REPORT OF THE COMMISSION

This cause (which was formerly Cause No. 226) came on for hearing before the Commission on November 17, 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 Commission's own motion, which motion was amended at the hearing to include in the lands to be spaced the S/2 of Section 15, Township 4 South, Range 60 West, 6th P.M., for an order establishing 80-acre drilling and spacing units for the production of oil from the "J" sand of the Muddy formation underlying certain lands in Arapahoe 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 "J" sand of the Muddy formation constitutes a common source of supply of oil underlying the follow-ing described lands in Arapahoe County, Colorado, to-wit: Township 4 South, Range 60 West, 6th P.M. Section 10: All Section 14: N/2 Section 11: All Section 15: All

4. That all parties involved were represented and no objection was pre-sented at the hearing to include the S/2 of Section 15 in the lands to be covered by this Order.

5. That in order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unneces-sary 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 from the "J" sand of the Muddy for-mation, common source of supply underlying the lands defined heroin; that said units should be 80-acre drilling units, and consisting of the E/2 and the W/2 or the N/2 and the S/2 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 NE/4 and the SW/4 of each quarter section, with a tolerance of 200 feet in any direction.

6. That the Well No. 1 Price-Brothe, located 1650 feet from the North line and 990 feet from the East line, Section 15, Township 4 South, Range 60 West, 6th P.M., be considered an exception and be the permitted well for the drilling unit designated as the S/2 NE/4 of said section. (over)

7. That the area as described in Finding 3 hereof be deleted from the lands covered by Order No. 226-1, which established 320-acre drilling and spacing units for the production of gas from said "J" sand, and that said area be known as the Peoria North Field and made subject to the provisions of this order.

8. That all available geological and engineering data concerning said "J" sand indicate that one well will efficiently and economically drain an area of approxi-mately 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 "J" sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "J" sand of the Muddy formation underlying the Peoria North Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, hereto-fore adopted and not in conflict herewith:

Rule 1: Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the "J" sand of the Muddy formation underlying the following described lands in Arapahoe County, Colorado, to-wit: Township 4 South, Range 60 West, 6th P.M. Section 10: All Section 14: N/2 Section 11: All Section 15: All and such area shah henceforth be known as the Peoria North Field.

Rule 2: Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and the W/2 or the N/2 and the S/2 of each quarter section, according to the governmental survey thereof, and each operator shall designate the 80-acre unit upon which each well is to be located; and the permitted well for each such drilling unit shall be located in the center of the NE/4 and the SW/4 of each quarter sec-tion, with a tolerance of 200 feet in any direction.

IT IS FURTHER ORDERED, that the Well No. 1 Price-Brothe, located 1650 feet from the North line and 990 feet from the East line, Section 15, Township 4 South, Range 60 West, 6th P.M., shall be considered an exception and is hereby designated as-the permitted well for the drilling unit consisting of the S/2 NE/4 of said section.

IT IS FURTHER ORDERED, that the area as described in Rule 1 herein, is hereby deleted from the lands covered by Order No. 226-1.

IT IS FURTHER ORDERED that the Commission expressly reserves the right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

ORDERED this 17th day of November 1970.

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

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