unit, applicable to his interest in each said drilling unit.

IT IS FURTHER ORDERED, that this order shall become effective forthwith.

ENTERED this 14th day of January, 1983, as of December 20, 1982.

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