IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BYERS FIELD, ADAMS AND ARAPAHOE COUNTIES, COLORADO Cause No. 234 Order No. 234-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 19, 1971, at 10 A.M., in the Consul Room., quality Motel, 1840 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Pan American Petroleum in Corporation, which application was amended at the hearing reducing the size of the area to be spaced, for an order establishing 80-acre drilling and spacing units for the production of oil from the "J" Sand underlying certain lands in Adams and Arapahoe Counties, 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 con-stitutes a common source of supply of oil underlying the following described lands in Adams and Aarapahoe Counties, Colorado, to-wit: Adams County Township 3 South, Range 62 West, 6th P.M. Section 35: All Arapahoe County Township 4 South, Range 61 West, 6th PM. Section 7: All Township 4 South, Range 62 West, 6th P.M. Section 1: All Section 11: All Section 2: All Section 12: All

4. 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 unnec-essary 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 drill-ing and spacing units for the production of oil from the "J" Sand, common source of supply underlying the lands defined hearing 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, which drilling units should be designated at the time of filing the permit to drill; 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.

(over)

5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approx-imately 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 regulations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Byers 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. Eighty(80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the "J" Sand underlying the folio}v-ing described lands in the Byers Field, Adams and Arapahoe Counties, Colorado, to-wit:

Adams County,

Township 3 South, Range 62 West, 6th PM, Section 35: All

Arapahoe County

Township 4 South, Range 61 West, 6th PM. Section 7: All

Township 4 South, Range 62 West, 6th PM, Section 1: All Section 11: All Section 2: All Section 12: All

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, which drilling unit shall be designated at the time of filing the permit to drill; 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 section, with a tol-erance of 200 feet in any direction.

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 19th day of January 1971

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(234-1)